Impact of Leadership Styles on Job Satisfaction and Organizational Commitment

This study examines the transformational and transformational leadership theory among the employees and managers at functional levels in IT research and development department of three major cities of Pakistan. The reason of choosing this business sector is its sizable contributions and significance in the regional economy as it is more involved in technological advancements and business development. More specifically, there is more dependence of economy on professionals and expatriate workers, which creates a challenging and rich environment for the models of leadership. This paper is testing the effects of both transactional and transformational leadership styles of supervisors/ managers on job satisfaction and organizational commitment of employees. Data is collected from the managers and employees working in IT research and development department in Pakistan. Results reveals a positive effect of both transformational and transactional leadership on job satisfaction and organizational commitment, but this effect is more in case of transactional leadership. Importantly, results are challenging the view that both styles of leadership are necessary conditions for the operationalization of leadership. All findings of analysis are discussed and future recommendations are outlined.