The Impact of Strategic HRM Practices on Employee’s Job Satisfaction: The Moderating Effect of Transformational Leadership
The purpose of this paper is to evaluate the positive
impact of SHRM practices and transformational leadership style on
employees job satisfaction and to develop a conceptual understanding
of the moderating role of transformational leadership between the
relationship of SHRM practices and employees job satisfaction. This
study focuses on four SHRM practices that have positive relationship
with employee’s job satisfaction.
[1] Tooksoon, H. M. P., (2011), “Conceptual framework on the relationship
between human resource management practices, job satisfaction and
turnover.” Journal of Economics and Behavioral Studies, Vol. 2, No. 2,
pp. 41-49.
[2] Andersen, K. K., Cooper, B. K. Zhu, C. J., (2007), “The effect of SHRM
practices on perceived firm financial performance: Some initial evidence
from Australia.” Asia Pacific Journal of Human Resources, Vol. 45(2),
168-179: DOI 10.1177/1038411107079111.
[3] Becker, B. E., Huselid, M. A., (2006), “Strategic Human Resources
Management: Where Do We Go From Here?††.” Journal of
Management, Vol. 32, No. 6: DOI: 10.1177/0149206306293668
[4] Beardwell, I., Holden, L., Claydon, T. (2004). Human Resource
Management a Contemporary Approach. 4th (edn.), Harlow: Prentice
Hall.
[5] Lee, S. H. and Heard, A. (1998). A managerial perspective of the
objectives of HRM practices in Singapore: an exploratory study.
Singapore Management Review, 22, 65–82.
[6] Lazear, E.P. (1986). Retirement from the labor force. In Ashenfelter, O.,
and Layard, R. (Eds.). Handbook of labor economics, volume 1.
Amsterdam: North-Holland.
[7] Madrian, B.C. (1993). Employment-based health insurance and job
mobility: Is there evidence of joblock? Quarterly Journal of Economics,
109, 27–51.
[8] Gruber, J., and Madrian, B.C. (1994). Health insurance and job mobility:
The effects of public policy on job-lock. Industrial and Labor Relations
Review, 48(1), 86–102.
[9] Kabir, M. N., and Parvin, M. M., (2011), “Factors affecting employee
job satisfaction of pharmaceutical sector.” Australian Journal of
Business and Management Research, 1(9), 113-123.
[10] Deluga, R. J., (1998), “Relationship of Transformational and
Transactional Leadership with Employee Influencing Strategies.” Group
and Organization Management: DOI: 10.1177/105960118801300404
[11] Al-Swidi, A. K., Nawawi, M. K. M., and Al-Hosam, A., (2012), “Is the
relationship between employees psychological empowerment and
employees job satisfaction contingent on the transformational
leadership? A study of Yemeni Islamic Banks. Asian Social Science,
8(10), p130.
[12] Beauchamp, M. R., Welch, A. S., and Hulley, A. J., (2007),
“Transformational and Transactional Leadership and Exercise-related
Self-efficacy An Exploratory Study.” Journal of Health Psychology,
Vol. 12(1), pp. 83-88: DOI: 10.1177/1359105307071742
[13] Akhtar, S., Ding, D. Z., Ge, G. L., (2008), “Strategic HRM practices and
their impact on company performance in Chinese enterprises.” Human
Resource Management, Vol. 47, No. 1, pp. 15-32: DOI:
10.1002/hrm.20195.
[14] Rathnaweera, R. R. N. T, (2010), “Do HRM practices impact employee
satisfaction, commitment or retention? Empirical study of Sri Lankan
public sector banks. University of Agder. Available at
http://bit.ly/1x36ijm
[15] Garcia, M., (2005), “Training and business performance: The Spanish
case. International Journal of Human Resource Management, Vol. 16,
pp. 1691-1710.
[16] Lee, F-H. and Lee, F-Z. (2007). The relationships between HRM
practices, Leadership style, competitive strategy and business
performance in Taiwanese steel industry, Proceedings of the 13th Asia
Pacific Management Conference, Melbourne, Australia, 2007, 953-971.
[17] Pfeffer, J. (1994). Comparative advantage through people. Boston,
Mass: Harward Business School Press.
[18] Aswathappa, K. (2008), Human Resource Management: Text and Cases,
Tata McGraw- Hill Publishing Company Limited, Delhi.
[19] Mondy, R. W., and Noe, R. M.(2005). Human Resource Management,
9th Ed, Pearson Education, Inc.
[20] Guest, D.E. (1997), ‘Human Resource Management and Performance: A
Review and Research Agenda’, International Journal of Human
Resource Management, Vol.8, pp.263-276.
[21] Pfeffer, J. (1995), ‘Producing Sustainable Competitive Advantage
through the Effective Management of People’, Academy of Management
Executive, Vol.9, pp.55-69.
[22] Givens, R. J., (2008), “Transformational leadership: The impact on
organizational and personal outcomes.” Emerging Leadership Journeys,
Vol. 1, No. 1, pp. 4-24.
[23] Malik, I., and Farooqi, Y. A., (2013), “Investigating the effect of
transformational leadership as a moderator, between employee’s
psychological empowerment and employee’s job satisfaction
relationship.” International Journal of Multidisciplinary Science and
Engineering, Vol. 4, No. 7.
[24] Lin, H.-C., Shih, C.-T., (2008), “How Executive SHRM System Links to
Firm Performance: The Perspectives of Upper Echelon and Competitive
Dynamics†.” Journal of Management, Vol. 34, No. 5: DOI:
10.1177/0149206308318612
[25] Waiganjo, E. W., Mukulu, E, Kahiri, J., (2012), “Relationship between
Strategic Human Resource Management and Firm Performance of
Kenya’s Corporate Organizations.” International Journal of Humanities
and Social Sciences, Vol. 2, No. 10.
[26] Egan, R. F. C., Sarros, J. C., and Santora, J. C., (1995), “Putting
Transactional and Transformational Leadership into Practice.” The
Journal of Leadership Studies, Vol. 2, No. 3: DOI:
10.1177/107179199500200309
[27] Bryant, S. E., (2003), “The Role of Transformational and Transactional
Leadership in Creating, Sharing and Exploiting Organizational
Knowledge.” The Journal of Leadership and Organizational Studies,
Vol. 9, No. 4: DOI: 10.1177/107179190300900403
[28] Rothfelder, K., Ottenbacher, M. C., and Harrington, R. J., (2013), “The
impact of transformational, transactional and non-leadership styles on
employee job satisfaction in the German hospitality industry.” Tourism
and Hospitality Research, Vol. 12(4), pp. 201-214: DOI:
10.1177/1467358413493636
[29] Hoyt, C. L., and Blascovich, J., (2003), “Transformational and
Transactional Leadership in Virtual and Physical Environments.” Small
Group Research, Vol. 34, No. 6, pp. 678-715: DOI:
10.1177/1046496403257527
[30] Bass, B. M., (1985a), “Leadership and Performance Beyond
Expectations.” New York: Free Press.
[31] Burns, J. M. (1978), “Leadership.” New York. Harper and Row.
[32] O’Shea, P. G., Foti, R. J., and Hauenstein, N. M. A., (2009), “Are the
Best Leaders Both Transformational and Transactional? A Patternoriented
Analysis.” Leadership, Vol. 5(2), pp. 237-259: DOI:
10.1177/1742715009102937
[33] Bass, B. M., (1985b), “Multifactor Leadership Questionnaire (Form 5).”
Binghamton, University Center, State University of New York.
[34] Zhu, W., Riggio, R. E., Avolio, B. J., and Sosik, J. J., (2011), “The
Effect of Leadership on Follower Moral Identity: Does
Transformational/Transactional Style Make a Difference?.” Journal of
Leadership & Organizational Studies, Vol. 18(12), pp. 150-163: DOI:
10.1177/1548051810396714
[35] Noe, R. A. (2005). Employee Training and Development (Third
Edition). McGraw Hill: New York. OECD. Employment Outlook. Paris,
July 1993.
[36] Tan, H. W., and Batra, G., (1995), “Enterprise training in developing
countries: overview of incidence determinants and productivity
outcomes. World Bank Occasional Paper Series, World Bank,
Washington, D. C.
[37] Bradley, S., Petrescu, A. and Simmons, R. (2004). The Impacts of
Human Resource Management Practices and Pay Inequality on Workers’
Job Satisfaction. Paper presented at the Western Economic Association
79th Annual Conference Vancouve.
[38] Ting, Y. (1997). Determinants of job satisfaction of federal government
employees. PublicPersonnel Management, 26(3), 313-334.
[39] Fey, C.F., Bjorkman, I., and Pavlovskaya, A. (2000), ‘The effect of
human resource management practices on firm performance in Russia’,
International Journal of Human Resource Management, Vol.11, pp.1-
18.
[40] Gill, A, Flaschner, A. B., Shah, C., and Bhutani, I., (2010), “The
relations of transformational leadership and empowerment with
employees job satisfaction: a study among Indian restaurants employees.
Business and Economics Journal, 18, 1-10
[41] Shibru, B., and Darshan, G. M., (2011), “Effects of transformational
leadership on subordinate job satisfaction in leather companies in
Ethiopia. International Journal of Business Management and Economics
Research, 3(5).
[42] Hashim, J., Mohamad, B., Zainal Abidin, R., and Junoh, H., (2010)
“Leadership in Technical and Vocational Education” Journal of
Technical Education and Training, Vol: 02, Issue: 01.
[43] Mohammad, S., Al-Zeaud, H., and Batayneh, A., (2011), “The
relationship between transformational leadership and employees
satisfaction at Jordanian Private Hospitals.” Journal of Business and
Economics Horizon, 5(2), 35-46.
[44] Kozlowski, S.W.J., & Ilgen, D.R. (2006). Enhancing the effectiveness of
work groups and teams. Psychological Science in the Public
Interest, 7(3), 77–124.
[45] Baron R.M., & Kenny D.A. (1986). The moderator-mediator variable
distinction in social psychological research: Conceptual, strategic and
statistical considerations. Journal of Personality and Social Psychology,
51, 1173–1182. http://dx.doi.org/10.1037/0022-3514.51.6.1173
[46] Sosik, J. J., Godshalk, V. M., and Yammarino, F. J., (2004),
“Transformational leadership, learning orientation, and expectations for
career success in mentor- prote´g e´ relationships: A multi levels of
analysis perspective.” The Leadership Quarterly, Vol. 15, pp. 241-261
[47] Jin-Liang, W., and Hai-Zhen, W., (2012) “The influence of
Psychological empowerment on work attitude and behaviour in Chinese
Organizations” Journal of Business Management, Vol: 6(30), PP: 8938-
8947
[1] Tooksoon, H. M. P., (2011), “Conceptual framework on the relationship
between human resource management practices, job satisfaction and
turnover.” Journal of Economics and Behavioral Studies, Vol. 2, No. 2,
pp. 41-49.
[2] Andersen, K. K., Cooper, B. K. Zhu, C. J., (2007), “The effect of SHRM
practices on perceived firm financial performance: Some initial evidence
from Australia.” Asia Pacific Journal of Human Resources, Vol. 45(2),
168-179: DOI 10.1177/1038411107079111.
[3] Becker, B. E., Huselid, M. A., (2006), “Strategic Human Resources
Management: Where Do We Go From Here?††.” Journal of
Management, Vol. 32, No. 6: DOI: 10.1177/0149206306293668
[4] Beardwell, I., Holden, L., Claydon, T. (2004). Human Resource
Management a Contemporary Approach. 4th (edn.), Harlow: Prentice
Hall.
[5] Lee, S. H. and Heard, A. (1998). A managerial perspective of the
objectives of HRM practices in Singapore: an exploratory study.
Singapore Management Review, 22, 65–82.
[6] Lazear, E.P. (1986). Retirement from the labor force. In Ashenfelter, O.,
and Layard, R. (Eds.). Handbook of labor economics, volume 1.
Amsterdam: North-Holland.
[7] Madrian, B.C. (1993). Employment-based health insurance and job
mobility: Is there evidence of joblock? Quarterly Journal of Economics,
109, 27–51.
[8] Gruber, J., and Madrian, B.C. (1994). Health insurance and job mobility:
The effects of public policy on job-lock. Industrial and Labor Relations
Review, 48(1), 86–102.
[9] Kabir, M. N., and Parvin, M. M., (2011), “Factors affecting employee
job satisfaction of pharmaceutical sector.” Australian Journal of
Business and Management Research, 1(9), 113-123.
[10] Deluga, R. J., (1998), “Relationship of Transformational and
Transactional Leadership with Employee Influencing Strategies.” Group
and Organization Management: DOI: 10.1177/105960118801300404
[11] Al-Swidi, A. K., Nawawi, M. K. M., and Al-Hosam, A., (2012), “Is the
relationship between employees psychological empowerment and
employees job satisfaction contingent on the transformational
leadership? A study of Yemeni Islamic Banks. Asian Social Science,
8(10), p130.
[12] Beauchamp, M. R., Welch, A. S., and Hulley, A. J., (2007),
“Transformational and Transactional Leadership and Exercise-related
Self-efficacy An Exploratory Study.” Journal of Health Psychology,
Vol. 12(1), pp. 83-88: DOI: 10.1177/1359105307071742
[13] Akhtar, S., Ding, D. Z., Ge, G. L., (2008), “Strategic HRM practices and
their impact on company performance in Chinese enterprises.” Human
Resource Management, Vol. 47, No. 1, pp. 15-32: DOI:
10.1002/hrm.20195.
[14] Rathnaweera, R. R. N. T, (2010), “Do HRM practices impact employee
satisfaction, commitment or retention? Empirical study of Sri Lankan
public sector banks. University of Agder. Available at
http://bit.ly/1x36ijm
[15] Garcia, M., (2005), “Training and business performance: The Spanish
case. International Journal of Human Resource Management, Vol. 16,
pp. 1691-1710.
[16] Lee, F-H. and Lee, F-Z. (2007). The relationships between HRM
practices, Leadership style, competitive strategy and business
performance in Taiwanese steel industry, Proceedings of the 13th Asia
Pacific Management Conference, Melbourne, Australia, 2007, 953-971.
[17] Pfeffer, J. (1994). Comparative advantage through people. Boston,
Mass: Harward Business School Press.
[18] Aswathappa, K. (2008), Human Resource Management: Text and Cases,
Tata McGraw- Hill Publishing Company Limited, Delhi.
[19] Mondy, R. W., and Noe, R. M.(2005). Human Resource Management,
9th Ed, Pearson Education, Inc.
[20] Guest, D.E. (1997), ‘Human Resource Management and Performance: A
Review and Research Agenda’, International Journal of Human
Resource Management, Vol.8, pp.263-276.
[21] Pfeffer, J. (1995), ‘Producing Sustainable Competitive Advantage
through the Effective Management of People’, Academy of Management
Executive, Vol.9, pp.55-69.
[22] Givens, R. J., (2008), “Transformational leadership: The impact on
organizational and personal outcomes.” Emerging Leadership Journeys,
Vol. 1, No. 1, pp. 4-24.
[23] Malik, I., and Farooqi, Y. A., (2013), “Investigating the effect of
transformational leadership as a moderator, between employee’s
psychological empowerment and employee’s job satisfaction
relationship.” International Journal of Multidisciplinary Science and
Engineering, Vol. 4, No. 7.
[24] Lin, H.-C., Shih, C.-T., (2008), “How Executive SHRM System Links to
Firm Performance: The Perspectives of Upper Echelon and Competitive
Dynamics†.” Journal of Management, Vol. 34, No. 5: DOI:
10.1177/0149206308318612
[25] Waiganjo, E. W., Mukulu, E, Kahiri, J., (2012), “Relationship between
Strategic Human Resource Management and Firm Performance of
Kenya’s Corporate Organizations.” International Journal of Humanities
and Social Sciences, Vol. 2, No. 10.
[26] Egan, R. F. C., Sarros, J. C., and Santora, J. C., (1995), “Putting
Transactional and Transformational Leadership into Practice.” The
Journal of Leadership Studies, Vol. 2, No. 3: DOI:
10.1177/107179199500200309
[27] Bryant, S. E., (2003), “The Role of Transformational and Transactional
Leadership in Creating, Sharing and Exploiting Organizational
Knowledge.” The Journal of Leadership and Organizational Studies,
Vol. 9, No. 4: DOI: 10.1177/107179190300900403
[28] Rothfelder, K., Ottenbacher, M. C., and Harrington, R. J., (2013), “The
impact of transformational, transactional and non-leadership styles on
employee job satisfaction in the German hospitality industry.” Tourism
and Hospitality Research, Vol. 12(4), pp. 201-214: DOI:
10.1177/1467358413493636
[29] Hoyt, C. L., and Blascovich, J., (2003), “Transformational and
Transactional Leadership in Virtual and Physical Environments.” Small
Group Research, Vol. 34, No. 6, pp. 678-715: DOI:
10.1177/1046496403257527
[30] Bass, B. M., (1985a), “Leadership and Performance Beyond
Expectations.” New York: Free Press.
[31] Burns, J. M. (1978), “Leadership.” New York. Harper and Row.
[32] O’Shea, P. G., Foti, R. J., and Hauenstein, N. M. A., (2009), “Are the
Best Leaders Both Transformational and Transactional? A Patternoriented
Analysis.” Leadership, Vol. 5(2), pp. 237-259: DOI:
10.1177/1742715009102937
[33] Bass, B. M., (1985b), “Multifactor Leadership Questionnaire (Form 5).”
Binghamton, University Center, State University of New York.
[34] Zhu, W., Riggio, R. E., Avolio, B. J., and Sosik, J. J., (2011), “The
Effect of Leadership on Follower Moral Identity: Does
Transformational/Transactional Style Make a Difference?.” Journal of
Leadership & Organizational Studies, Vol. 18(12), pp. 150-163: DOI:
10.1177/1548051810396714
[35] Noe, R. A. (2005). Employee Training and Development (Third
Edition). McGraw Hill: New York. OECD. Employment Outlook. Paris,
July 1993.
[36] Tan, H. W., and Batra, G., (1995), “Enterprise training in developing
countries: overview of incidence determinants and productivity
outcomes. World Bank Occasional Paper Series, World Bank,
Washington, D. C.
[37] Bradley, S., Petrescu, A. and Simmons, R. (2004). The Impacts of
Human Resource Management Practices and Pay Inequality on Workers’
Job Satisfaction. Paper presented at the Western Economic Association
79th Annual Conference Vancouve.
[38] Ting, Y. (1997). Determinants of job satisfaction of federal government
employees. PublicPersonnel Management, 26(3), 313-334.
[39] Fey, C.F., Bjorkman, I., and Pavlovskaya, A. (2000), ‘The effect of
human resource management practices on firm performance in Russia’,
International Journal of Human Resource Management, Vol.11, pp.1-
18.
[40] Gill, A, Flaschner, A. B., Shah, C., and Bhutani, I., (2010), “The
relations of transformational leadership and empowerment with
employees job satisfaction: a study among Indian restaurants employees.
Business and Economics Journal, 18, 1-10
[41] Shibru, B., and Darshan, G. M., (2011), “Effects of transformational
leadership on subordinate job satisfaction in leather companies in
Ethiopia. International Journal of Business Management and Economics
Research, 3(5).
[42] Hashim, J., Mohamad, B., Zainal Abidin, R., and Junoh, H., (2010)
“Leadership in Technical and Vocational Education” Journal of
Technical Education and Training, Vol: 02, Issue: 01.
[43] Mohammad, S., Al-Zeaud, H., and Batayneh, A., (2011), “The
relationship between transformational leadership and employees
satisfaction at Jordanian Private Hospitals.” Journal of Business and
Economics Horizon, 5(2), 35-46.
[44] Kozlowski, S.W.J., & Ilgen, D.R. (2006). Enhancing the effectiveness of
work groups and teams. Psychological Science in the Public
Interest, 7(3), 77–124.
[45] Baron R.M., & Kenny D.A. (1986). The moderator-mediator variable
distinction in social psychological research: Conceptual, strategic and
statistical considerations. Journal of Personality and Social Psychology,
51, 1173–1182. http://dx.doi.org/10.1037/0022-3514.51.6.1173
[46] Sosik, J. J., Godshalk, V. M., and Yammarino, F. J., (2004),
“Transformational leadership, learning orientation, and expectations for
career success in mentor- prote´g e´ relationships: A multi levels of
analysis perspective.” The Leadership Quarterly, Vol. 15, pp. 241-261
[47] Jin-Liang, W., and Hai-Zhen, W., (2012) “The influence of
Psychological empowerment on work attitude and behaviour in Chinese
Organizations” Journal of Business Management, Vol: 6(30), PP: 8938-
8947
@article{"International Journal of Business, Human and Social Sciences:68609", author = "Zeeshan Hamid and Sarwar Mehmood Azhar", title = "The Impact of Strategic HRM Practices on Employee’s Job Satisfaction: The Moderating Effect of Transformational Leadership", abstract = "The purpose of this paper is to evaluate the positive
impact of SHRM practices and transformational leadership style on
employees job satisfaction and to develop a conceptual understanding
of the moderating role of transformational leadership between the
relationship of SHRM practices and employees job satisfaction. This
study focuses on four SHRM practices that have positive relationship
with employee’s job satisfaction.
", keywords = "Employee’s job satisfaction, moderating effect of
transformational leadership, SHRM practices, transformational
leadership, theoretical framework.", volume = "8", number = "10", pages = "3404-5", }
