Taiwan IT leadership sample.pdf

8/19/2019 Taiwan IT leadership sample.pdf

1/166

NOTE TO USERS

This reproduction is the best copy available.

®

UMI

roduced with permission of the copyright owner. Further reproduction prohibited without permission.


2/166roduced with permission of the copyright owner. Further reproduction prohibited without permission.


3/166

THE EFFECTS OF TRANSFORMATIONAL LEADERSHIP ON

ORGANIZATIONAL COMMITMENT AND JOB SATISFACTION IN TAIWAN’SINFORMATION TECHNOLOGY INDUSTRY

By

Chien-Liang Liu

A DISSERTATION

Submitted to

H. Wayne Huizenga School of Business and Entrepreneurship

Nova Southeastern University

in partial fulfillment of the requirements

for the degree of

DOCTOR OF BUSINESS ADMINISTRATION

2005



4/166

UMI Number: 3222256

Copyright 2006 by

Liu, Chien-Liang

Al l rights reserved.

INFORMATION TO USERS

The quality of this reproduction is depende nt upon the q uality of the copy

submitted. Broken or indistinct print, colored or poor quality illustrations and

photographs, print bleed-through, substandard margins, and improper

alignment can adv ersely affect reproduction.

In the unlikely event that the author did not send a com plete m anuscript

and there are missing pages, these will be noted. Also, if unauthorized

copyright material had to be removed, a note will indicate the deletion.

®

UMIUMI Microform 3222256

Copyright 2006 by ProQuest Information and Learning Company.

All rights reserved. Th is microform ed ition is protected agains t

unauthorized copying under Title 17, United States Code.

ProQuest Information and Learning Company

300 North Zeeb Road

P.O. Box 1346

Ann Arbor, Ml 4810 6-1346



5/166

A Dissertation

Entitled


ORGANIZATIONAL COMMITMENT AND JOB SATISFACTION IN TAIWAN’SINFORMATION TECHNOLOGY INDUSTRY

By

Chien-Liang Liu

We hereby certify that this Dissertation submitted by Chien-Liang Liu conforms to acceptable

standards, and as such is fully adequate in scope and quality. It is therefore approved as the

fulfillment of the Dissertation requirements for the Degree o f Doctorate o f Business

Administration.

6

Sabrina Segal, D.B.A. Date

Chairperson

/ •O'CP ■ iM if ' 6~//2/ecPedro F. Pellet, Ph.D. Date

Committee Member

1XA^At3 , bert C. PreziosiTl) P.A. ^ DateRobert

Committee Member

Russell Abratt, Ph.CT^ Date

Chair, Doctoral Programs

— — _______ - £ L

J./ffi&ten Jones, Date (Associate Dean, H. Wayne Huizenga School

An Business and Entrepreneurship

Nova Southeastern University

2005



6/166

CERTIFICATION STATEMENT

I hereby certify that this paper constitutes my own product, that where the language of others is

set forth, quotation marks so indicate, and that appropriate credit is given where I have used the

language, ideas, expressions or writings of another.

Signed

Chien-



7/166

ABSTRACT


ORGANIZAITONAL COMMITMENT AND JOB SATISFACTION IN TAIWAN’SINFORMATION TECHNOLOGY INDUSTRY

by

Chien-Liang Liu

The research model of the study herein has been developed to gain a better understanding ofthe predictability of organizational commitment and job satisfaction based on transformational

leadership in Taiwan’s IT industry. According to previous studies, survey questionnaires areincluding three major instruments: MLQ (Bass & Avoilo, 2000), TCM (Allen & Meyer, 1991),

and JSS (Spector, 1985). The total of 224 employees who work at Taiwan’s IT industryresponded the survey. All participants were selected randomly at IT industries in Taiwan and

completed the above three sets of self-reported questionnaires. Survey data was collected by

SPSS 11.5. The statistical methods used include descriptive statistics, simple regression analysis,and correlation analysis. The statistical results from these measures were used to test the 16

hypotheses and determine whether Taiwan’s IT industry performs the transformational leadershipcharacteristics. The findings conformed to previous studies and supported all hypotheses in this

study. Therefore, transformational leadership has significant effects on organizationalcommitment and job satisfaction in Taiwan’s IT industry.



8/166

ACKNOWLEDGEMENTS

It is long and tough process to accomplish this dissertation. First, I would like to thank my

Chairperson of Committees, Dr. Sabrina Segal. Without her guidance, encouragement, and

instruction, I would not make this study proceed in a right track. And I would express thanks to

my Reader of Committees, Dr. Pedro F. Pellet and Dr. Robert C. Preziosi. Their suggestions and

advices helped me to pass through the questions.

I would like to acknowledge all the participants who did the survey, which provided

valuable data to this dissertation. Also, I want to thank Jamson Lin, Steve Hsieh, Huihua Hsieh,

and friends, who help me to dispatch the survey in Taiwan. Without their assisted, I cannot

collect the data so quickly.

Furthermore, I would like to thank all of professors and classmates. They shared experience

and information with me in the classes, which widened my mind and improved my knowledge.

In addition, I would like to thank Lan Yang Institute of Technology for giving me a chance to

study on this program in the beginning, especially the professors of Department of Information

Management.

Finally, I want to provide the best appreciation to my parents. They always stand by me and

give me the mental inspiration, financial support, and unfailing sacrifices. Without them, I can

not study here and finish the degree. I would use my whole life to pay back their love. In

addition, I would like to thank my family members for their support and encourage. This

dissertation is dedicated to all of you.



9/166

TABLE OF CONTENTS

LIST OF TABLES.......................................................................................................................... viii

LIST OF FIGURES......................................................................................................................... x

Chapter Page

I. INTRODUCTION

Background of the Problem............................................................................................... 1

Purpose of the Study........................................................................................................... 4

Statement of Problem......................................................................................................... 5Significance of the Study................................................................................................... 5

Definition of Terms............................................................................................................

5Assumptions and Linkages............................................................................................... 8

Limitations......................................................................................................................... 8

Organization of the Study................................................................................................. 9Research Questions............................................................................................................ 9Working Hypotheses.......................................................................................................... 9

Conclusion......................................................................................................................... 12

II. REVIEW OF THE LITERATURE

Introduction...................................................................................................................... 14

Leadership Theory............................................................................................ ,.............. 14Transformational Leadership................................................ 20

Chinese Leadership Styles.............................................................................................. 26Organizational Commitment.......................................................................................... 27

Job Satisfaction................................................................................................................ 30Transformational Leadership and Organizational Commitment................................... 31

Transformational Leadership and Job Satisfaction....................................................... 33Conclusion....................................................................................................................... 35

III. METHODOLOGY

Introduction....................................................................................................................... 38Conceptual Framework ................................................................................................... 38Populations and Sample.................................................................................................. 39

The Variables................................................................................... 40Operational Definition.................................................................................................... 40Survey Instrument............................................................................................................ 43Survey Instrument Translation........................................................................................ 48

Reliability and Validity.................................................................................................... 49

vi



10/166

Data Collection................................................................................................................. 51Methods of Data Analysis................................................................................................ 52

Research Questions......................................................................................................... 53

Working Hypotheses....................................................................................................... 53

Values and Key limits......................................................................................................

60Conclusion....................................................................................................................... 60

IV. ANALYSIS AND PRESENTATION OF FIDING

Introduction....................................................................................................................... 62

Pilot Test............................................................................................................................ 62Return Rate of Survey....................................................................................................... 66Description of the Demographic of the Sample............................................................. 67

Testing and Analyzing the Hypotheses............................................................................ 70

Finding Regarding the Research Question...................................................................... 87

Conclusion........................................................................................................................ 94

V. SUMMARY, DISCUSSION, AND RECOMMENDATION

Introduction..................................................................................................................... 97

Objective of Study....................................................................................................... 97Connection to Related Literature..................................................................................... 97

Research Methodology................................................................................................... 99

Connection to Model........................................................................................................ 100Practical Implications....................................................................................................... 102Future Research................................................................................................................. 103

REFERENCES..................................................................................... !................ 106

APPENDICES

A. Permission Letter of Multifactor Leadership Questionnaire....................................120B. Permission Letter ofTCM Employee Commitment Survey.................................. 122C. Permission Letter of Job Satisfaction Survey........................................................ 124

D. Packet of the Survey Questionnaires in English Version.........................................126

E. Packet of the Survey Questionnaires in Chinese Version........................................ 132F. Table for Determining Sample Size from a Given Population.............................. 138

G Pilot Test Results....................................................................................................

140H. Factor Analysis and Reliability Analysis of Survey.............................................. 146I. Descriptive Statistics of Each Variable.................................................................. 151

vii



11/166

LIST OF TABLES

Page

Table 1-1 Taiwan’s IT Product: Global Market Share Distribution at 2002........................

2Table 3-1 Definition of JSS Characteristics......................................................................... 43Table 3-2 Items of Each Subscale of Transformational Leadership.................................... 45

Table 3-3 Items of Each Subscale of Organizational Commitment.................................... 47

Table 3-4 Items of Each Subscale of Job Satisfaction........................................................ 48Table 3-5 Internal Consistency Reliabilities of Job Satisfaction Survey............................ 51Table 3-6 Previous Statistical Methods................................................................................ 52

Table 3-7 Statistical Method of Hypotheses....................................................................... 59

Table 4-1 Pilot Test Results of Survey Instruments............................................................ 64

Table 4-2 Items of MLQ, TCM, and JSS after Pilot Test..................................................... 66

Table 4-3 The Distribution of Participants by Gender............................ 67Table 4-4 The Distribution of Participants by Age .............................................................. 68

Table 4-5 The Distribution of Participants by Education Level........................................... 68Table 4-6 The Distribution of Participants by Tenure with Current Supervisor.................. 69Table 4-7 The Distribution of Participants by Tenure in Current Industry........................... 70Table 4-8 Regression Results for Idealized Influence on Affective Commitment............... 71

Table 4-9 Regression Results for Idealized Influence on Continuance Commitment 72

Table 4-10 Regression Results for Idealized Influence on Normative Commitment 73

Table 4-11 Regression Result for Inspirational Motivation on Affective Commitment 74Table 4-12 Regression Result for Inspirational Motivation on Continuance

Commitment................................................................ 75Table 4-13 Regression Result for Inspirational Motivation on Normative Commitment 76

Table 4-14 Regression Result for Intellectual Stimulation on Affective Commitment 77

Table 4-15 Regression Result for Intellectual Stimulation on Continuance Commitment.„.. 78Table 4-16 Regression Result for Intellectual Stimulation on Normative Commitment..........79Table 4-17 Regression Result for Individualized Consideration on Affective

Commitment............................................................................................................ 80Table 4-18 Regression Result for Individualized Consideration on Continuance

Commitment.......................................................................................................... 81

Table 4-19 Regression Result for Individualized Consideration on NormativeCommitment.......................................................................................................... 82

Table 4-20 Regression Result for Idealized Influence on Overall Job Satisfaction............... 83Table 4-21 Regression Result for Inspirational Motivation on Overall Job Satisfaction 84

Table 4-22 Regression Result for Intellectual Stimulation on Overall Job Satisfaction 85

Table 4-23 Regression Result for Individualized Consideration on Overall JobSatisfaction...............................................................................................................86Table 4-24 The Test Result of Regression Analysis.............................................................. 87

Table 4-25 Correlations among Affective Commitment and TransformationalLeadership............................................................................................................. 89

Table 4-26 Correlations among Continuance Commitment and TransformationalLeadership............................................................................................................. 90

Table 4-27 Correlations among Normative Commitment and Transformational



12/166

Leadership............................................................................................................. 91

Table 4-28 Correlations among Organizational Commitment and TransformationalLeadership............................................................................................................ 92

Table 4-29 Correlations among Overall Job Satisfaction and Transformational

Leadership........................................................................................................... 94

ix



13/166

LIST OF FIGURES

Page

Figure 3-1 The Conceptual Framework ................................................................................... 39

Figure 3-2 Hypotheses between Transformational Leadershipand Organizational Commitment............................................................................ 54

Figure 3-3 Hypotheses between Transformational leadershipand Job Satisfaction.................................................................................................. 57

Figure 4-1 The Flow of Survey Scale Purification................................................................. 63Figure 5-1 The Result of Correlation Analysis....................................................................... 102

x



14/166

1

CHAPTER I

Introduction

Background o f the Problem

The information highway and electronic commerce have emphasized the growing overlap

among telecommunication, computer hardware/software, content in the new digital economy and

the demand for new skills and knowledge (Cukier, Shortt, & Devine, 2002). Information

Technology (IT) plays an essential role in helping organizations achieve profitable results and

maintain a competitive edge. IT includes all materials concerned with the advancement of

computer science and technology, and with the design, development, installation, and

implementation of information systems and applications.

The information technology industry involves the creation, production, distribution,

purchase and sale of IT components, products, and accessories. It also involves packaged

solutions in the areas o f communication, memory, multimedia, networking, storage, computer

hardware, software, systems, semiconductor, intelligent archive and peripherals, and a host of

other support and electronic services (i.e. electronic commerce). New technologies and products

developed by the IT industry are changing the way we live and do business, making our work

more efficient, and communication more effective.

The IT industry in Taiwan began in the early 1970s (Amsden & Chu, 2003; Breznitz, 2005;

Hong, 1997; Mathews & Cho, 2000). In 1981, International Business Machines Corporation

(IBM) introduced the first personal computer. IT industry in Taiwan has been prosperous

development. By the year 2000, IT industry in Taiwan had grown to be fourth largest in the

world and for more than two decades now, products labeled “Made in Taiwan” have been

distributed worldwide allowing Taiwan to establish a strong foothold in the IT industry. Table 1-1



15/166

2

represents the global market share of Taiwan’s IT industry in 2002.

Table 1-1

Taiwan’s IT Product: Global Market Share Distribution in 2002

Product Revenue (M* USD) Quantity (K* units) Global Market Share (%)

Notebook PC 13,847 18,380 61

Desktop PC 6,974 24,959 23

Motherboard 5,635 86,554 75

CDT monitor 4,544 42,910 51

LCD monitor 5,646 18,254 61

CD/DVD/RW drives 3,146 79,409 45

Server 1,303 1,468 30

Digital camera 1,003 8,753 39

Source: MTC/TTTS (2 00 3t M*= M illion K* = K ilo-

The IT industry is highly competitive and intense. Technology advances rapidly, and the life

cycles of IT products tend to be short. In addition, global economic competition puts pressure on

IT innovators to develop new products quickly to meet global demand and trends. Taiwan’s IT

industry has survived the highly competitive environment by managers helping their

organizations move forward.

In general, organizations must respond to change rapidly to survive and thrive amid their

respective economic climates. Fiedler (1967) suggested that leadership is an interpersonal

relation, enabling one individual to direct and control the actions or behaviors of others. He also

mentioned that good leaders are the critical element to organizational success. Leadership theory

has been studied using both qualitative and quantitative methods in many private and public

organizations. People are captivated by the idea o f leadership and try to seek more information



16/166

on how to become effective leaders. Leadership is integral in building long-term business

relationships, which is why so many business organizations seek-out capable leaders for their

ability to face new challenges and adapt to a changing business environment.

The concept of transformational leadership became more prevalent in leadership research

over the last decade. To articulate an important vision and mission for the organization,

transformational leaders aid followers to (a) gain an increased understanding of the importance

and the values associated with desired outcomes, (b) raise their performance expectations, and (c)

increase followers willingness to transcend their interests for the sake of the collective entity

(Bennis & Nanus, 1985; Conger & Kanungo, 1988; House, Spangler, & Woycke, 1991).

The scope and scale of the IT mission of the most organization is undergoing significant

transformation (May, 2004). Several critical studies mention that the IT industry needs

transformational-style leaders who are able to spearhead change. For example, Keller (1992)

pointed out that transformational leadership positively influenced performance of research and

development (R&D) in larger R&D organizations.

Howell and Avolio (1993) found a positive relationship between intellectual stimulation and

unit performance, when a climate of support for innovation was prevalent within a leader’s unit.

In addition; Sosik, Kahai, and Avolio (1998) suggested in a computer-mediated brainstorming

exercise, that transformational leadership had boosted creativity. Jun, Chow, and Wu (2003)

found that transformational leadership had a direct and positive correlation to organizational

innovation.

Bass and Avolio (2002) pointed to transformational leadership as a way to get more from

followers. Transactional leaders concentrate on the transaction or exchange among leaders,

colleagues, and followers (Bass & Avolio, 2002). Transformational leaders would motivate



17/166

4

followers to increase their commitment to the organization, further influencing job satisfaction.

Bass (1985) developed transformational leadership theory to explain the way that leaders

gain extra ordinary commitment (manifested as attitudes, beliefs, and behavior) from their

followers based on leadership styles identified by Bums (1978) and House (1977).

Transformational leadership has also been found to heighten levels of organizational

commitment (Arnold et al., 2001; Barling et al., 1996).

In addition, some researchers (Avolio & Bass, 1988; Bass, Avolio, & Goodheim, 1987;

Howell & Frost 1989) have indicated that transformational leadership behaviors tend to relate

positively to higher performance and greater job satisfaction among employees of business and

industrial organizations. Transformational leadership behavior has been widely linked to positive

consequences for individuals and organizations alike (Bass, 1998).

Although many studies investigate the relationship among transformational leadership,

organizational commitment, and job satisfaction in different areas, little research has adequately

focused on the informational technology area, especially in Taiwan. Therefore, it is important to

recognize how transformational leadership influences organizational commitment and job

satisfaction in Taiwan’s IT industry.

Purpose o f the Study

Leadership is one of the most important factors that can motivate and enhance the

organizational commitment and job satisfaction of an employee. A number of studies show that

successful transformational leadership can improve employees’ commitment and job satisfaction

when organizations face change. However, no such research yet focuses on Taiwan’s IT industry.

Therefore, the major purpose of the study is to determine how transformational leadership affects

organizational commitment and employee job satisfaction in the IT industry in Taiwan.



18/166

5

Statement o f the Problem

Taiwan’s IT industry must survive while facing heightened competition and economic

globalization. Leadership is one of the best ways for an organization to succeed, and companies

can achieve this through effective management. Organizational commitment and job satisfaction

reflect the extent to which an individual identifies with an organization, and is committed to its

goal and success. Transformational leaders motivate followers to increase their commitment to

an organization and further influence their job satisfaction.

Therefore, the research model herein has been developed to gain a better understanding of

the predictability of organizational commitment and job satisfaction based on transformational

leadership in Taiwan’s IT industry. Three instruments were used to determine the direct and

indirect impact transformational leadership has on employees’ organizational commitment and

their job satisfaction: (a) Multifactor Leadership Questionnaire (MLQ), (b) Three-Component

Model (TCM) Employee Survey, and (c) Job Satisfaction Survey (JSS).

Significance o f the Study

The data collected from this study may provide necessary feedback to IT administrators in

Taiwan. There are a number o f the studies that have examined the effects of transformational

leadership on organizational commitment and job satisfaction in Taiwan. However they do not

include the IT industry. Thus, the study may make a valuable contribution to existing literature

on transformational leadership, organizational commitment, and job satisfaction. There is limited

research that focuses on IT in Taiwan. Therefore, the study could be significant for the IT

industry. All participants in the proposed study are employees in Taiwan’s IT industries.

Definition o f Terms

The following definitions are included for clarification:



19/166

6

Information technology. This includes all matters concerned with the furtherance of

computer science and technology and with the design, development, installation, and

implementation of information systems and applications.

Information technology industry. This encompasses the creation, production, distribution,

purchase and sale of IT components, products, accessories and packaged solutions in the areas of

communication, memory, multimedia, networking, storage, computer hardware, software,

systems, semiconductor, intelligent archive, and a host of support and electronic services.

Leader. This is person or persons managing change. Leaders coach employees on

customer service, motivate employees through one-on-one development, and inspire employees

toward heightened performance. The leader is at the center of group change and activity and

embodies the will of the group. Therefore, a leader is the person best suited to teach others to

lead themselves.

Leadership. This is ability to influence people toward achieving a common goal (Armandi,

et al., 2003), as well as the observed effort of one member to change other members’ behavior by

changing the motivation of other members or their habits (Bass, 1960).

Transformational leader. This is person who attempts and succeeds in raising colleagues,

subordinates, followers, clients or constituencies to a greater awareness level about issues of

consequence (Bass, 1985). Transformational leaders challenge the process, show credibility,

inspire vision, and enable others to act similarly (Kouzes & Posner, 1993).

Transformational leadership. Transformational leadership (Bass, 1985) is a process by

which leaders motivate subordinates to do more than they had originally expected. Leaders do so

by raising the awareness level among subordinates so they value the outcome. They get

subordinates to transcend self-interests for the sake of the organization. They support the



20/166

7

expansion of subordinates’ needs and wants portfolio. Bass and Avolio (1997) indicated that

transformation leaders possess and display four key characteristics:

1. Idealized influence (charismatic leadership) (i.e. followers idealize and emulate the

behaviors of their trusted leader)

2. Inspirational motivation (i.e. followers are motivated by attainment of a common goal)

3. Intellectual stimulation (i.e. followers are encouraged to break away from old way of

thinking and are encouraged to question their values, beliefs, and expectation)

4. Individualized consideration (i.e. follower’s needs are addressed both individually and

equitably).

Organizational commitment. This is the measure of the strength of the identification with

and involvement in the goals and values of the organization, and the willingness to work hard for

and maintain membership in an organization. Such commitment can generally be characterized

by at least three factors: (a) a strong belief in and acceptance of the organization’s goals and

values, (b) the willingness to exert considerable effort on behalf of the organization, (c) a definite

desire to maintain organizational membership (Porter, 1974). Meyer and Allen (1991) indicated

that definitions of organizational commitment are “the view that commitment is a psychological

state that (a) characterizes the employee’s relationship with the organization, and (b) has

implications for the decision to continue membership in organization” (p. 67).

Job satisfaction. This is general feeling an employee has about his or her job; mostly with

matters of pay, promotion, supervision, co-workers and the work itself (Porter, 1974). Spector

(1997) described job satisfaction as a core variable in research and theory of organizational

phenomena ranging from job design to supervision. He concluded the common facets of job

satisfaction from many familiar job satisfaction instruments such as appreciation, communication,



21/166

8

coworkers, fringe benefits, job conditions, nature of the work itself, organization itself,

organizational policies and procedures, pay, personal growth, promotion opportunities,

recognition, security, and supervision.

Assumptions and Linkages

The following assumptions will be made regarding of the proposed study:

1. The studies assumed that the responses of employees were honest and reflect

completely their impression of their leader’s behaviors, and the study also assumed that

employee responses represent their own organizational commitment and job satisfaction.

2. The study assumed that all responses were independent and not influenced by others.

3. The study assumed that all respondents understood the content of the questionnaires.

4. The study assumed that the translator was able to make an exact or near exact

translation of all questionnaires and demographic survey from English to Chinese.

5. The distributions of randomly selected subjects were assumed to be normal and

provide a valid representation of the population of the study.

Limitations

This study includes the following limitations:

1. Participants of this study may not understand the objectives and importance of the

proposed research, and may not reply with accurate and well-thought answers.

2. The size of organization selected in the proposed study may influence the accuracy of

findings of the research.

3. The samples of the study may not adequately represent the population of Taiwan’s IT

industry.

4. All the disadvantages of the survey technique are recognized.



22/166

9

Organization o f the Study

The proposed dissertation was composed o f five chapters. Chapter one presented the

following subsections: (a) overview of the background o f the subject, (b) purpose of study, (c)

definition of terms, (d) assumptions and limitations of study.

Chapter two described the following subsections: (a) literature review of leadership, (b)

transformational leadership, (c) organizational commitment, and (d) job satisfaction theories. It

will also discuss the relationships o f transformational leadership, organizational commitment,

and job satisfaction.

Chapter three presented the methodology that included population and samples of the study,

research questions, working hypotheses, research instruments and variables, reliability and

validity, and data analysis.

Chapter four, analysis and presentation of findings, not only collected and analyzed the data

but also presented the findings of the study. The last chapter summarized the research, analyzed

the findings in light of transformational leadership, described limitations o f the study, and

presented recommendations for future research.

Research Questions

The major purpose of the study is to determine how transformational leadership affects

organizational commitment and employee job satisfaction in the IT industry in Taiwan. The

following research questions are:

1. Is transformational leadership related to organizational commitment in Taiwan’s IT

industry?

2. Is transformational leadership related to job satisfaction in Taiwan’s IT industry?

Hypotheses



23/166

10

According to research questions, the proposed dissertation study explored following 16

research hypotheses, which are presented in both the null and directional formats.

HI: Transformational leadership (idealized influence) would be related to affective

commitment in Taiwan’s IT industry.

Hlo: Transformational leadership (Idealized Influence) would be not related to affective


H2: Transformational leadership (idealized influence) would be related to continuance


H20: Transformational leadership (Idealized Influence) would be not related to continuance


H3: Transformational leadership (idealized influence) would be related to normative


H3o: Transformational leadership (Idealized Influence) would be not related to normative


H4: Transformational leadership (inspirational motivation) would be related to affective


H4o: Transformational leadership (Inspirational Motivation) would be not related to

affective commitment in Taiwan’s IT industry.

H5: Transformational leadership (inspirational motivation) would be related to continuance



continuance commitment in Taiwan’s IT industry.

H6: Transformational leadership (inspirational motivation) would be related to normative



24/166

11



normative commitment in Taiwan’s IT industry.

H7: Transformational leadership (intellectual simulation) would be related to affective


H7o: Transformational leadership (Intellectual Stimulation) would be not related to affective


H8: Transformational leadership (intellectual simulation) would be related to continuance


H8o: Transformational leadership (Intellectual Stimulation) would be not related to


H9: Transformational leadership (intellectual simulation) would be related to normative


H9o: Transformational leadership (Intellectual Stimulation) would be not related to


H10: Transformational leadership (individualized consideration) would be related to


HlOo: Transformational leadership (Individualized Consideration) would be not related to


HI 1: Transformational leadership (individualized consideration) would be related to


H ll0: Transformational leadership (Individualized Consideration) would be not related to




25/166

12

H I2: Transformational leadership (individualized consideration) would be related to


H12o: Transformational leadership (Individualized Consideration) would be not related to


H I3: Transformational leadership (idealized influence) would be related to overall job


H13o: Transformational leadership (Idealized Influence) would be not related to overall job


HI4: Transformational leadership (inspirational motivation) would be related to on overall

job satisfaction in Taiwan’s IT industry.

H14o: Transformational leadership (Inspirational Motivation) would be not related to overall


HI 5: Transformational leadership (intellectual stimulation) would be related to overall job


H15o: Transformational leadership (Intellectual Stimulation) would be not related to overall


H I6: Transformational leadership (individualized consideration) would be related to overall


H16o: Transformational leadership (Individualized Consideration) would be not related to

overall job satisfaction in Taiwan’s IT industry.

Conclusion

Economic growth is the primary goal of the Taiwan government to support information

technology development. For two decades, Taiwan’s IT industry has been prosperous and has



26/166

13

ultimately turned the country’s economy around. To face the highly competitive IT environment,

Taiwan’s IT industry has to recognize that leadership is the most important factor for growing an

organization’s success. The purpose of the proposed dissertation study is to determine how

transformational leadership affects organizational commitment and employee job satisfaction in

Taiwan’s IT industry.

Based on the research hypotheses proposed, the study examined the effects of four types of

the transformational leadership style, which influence organizational commitment and job

satisfaction in Taiwan’s IT industry. The next chapter described leadership, transformational

leadership, organizational commitment, and job satisfaction theories. Also, it discussed the

relationships o f transformational leadership, organizational commitment, and job satisfaction.



27/166

14

CHAPTER II

Review of the Literature

Introduction

The following review of selected sources is needed to justify the purposed of this study. The

literature summarizes previous research relevant to transformational leadership and its

relationships to organizational commitment and subordinate job satisfaction. The chapter below

is divided into several sections including: (a) the broad overview of leadership theory, (b)

description of the previous transformational leadership studies, (c) organizational commitment,

(d) job satisfaction, (e) the relationships between transformational leadership and organizational

commitment, and (f) the relationship between transformational leadership and job satisfaction.

Leadership Theory

Throughout human evolution, humankind has spent countless hours developing a more

thorough understanding of what makes leaders successful. Numerous theories on leadership,

researched and espoused, have appeared in the literature. In general, leaders are challenged with

the task of leading others who are supposed to lead themselves. Leaders influence employees to

voluntarily pursue organizational goals (Kreitner & Kinicki, 2000). Most people are familiar

with the meaning of leadership; however, it can mean different things to different people. As

much as people try to define leadership, they immediately discover its various applications. More

than 40 years ago, Bass (1960) defined leadership with the following passage:

Leadership is the observed effort of one member to change other

members’ behavior by altering the motivation of other members or bychanging their habits. If the leadership is successful, what is observed is achange in the member accepting the leadership (p. 447).

Studies following the Bass research focused on the objective and scientific approach to

leadership theory. There are more than 65 different classification studies developed to define the



28/166

15

dimension of leadership (Fleishman, et al., 1991). These studies sought to identify different types

of leadership and to relate them to functional demands o f society. Fiedler (1967) defined

leadership as an interpersonal relation, which enables one to direct and control the actions or

behaviors o f others. He also suggested that leader were essential to organizational success.

Bryman (1986) described leadership as “a social influence process in which a person steers

members of the group towards a goal” (p. 2). Bass (1990a) suggested that some definitions view

leadership as the focus of group processes. From this perspective, the leader is at the center of

group change and activity and embodies the will of the group. Northouse (1998) conceptualized

several components: (a) leadership is a process, (b) leadership involves influence, (c) leadership

occurs within a group context, and (d) leadership involves goal attainment. Based on those

components, he asserted “leadership is a process whereby an individual influences a group of

individuals to achieve a common goal” (Northouse, 1998, p.3). In general, leadership theory can

be categorized into three areas of research: trait theory, behavioral theory, and contingency

theory.

Trait theory. Stogdill (1981) described that “the personal characteristics of the leader must

bear some relevant relationship to characteristics, activities, and goals of followers” (p. 67).

Bryman (1986) separated leadership traits into three categories: physical factors, ability

characteristics, and personal features. Physical factors were defined as height, weight, physique,

and appearance. Ability characteristics included intelligence, fluency of speech, scholarship, and

knowledge. Personality features were conservatism, introversion-extroversion, dominance,

self-confidence, and emotional control. According to Bass (1996), traits include capacity,

achievement, responsibility, participation, status, and situation. Yukl (2001) said that trait “refers

to a variety of individual attributes, including aspects o f personality, temperament, needs,



29/166

16

motives, and values” (p. 175). Based on pervious research, he indicated that traits are “adaptable

to situations; alert to social environment; ambitious achievement oriented; assertive; cooperative;

decisive; dependable; dominant; energetic; persistent; self-confident; tolerant of stress; and

willing to assume responsibility” (p. 178).

The original theory of leadership sought to identify leadership traits. Leadership traits were

studied to determine what made the person become a great leader. Many researchers believed

that leaders were bom and not made (Stogdill, 1948; Mann, 1959). In the early stages, research

concentrated on specific traits, which clearly differentiated leaders from followers (Bass, 1990a).

In 1948 and 1974, Stogdill proposed that leadership was not a passive state, but the result of a

working relationship between the leader of the group and other group member. A leader’s traits

were positively associated with their ability to lead. The studies marked the beginning of the new

approach to leadership research, which focused on leadership behaviors and leadership situations.

Mann (1959) suggested that personality traits could be used to discriminate leaders from

non-leaders. He identified strong traits o f leaders: intelligence, masculinity, adjustment,

dominance, extroversion, and conservatism. Lord et al. (1968) found that personality traits could

consistently be used to make situational discriminations between leaders and non-leaders. In

addition, Kirkpatrick and Locke (1991) contended that leadership traits make some people

different from others—an important dynamic in the leadership process.

Traits research has come frill circle as a result of renewed interest on the critical traits of

leaders. Kreitner and Kinicki (2003) described leader traits as the physical or personality

characteristics that can be used to differentiate leaders from followers. Trait theory has an

obvious logic. It seems plausible that iconic leaders, good and bad, must have some things in

common. Woodruffe (2004) re-evaluated and extended the conclusion that leaders were superior



30/166

17

to followers in matter of: intelligence, dominance, self-confidence, energy-activity, and task

relevant knowledge. These traits are characteristics of leaders.

Behavioral theory. Researchers began to shift their focus from the trait theory of

leadership to the behavioral theory of leadership (Hughes, Ginnett & Curphy, 1999). Behavioral

theory emphasized what leaders actually did on their job. There are two foremost studies of

behavioral theory. One is the Ohio State Leadership Studies researched by Ohio State University

(Fleishman, 1953; Halpin & Winer, 1957; Hemphill & Coons, 1957). The result defined two

dimensions of leader behavior: interpersonal relations (consideration) and task objective

(initiating structure). Leaders having consideration, initiative, and structural dimensions, had

higher than average outcomes. The other is the Michigan Leadership Studies developed by

University of Michigan (Katz, & Kahn, 1952; Katz, Maccoby, Gurin, & Floor, 1951; Katz,

Maccoby, & Morse, 1950). They found out three types o f leadership behaviors: (a) task-oriented

behavior, (b) relations-oriented behavior, and (c) participative leadership. These behaviors

differentiate between effective and ineffective leaders.

In addition, Fiedler (1967) defined leadership behavior as “the particular acts in which a

leader engages in the course o f directing and coordinating the work of his group members” (p.

36). The interest in leadership behaviors aided researchers in classifying the behavior that would

enable leader to effectively influence followers (Kreitner & Kinicki, 1989).

Further research by Bryman (1986) investigated four areas o f leadership behaviors

including participative leadership, reward strategies, motivational strategies, and control

strategies. Participative leadership discussed to what extent leaders encouraged and permitted

their subordinates to play a role in decision-making. Reward strategies indicated the

differentiations between positive and negative leader reward behaviors. Bryman (1986) described



31/166

18

that positive reward behavior tended to lead to great satisfaction and better performance among

subordinates, whereas negative reward behaviors tended to be associated with harmful affect on

both satisfaction and performance. Motivational strategies contended that if a leader could create

the appropriate organizational conditions, subordinates would be motivated to have better

performance. In other words, motivational strategies have been positively correlated with

increased organizational effectiveness (Bryman, 1986). Control strategies were related to the

methods that leaders utilized to control followers’ behaviors. Control strategies used by leaders

had a direct effect on the performance of the entire organization.

Contingency theory. There are three ways to describe the contingency theory. The first

contingency theory is the Least Preferred Coworker (LPC) model created by Fiedler in 1967. He

contended that a leader might be effective in some special situations, while being ineffective in

others. In other words, the matching of leadership style and degree of leader’s favorableness

provide different outcomes on organizational performance. Hence, organizational effectiveness

was a result of the interaction of leadership style and situational favorableness.

The Path-goal Theory (Evans, 1970; House, 1971; House & Mitchell, 1974) is a

contingency model that builds on the Ohio State Leadership Studies (Robbins, 1988). House and

Mitchell (1974) presented four leader behaviors: supportive leadership, directive leadership,

achievement-oriented leadership, and participative leadership. Those behavioral factors indicated

how a leader’s behaviors influenced the followers’ satisfaction and performance. Other research

suggested “the effect of leader behavior on subordinate satisfaction and the effort depended on

aspects o f the situation including task and subordinate characteristics” (Yukl, 2001, p.213).

Situational Leadership Theory is a contingency theory too (Hersey & Blanchard, 1982).

According to Hersey and Blanchard (1982), the situational leadership theory extends the



32/166

19

leadership theory by introducing new dimensions for examination. Leader behavior is classified

into two types: task behavior and relationship behavior. The situational variable in the theory was

the subordinates’ maturity, which means “the ability and willingness of people to take

responsibility for directing their own behavior” (Hersey & Blanchard, 1982, p. 151). The

implication was that there is no single best way to influence people. The type of leadership style

most effective on individuals or groups is dependent on the maturity level of the people. Yukl

(1989) identified that situational theory emphasizes important factors such as “the leader’s

authority and discretion, the nature o f the work performed by the leaders’ unit, the attributes o f

subordinates, and the nature of the external environment” (p. 261).

Because organizations have had to face the economic and competitive pressures formulated

in the mid 20th century, they have been focusing on boosting management’s interest in creating

high levels of employee commitment, effort, and willingness to take risks for organizations. This

heightened level of interest has led to an increased focus on leader charisma (Woodruffe, 2004).

Weber (1947) is considered to have best defined charisma. He provided the most well known

definition of charisma as a special personality characteristic that gives a person superhuman or

exceptional powers, and results in the person being treated as a leader. House (1976) suggested

that charismatic leaders perform in unique ways, which have specific charismatic effects on their

followers. He proposed that charismatic leader characteristics include the ability to dominant, a

strong desire to influence others, self-confidence, and a heightened sense of one’s own moral

values.

Since the House study (1976) charismatic theory has been extended and revised by Shamir,

House, and Arthur (1993). Together, they postulated that the charismatic theory transforms

followers’ self-concepts and attempts to link the identity of followers to the collective identity of



33/166

20

an organization. In addition, Behling and McFillen (1996) specified three follower beliefs:

inspiration, awe, and empowerment play integral parts in charismatic leadership. Furthermore,

Woodruffe (2004) indicated that charismatic leadership is based on followers’ beliefs in the

leaders’ typical character and encompasses the traits of self-confidence and conviction. In sum,

those studies described similarities between charismatic leadership and transformational

leadership.

Transformation Leadership

The concept of transformational leadership was developed by Bums (1978) in his

exploration of “world class leaders.” He based the usage of transformational leadership on the

organization’s need for change and viewed transformational leadership as a way to not only

recognize the needs of followers, but to raise those needs to a higher level of motivation and

maturity. Bums (1978) described a transformational leader as a normal agent able to empower

followers to envision a common mission, create wholeness, and collect purpose in the process of

its implementation. He also described transformational leadership as “when one or more persons

engage with others in such a way that leaders and followers one another to higher levels of

motivation and morality” (Bums, 1979, p. 382). This type of leadership focuses on the

identification of leadership behaviors that influence the values and aspirations of followers,

activate the followers’ higher order needs, and arouse them to transcend their own self interest

for organization advancement. It has since been applied to the workplace, and as such, has

received increasing attention in the industry (Stewart, 1994) and in organizational behavior

literature (Bass, 1990a; 1985).

Based upon Bum’s theoretical ideas, Bass (1985) suggested that transformational leaders

change the basic values, beliefs, and attitudes of followers with the end result of inspiring



34/166

21

subordinates to achieve higher goals and to perform work beyond the minimum levels specified

by the organization. Also, he explained that this transformation of followers can be achieved by

raising the awareness of the importance and value o f designed outcomes, getting followers to

transcend their own self-interests and altering or expanding followers’ needs. Bass (1985)

expanded on Bums’ definition of transformational leadership: “Transformational leaders attempt

subordinates, followers, clients or constituencies to a greater awareness about the issues of

consequence (p.17).”

Roberts (1985) explained that transformational leadership is a leadership, which redefines

people’s mission and vision, renews of their commitment, and restructures their systems for goal

completion. Transformational leaders provide the incentive for people to attempt improvements

in their practices (Bass, 1987). That is why Avolio and Bass (1988) referred to transformational

leadership as value added. In 1989, Bass and Avolio developed a model of transformational

leadership and performed extensive survey research into the nature of transformational

leadership. According to previous studies (Bass, 1990a, 1990b, 1985; Bass & Avolio, 1989,

1994), the transformational leaders possess and display four major characteristics: (a) Idealized

influence (Charismatic leadership), (b) Inspirational motivation, (c) Intellectual stimulation, and

(d) Individualized consideration.

Idealized influence (Charismatic leadership). Managers trust in their subordinates is

widely recognized as significantly important (Simons, 1999). Bass (1985) indicated trust as a

consequence of transformational leadership but also as an integral component of charismatic

leadership (Bass, 1990a) or antecedent to charismatic leadership (Yukl, 1989). Idealized

influence is the charismatic element o f transformational leadership in which leaders become role

models who are admired, respected, and emulated by followers (Avolio & Bass, 2002; Bass,



35/166

1998; Bass & Avolio, 1994). Leaders provide a vision, a strong influence, and a sense o f mission

(Bass & Avolio, 1989). Leaders, also, give confidence to their employees and command respect.

Employees who have a high level of trust, belief, and loyalty in managers tend to adopt

manager’s vision, search to identify with him or her, and have strong feelings about them.

Charismatic managers pack an emotional appeal for their subordinates that exceed ordinary

esteem, affection, admiration, and trust. Traditionally, charisma has been viewed as something

innate, or as a trait possessed only by top-level executives. However, charismatic leadership is

more widespread than previously thought (Bass, 1985; 1990a) and has been known to occur in

lower levels of an organization (see Bass et al., 1987).

Bass (1985) indicated that transformational leaders show charisma by articulating a realistic

vision and sense of purpose that can be shared. Transformational leaders inspire subordinates

through example, stimulate them intellectually, and give rise to individual concern.

Transformational leaders are in contrast to transactional leaders giving contingent reinforcement

or reward, and managing by exception, anticipating problems, and taking action (Woodruffe,

2004). Transformation leadership is based on more practical policy than pure charismatic

leadership. Avolio and Bass (2002) concluded that such leaders are admired, respected, and

trusted by their followers, and consistently share risks with followers. That would lead the

followers to identify with these leaders and want to emulate them. Additionally, the development

of a shared vision is an integral component of the idealized, transformational leader’s role (Jung

& Avolio, 2000). It helps others to look at the futuristic state, while inspiring acceptance through

the alignment of personal values and interests to the collective interests of a group's purposes

(Avolio & Bass, 2002; Bass, 1990b, 1998; Jung & Avolio, 2000). Transformational leaders are

willing to take and share risks with followers (Avolio & Bass, 2002; Bass, 1998)



36/166

23

Inspirational motivation. Leaders motivate and inspire employees, including establishing

practices aimed at creating attractive vision of future states, elevating follower goals and

inspiring enthusiasm and optimism (Bass & Avolio, 1994). Managers have high expectations for

their subordinates, communicate important information in simple ways, and use symbols to focus

their efforts (Yammarino & Bass, 1990a). Bass (1990a) defined inspirational leaders as those

who set challenging objectives as a means to get followers to succeed. They remain calm in

crises, are competitively focused, and envision an attractive future. Transformational leaders

inspire and motivate others by “providing meaning and challenge to their followers’ work”

(Avolio & Bass, 2002, p. 2).

Furthermore, the inspirational motivation leader demonstrates freedom and commitments in

attaining objectives, and provides an achievable view of the future. With this kind of manager,

employees can attain more than they initially thought. Inspirational leaders are emotionally

arousing and reassuring to their subordinates because typically they “have been there before”

(Dubinsk et al., 1995). Therefore, transformational leaders pay attention to the concerns and

developmental needs of followers, help them look at problems from many directions, and are

able to excite and inspire achievement (Armandi et al, 2003). In other words, the leader inspires

followers to see the attractive future state, while communicating expectations and demonstrating

a commitment to goals and a shared vision (Stone, Russell, & Patterson, 2004). Idealized

influence and inspirational motivation are usually combined to form charismatic-inspirational

leadership (Bass, 1998).

Intellectual stimulation. Leaders provide intellectual stimulation and problem oriented

guidance to subordinates by encouraging them to use new methods for solving old problems, and

to search new ways o f achieving an organization’s mission (Yammarino & Bass, 1990b).



37/166

24

Managers also help employees use reasoning, rationality, and evidence as a mean of supporting

opinion. When employees have such managers, their thinking processes and performance are

enhanced. This type leader also increases followers’ confidence and responsibility. Basically,

intellectual stimulation leaders will help their subordinates learn to identify and respond to

various needs, problems, and motives (Bass & Avolio, 1994). Avolio and Bass (2002) indicated

that transformational leaders stimulate their followers’ efforts “to be innovative and creative by

questioning assumptions, refraining problems, and approaching old situations in new ways”

(Avolio & Bass, 2002, p. 2). Transformational leaders solicit their followers’ ideas and creative

solutions to problems, thereby including followers in problem solving (Stone, Russell, &

Patterson, 2004). The intellectually stimulating leader encourages followers to try new

approaches, while emphasizing rationality (Bass, 1990b).

Individualized consideration. The transformational leader disburses personal attention to

followers based on the individual follower needs for achievement and growth (Avolio & Bass,

2002). The considerate leader recognizes and demonstrates acceptance o f the followers’

individual differences in terms of needs and desires (Stone, Russell, & Patterson, 2004). Leaders

treat each employee as an individual. They are attentive to the unique concerns of subordinates,

give them personal attention, and consider their individual development and growth needs.

Managers coach employees, through mentoring and training, all the while enhancing their

self-confidence. This leads to subordinates who respect their manager. Managers encourage

followers to propose ideas for projects that lead to organization success. This type of leadership

is attentive to each organizational member’s needs and interests, subsequently raising their

personal potential (Bass & Avolio, 1994). “Individualized consideration is practiced as followers:

New learning opportunities are created along with a supportive climate” (Avolio & Bass, 2002, p.



38/166

25

2).

The four dimensions of transformational leadership are theoretically and empirically related

(Bass & Avolio, 1989). More recent theoretical developments suggest that the four dimensions

could be subsumed to one construct (Bass, 1990a). Several studies have found that leaders who

display these four behaviors are able to realign their followers’ values and norms, promote both

personal and organizational changes, and help followers exceed their initial performance

expectations (Jung & Avolio, 2000). Therefore, studies of the four dimensions were treated as

one underlying construct called transformational leadership.

Some studies have pointed out that transformational leadership is based on followers’

emotions. Conger and Kannugo (1988) explained that leadership is a process o f attribution.

Attribution theory suggests that people construct naive theories to explain relations between

phenomena (Kelly & Michela, 1980). Conger and Kannugo (1988) also indicated that people

follow transformational leaders because they attribute to those leaders the capacity to impose

order, security, and direction in an otherwise chaotic and threatening world.

In addition, Kets de Vries (1989) explained transformational leadership in terms o f the

psychoanalytic concept of transference. According to their studies, transformational leadership is

a regressive expression of fantasies and yearnings to a past when people felt protected by strong

authority figures (Popper & Lipshitz, 1993).

Many researchers have indicated that transformational leaders typically engaged in the

following behaviors: (a) articulating a vision for the future of the organization, (b) providing a

model that is consistent with vision at hand, (c) fostering the acceptance of group goals, and (d)

providing individualized support (Yammarino & Bass, 1990a; Yuki, 1989; and others). Moreover,

transformational leadership theories predict followers’ emotional attachment to the leader and



39/166

26

motivational arousal of followers as a consequence of the leader’s behavior (Hartog, Muijen, &

Koopman, 1997; House et al., 1988). To achieve change and innovation, transformational

leadership is necessary to “motivate others to do more than they originally intended and often

even more than they thought possible” (Bass & Avolio, 1994, p.3).

The result of transformational leadership can be developed across various levels in all

professions (Medley & Larochelle, 1995). During the last decade, more and more empirical

evidence has emerged suggesting the importance o f transformational leadership within the

context of implementing large-scale innovation programs (Leithwood & Jantzi, 1996). Pillai,

Scandura, and Williams (1999), suggested that transformational leadership theories offer the

promise of extraordinary individual and organizational outcomes. Managers motivate employees

to perform beyond expected levels by activating higher needs, fostering a climate of trust, and

encouraging them to transcend their own needs to achieve organizational goals.

The initiative propositions of transformational leadership have been used in the United

States, New Zealand, India, Japan, and Singapore (Bass, 1997). Many investigations point to the

robustness of the effects of transformational leadership on individual and organizational

outcomes such as job satisfaction, organizational commitment, and performance (Bass, 1990b).

Chinese Leadership Styles

Leadership styles in Chinese society are still influenced by Confucian propositions, which

dictate that leaders set moral examples for followers (Shieh, Mills, & Waltz, 2001). Leaders have

to make their followers feel that their accomplishments are the results of their own efforts.

However, such motivations for transformational leadership in Taiwan are counterbalance by the

equally strong tradition of transactional bureaucracy where leaders manipulate the rewards and

punishments of followers (Shieh, et al., 2001). Values from these traditions continue to affect .



40/166

27

Chinese leadership (Bass, 1985; Shieh, et al., 2001).

Several studies have examined the impact o f transformational leadership in different

professions in Taiwan. For example: Shieh, Mills, and Waltz (2001) examined 11 baccalaureate

degree nursing programs and 10 associate degree nursing programs in Taiwan. The results

indicated that idealized influence and intellectual stimulation were significant and positive

predictors for job satisfaction. They suggested that nursing deans and directors should create

leadership structures that reinforce idealized influence and intellectual stimulation to establish a

satisfied work force.

Jung, Chow and Wu (2003) used Multifactor Leadership Questionnaire (Bass & Avolio,

1997) to investigate 32 companies in Taiwan electronics and telecommunication industry. The

findings support that transformational leadership has significant and positive relations with both

empowerment and an innovation-supporting organizational climate. The result showed that the

leader of each organizational subunit typically has some control over his or her unit’s operation,

and it is reasonable that the individual’s leadership behaviors should influence the motivations

and work processes of subordinates. Consequently, transformational leadership also has

significant impacts in Taiwan.

Organizational Commitment

Organizational commitment is commonly conceptualized as an affective attachment to an

organization through shared values, a desire to belong to an organization, and a willingness to

exert effort on its behalf (Mowday, Steers, & Porter, 1979). It was defined in terms o f the

strengths of an individual’s identification and involvement in a particular organization.

Organizational commitment reflects the extent to which an individual identifies with an

organization and is committed to its goals (Kinicki & Kreitner, 2003) and success (Mowday et al.,



41/166

28

1982). Such commitment can generally be characterized by at least three factors: (a) a strong

belief and acceptance of the organization’s goals and values, (b) a willingness to exert

considerable effort on behalf of the organization, and (c) a definite desire to maintain

organizational membership (Porter et al., 1974).

Numerous studies provided a variety of views on organizational commitment that make

organizational commitment difficult to measure and identify. Meyer and Allen (1991) pointed

that organization commitment has been separated into attitudinal (affective) and behavioral

(continuance) components. They extended the concept of commitment to include desire, need,

and duty to remain in the organization.

Meyer and Allen (1991) added a third distinction- normative commitment. Normative

commitment is rooted in employees’ sense that they ought to remain with their organization.

Normative commitment results from the internalization pressures exerted on individuals before

entry or following entry (Hackett et al., 1994). As a result, Meyer and Allen (1991) categorized

three components of organizational commitment: affective commitment (they want to),

continuance commitment (they need to), and normative commitment (they ought to).

Affective commitment. Mowday, Porter, and Steers (1982) defined affective commitment

as an emotional attachment to an organization. They suggested four characteristics of affective

commitment included personal characteristic, structural characteristic, job-related characteristic,

and work experiences. Furthermore, Meyer and Allen (1991) described “employees with strong

affective commitment continue employment with the organization because they want to” (p. 76).

In addition, employees who have strong affective commitment were found to contribute

more to advancing an organization and less to leave the organization at the same time

(Laschinger et al., 2000). This commitment focuses on the process by which people come to



42/166

29

consider their relationship with the organization.

Continuance commitment. Becker popularized this commitment in 1960. According to his

theory, employees make certain investments (promotions/work relationships) in their

organizations, which reduce the attractiveness of alternative employment. Mowday et al. (1982)

defined that “continuance commitment relates to the process by which individuals become

locked into a certain organization and how they deal with this problem” (p. 26).

Meyer and Allen (1991) indicated that continuance commitment reflects an employee’s

awareness of the cost associated with leaving an organization. This means employees need to

weigh the benefits of remaining with the organization against the cost of moving to another

company and starting over. Therefore, commitment is a result of incentives or exchanges

between an individual and an organization. Another way to improve the probability of

continuance commitment would be increasing the promotion aspect of employment within an

organization (Shouksmith, 1994).

Normative Commitment. Gauges an individual’s feeling of obligation for remaining with a

particular organization (Meyer & Allen, 1991). Employees remained in an organization because

they felt they ought to do. Also, employees who perceive exceptionally good treatment by the

organization will have greater normative commitment. Research has posited two dissimilar

processes leading to normative commitment: characterize normative-type attachment to the

organization stem from a non-contingent, personal loyalty norm, and a felt obligation to

reciprocate particularly good treatment (Meyer & Allen, 1997).

Employees exhibiting normative commitment believe loyalty to an organization is the right

thing to do, which is based on internalized loyalty norms developed in early childhood or during

their organizational tenure (Culpepper et al., 2004). According to theory, normative commitment



43/166

30

also arises from a sense of unfulfilled obligation to reciprocate unusually good treatment by the

employer (Meyer & Allen, 1997).

Finally, Meyer and Allen (1997) developed a set of three scales, referred to as

Organizational Commitment Scales (OCS), which measure the three-component model (TCM)

of organizational commitment. These scales provide organizations with an idea of the extent of

employee commitment, and what factors of organizational commitment may need more refining.

The scale o f measurement will be described more clearly in the following chapter.

Job Satisfaction

Job satisfaction is the overall feeling an employee has about his or her job. In general, the

dimensions of job satisfaction include satisfaction with pay, promotion, supervision, co-workers,

and the work itself (Porter, 1974). Job satisfaction also is defined as a delightful feeling that

results from the perception that one’s job fulfills or allows for the fulfillment of important job

values (Noe et al., 2000). Bass and Avolio (1994) suggested that subordinate satisfaction refers to

two kinds of job satisfaction: one is subordinate satisfaction—the extent to which the job meets

various individual needs, and the other is leadership satisfaction—is the employee happy with

the methods used by leadership to motivate workers and accomplish the goals of an organization.

Some studies indicated when employees were paid in accordance with their expectations;

they worked harder, longer, and more efficiently (Siegel & Lane, 1982). Gerhart (1987) found

that pay, status, and job complexity added explanatory power to predicting job satisfaction. He

described salary, status, or job complexity as a component of motivational factors.

Pool (1997) suggested that pay plays a secondary role in job satisfaction, and that

situational or motivational should be the primary factors. Kreitner and Kinicki (1989) pointed

to four major factors such as need fulfillment, discrepancies, value attainment, and equity as



44/166

31

contributing to an employee’s job satisfaction or dissatisfaction. However, Timmreck (2001)

described that using rewards or money as motivation creates a trap and may fail. Research

indicated that when an employee begins to expect extra ordinary bonuses or commissions and the

rewords fall through, job satisfaction begins to set in.

Job satisfaction is usually measured through interviews or questionnaires. Examples include:

(a) The Minnesota Satisfaction Questionnaire (MSQ) (Weiss, Dawis, England, & Lofquist, 1967),

(b) The Job Descriptive Index (JDI) (Smith, Kendall, & Hulin, 1969), (c) The Job Diagnostic

Survey (JDS) (Hackman & Oldham, 1975), and et al. These scales help management understand

what their subordinates are feeling to better understand how to turn a negative situation or

employee into a positive one.

Spector (1997,1985) described job satisfaction as a core variable in research and theory of

organizational phenomena ranging from job design to supervision. He derived common facets of

job satisfaction from several job satisfaction instruments: (a) appreciation, (b) communication, (c)

coworkers, (d) fringe benefits, (e) job conditions, (f) nature o f the work itself, (g) organization

itself, (h) organizational policies and procedures, (i) pay, (j) personal growth, (k) promotion

opportunities, (1) recognition, (m) security, and (n) supervision.

Spector (1985) developed a job satisfaction instrument called Job Satisfaction Survey (JSS)

to fill the need for a measured tool for human services. It was based on previous studies and

called the Job Satisfaction Survey (JSS). JSS measured nine aspects of job satisfaction: pay,

promotion, supervision, benefits, contingent rewards, o

Taiwan IT leadership sample.pdf

Documents

Transcript of Taiwan IT leadership sample.pdf