The Differential Effect of Transformational Leadership and Job Satisfaction on Various Performance Measures in a Polish Consulting Company

Abstract

The aim of the paper is to provide an answer to the question of how transformational leadership and employee satisfaction affect various performance measures, where employee satisfaction is considered a significant moderator of the relationships between transformational leadership and organizational performance. The data was collected from 164 employees working on 32 teams in international recruitment and selection agency departments located in Poland. What was identified was that transformational leadership and employee satisfaction affect organizational performance differently. In particular, transformational leadership allows the achieving of long–term organizational goals, such as office performance, which includes yearly and three–year office KPIs. The effect of employee satisfaction on organizational performance was strongly seen in the short–term perspective—in the quarterly KPIs. The full moderating role of employee satisfaction was only observed between transformational leadership and quarterly KPIs. The study concludes with theoretical and practical implications and future research directions.