, Problem indication
In the last few years there has been a significant change in the retail environment. In
particular, the developing of a new strategy in order to generate a competitive advantage in
terms of customers (Cardinali, Bellini, 2014). Besides the focus on cost- or product
leadership, is deciding the leadership style an important choice for the organization to make.
According to Harter (2002) a change in management practices that increase employee
satisfaction may lead to an increasing profit. Rothfelder, Ottenbacher and Harrington (2013)
confirmed this as well.
Transformational leadership is a process that changes and transform people within a group
(Mujkic, Sehic, Rahimic, Jusic, 2014). It has the ability of a leader to influence the values,
attitudes, beliefs, and behaviors of other by working with and through them in order to
accomplish the organization’s mission and purpose (Özaralli, 2002).
According to Bass and Avelio (1993) transformational leadership is characterized as being
composed of four behavioral components: idealised influence, inspirational motivation,
intellectual stimulation and individualized consideration. These ‘four I’s’ are unique but
interrelated. Higher results can be accomplished whenever transformational leaders operate on
one or more transformational dimensions (Rothfelder et al., 2013).
Transformational leaders empower their employees and help them grow their own leadership
potential through paying attention to their needs and developments (Mujkic et al.,2014). They
integrate creative insight, energy, intuition and sensitivity to the needs of others (Bass, Avelio,
1993). The most consistent and solid interrelationship of transformational leadership is
extraversion (Bono, Judge 2004).
Employee satisfaction studies are frequently conducted. Chi and Gursoy (2008) describe that
there is a relationship between employee satisfaction and customer satisfaction. However, the
relationship between employee satisfaction and financial performance is less identifiable
according to the research (Chi, Gursoy, 2008). In addition, employee satisfaction has a
positive and significant influence on employee loyalty. Furthermore, the study shows that
more effort in both employee and customer enjoyment would provide higher returns and a
positive impact on the organizations’ financial performance (Karimi, Sajedinejad,
Hassannayebi, 2014). Koys (2003) confirms the positive influence on business performance.
The job characteristics skill variety, task significance and autonomy lead to employee
satisfaction and motivation (Hackman, Lawer III, 1971; Rousseau, 1977).
1
In the last few years there has been a significant change in the retail environment. In
particular, the developing of a new strategy in order to generate a competitive advantage in
terms of customers (Cardinali, Bellini, 2014). Besides the focus on cost- or product
leadership, is deciding the leadership style an important choice for the organization to make.
According to Harter (2002) a change in management practices that increase employee
satisfaction may lead to an increasing profit. Rothfelder, Ottenbacher and Harrington (2013)
confirmed this as well.
Transformational leadership is a process that changes and transform people within a group
(Mujkic, Sehic, Rahimic, Jusic, 2014). It has the ability of a leader to influence the values,
attitudes, beliefs, and behaviors of other by working with and through them in order to
accomplish the organization’s mission and purpose (Özaralli, 2002).
According to Bass and Avelio (1993) transformational leadership is characterized as being
composed of four behavioral components: idealised influence, inspirational motivation,
intellectual stimulation and individualized consideration. These ‘four I’s’ are unique but
interrelated. Higher results can be accomplished whenever transformational leaders operate on
one or more transformational dimensions (Rothfelder et al., 2013).
Transformational leaders empower their employees and help them grow their own leadership
potential through paying attention to their needs and developments (Mujkic et al.,2014). They
integrate creative insight, energy, intuition and sensitivity to the needs of others (Bass, Avelio,
1993). The most consistent and solid interrelationship of transformational leadership is
extraversion (Bono, Judge 2004).
Employee satisfaction studies are frequently conducted. Chi and Gursoy (2008) describe that
there is a relationship between employee satisfaction and customer satisfaction. However, the
relationship between employee satisfaction and financial performance is less identifiable
according to the research (Chi, Gursoy, 2008). In addition, employee satisfaction has a
positive and significant influence on employee loyalty. Furthermore, the study shows that
more effort in both employee and customer enjoyment would provide higher returns and a
positive impact on the organizations’ financial performance (Karimi, Sajedinejad,
Hassannayebi, 2014). Koys (2003) confirms the positive influence on business performance.
The job characteristics skill variety, task significance and autonomy lead to employee
satisfaction and motivation (Hackman, Lawer III, 1971; Rousseau, 1977).
1
