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Are transformational and transactional types of leadership compatible? A two‐wave study of employee motivation

Year: 2018

Type: article

Abstract: Transformational and transactional leadership strategies have become prominent in public administration research, but it is unclear whether they are compatible or whether they could undermine each other. We examine the combined and interactive effects of transformational and three types of transactional leadership (contingent verbal rewards, material rewards, and sanctions) on employee work motivation, conceptualized as work engagement and intrinsic motivation. Panel analyses using repeated measures of 385 leaders and 3,797 employees show that transformational leadership and contingent verbal rewards increased employee motivation. However, simultaneous use of contingent material rewards undermined the benefits of transformational leadership. Thus, the motivational potential of service‐ or community‐oriented visions was undercut when leaders also appealed to extrinsic material motives. This could help explain why financial incentives do not always have the expected benefits in public organizations. We therefore argue that research and practice should pay more attention to how different leadership strategies work in combination.

Source: Public Administration

DOI: 10.1111/padm.12574

Authors: Poul Aaes Nielsen, Stefan Boye, Ann‐Louise Holten, Christian Bøtcher Jacobsen, Lotte Bøgh Andersen

Institutions: University of Southern Denmark, Aarhus University, University of Copenhagen

Language: English

Topic: Job Satisfaction and Organizational Behavior

Subfield: Organizational Behavior and Human Resource Management

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: bronze

Funder: Danmarks Frie Forskningsfond

Award: G119583111