Job demands-resources model, transformational leadership and organizational performance: a multilevel study

Abstract

Purpose – The purpose of this paper is to integrate an extended by personal resources job demands-resources (JD-R) model in the relationship between transformational leadership and organizational performance. It is argued that responsive, supportive and developmental leader’s style will reduce employee’s levels of burnout and increase their levels of work engagement, and ultimately will increase organizational performance expressed by productivity, growth and creativity. Design/methodology/approach – The hypotheses were tested among a national sample of 1011 employees in 107 Greek public and private organizations operating within an environment of economic and financial crises. The operational model was tested using a multilevel structural equation modeling. Findings – It appeared that job demands and work burnout, and job resources and work engagement, serially and fully mediated the relationship between transformational leadership and organizational performance. Further, it is found that personal resources negatively and fully mediate the relationship between job resources and work burnout and positively and partially mediate the relationship between job resources and work engagement. Research limitations/implications – Data was collected using a cross-sectional design, not allowing therefore dynamic causal inferences. Practical implications – Considering that the transformational leadership style reduces employee’s levels of burnout and increases their levels of work engagement, and accordingly it improves organizational performance, organizations are well advised to encourage this leadership style. Social implications – Transformational leadership by balancing job demands and job resources could have a positive impact on employee well-being. Originality/value – The study, using multilevel testing, demonstrates that the extended JD-R model can be integrated into the transformational leadership – organizational performance relationship.