CONCLUSION

“Effects of the transformational leadership on employee satisfaction and loyalty towards organizations” is one of exploratory researches to adjust the measurement scales regarding transformational leadership, employee satisfaction, employee loyalty and to measure the effect level of the transformational leadership on employee satisfaction and loyalty at enterprises in Ho Chi Minh City.

5.3.1 Main contributions of the research

Theoretically, the research partly introduces, combines, measures, analyses and tests the measurement scales “The transformational leadership”, “Employee satisfaction”,

“Employee loyalty” into Vietnamese enterprises in accordance with research models of foreign researchers. The measurement scale of transformational leadership is from 04 latent variables, 10 observed variables dividing into two groups of factors, 09 observed variables;

the measurement scale satisfaction and loyalty is reduced from 03 independent variables to two groups of factors but remains the same 09 observed variables.

The research tests effects of two factors groups from the transformational leadership to employee satisfaction and loyalty. From there, the transformational leadership really has positive influences on employee satisfaction and loyalty. Among them, the factor group

“Leader’s prestige and Ability to use employees’ capacities” always has greater effect compared to the factor group “Motivation and Care about individuals” regarding level of employee satisfaction and loyalty. Simultaneously, the research indicates that the transformational leadership at Vietnamese enterprises is not conducted actively, clearly. It mostly depends on innate characteristics of leaders.

Practically, the research measures the scales of Transformational leadership, Employee satisfaction and Employee loyalty when applying them into Vietnamese conditions and culture. Based on surveyed results, the research proposes detailed solutions to apply the

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transformational leadership effectively and comprehensively to increase staff satisfaction and loyalty in the conditions of Vietnamese enterprises.

5.3.2 Limitations of the research

The first limitation is sample research. The research is conducted by the convenience sampling method; the chosen subjects are students of in-service training of different courses at University of Economics Ho Chi Minh City and they have full-time jobs. Therefore, research results may not reflect fully and exactly awareness about practical use of transformational leadership and its influences on staff satisfaction and loyalty at other places, age and educational attainment.

The second limitation is reference source. This is one of the few domestic researches on leadership style and the influence level on staff satisfaction and loyalty. Reference sources mainly depend on investigation documents and foreign theoretical models.

5.3.3 Recommendations for next researches

It is needed to have next researches to complete the measurement scale with broaden sample sizes to establish the system of criteria to evaluate the transformational leadership in Vietnam with more comprehensive research subjects.

The research can be also expanded in the way of researching on effects of transformational leadership on other aspects of enterprises (operational results, creativity etc.)

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REFERENCES

Bass, B.M (2000), The future of leadership in learning organization, Journal of leadership studies.

Bernard M. Bass (1997), The Ethics of Transformational Leadership, Academy of Leadership Press.

Burger, P.C, Bass, B.M (1979), Assessment of Managers: An International Comparison, Free Press, New York, NY.

Fernades, C.& Awamleh, R. (2004), The impact of transformational and transactional leadership styles on Employee satisfaction and performance: An empirical test in a multicultural environment, International Business and Economics Research Journal, pp.73-79.

Fred Massarik, Robert Tannenbaum, Irving R. Weschler (1961), Leadership and Organization: A Behavioral Science Approach., McGraw-Hill Publisher, pp. 1-12.

Hoang Trong – Chu Nguyen Mong Ngoc (2005), Analysis of research data with SPSS, Statistical Publishing House.

GuideStar Research (2005), Driving Employee Satisfaction, Commitment and Loyalty.

Harold Koontz, Cyril O'Donnell (1964), Principles of management; an analyses of managerial functions, McGraw-HillPublisher

John, Evans (2005), A test of transformational and transactional leadership styles on Employee satisfaction and performance in the UEA banking sector, Journal of Comparative International Management.

Joseph Rost (1991), Leadership for the Twenty-first Century, New York: Praeger Le Thanh Ha (2004), Psychology and leadership arts, Training and further training program for 1000 directors in Ho Chi Minh City.

Li, Yueh Chen, (2004), Examining the Effect of Organization Culture and Leadership Behaviors on Organizational Commitment, Job Satisfaction, and Job performance at Small and Middle-sized Firms of Taiwan, The Journal of American Academy of Business, Cambridge.

ManPower Inc. (2002), International Employess Loyalty Survey.

Price, J.L. (1997), Handbook of organizational measurement, International Journal of Manpower pp305-558.

Paul Hersey, Ken Blanc Hard (2002), Organizational behavior, Statistical Publishing House, Ho Chi Minh City.

Van My Ly (2006), Influences of practical human resource management on business results of small and medium-sized enterprises in Ho Chi Minh City.

Terry, George R. (1972), Principles of Management, Richard D. Irwin, Inc , pp 5-15.

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Tran Thi Kim Dung (2005), Needs, employee satisfaction and attachment level towards organizations.

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APPENDIX

APPENDIX 1: QUESTIONNAIRE OF QUANTITATIVE RESEARCH Section I: THE MAIN QUESTIONNAIRE

Please mark “X” in appropriate boxes which best represent your evaluation of the situation of your workplace.

1 Leaders always show their capacity and confidence.

2 Employees are proud of working with leaders.

(IM) 5 4 3 2 1

3 Leaders show employees the meaning and challenges of work.

4 Leaders always show their belief to achieve the proposed targets.

5 Leaders are optimistic when talking about the enterprise’s future.

(IC) 5 4 3 2 1

6 Leaders care about health and spirits of employees as well as their life events.

7 Leaders encourage the improvement of employees and help them to plan individual plans to develop careers.

8 Leader is always willing to talk to me when I need.

(IS) 5 4 3 2 1

9 Leaders see one matter from different perspectives

10 Employees attend to plan, decide and set work objectives

(GS) 5 4 3 2 1

11 Overall, I am satisfied with my current job.

12 Overall, I am satisfied with my job.

(LS) 5 4 3 2 1

13 My company’s leaders have positive effects on the organization

14 My company’s leaders have positive effects on myself

(L) 5 4 3 2 1

15 I am willing to recommend my company as a good workplace

16 I am proud of recommending my company’s products/services to others

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17 I will work at the company in a long term despite the attractive salary offered by other companies.

18 I feel loyal to the organization/company.

19 Being a part of the organization/company is very important to me.

Part II: PERSONAL INFORMATION

Please provide the following information (select the appropriateboxes)

NO. Personal information (X)

1 Please tick to indicate which age group you fall within

Less than or equal to 30 years old 1

Over 30 years old 2

2 Please tick to indicate your educational attainment

Graduate 2

Postgraduate 3

3 Please tick to indicate type of company in which you are working

Private 1

Public 2

Joint-venture – Foreign company 3

4 Please tick to indicate your length of service

Less than 5 years 1

5 years and above 2

Thank you for your participation!

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