Job Satisfaction and the Perception of Managers as Transformational Leaders: Examining the Role of Ethnicity and Other Demographic Characteristics of Employees in Multi-ethnic Teams

Abstract

There is a lack of consensus regarding the impact of personal factors, such as ethnicity, on job satisfaction in employees working in multi-ethnic teams. Globalization has led to an increase in the heterogeneity in team members’ characteristics. Therefore, organizations are interested in identifying effective ways to manage such teams. Transformational leadership has been proven effective in managing teams to reach organizational goals. Accordingly, the present study aimed to examine the impact of ethnicity and other demographic characteristics on employees’ job satisfaction and their perception of their manager as a transformational leader. The sample comprised 115 mid-level employees from three US-based multinational technology firms. Data were collected using a questionnaire that included the Leadership Practices Inventory, the Job Satisfaction Survey, and items on participants’ demographic characteristics. Analysis included parametric or non-parametric statistics and correlations. Findings revealed a high job satisfaction level and a high tendency to perceive one’s manager as a transformational leader. No significant differences were observed based on demographic characteristics, while job satisfaction and perception of the manager as a transformational leader were correlated positively. These findings suggest that the transformational leadership style may be conducive to the effective management of heterogeneous groups.