Empirical Study On The Impact Of Transformational Leadership On Employee Loyalty

As the society and economy are developing, competition among the enterprises is increasing, and enterprises will encounter a new serious test, such as the pressure of the market competition, brain drain, management and administration. The biggest problem of enterprises is not money and technique, not market and information, but talent. Talent is the most valuable capital, and is irreplaceable position in the development of enterprises. Talent is the core of enterprises, the basic force that pushes enterprises forces forward, and the key that raises enterprise competition ability. In order to obtain and maintain excellent Talent, improving their loyalty to the enterprise and decreasing the rate of staff turnover, managers have to improve style of leadership constantly, deploy different resources effectively, and improve competitiveness for enterprises, thus remaining invincible in the competition. On the basis of the current theory and practice, this paper introduces transformational leadership to solve loyalty problems which enterprises encounter. Therefore, it is significant and valuable to study how transformational leadership to affect employee loyalty.What this paper studies is the mutual relationship and the possible mechanism among transformational leadership, organization trust and employee loyalty. The author firstly reviews the literature on the theories of leadership, organization trust and employee loyalty. Based on the literature and the special Chinese environment, the author sets up a comprehensive theoretic model which includes transformational leadership, organization trust and employee loyalty, and brings forward hypotheses of empirical research.In this paper, the author uses the Transformational Leadership Questionnaire (TLQ) developed by Li and Shi; Organization Trust Questionnaire developed by Robinson and Employee Loyalty Questionnaire which references to the Affective Commitment Scale. These measures are administered to a sample of 262 employees from 5 companies in Jiangxi province. This study analyzes the data of the survey with SPSS 16.0 and LISREL8.7 to verify hypotheses, applying data preprocessing, reliability analysis, availability analysis, description statistics, correlation analysis, factor analysis and regression analysis. According to the data analysis, the main conclusions have been reached as followings:â‘ Transformational leadership has a positive relationship with employee loyalty, and there is a sign relationship between transformational leadership and employee loyalty's partial dimensions.â‘¡Transformational leadership has a positive relationship with organization trust, and there is a sign relationship between transformational leadership and organization trust's partial dimensions.â‘¢Organization trust has a positive relationship with employee loyalty, and there is a sign relationship between organization trust and employee loyalty's dimensions.â‘£Organization trust plays a partial intermediary role between transformational leadership and employee loyalty. And also, the author does a revision of questionnaires, emends part entries and carries though analysis of validity and reliability. At the end of the dissertation, the author puts forward some suggestions for Chinese companies, draws some limitations of this study, and proposes suggestions for future study.