Indexed on: 13 Sep '21Published on: 15 May '20Published in: World Journal of Entrepreneurship, Management and Sustainable Development
This study examines the mediation role of diversity climate in the relationship between transformational leadership, transactional leadership and job satisfaction from the two-factor perspectives of intrinsic and extrinsic job satisfactions among local government servants in Ghana. The study uses cross-sectional data from 322 employees in local government service of Ghana in the Greater Accra Region using purposive and stratified sampling methods. Bootstrapping method of mediation estimated using structural equation modelling is employed to test the hypothesized relationships. The results find a differential effect of leadership behaviours on intrinsic and extrinsic job satisfaction, where transformation and transactional leadership relate positively to intrinsic and extrinsic job satisfaction respectively. Furthermore, the empirical findings reveal that diversity climate has mediated the relationship between transformational leadership and intrinsic job satisfaction, implying that diversity climate is an important process through which transformational leadership behaviours can elicit intrinsic job satisfaction among local government servants. Surprisingly, however, diversity climate does not serve as an important transmission mechanism in the relationship between transactional leadership and extrinsic job satisfaction. This means that public sector leaders or managers can improve intrinsic job satisfaction among local government servants and by extension public sector employees by creating an ideal climate for diversity by transforming the work environment through leadership, specifically, transformational leadership behaviours. Although studies abound on the link between leadership behaviours (transformational and transactional) and job satisfaction, the mediating effect of diversity climate as a mechanism in this relationship is very scarce and rare to find. Hence, our study has made original contributions to theory and practice by highlighting the role of diversity climate in converting leadership behaviours, specifically; transformational leadership into creating intrinsically satisfied workers in the public sector.