An Empirical Study On The Moderating Effect Of Job-Related Knowledge On Charismatic And Transactional Leadership Effectiveness

Bass (1985) posited a range of leadership models that includes transformational and transactional leadership, and the non-leadership style of laissez-faire, indicating absence of leadership or avoidance of intervention or both. He found transformational leadership more effective than transactional leadership, and charismatic leadership the most effective form of transformational leadership. Further, Bass (1997) opined that charismatic leadership is universal and effective in most situations. However, he suggested situations may enhance the strength of correlation between charismatic leadership and leadership effectiveness. Early studies did not identify traits essential for leadership effectiveness in all situations but found that effective leaders are task- and relations-oriented. Proceeding studies (Fiedler 1967a; Hersey and Blanchard 1977) indicated that each of the two leadership behaviours is effective only in some situations. Contingency leadership theories are developed to explain how situations influence the relationship between leadership behaviour and leadership effectiveness. Prior studies indicated that a key aspect of situations is subordinates’ job-related knowledge. By assuming that charismatic leadership is relations-oriented and transactional leadership is task-oriented, this study applies contingency leadership theories in the contexts of both leadership concepts. This study surveys employees working from one multinational company in two locations, Singapore and China, with intent to investigate effectiveness of leadership behaviours. Further, this study analyses the moderating role of subordinates’ job-related knowledge on the relationships between charismatic leadership and transactional leadership with leadership effectiveness, respectively. The results indicate that charismatic leadership is effective on subordinates who possess high and low levels of job-related knowledge, in Singapore and China. Additionally, the results showed transactional leadership is generally ineffective but exceptions are found specifically on Singaporean subordinates who possess low levels of job-related knowledge. Therefore, contingency leadership theories in the context of transactional leadership are supported in relation to the situation of subordinates’ job-related knowledge in Singapore.