Transformational Leadership and Mission Valence of Employees: The Varying Effects by Organizational Level

Originally developed to explain the leadership styles of political leaders and societal reformers, the theory of transformational leadership is increasingly used to explain organizational performance in public administration. Transformational leaders supposedly use their inspirational abilities, motivational skills, intellectual stimulation, and individualized consideration to change employee aspirations and behavior, resulting ultimately in improved organizational performance. Using Bayesian SEM on survey responses of 2,786 employees of a state transportation department, this article examines the impact of transformational leadership on mission valence at three organizational leadership levels, with organizational goal clarity and performance management hypothesized as intervening mechanisms. Results show transformational leadership having the strongest impact on organizational goal clarity at the topmost leadership level, and on the use of performance management at the lowest leadership level.