Theoretical Assumptions of Transformational Leadership Styles on Psychological Empowerment and Psychological Well-Being in Leaders Vs. Subordinates

Transformational leadership style is the most studied concept of business psychology. The primary goal of the present research was to investigate the theoretical assumptions of transformational leadership style on psychological empowerment and psychological well-being in leaders vs. subordinates working in telecommunication sectors. The Sample comprised N=250 (Leaders=100; Subordinates=150) employees of the leading Telecommunication sectors with the age range of (25-60). The Sample was selected from different telecom organizations of Pakistan through a Purposive sampling strategy, and Sample was divided into two groups Leaders and subordinates. Impact of Transformational leadership style on Psychological empowerment and Psychological well-being was operationalized through Transformational leadership scale by Podsakoff (1990), Psychological Empowerment scale by Spreitzer (1995), and Psychological Wellbeing scale by Carol Ryff (1989), and a demographic information sheet was used to collect data. Prior to addressing the relationship between present study variables, the psychometric validity of measurement tools was analyzed, and internal consistency levels for all variables were evaluated. Correlational analysis of the study variables demonstrated a correlation between Transformational leadership style, psychological empowerment, and psychological well-being in employees. In addition, Regression analysis revealed that the Transformational Leadership style significantly predicted psychological empowerment and psychological well-being in employees. However, the effect of demographic variables such as gender indicated no significant gender differences on study variables; however, significant differences were found between family system groups regarding transformational leadership, psychological empowerment, and psychological well-being. From a theoretical perspective, present research contributes to the present form of facts in the field of leadership studies; the research endorses a theoretical model that incorporates different characteristics of psychological empowerment. The research recommends that the leaders should develop aware of the role of their empowerment level in creating a healthy environment that encourages psychological well-being among the subordinates. The research provides guidelines useful for leaders to enhance subordinates' psychological empowerment and psychological well-being.