preview

How Does Transformational Leadership Affect Customer Satisfaction.Doc

Better Essays

How does transformational leadership affect customer satisfaction?

Introduction In recent years, the concept of leadership focuses more on transformational leadership, which is a contemporary view of leadership (Bass, 1985). Also, Employee empowerment becomes one of the leadership issues in the 21 century. From the previous studies, it is found that transformational leadership is associated with employee empowerment, whereas the association between employee empowerment and customer satisfaction is significant. However, few researches have been done to analyze the relationship between transformational leadership and customer satisfaction. In this paper, a mediation model is used to analyze how transformational leadership influences …show more content…

As customers are now more knowledgeable, their demands are changing quickly and they become more and more demanding towards the organizations in terms of their customer service (Moore, Hopkins and Hopkins, 1998). Therefore, the attitudes and behaviors of employees who have frequent and intense interpersonal contacts with customers are important to achieve customer satisfaction. It is believed that the responses of customer contact employees affect customers’ perceptions towards service quality. Customers are usually more satisfied with the services if the customer contact employees have the ability and eagerness to help solving customers’ problem. It is proposed that customer contact employees will be more able to increase customer satisfaction if they are given more control over the service encounter and hence positively affects customers’

perceptions of service quality (Chebat and Kollias, 2000).

In fact, many studies pointed out that there is positive relationship between employee empowerment and customer satisfaction. Customer satisfaction of the organization is increased by empowering its employees. A major element of empowerment is to give employees authority. Granting them power to make decision and autonomy to accomplish their task so as to bring desired outcomes. According to Chebat and Kollias (2000), employee empowerment would lead to a higher level of contact employee adaptability and

Get Access