Purpose: The present study fills an under-researched void in leadership style
research in non-Western contexts by exploring its effects on employee outcomes
in the non-Western context, namely, the private sector of Bangladesh. More
specifically, the MLQ-5X was used to test the impact of transformational,
transactional, and laissez-faire leadership on employee satisfaction, perceived
leadership effectiveness, and extra employee effort.
Methodology: A quantitative method was applied, and survey data were collected
from respondents from several private sector organizations in Bangladesh using
the MLQ-5X to measure the extent of employees’ perceptions of supervisors’
leadership style and its implications for employee creativity. The relationship
between the three leadership styles and effectiveness, satisfaction, and extra effort
was tested using statistical analysis.
Findings: The findings indicate that a high level of transformational leadership is
positively related to employees' job satisfaction, perceived effectiveness, and extra
effort. Transactional leadership was positively correlated with these results to a
moderate extent. In contrast, laissez-faire leadership is negatively associated with
all three outcomes, meaning that employees are less satisfied and perceive their
leaders as less effective.
Practical Implications: The results indicate that developing transformational
leadership practices in the private sector of a country like Bangladesh could have
human resource management and leadership development implications, as
promoting transformational leadership abilities can create desired outcomes on
employee satisfaction and commitment, which eventually ensures long-term
organizational survival. Leadership development programs should focus on
developing transformational skills and minimizing laissez-faire behavior.
Originality/Value: The findings of this study add to the limited empirical
literature on leadership styles in developing countries. In validating the MLQ-5X
in Bangladesh, this study shows the model’s cross-cultural relevance and its
implications for leadership practices that could potentially enhance organizational
performance within South Asian economies.
Limitations: The cross-sectional nature of this study precludes inferences about
causality and can induce perceptual bias. Longitudinal studies that include both
supervisor and employee perspectives in future research will allow for a more
comprehensive understanding of the leadership process.
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