The Relationship between Transformational Leadership Style Job Satisfaction and the Effect of Organizational Commitment

Abstract

It has been evidenced in the literature that transformational leadership style was a central feature of organizational performance while job satisfaction and organizational commitment have been theoretically and empirically linked to organizational effectiveness. It has also been argued that the relationship between transformational leadership style, job satisfaction and organizational commitment were differed some of the studies asserted that the relationship between these variables was positive relationship while other studies pointed out that the relationship between them were negative relationship. Furthermore, this study is attempted to investigate the relationship between transformational leadership, job satisfaction and organizational commitment and the effect of organizational commitment as a mediating variable on this relationship in Petroleum sector in Libya. Quantitative survey method was applied and four broadly hypothesized were tested with a sample of 280 employees from petroleum sector in Libya was selected to answer the questionnaire. SPSS software was used to analyze the data collected based on descriptive statistics (mean, standard deviation, percentage, Spearman Correlation and Multiple Regression). The empirical results indicated that organizational commitment effect the relationship between transformational leadership style and job satisfaction while, the relationship between transformational leadership style, job satisfaction and organizational commitment was positive significant relationship in petroleum sector in Libya. 1. Introduction Libya is a member of the Organization of Petroleum Exporting Countries (OPEC) and holds the largest proven oil reserves in Africa. Libya has attracted hydrocarbon exploration since 1956, when the first wildcat oil well was drilled onshore in the Sirte Basin. Libya granted multiple concessions to Esso, Mobil, Texas Gulf, and others, resulting in major oil discoveries by 1959. The government dominates Libya's economy through control of oil resources, which account for approximately 95% of export earnings, 75% of government receipts, and over 50% of GDP. The National Oil Corporation was established in 1970 to manage and controls Libya's petroleum sector, along with a number of smaller subsidiaries, which combined account for around half of the country's oil output. National Oil Corporation carries out exploration and production operations through its own affiliated companies, or in participation with other companies under service contracts or any other kind of petroleum investment agreements. This is in addition to marketing operations for oil and gas, locally as well as abroad. NOC has fully owned companies which carry out explorations, developments and production operations, in addition to local and international marketing companies (Sasi, 2008). The NOC is the biggest oil producer in Africa. Its mandate is to promote the Libyan economy by undertaking development, management and exploitation of oil resources as well as by participating in planning and executing the general oil policy of the state (National Oil Corporation, 2008). The choice of petroleum sector in Libya to investigate the effect of organizational commitment on the relationship between transformational leadership style and job satisfaction, because Libya is a member of organization of petroleum exporting countries (OPEC), this holds the largest proven oil reserves and the most important oil-producing countries in Africa and the world. The petroleum sector in Libya is very important because it is the backbone of Libyan economy.