An investigation of path-goal and transformational leadership theory predictions at the individual level of analysis

This study tested the recent path-goal leadership theory prediction [House, R.J., 1996. Path-goal theory of leadership: Lessons, legacy, and a reformulated theory. The Leadership Quarterly, 7, 323–352] that leader contingent reward behavior negatively moderates relationships between transformational leadership and subordinate performance and job satisfaction at the individual level of analysis. Also tested was the prediction that transformational leadership would positively augment the effects of leader contingent reward behavior [Bass, B.M., 1985. Leadership and performance beyond expectations. New York: Free Press]. Confirmatory factor analyses, hierarchical linear multiple regression, and within- and between-entity analyses were employed, along with a sample of 169 social services workers in 40 groups. No evidence was found supporting either the path-goal or additive augmentation hypotheses. However, a positive moderator effect was found for some transformational leader behaviors and the leader contingent reward behavior variable, supporting a form of “augmentation effect” that is not incongruent with Bass's [Bass, B.M., 1985. Leadership and performance beyond expectations. New York: Free Press] approach to transformational leadership. Additionally, strong support was obtained for the level of analysis prediction. Future research directions are briefly considered.