Leadership Matters? The Moderating Effects of Perceived Transactional and Transformational Leaderships on Career Plateau and Organizational Commitment in Belize

Abstract

The organizational structure and workplace environment is continuously changing and adapting. As a result, career plateau is more salient in the workplace, resulting in consequences such as reduced organizational commitment and challenges to management. Numerous researches on career plateau have supported the theory that a plateaued employee is harmful to the organization’s success, but few focus on the effects of career plateau in developing countries. Likewise, there is limited focus on how leadership can influence the outcome of organizational commitment in plateaued employees. This study sought to confirm the relationship between career plateau and organizational commitment, with a focus in the moderating roles of transactional and transformational leaderships, particularly in the context of Belize. Data collected, using an online questionnaire, from 247 full-time employed Belizeans, with at least one year tenure with their organization was analyzed. The linear and hierarchical regression analyses were used to confirm the negative correlation between plateaued employees and their affective and normative commitments, and a positive correlation to their continuance commitment. As well, the moderating effects of transactional and transformational leaderships on this relationship were analyzed. The findings show that plateaued employees display reduced affective commitment to the organization, and transactional leadership behaviors strengthen this negative relationship. The results also show that plateaued employees display reduced normative commitment to the organization; however, transformational leadership moderates this negative relationship. What's more, the results also showed that plateaued employees display higher continuance commitment, and transformational leadership strengthens this relationship.The organizational structure and workplace environment is continuously changing and adapting. As a result, career plateau is more salient in the workplace, resulting in consequences such as reduced organizational commitment and challenges to management. Numerous researches on career plateau have supported the theory that a plateaued employee is harmful to the organization’s success, but few focus on the effects of career plateau in developing countries. Likewise, there is limited focus on how leadership can influence the outcome of organizational commitment in plateaued employees. This study sought to confirm the relationship between career plateau and organizational commitment, with a focus in the moderating roles of transactional and transformational leaderships, particularly in the context of Belize. Data collected, using an online questionnaire, from 247 full-time employed Belizeans, with at least one year tenure with their organization was analyzed. The linear and hierarchical regression analyses were used to confirm the negative correlation between plateaued employees and their affective and normative commitments, and a positive correlation to their continuance commitment. As well, the moderating effects of transactional and transformational leaderships on this relationship were analyzed. The findings show that plateaued employees display reduced affective commitment to the organization, and transactional leadership behaviors strengthen this negative relationship. The results also show that plateaued employees display reduced normative commitment to the organization; however, transformational leadership moderates this negative relationship. What's more, the results also showed that plateaued employees display higher continuance commitment, and transformational leadership strengthens this relationship.