The Relationship Between Transformational Leadership Public Service Motivation Affective Commitment And Organizational Performance In Public Service Employees Transport Service Enterprise (psetse)

This study examines the relationship between transformational leadership, affective organizational commitment, public service motivation, and perceived organizational performance. A structural equation modeling was used to examine the perceptions of 112 public employees in Ethiopian Public Service Employees Transport Service Enterprise. The result indicates that transformational leadership has a positive, significant but medium relationship with perceived organization performance, affective organizational commitment, and public service motivation. It is also found that transformational leadership has a positive effect on AOC, PSM and POP. However, the level of influence slightly differs. It is revealed that 29.6%, 41.6% and 23.5% of change on civil servant’s perceived organizational performance, affective organizational commitment, and public service motivation respectively is explained by the variation in the transformational leadership at the Enterprise. It is found that affective organizational commitment has significant contribution in the improvement of organization performance at Enterprise. The result also indicated that public service motivation has a significantly positive relation with and impacts on both perceived organizational performance and affective organizational commitment. In all these cases, however, the relationships and effects are found to be moderate except transformation leadership with public service motivation. Affective organizational commitment and public service motivation have mediating effect on perceived organizational performance albeit the indirect effect is weak. It is also found that none of the control variables (gender, age, marital status, educational background and work experience) has any significant effect on affective organizational commitment, public service motivation, and perceived organizational performance. It is possible to conclude that transformational leadership does play an important role in determining the levels of perceived organizational performance, both directly and indirectly, but only at medium level. Thus, in order to elevate its effects to a higher level, sustained and long-term management development programs should be designed to promote the existing status of transformation leadership at Enterprise; and the level of centralization, formalization and routinization should also be reduced.

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