An empirical study of the effect of transformational and transactional leadership on motivation in the Jamaican environment (Jamaica Money Market Brokers)

The purpose of this study was to examine the effect that Transformational (measured by dimensions of idealized influence-attributed; idealized influence-behavioral; inspirational motivation; intellectual stimulation; individualized consideration) and Transactional Leadership (measured by contingent reward and management by exception) have on employee motivation or extra effort. These seven dimensions of Transformational and Transactional Leadership served as the independent variables. The dependent variable was motivation or extra effort.; Study respondents included ninety-two employees of the Jamaica Money Market Brokers. Each respondent completed the Multi Factor Leadership Questionnaire, Bass and Avolio (1995). The MLQ contains 45 items. The SPSS version 10 software was used to analyze the data. Correlation coefficients and multiples of regression were used to determine the effect of Transformational and Transactional Leadership on Motivation. The findings indicated that there was a statistically significant relationship between Transformational and Transactional Leadership and motivation.