The result of this research also revealed that all dimensions of transformational leadership were more positively correlated with intrinsic job satisfaction than extrinsic job satisfaction. This finding is consistent with the finding of a study done in a Jordanian private hospital (24). Transformational leadership promotes employees’ empowerment in implementing organizational functions (24). Employees’ empowerment has played a significant role on employee self-efficiency which in turn promotes employees’ intrinsic satisfaction. (29).
Multiple regression analysis results revealed that except contingent reward, other dimensions of transactional leadership styles had either weak or negative relationship with both intrinsic and extrinsic job satisfaction. Findings of previous studies indicated that management by exception (passive) and laissez-fair styles are the least effective forms of leader behavior (35) and are likely to have negative relation with job satisfaction (36). The reason why both management by exception (passive) and laissez-faire dimensions have negative relation with job satisfaction is that passive management by exception puts the subordinate under pressure in order to make him/her follow the desired standards, but it does not support individual resources (37) while Laissez-faire leaders do not attempted to make agreements with employees, to motivate them, to set standards or to give feedback (38).
On the other hand, all dimensions of transformational leadership style were significantly and positively correlated with both intrinsic and extrinsic job satisfaction. Comparison of beta coefficients of transformational leadership dimensions indicated that intellectual stimulation had the strongest correlation with both intrinsic and extrinsic job satisfaction. Previous research findings also showed that there is a statically significant positive relationship between transformational leadership and job satisfaction (24, 39).
The result of this study indicated that nurses who were working at Jimma University Specialized Hospital preferred managers who are transformational leaders. This implies that transformational leadership style promotes job satisfaction of nurses leading to improved performance and reducing the turnover of nurses. McClosky and McCain (40) found out that nurses’ job performance increased proportionally with increased job satisfaction. Therefore, nurses managers should consider the following important points:
The mission and vision of the hospital should be clear to each nurse in order to enable him/her transform the mission and vision into ward objectives;
Nurses should understand the jointly set goals and the nurse manager should foster innovative thinking to consider the existing working standard in a new way so as to improve individual and team productivity;
Nurse managers should develop more trust and confidence in their nurses and it isnecessary that the former strive to empower the latter.
Nurse managers should be good role models for their nurses and avoid applying both management by exception (active and passive), and laissez-faire components because these have either little or adverse contribution to nurses’ job satisfaction.
Furthermore, hospital administrators should facilitate training programs for nurse managers on leadership styles and their effects on job satisfaction in order to enable them to understand the components of effective nursing leadership style. Finally, further investigation on the relationship between transformational and transactional leadership styles and nurses’ job satisfaction in private and public hospitals in Ethiopia in order to critically examine the effects of these two leadership styles on nurses’ job satisfaction is recommended.