The purpose of this study is to analyze the effect of Leadership of the organization on employee job satisfaction and organizational commitment using hierarchical linear model (HLM). Meantime, the general approach to the regression equation and struct...
The purpose of this study is to analyze the effect of Leadership of the organization on employee job satisfaction and organizational commitment using hierarchical linear model (HLM). Meantime, the general approach to the regression equation and structural equation model (SEM) has been used to explain the attitudes and behaviors of individuals. However, attitudes and behaviors of individuals within the organization are affected by the characteristics of the individual level as well as the upper levels of the organization. This case is not supported that the existing model includes a organizational level. Eventually, Leadership depends on the level of analysis issues. This study suggests that HLM enables overcome the methodological limitations from the existing model. In result of HLM Analysis, it appears that only transformational leadership of the organization has a significant and positive (+) effect on employee job satisfaction and organizational commitment. Regression analysis of the organizational level shows the same result. However, regression analysis of individual level and structural equation model bring about different result from one by HLM. Finally, a causal relationship depends on method of analysis used. It is very important to select the appropriate approach to the theoretical model and properties of the material in order to validate a causal relationship between variables. HLM is a better choice than regression equations and structural equation modelin case of the existing multi-level data. Consequently, this study is expected to contribute to development of the Organization and Human Resource.