The effects of transformational leadership on followers’ perceived work characteristics and psychological well-being: A longitudinal study Karina Nielsen a *, Raymond Randall b , Joanna Yarker c and Sten-Olof Brenner a a National Research Centre for the Working Environment, Copenhagen, Denmark; b Department of Psychology, Leicester University, UK; c Department of Psychology, Goldsmiths, University of London, UK Transformational leaders employ avisionary and creative style of leadership that inspires employees to broaden their interest in their work and to be innovative and creative. There is some evidence that transformational leadership style is linked to employee psychological well-being. However, it is not clear whether this is due to (1) a direct relationship between leadership behaviour and affective well-being outcomes, or (2) a relationship between leadership behaviour and well-being that is mediated by followers’ perceivedwork characteristics. (Such characteristics include role clarity, meaningfulness, and opportunities for development.) This study aims to extend previous work by examining the validity of these two mechanisms in a longitudinal questionnaire study. The study was carried out within the elderly care sector in a Danish local governmental department. A theory-driven model of the relationships between leadership, work characteristics, and psychological well-being was tested using Structural Equation Modelling. The results indicated that followers’ perceptions of their work characteristics did mediate the relationship between transformational leadership style and psychological well-being. However, there was only limited evidence of the existence of a direct path between leadership behaviour and employee well-being. These findings have implications for design, implementation, and management of efforts to improve employee well-being. Keywords: transformational leadership; well-being; mediation; work characteristics; longitudinal; healthcare Introduction The aim of this study is to examine the mechanisms through which transformational, or ‘‘inspiring’’ leadership behaviour influences employee well-being. The paper reports the use of a longitudinal study design to test the validity of two mechanisms. In the first mechanism, leadership behaviour is hypothesized to have a direct impact on followers’ affective well- being. In the second mechanism, the impact of leadership behaviour on perceived work characteristics is hypothesized to mediate the leadershipwell-being relationship. To do this the study builds upon the findings of two bodies of well-being research: studies of the influence of (1) leadership and (2) work characteristics on employee well-being. The study focuses on transformational leadership style due to its dominant position in high quality leadership research (Bass, 1990; Judge & Piccolo, 2004; Lowe & Gardner, 2001). Transformational leadership occurs when ‘‘leaders broaden and elevate the interests of their followers, generate awareness and commitment of individuals to the purpose and *Corresponding author: Email: kmn@nrcwe.dk ISSN 0267-8373 print/ISSN 1464-5335 online # 2008 Taylor & Francis DOI: 10.1080/02678370801979430 http://www.informaworld.com Work & Stress Vol. 22, No. 1, JanuaryMarch 2008, 1632