38 A Study of the Relationship between Transformational Leadership, Empowerment and Organizational Commitment Azman Ismail, Mohd Hamran Mohamad , Hasan Al-Banna Mohamed, Mohamad Nasir Saludin, Mokhtar Abdullah, Munirah Hanim Yusuf Department of Defence Resource Management Faculty Of Management and Defence Studies, National Defence University of Malaysia, 57000, Sungai Besi Camp Kuala Lumpur, MALAYSIA azisma08@gmail.com, hamran@upnm.edu.my , hasanalbanna@upnm.edu.my , mokhtar@upnm.edu.my , nasir.s@upnm.edu.my , munirahhanim@gmail.com ABSTRACT This study was conducted to examine the influence of empowerment in the relationship between transformational leadership and organizational commitment using a sample of 118 usable questionnaires gathered from employees in one US subsidiary firm in Sarawak, Malaysia. Outcomes of stepwise regression analysis showed that the relationship between empowerment and transformational leadership is positively and significantly correlated with the organizational commitment. This result confirms the partial mediating role of empowerment in the transformational leadership model of the organizational sample. Further, conclusion and implications of this study are elaborated. Keywords Transformational Leadership; Empowerment; Organizational Commitment 1.0 INTRODUCTION A leader is often referred to as a powerful and dynamic person who forms the path of a nation and this may affect the organizational management (Bono & Judge, 2003, 2005; Yukl, 1989). In an organizational context, leadership is viewed as a prime force that may determine the organizational competitiveness in a global economy (Bass & Avolio, 1993; Bryman, 1992). In order to support the objectives, leaders often choose particular interaction styles that may represent the values and motivations, the wants and needs, the aspiration and expectation of both leaders and followers (Howell & Avolio, 1993; Hartog, Muijen & Koopman, 1997). For example, interactions in the traditional leadership approach emphasize the ability of followers to accomplish job targets as set up by their superiors (Howell & Avolio, 1993). Conversely, interactions in the contemporary leadership approach focuses more on the quality of relationship with followers, such as building reciprocal trust, participatory decision-making, democratic style, and concern about individuals (Avolio, Bass & Jung, 1999; Bycio, Hacket & Allen, 1995). Many scholars think that contemporary and traditional based interaction styles use different treatments and this may be categorized in two major forms, namely transactional leadership and transformational leadership (Avolio et al., 1999; Hartog et al., 1997; Howell & Avolio, 1993). In the early studies about human resource development, the internal properties of the organizational leadership were given much attention (Spreitzer, 1995). For example, transactional leadership and transformational leadership are two main features of the organizational leadership that have received much attention for many years ago (Bass, 1999; Hartog et al., 1997). Transactional leadership emphasizes cost benefit, where the exchange of commodities (e.g., rewards) and doing job based on task roles and requirements have been a main instrument to achieve organizational and job goals. For example, in this exchange process a leader often promises to fulfill followers’ needs (e.g. wages and promotion) if they comply with his/her wishes (Burns, 1978; Jabnoun & AL-Rasasi, 2005). This leadership style is suitable to be practiced in stable organizational environments (Robbins & Coultar, 2005; Pounder, 2002). In an era of global competition, many organizations shift the paradigms of their leadership styles from a transactional leadership to a transformational leadership as a way to achieve their strategies and goals (Bass, 1994, 1999, Howell & Avolio, 1993). According to the organizational leadership scholars, such as Bass (1994), and Hartog et al. (1997), define transformational leadership as leaders who