A motivated workforce is critical to the success of an organization. To achieve their goals, organizations need motivated employees, in which leaders and their leadership styles play an important role. This research examines the relationship between leadership styles and their influence on employees' intrinsic and extrinsic motivation. The research is based on a full-range leadership model that distinguishes between transformational and transactional leadership, and a theory of self-determination that differentiates between extrinsic or controlled and intrinsic or autonomous motivation. The sample comprises 30 pairs of manager-subordinate, where the subordinate is an employee who has been working in the company for less than a month, and the manager is his direct superior. Each subordinate in the survey evaluated only one leader and vice versa. The measurement was performed twice, at the beginning of the employment and after three months. Changes in motivation can be more easily attributed to leadership style in new employees than they could be in employees who have been working at the company for a longer period. The leadership styles did not change between the measurements, but the motivation levels did: intrinsic motivation increased under transformational leadership style, whereas extrinsic motivation increased under transactional leadership style. The results show managers need to be aware of the consequences of their own leadership style and adapt it, depending on how they want to motivate their employees.
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