Transformational leadership and employees' performance: the mediating role of employees' commitment in private banking sectors in Pakistan
DOI:
https://doi.org/10.47264/idea.lassij/7.1.7Keywords:
idealised influence, individual consideration, inspirational motivation, intellectual stimulation, employees’ loyalty, employees’ motivation, emotional attachmentsAbstract
In this competitive era, organisations face issues related to leadership styles in maintaining employee performance and commitment. Leadership, like transformational leadership, motivates employees to achieve the target for an organisation. However, employee performance and commitment are behavioural factors that help them achieve organisational goals. These factors develop emotional attachments like loyalty and faithfulness among the employees towards the organisations. This study examines the relationship between transformational leadership, employee commitment, and employee performance in a developing country like Pakistan. Although, in the twenty-first century, issues related to leadership styles have given new ways for researchers to further insight into employee performance and commitment study. However, this paper aims to determine the impact of transformational leadership on employee performance by mediating the role of employee commitment in the private banking sector. The cross-sectional and descriptive survey was used in the data collection; 466 employees of the banks participated in the study. The research indicates that transformational leadership positively impacts employee performance and commitment. The findings show that transformational leadership has a positive effect on employees' performance and employee commitment.
References
Alrowwad, A. A., Abualoush, SH, & Masa'deh, R. E. (2020). Innovation and intellectual capital as intermediary variables among transformational leadership, transactional leadership, and organizational performance. Journal of Management Development, 39(2), 196-222. https://www.emerald.com/insight/content/doi/10.1108/JMD-02-2019-0062/full/html DOI: https://doi.org/10.1108/JMD-02-2019-0062
Ali, M. S., Riaz, L., & Anis, W. (2021). Comparative study on the impact of individual and institutional ownership on firm performance: evidence from Pakistan Stock Exchange. Journal of Humanities, Social and Management Sciences (JHSMS), 2(2), 150–167. https://doi.org/10.47264/idea.jhsms/2.2.11 DOI: https://doi.org/10.47264/idea.jhsms/2.2.11
Aman, S., & Jan, M. A. (2022). Are we moving towards a managerial model of e-governance? building a case for citizen centric e-participation in Khyber Pakhtunkhwa, Pakistan. Journal of Humanities, Social and Management Sciences (JHSMS), 3(1), 501–524. https://doi.org/10.47264/idea.jhsms/3.1.35 DOI: https://doi.org/10.47264/idea.jhsms/3.1.35
Anwar, S., Chandio, J. A., Ashraf, M., Bhutto, S. A., Anwar, S., Chandio, J. A., ... & Bhutto, S. A. (2021). Does transformational leadership effect employees’ commitment? a mediation analysis of perceived organizational support using VB-SEM. International Journal of Disaster Recovery and Business Continuity, 12, 734-746. http://sersc.org/journals/index.php/IJDRBC/article/view/35950
Avolio, B. J., & Bass, B. M. (1995). Individual consideration viewed at multiple levels of analysis: a multi-level framework for examining the diffusion of transformational leadership. The Leadership Quarterly, 6(2), 199-218. https://doi.org/10.1016/1048-9843(95)90035-7 DOI: https://doi.org/10.1016/1048-9843(95)90035-7
Biza, T. A., & Irbo, M. M. (2020). The impact of leadership styles on employee commitment in Madda Walabu University. African Journal of Business Management, 14(9), 291-300. https://doi.org/10.5897/AJBM2018.8603 DOI: https://doi.org/10.5897/AJBM2018.8603
Buil, I., Martínez, E., & Matute, J. (2018). Transformational leadership and employee performance: the role of identification , engagement and proactive personality. International Journal of Hospitality Management 77, 64-75. https://doi.org/10.1016/j.ijhm.2018.06.014 DOI: https://doi.org/10.1016/j.ijhm.2018.06.014
Deci, E. L., Olafsen, A. H., & Ryan, R. M. (2017). Self-determination theory in work organizations: The state of a science. Annual review of organizational psychology and organizational behavior, 4, 19-43. https://www.annualreviews.org/doi/abs/10.1146/annurev-orgpsych-032516-113108 DOI: https://doi.org/10.1146/annurev-orgpsych-032516-113108
De Silva, K. M. & De Silva Lokuwaduge, C. S. (2021). Impact of corporate social responsibility practices on employee commitment. Social Responsibility Journal, 17(1), 1-14. https://doi.org/10.1108/SRJ-01-2019-0027 DOI: https://doi.org/10.1108/SRJ-01-2019-0027
Din, G. R. A., Shahani, N. U. N., & Baloch, M. N. (2021). Impact of rewards system in employee’s motivation in the organizational context: a quantitative study of manufacturing industry in UAE. Liberal Arts and Social Sciences International Journal (LASSIJ), 5(1), 105–122. https://doi.org/10.47264/idea.lassij/5.1.8 DOI: https://doi.org/10.47264/idea.lassij/5.1.8
Eliyana, A., & Ma, S. (2019). Transformational leadership towards employee performance. European Research on Management and Business Economics, 1–7. https://doi.org/10.1016/j.iedeen.2019.05.001 DOI: https://doi.org/10.1016/j.iedeen.2019.05.001
Elsan-Mansaray, H. (2019). The role of leadership style in organisational change management: a literature review. Journal of Human Resource Management, 7(1), 18. https://doi.org/10.11648/j.jhrm.20190701.13 DOI: https://doi.org/10.11648/j.jhrm.20190701.13
Farahnak, L. R., Ehrhart, M. G., Torres, E. M., & Aarons, G. A. (2020). The influence of transformational leadership and leader attitudes on subordinate attitudes and implementation success. Journal of Leadership and Organizational Studies, 27(1), 98–111. https://doi.org/10.1177/1548051818824529 DOI: https://doi.org/10.1177/1548051818824529
Fu, Q., Cherian, J., Rehman, K., Samad, S., Khan, M. A., Athar Ali, M., Cismas, L. M., et al. (2022). Enhancing employee creativity in the banking sector: a transformational leadership framework. Sustainability 14(8), 4643. http://dx.doi.org/10.3390/su14084643 DOI: https://doi.org/10.3390/su14084643
Hair, J. F., Sarstedt, M., Hopkins, L., & Kuppelwieser, V. G. (2014). Partial least squares structural equation modeling (PLS-SEM): an emerging tool in business research. European Business Review, 26(2), 106–121. https://doi.org/10.1108/EBR-10-2013-0128 DOI: https://doi.org/10.1108/EBR-10-2013-0128
Hussain, A., Yusoff, R., Khan, M. A., Lizam, M., & Diah, M. (2019). The effect of transformational leadership on employee job performance through mediating role of organizational commitment in logistic sector of Pakistan. September. International Journal of Supply Chain Management. https://doi.org/10.59160/ijscm.v8i4.2607
Khan, S. N., Abdullah, S. M., Busari, A. H., Mubushar, M., & Khan, I. U. (2020). Reversing the lens: the role of followership dimensions in shaping transformational leadership behaviour; mediating role of trust in leadership. Leadership and Organization Development Journal, 41(1), 1–18. https://doi.org/10.1108/LODJ-03-2019-0100 DOI: https://doi.org/10.1108/LODJ-03-2019-0100
Khan, K. M., & Mahmood, Z. (2023). Impact of corporate governance on firm performance: a case of Pakistan stock exchange. Liberal Arts and Social Sciences International Journal (LASSIJ), 7(1), 24–38. https://doi.org/10.47264/idea.lassij/7.1.2 DOI: https://doi.org/10.47264/idea.lassij/7.1.2
Koopmans, L., Bernaards, C. M., Hildebrandt, V. H., van Buuren, S., van der Beek, A. J., & de Vet, H. C. W. (2014). Improving the Individual Work Performance Questionnaire using Rasch analysis. Journal of Applied Measurement, 15(2), 160–175. https://doi.org/10.1136/oemed-2013-101717.51 DOI: https://doi.org/10.1037/t35489-000
Mahfouz, S., Awang, Z., Muda, H., & Suriawaty-Bahkia, A. (2020). Mediating role of Employee commitment in the relationship between transformational leadership style and employee performance. Humanities & Social Sciences Reviews, 8(2), 624–637. https://doi.org/10.18510/hssr.2020.8270 DOI: https://doi.org/10.18510/hssr.2020.8270
Mahfouz, S., Bahkia, A. S., & Alias, N. (2021). The impact of human resource management practices on employee performance and the mediating role of employee commitment. Journal of Governance and Regulation/Volume, 10(4). https://doi.org/10.22495/jgrv10i4siart3 DOI: https://doi.org/10.22495/jgrv10i4siart3
Mahmood, A., Akhtar, M. N., Talat, U., Shuai, C., & Hyatt, J. C. (2019). Specific HR practices and employee commitment: the mediating role of job satisfaction. Employee Relations: The International Journal, 41(3), 420-435. https://www.emerald.com/insight/content/doi/10.1108/ER-03-2018-0074/full/html DOI: https://doi.org/10.1108/ER-03-2018-0074
Nadeeka, D. G., & Weerasinghe, T. (2020). Impact of Employee Commitment on Job Performance of Secondary Level Government Employees in Divisional Secretariate of Matara district, Sri Lanka. People Masters 5(1), 1–26.
Na-Nan, K., Chaiprasit, K., & Pukkeeree, P. (2018). Factor analysis-validated comprehensive employee job performance scale. International Journal of Quality and Reliability Management, 35(10), 2436–2449. https://doi.org/10.1108/IJQRM-06-2017-0117 DOI: https://doi.org/10.1108/IJQRM-06-2017-0117
Naderi, A., Nasrolahi Vosta, L., Ebrahimi, A., & Jalilvand, M. R. (2019). The contributions of social entrepreneurship and transformational leadership to performance: insights from rural tourism in Iran. International Journal of Sociology and Social Policy, 39(9–10), 719–737. https://doi.org/10.1108/IJSSP-06-2019-0124 DOI: https://doi.org/10.1108/IJSSP-06-2019-0124
Putri, F. A., & Muhdiyanto, M. (2018). The role of transformational leadership and commitment organizational on organizational citizenship behavior: psychological …. UMMagelang Conference Series, 3(5), 39–45. http://journal.unimma.ac.id/index.php/conference/article/view/3640.
Rafiei, S., & Abdollahzade, S. (2018). Organisational commitment as a moderating role in the relationship between power distance perception and outcome variables. BMJ Leader, 2(1), 16–19. https://doi.org/10.1136/leader-2017-000020 DOI: https://doi.org/10.1136/leader-2017-000020
Schwaiger, K., & Zehrer, A. (2022). The relationship between employer image and employee commitment in family-run hospitality firms. International Journal of Culture, Tourism and Hospitality Research, 16(1), 352–369. https://doi.org/10.1108/IJCTHR-10-2020-0238 DOI: https://doi.org/10.1108/IJCTHR-10-2020-0238
Sendawula, K., Nakyejwe Kimuli, S., Bananuka, J., & Najjemba Muganga, G. (2018). Training, employee engagement and employee performance: evidence from Uganda’s health sector. Cogent Business and Management, 5(1), 1–12. https://doi.org/10.1080/23311975.2018.1470891 DOI: https://doi.org/10.1080/23311975.2018.1470891
Sharma, S., Prakash, G., Kumar, A., Krishna, E., & Antony, J. (2021). Analysing the relationship of adaption of green culture , innovation , green performance for achieving sustainability: mediating role of employee commitment. Journal of Cleaner Production, 303, 127039. https://doi.org/10.1016/j.jclepro.2021.127039 DOI: https://doi.org/10.1016/j.jclepro.2021.127039
Lokuwaduge, C., & De Silva, K. (2019). Impact of corporate social responsibility practices on employee commitment. Social Responsibility Journal, Ahead-of-print. https://link.springer.com/article/10.1007/s10551-013-1928-3
Silva, S., & Mendis, B. A. K. M. (2017). Relationship between transformational, transaction and laissez-faire leadership styles and employee commitment. European Journal of Business and Management, 9(7), 13-21. https://core.ac.uk/download/pdf/234627756.pdf
Sudiardhita, K. I., Mukhtar, S., Hartono, B., Sariwulan, T., & Nikensari, S. I. (2018). The effect of compensation, motivation of employee and work satisfaction to employee performance Pt. Bank Xyz (Persero) Tbk. Academy of Strategic Management Journal, 17(4), 1-14. https://ijisrt.com/wp-content/uploads/2019/06/IJISRT19MY369
Sungu, L. J., Weng, Q., and Xu, X. (2019). Organizational commitment and job performance: examining the moderating roles of occupational commitment and transformational leadership. International Journal of Selection and Assessment, 27(3), 280–290. https://doi.org/10.1111/ijsa.12256 DOI: https://doi.org/10.1111/ijsa.12256
Tariq, F., Amad, M., & Inayat, M. (2021). Employee behavioural silence and organization based self-esteem: a study of psychopathic leadership in government departments in Pakistan. Liberal Arts and Social Sciences International Journal (LASSIJ), 5(1), 458–480. https://doi.org/10.47264/idea.lassij/5.1.30 DOI: https://doi.org/10.47264/idea.lassij/5.1.30
Teo, S. T. T., Bentley, T., and Nguyen, D. (2019). Psychosocial work environment , work engagement , and employee commitment?: a moderated, mediation model. International Journal of Hospitality Management, November, 102415. https://doi.org/10.1016/j.ijhm.2019.102415 DOI: https://doi.org/10.1016/j.ijhm.2019.102415
Tuffour, J. K., Gali, A. M., & Tuffour, M. K. (2022). Managerial leadership style and employee commitment: Evidence from the financial sector. Global Business Review, 23(3), 543-560. https://doi.org/10.1177/0972150919874170 DOI: https://doi.org/10.1177/0972150919874170
Uddin, M. A., Mahmood, M., and Fan, L. (2019). Why individual employee engagement matters for team performance? mediating effects of employee commitment and organizational citizenship behaviour. Team Performance Management, 25(1–2), 47–68. https://doi.org/10.1108/TPM-12-2017-0078 DOI: https://doi.org/10.1108/TPM-12-2017-0078
Udovita, V. (2020). Conceptual review on impact of leadership style on employee performance. International Journal of Business and Management Invention (IJBMI), 9(9), 16-23. https://doi.org/10.35629/8028-0909011623
Wang, G., Oh, I. S., Courtright, S. H., and Colbert, A. E. (2011). Transformational leadership and performance across criteria and levels: a meta-analytic review of 25 years of research. Group and Organization Management, 36(2), 223–270. https://doi.org/10.1177/1059601111401017 DOI: https://doi.org/10.1177/1059601111401017
Wojtczuk-Turek, A., & Turek, D. (2021). HPWSs and employee performance in KIBS companies: a mediating–moderating analysis. Baltic Journal of Management, 16(3), 345–365. https://doi.org/10.1108/BJM-03-2020-0081 DOI: https://doi.org/10.1108/BJM-03-2020-0081
Yuan, Y., Kong, H., Baum, T., Liu, Y., Liu, C., Bu, N., Wang, K. and Yin, Z. (2022). Transformational leadership and trust in leadership impacts on employee commitment. Tourism Review, 77(5), 1385-1399. https://doi.org/10.3390/ijerph20043609 DOI: https://doi.org/10.1108/TR-10-2020-0477
Downloads
Published
How to Cite
Issue
Section
Categories
License
Copyright (c) 2023 Dr. Sadia Anwar, Iqra Qambrani, Nasir Ali Shah
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Licensing & Copyright Policies
Articles in LASSIJ-IDEA are Open Access contents published under the Creative Commons Attribution-NonCommercial 4.0 International (CC BY-NC 4.0) http://
The copyright policy of LASSIJ-IDEA is based on a non-exclusive publishing agreement, according to which the LASSIJ-IDEA retains the right of first publication, but the author(s) are free to publish their work subsequently. The copyright of all work rests with the author(s).
The users may use, reproduce, disseminate or display the article(s) provided that the author(s) are attributed as the original creators and that the reuse is restricted to non-commercial purposes, i.e., research or other educational use. Authors are encouraged to familiarise themselves with the various Creative Commons licenses.
The readers are advised to consult the licensing information embedded in each published work to make sure they are familiar with the terms of use that apply.
