Transformational Leadership Style Impact on Employee Performance



Abstract

In this study we try to explore the concept of Leadership styles, leadership in a holistic context. The main focus of the research is on transformational leadership skills and its relation with the performance of employees. The research was conducted using quantitative methodology. The transformational leadership skills of managers and the determinants of employees' performance were identified through previous studies. There are two variables that are included in the paper that are Independent-Transformational Leadership and Dependent-(Employee performance). These variables were then tested using chi square to measure the association between the transformational leadership of managers and the performance of employees. From the results it was found that the transformational leadership of manager has a significant impact of the performance of employees. The paper highlights the research question and establishes relationship between two variables with a direction of influence going from one variable to another. Transformational Leadership Style Impact on Employee Performance

Introduction

Leadership has become increasingly important in today's world. The study of leadership has been conducted to prepare future leaders. The term "leadership" is used in two basic ways:

To refer to processes of moving a group of people in the same direction through noncoercive means; and

To refer to people who are in roles from which leadership is expected.

Formal research on leadership has been conducted for more than 60 years. According to Hansen (2009), there are many different definitions of leadership, but all appear to have three things in common:

Leadership is a process about influencing;

There are at least two people involved, the leader and the follower; and

Leadership happens where implied or even unconscious goals or objectives are established.

Transformational leadership focuses on shaping the values, attitudes and goals of followers, and inspiring them to transcend their own self-interests for a higher collective purpose. Using such behaviors as developing trust through consistency, demonstrating respect for employees, and creating empowering opportunities, transformational leaders instill values and develop employees in such a way as to enhance employee performance. Research on transformational leadership has suggested a positive relationship with employees' individual performance, satisfaction and effectiveness, as well as employee locus of control and business unit performance. However, one important question that has not been directly investigated is: does transformational leadership of manager influence employee performance?

Problem Identification and Background

In the management literature, the idea of employees is frequently described as a principal component of enhanced innovation, organizational addictiveness, improved customer relations and heightened employee satisfaction. There is some general agreement in both popular and academic writings that employees can contribute significantly to organizational performance. Given the challenges faced by today's organizations, leadership's impact on the performance of employee would seem to be a concept deserving of extensive study.

Despite the growing attention on employee performance as an organizational improvement strategy, surprisingly little empirical research has been conducted to examine the role of managers as an independent construct, the contextual or work environment factors that facilitate it, or the relationship of manager's leadership in employee's performance, ...