Impact of Leadership Style on Employees’ Motivation: The Contribution of Psychological Capital and Employees’ Engagement

Abstract

Purpose: Developing employee motivation has excellent significance in attaining organizational success with massive performance. The present study explores the impact of transformational leadership style (TLS) on employees’ motivation (EM) directly and through psychological capital (PC) and employee’ engagement (EE).   Design/Methodology/ Approach: Through the questionnaire, the researchers targeted the employees of King Saud bin Abdulaziz University for Health Sciences (KSAU-HS) in Al-Ahsa. Consequently, the researchers used 242 samples to infer the results.   Findings: Through path analysis using analysis of moment structures (AMOS) version 26.0, the outcomes suggested a positive effect of TLS on PC and EM. On the other hand, the impact of TLS on EE is negative. Moreover, the PC and EE factors appeared as positive predictors of EM. With regard to mediation, the study found a positive contribution of PC and EE in developing the association between TLS and EM.   Research, practical and social implications: The study's findings offer practical guidance for organizational leaders by highlighting the importance of adopting effective leadership styles that nurture PC and enhance EE by providing actionable strategies to improve workplace dynamics. Moreover, the findings would enhance organizational performance by emphasizing the pivotal role of leadership in shaping employee motivation and engagement.   Originality/ value: This study empirically addresses the gaps in the integrated framework, meaningfully confirmed among King Saud bin Abdulaziz University for Health Sciences (KSAU-HS) employees in Al-Ahsa.