Transformational leadership and employees' performance: the mediating role of employees' commitment in private banking sectors in Pakistan

Abstract

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.