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Measuring the Impact of Transformational and Transactional leadership style on Employees performance


Shoukat A. Mahar, Sajid H. Mirani , Mahendar Kumar , Nazar H.Phulpoto, Zubair A Pirzada , Ayaz Hussain


Vol. 20  No. 1  pp. 1-8


Today's world management is about the management of the era of rapid change. In all organizations, the need to develop better leadership styles is becoming more and more important. The purpose of this work is to determine whether there is a correlation between leadership style and employee performance, especially in the banking industry. This study reviews the widely used leadership styles: transformational leadership and transactional leadership. The documents reviewed did not achieve complete agreement on the most appropriate leadership style. Transformation theory is considered by many to be an improvement on the theory of trading leadership. Research that favors the benefits of transformation theory seems to be growing. so, this study focuses upon the basic tool of organizational development by proper and suitable behavior of the Manager. In this research, two of the Leadership Behavior have been predicted i.e. Transformational and Transactional style of leadership on the Employees performance of Banking Sector in Khairpur. As banking sector is growing and most abundant firm in Pakistan so the author(s) believe that employees’ performance is the crucial and essential for any of the industry throughout different factors i.e. motivating, rewarding, supporting, idealizing, charismatic influence, and constant encouragement. This study reveals the facts about the behavior of developers towards their subordinates for which employees’ performance may affected and that results in organizational performance. This study is based on quantitative research and primary data and secondary data was used to predict the behaviors. Researcher has used five-point Likert scale and leadership questionnaire about transformational and transactional and it was used by (Bass B. A., 2000) so in this regard confirmatory factor analysis method was used to take results further it also said that questions about employees performance are taken from work done by Yousef in 2000 and (Mahar, 2016). Researcher has used SPSS 25.0 to assure the reliability and validity of questionnaire, in this connection questionnaire was distributed among 100 employees of different banks in Khairpur city from which 75 questionnaires were returned but 63 respondents responded properly. Regression analysis was done to see the impact of these styles on employees’ performance. So, these findings will help the banking sector to get the desired performance of employees.


Transformational leadership, transactional leadership, employee’s performance, management, banks, leadership