Impact of Transformational Leadership on Employee Productivity Through Mediation of Employee Motivation in Banking Industry of Pakistan

Abstract

ABSTRACT:

This thesis examines how employees of the banking sector in Pakistan are influenced in terms of motivation and productivity level through transformational leadership. The objective of the study was to look at the relationships between these variables directly as well as mediated ones and how the motivational style selected by leaders affects how motivated and productive people become. The quantitative approach was applied whereby both primary and secondary data were collected through a structured Likert-scale questionnaire from 100 banking employees. SPSS was utilized to analyse the data and test the hypotheses made (H1, H2, H3, H4) regarding significant associations.

According to the findings, it emerged that transformational leadership is effective in increasing employee motivation and productivity. The hypotheses tested show a direct relationship with productivity (H1) and motivation (H2), a productive relationship between the motivation of employees and their output (H3), and a mediated relationship of transformational leadership effects on productivity through motivation (H4). The employee motivation as a regulating factor has been confirmed by all hypotheses studied.

The research report finishes with the assertion that if the motivation of the employees is improved, then rather transformational leadership ought to be called a tool for enhancing employee productivity. Contributions of theoretical nature expand the scope of leadership theory by broadening the model of leadership to include the elements of motivation, while practice oriented contributions suggest that the banks would be concerned with transformational leadership in order to enhance employee commitment and performance.