Impact of Transformational and Transactional Leadership Style on Employees Performance with the Mediating Effect of Affective Commitment

Abstract

The research was conducted to probe the correlation between leadership styles on employee pe1jormance through the mediation of Affective commitment in National Bank of Pakistan Jhelum regional office. The inqui1y was conducted in a natural Worlding environment of an organization where respondents are situated/located that is a filed study. Convenient sampling technique was used to canny out the research using structured questionnaires which ·were adopted from other researcher 's studies. The questionnaires were based on jive-point Likert scale measuring Transformational leadership, Transactional leadership, Affective Commitment and employee pe1jormance. 144 questionnaires were distributed among middle level employees of National Bank of Pakistan out of which all 144 were useable. This data was analyzed using SPSS. The descriptive statistics indicated positive relationship between transformational and employee pe1jormance and show significant effect with that the other variable Transactional leadership shows positive significant impact on employee pe1jormance. This research proves impact of transformational leadership on employee pe1jormance, by produce the empirical evidence which proved that Tran. Formational leadership impact ((J = 0. 618) on employee pe1jormance. Secondly this research investigates the effect of transactional leadership on employee performance and by empirical evidence it has been proved that transactional leadership ((J= 0.541) on employee pe1jormance of middle level employees. Thirdly this research investigates the mediating effect of affective commitment betvveen transactional leadership and employee performance and through empirical evidence it has been proved that mediation exist between this relation. In direct relationship between these two variables the relationship is significant and with the addition of mediation it remains significant at (P=O. 000). Similar empirical evidence was found in ntediation test of Hayes process. The fourth objective stated that to investigate the mediation effect of affective commitment between transactional leadership and employee pe1jormance through empirical evidence it has been proved that mediation exist between these relationships. In direct relationship between these two variables the relationship is significant and with the addition of mediation it remains significant at (P = 0.000). Similar empirical evidence was found in mediation test of Hayes process. Significance of this study for national bank of Pakistan is that if the leaders of National bank of Pakistan adopt appropriate leadership style that will reduce turnover of the employees and increase xii organization efficiency moreover Recommendations to improve employee performance under this study are provided to the organization.