IMPACT OF TRANSFORMATIONAL LEADERSHIP ON EMPLOYEE PERFORMANCE: MEDIATING ROLE OF HUMAN CAPITAL

Abstract

Purpose: The research aims to provide information regarding transformational leadership and employee performances along with the mediating role of human capital that is creating an impact on the service quality provided in the hospital sector ofPakistan. Methodology & Design: The study includes the empirical quantitative approach which is the most appropriate method for the undergoing research. Besides, the deductive approach method is also implemented in the research. The survey is conducted using a deductive approach to identify the correlation between two variables. A cross-sectional study was conducted which was aimed at the impact oftransformational leadership and employee performance along with the mediating role of human capital specifically in the healthcare sector The targeted population is managers of healthcare institutes and individuals having witnessed healthcare facilities The findings of this study indicate that transformational leaders play a significant role in enhancing intellectual capital (human capital), which ultimately leads to an improvement in service quality. Creating a trust-based overall organizational culture in which employees feel free to share their valuable knowledge with their peers is the only way to achieve this level of service quality in public sector hospitals. As a result, valuable intellectual capital is increased, which in turn improves hospital service quality. Overall, the final model revealed that transformational leadership is directly related to the service quality provided to the patient, as well as indirectly related to service quality via organizational culture, trust, knowledge sharing, and intellectual capital. Findings: These results indicate that the doctors', nurses', and paramedical staffs acquired knowledge and skills through experience, training, seminars, and workshops are essential for improving the service quality of public sector hospitals. Transformational leadership is a leadership style that involves inspiring and motivating individuals to not only achieve their personal and professional goals but also to strive for excellence and become leaders themselves. Limitations It has been shown to have a positive influence on employee performance, as it encourages employees to take ownership oftheir work, fosters a sense of collaboration and teamwork, and promotes continuous learning and development., there are some limitations because of those limitations there are various aspects which is not being covered in this research. The first limitation which is faced by most there is the limitation of time and resources that are available. Recommendations: Transformational leadership is a leadership style that involves inspiring and motivating individuals to not only achieve their personal and professional goals but also to strive for excellence and become leaders themselves. I would suggest to others to research the same topic as there are aspects that require attention from people.