Impacts of Transactional and Transformational styles of leadership on employee performance, Comparative study in GSM Operators of Pakistan

Abstract

The purpose of this research study is to examine the influence of transformational and transactional leadership styles on employee performance in GSM Operators of Pakistan. A total of 397 respondents participated in this research from five GSM operators. Leadership styles were measured using Bass and Avolio’s multifactor leadership questionnaire. Employee performance was determined by using self-evaluation model of William and Anderson. Data was analyzed using the SPSS software tool version 20 and Microsoft Excel. Research findings showed a positive significant correlation between transformational and transactional leadership styles and employee performance levels. Furthermore, the research found that transformational leadership had a stronger positive influence on employee performance than did transactional leadership style. The findings support the argument in the literature review that transformational and transactional leadership behaviors enhance employee performance. This research analyses employee performance both on organizational and cumulative basses. Four out five organizations analysis showed that transformational leadership has more significant influence on employee performance whereas Warid results showed that transactional leadership style has high influence on employee performance than transformational leadership style. Finally, the research provides recommendations for the GSM Operators, Public sector and Government sector for optimal implementation of the transformational leadership style to increase employees work performance.