Frontline banking sector employees’ performance in Pakistan under transformational leadership through employees’ empowerment

Abstract

Current study attempted to assess that how employees’ performance can be increased in banking sector. So current study tried to test that how transformational leadership directly affect the employees' performance, furthermore it assesses how employees’ empowerment affects the employees' performance. Additionally, current study also checked the mediating role played by the employees' empowerment between relationship of transformational leadership with employees’ performance. For answering these questions and keeping the objectives of study Pakistan banking sector was targeted. Sample was selected through simple random sampling, as bank record regarding employees’ list made it easy for researchers. Total 240 questionnaires were distributed, 223 usable questionnaires were utilized in model assessment and testing the hypothesis. At first data screening was executed through SPSS25, and model was assessed and hypothesis were tested through Smart PLS third generation by using structural equation modeling (PLS-SEM). For measurement model PLS algorithm was used and for structural model assessment bootstrapping was used. Findings of current study shows the positive significant effect of transformational leadership towards employees’ performance, and towards employees’ empowerment. Employees’ empowerment also shown positive significant effect on employees’ performance. Beside, employees’ empowerment significantly mediated the relationship between transformational leadership and employees’ performance. Current study contributed theoretically in light of Social exchange theory, and contributed towards body of knowledge.