1.

1 Problem Statement:

Pakistani banking sector is rated as the second amongst the top rated bank in south according to
the reports of World Bank (WB). The changing in financial policies and the competition in this
sector is increasing day by day. The most challenging thing faced by the banking industry is
retaining intellectual capital in competitive market as globalization and multinational factor
make intellectual and human capital more demanding. Motivating employee is found as the
promoter of organization success and employee performance[ CITATION ala16 \l 1033 ].
Moreover the lack of commitment, longer working hour, stress, job dissatisfaction and
nervousness increase the turnover rate of the organization. These challenges appeal for effective
leadership to satisfy employees, to retain intellectual capital and to transform the behavior of
employee through different approaches for maintain the growth and achieving higher objective
of organization. The managers should adopt leadership styles to support the employee’s
motivation and their performance[ CITATION Ver16 \l 1033 ].
According to[ CITATION Bas97 \l 1033 ] Full Range of Leadership (FRL) model the most efficient
leadership styles are transactional and transformational leadership styles, it help organization to
motivate their subordinate and influence their behavior toward work and improve performance.
[ CITATION MSi15 \l 1033 ] Many researchers are unable to reach the conclusion about which
leadership style is more effective.
According to [ CITATION MSi15 \l 1033 ] leadership is different in different surrounding across the
nation, hence there is a need to study the concept of transformational leadership in context of
Pakistan to study the effectiveness of FRL model, it will help the banking sector to lead and to
understand their employees and to transform their leadership style to achieve higher goals.

1.4 Research Questions:

 What is the impact of idealize influence on employee motivation?

 What is the impact of inspirational motivation on employee motivation?
 What is the impact of intellectual stimulation on employee motivation?
 What is the impact of individual consideration on employee motivation?
1.2 Research Objectives:

 To evaluate the impact of idealize influence on employee motivation.

 To evaluate the impact of inspirational motivation on employee motivation.
 To evaluate the impact of individual consideration on employee motivation.
 To evaluate the impact of individual consideration on employee motivation.

1.3 Organization of the Study:

This study is organized into five big chapters. Each chapter focus on the different areas that are
important to complete this study and to make this study valuable.
Chapter#1 is comprise on brief introduction including historical background, statement of
problem, research questions, research objectives, contribution of this study, scope of the study
and organization of sub-parts.

Chapter#2 is comprise on brief literature review in which we discuss different literature of

authors from several articles in order to understand the impact of transformational leadership to
motivate employees. Also discuss literature on each independent variable that how it influence
the employee behavior and increase motivation.

Chapter#3 that is Methodology section. This chapter describe the method and procedure and
comprise on research design, target population, sample and sampling technique, research
instrument, data analysis procedure, This study use Stata version 13.1 in order to analyze how
transformational leadership influence the employee motivation.

Chapter#4 is based on findings. It contain descriptive statistics, regression analysis, reliability

test, normality test, heteroscedasticity test, correlation analysis and Multicollinearity test.