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Proposal on

“Effect of Transformational Leadership on Employee’s Performance in the Banking Sector.”

1 introduction of research topic:
Employee performance is a set of behavior, outcomes, actions and practices that contribute towards organizational goals. The effectiveness of employee performance depends upon the relationship between the performance measures. The principal objective an employee performance is classified into three categories. (a)Unsatisfactory (Below the standard) for which the non-monetary punishment is imposed.(b)Acceptable (Satisfactory) for which neither rewards nor punishment is invoked.(c)Outstanding, for which the company rewarded on profit sharing. Employee performance is examined in terms of its resources to enhance outcomes such as productivity & quality organization such as communication, decision making, Innovation, Labor management relations & Intrapsychic states such as employee satisfaction & commitment. Employee Involvement increases the employee performance because it is a broad strategy to increase employee performance by influencing how their work is organized & carried out. There is a strong effect of employee involvement on employee performance as it increases their Job satisfaction & little Consistency effects on productivity. Two types of metrics are used for the evaluation of employee performance, (a) Financial (b) Non Financial.

Avolio. And if so. Charismatic Personality & transactional leadership) is focused on the employee Commitment Job satisfaction and organizational citizenship behavior. Kanungo & Menor (2000) examined the relationship between charisma and its effect on followers. Dvir. organizational Citizenship Behavior but also it has positive add on effects on transactional leadership I determining Job Satisfaction. Charismatic Personality & Inspirational Motivation). Job satisfaction and Job Performance up to that extent. Eden. Knowledgeable and experienced) on the motivation. Nguni. Researchers concluded that social skillfulness consisting of Social / interpersonal skills greatly effect the employee motivation level. It examined the relation between transformational leadership (Individual consideration. than what direction? Positive . where social skillfulness and bold and seeking affects. Intellectual Stimulation.2: LITERATURE REVIEW The research is done to examine the effect of transformational leadership components (Socially skillful. (khatri and Felber) (1999). Sleegers & Denessen (2006). The effect of transformational leadership (Individual Consideration. They checked whether charisma in personality of leaders effect the followers or not. While two transactional leadership components (Passive management by exception & Laissez-faire Leadership behavior) has negative effect on employees commitment and performance effectiveness. Intellectual Stimulation. Bold and Change seeking. & Shamir (2002). Organizational Commitment and organization Citizenship behavior. Research concluded that healthcare managers re highly skillful and knowledge but they lack in other two dimensions. A research done by Conger. Research concludes that transformational leadership not only has strong affect on Job Satisfaction. satisfaction and performance of the employees in the Healthcare centers.

The result found that charisma positively effected on all the dependent variables. it is the blend of almost all the approaches further more there is a bit emphasis on moral leadership. Leaders focus variables (2) Followers focused variables.or negative? This study is focus on two variables. but it had partial positive effect on OCB and had no effect on Student . on organizational commitment and satisfaction with leader. They conducted that not one approach to leadership is enough for an organization.e. individual Consideration. The result found that transformational leadership have positive effect performance in Singapore. This study discussed three components of Transformational leadership as independent variable i. Effect of these variables on student performance and teachers attitude was being examined. The result found that transformational leadership have positive effect on organizational commitment and satisfaction with leader. They wanted to check the effect of transformational leadership training on employee safety performance. Their independent variable was transformational leadership training and their dependent variable was employee performance. Satisfaction with leader. Study conducted by KOH (1995) examined the effects of transformational leadership on the follower’s attitude and performance. Organizational Commitment. (Researcher) they examined 89 schools and takes information from 846 teachers using split sample techniques they classified the attitude into different components like Organizational Citizenship Behavior (OCB). charisma. for this they conducted a pretest/ posttest Qausi experiment. The study conducted by Sivnathan & bairlng (2005). Inger & Suhomlinova (2005). The different performances of schools have different leadership styles. They used T-test transformational leadership at different levels that are managerial levels etc. and intellectual stimulation.

allowances. They found that the intervention significantly improved transformational leadership behavior and perception of their supervisor’s safety Compliance.For the research study they took a sample of 18 swimming pool supervisors as their leaders and 39 swimming instructors as their subordinates and they compare the experimental group of 10 supervisors and 26 instructors with the controlled group of 8 supervisors and 13 instructors. With the passage of time many . After two weeks they divide the participants into two groups and were told about transformational and non transformational leadership style. supervisor's attitude has much more influence than others because they guide their sub-ordinates how to perform well or how to achieve their objectives effectively and efficiently. According to the past researches. For their study he took 175 students with different personality traits including Self-efficacy at time. 3: Rationale of the Study Employee can be motivated towards their work in different ways whether it may be salary. Ordinary supervisors and managers are no better than the necessity of any organizations. Transformational leadership is now a day’s very popular perception in the corporate world. They found a change in instructor’s behavior by using pretest/ posttest experiments and found a improvement in safety behavior (FELFE & Luther. nature of the work. working environment or supervisor's attitude. Employee is directly linked with supervisors so he learns and gets motivation directly from his working attitude. Organizations are looking towards leaders who can affect the community to work efficiently rather that to force them to do work. They wanted to see the influence of follower’s personal characteristics on their perception of leadership. 2006).

The major problem of the study is to reach elsewhere the impact of transformational leadership on employee’s performance. 2. 3. For this purpose five dimensions of transformational leadership are taken into consideration. . The objectives of this research are: 1. To find solutions and recommendations to improve employees performance with the help of transformational leadership. To see the original independent variable of transformational leadership this influences the worker’s performance. To evaluate the employees performance output from the transformational leadership style. 4: Research Question What is the effect of transformational leadership on the employee's performance in the Pakistani context? 5: Objective of the Research This study investigates the impact of transformational leadership on employee’s performance. To identify the factors that influences the employee’s performance. This study investigates the impact of transformational leadership on employee’s performance. The problem is to reach elsewhere the greatest impact that affects the transformational leadership on employee’s performance whether it might be negative or positive in the banking sector.researchers tried to find out the relationship between Transformational leadership and employees performance.

main focus was unit analysis by considering individuals. a questionnaire based survey design is chosen as it allowed relatively large population easily and economically. The sample population for this study was the banking sector of various branches in Peshawar. 8: Instrument and Measures The research for this study was done using a questionnaire-based survey. RESEARCH METHODOLOGY 7: Sample Various methods such as questionnaire. The locations of Peshawar were chosen because both these places have the branches of many different banks. Two types of questionnaires sections were designed .6: Scope of the Research This research deals with the effects of transformational leadership on employee’s performance in the banking sector of Pakistan. This research has been carried out in the banks of Peshawar. It also analyzes and describes which factors effect and influence the employee’s performance in Pakistan. were used by earlier studies for investigating the effect of transformational leadership on employee’s performance. For this study. The title of research shows that whether the transformational leadership style affects the employee's performance positively or negatively. This questionnaire was designed to measure the effect of transformational leadership on employee’s performance. The sample size for the study was 300. Questionnaire was used for the data collection. In this study. interviews and observation etc. 300 questionnaires were distributed in the nearest possible banks of Peshawar.

e. Data was retrieved from both the secondary sources as well as primary sources. charismatic personality. Finally a conclusion based upon this feedback was derived and suggestions were recommended. In this study. Their feedback was then added to SPSS sheet and accordingly their frequency distribution was analyzed. 4= agree & 5= strongly agree. For Transformational leadership the Multifactor Leadership questionnaire (MLQ) was used. 5 variables were used that are Idealized Influence. 2= seldom. which were taken from different research studies.Bass. 3= sometimes. Intellectual stimulation. This questionnaire was developed by (B.M. Questionnaire contains 4 questions for each variable. For the purpose of secondary data sources online journals containing previously published researches were discussed. Whereas in order to retrieve the primary data sources questionnaires were distributed among the employees in various banks of Peshawar. 2= disagree. 9: Procedure The descriptive research method was used for this research. The 5 point Likert scale was used where 1= never. 1985). Individual consideration. For employee Performance again 5 point Likert scale was used where 1= strongly disagree. one for measuring Transformational Leadership traits and other for measuring employee performance. For employee performance 9 questions were selected.i. Inspirational Motivation. These questionnaires were modified in the context in order to measure the employee performance correctly. 3= Indifferent. . 4= often & 5= always.

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