ROLE OF TRANSFORMATIONAL AND TRANSACTIONAL LEADERSHIP STYLES ON JOB PERFORMANCE: MEDIATING EFFECT OF AFFECTIVE COMMITMENT

Abstract

This paper discusses how transformational and transactional leadership styles affect job performance, alongside a special emphasis on mediator role of affective commitment. Based on the theories of leadership and organizational behavior, the study will seek to examine the role of various leadership styles in determining the emotional attachment of employees and, by implication their performance results. A sample size of 620 medical representatives of national pharmaceutical companies in Pakistan was used to collect data on the basis of a structured questionnaire using known measurement scales. The proposed hypotheses were tested using statistical methods such as correlation, regression and mediation.

The results prove that transformational as well as transactional leadership styles positively affect job performance significantly, but transformational leadership proves to have a stronger impact. Also, the two leadership styles provide a considerable boost to the affective commitment of the employees, which means that leaders play a crucial part in the formation of emotional attachments within the company. Affective commitment on the other hand has been found to positively influence job performance strongly. Mediation analysis further supports that affective commitment partially mediates the relationship between leadership styles and job performance, which indicates that leadership has not only a direct impact on job performance, but also an indirect impact on job performance through emotional commitment.

The research also adds to the body of literature, by giving empirical data of the pharmaceutical industry in Pakistan, where very little has been done. It emphasizes the need to promote affective commitment as an effective strategic tool to improve employee performance. The results have practical implications that managers and policymakers should consider leadership practices aimed at enhancing the attachment of employees and organization effectiveness.