The Impact of Transformational Leadership on Employee Organizational Commitment and Job Performance
Rob Brown, DBA (ABD), MBA, M.Ed.
Experienced Management, Learning & Development, and Higher Education Professional | Curriculum Writer & Instructional Designer | Training Specialist | Skill Building | E-Learning Expertise
By: R.M. Brown II
Abstract
The purpose of this article is to shed light on the impact that transformational leadership has on employee organizational commitment and employee job performance, from drawing on modern scholarly research. Four dimensions characterize transformational leadership, and they are (1) individualized consideration, (2) intellectual stimulation, (3) inspirational motivation, and (4) idealized influence. The leadership style has been shown to play a key role, not only in employee engagement but also in enhanced outcomes for organizations. This study will examine and show how the style of transformational leadership can improve employees’ commitment to their organizations, reduce employee turnover, and improve employee job performance, regardless of the industry in which they work. Through a review of scholarly, peer-reviewed articles, the research shows affective commitment and employee engagement’s mediating roles in improving the?performance outcomes of employees within a firm. The findings of the research indicate that a positive work environment is fostered through transformational leadership, and this is a contributing factor to employee job satisfaction, as well as the success of an organization.?
Introduction
??????????? A vital factor in determining the success of any organization is leadership. Transformational leadership, in particular, according to Bass and Avolio (1994), is regarded as the style of leadership that is the most effective as it pertains to increasing employee commitment to an organization, as well as improving employee performance. Whereas transactional leadership places emphasis on an exchange of rewards and punishments for employee performance, transformational leadership fosters shared visions, offers intellectual stimulation, and provides individualized support for employees to inspire them to exceed expectations (Bacha, 2014). This article will examine what impact transformational leadership has on employee organizational commitment, and on employee job performance. By analyzing modern research, the article shows that there is a positive relationship between transformational leadership style and increased employee engagement, performance, and organizational commitment.
Review of the Literature
??????????? The review of the literature is relevant to the topic under examination, and it supports the research question of “Does transformational leadership increase employee organizational commitment and job performance?”, as it constructs a solid theoretical framework that links transformational leadership to positive organizational outcomes. For example, the study conducted by Jiatong et al. (2022) was more than comprehensive in its review of the literature; pertinent theories and past research regarding styles of leadership, employee engagement, and job performance were discussed and tied into the topic under review. Furthermore, germinal research on transformational leadership conducted by Bass (1990), as cited by Buil et al. (2019) regarding the role leaders play in employee engagement and innovation (Choi et al., 2016), and more modern studies that shed light on the link between leadership styles and the performance of employees.
What is Transformational Leadership?
??????????? Four key dimensions of transformational leadership are idealized influence, inspirational motivation, intellectual stimulation, and individualized consideration. According to Bass (1999), when a leader serves as a role model, he or she is displaying idealized influence, and they foster trust and they are respected by their followers. Bacha (2014) asserts that through inspirational motivation, employees are made part of a shared vision, and this motivates them to work beyond desired expectations. Additionally, when employees are intellectually stimulated in their work, they become more creative and innovative, and finally, Felfe and Schyns (2014) state that by attending to each employee’s needs and aspirations, a leader is displaying individualized consideration, and this shows support of a follower’s personal and professional development. When combined, all of the aforementioned elements improve employee engagement and organizational outcomes.
The Relationship of Transformational Leadership and Organizational Commitment
??????????? The term organizational commitment is one’s attachment and loyalty that they have toward their place of work. When employees of an organization display high levels of organizational commitment, the firm tends to see reduced turnover, as well as improved employee job satisfaction (Meyer & Allen, 1991). Furthermore, it has been shown throughout several studies, that transformational leadership is a contributing factor in the enhancement of organizational commitment because it fosters a work environment that is positive and aligns employees’ values with the goals of the firm (Callier, 2016; Bacha ,2014).
??????????? Additionally, it was discovered by Callier (2016) that mission valence, or how much meaning employees find in the work they perform, is increased by transformational leadership. This serves to increase the emotional attachment that an employee has to his or her organization. When an employee finds the work that they do to be meaningful, they tend to be more committed to their firm and strive to contribute to the overall success of the organization. Bacha (2014) also shows that employees’ perceptions of the significance of their work tasks are improved when they are led by transformational leaders, and this, in turn, increases their level of commitment to the organization.
??????????? When a leader fosters emotional attachments to a firm, he or she plays a role in improving employee retention because they create a work environment that is not only supportive but also empowering. It was discovered by Gyensare et al. (2016), that through such affective commitments, relationships between transformational leadership and employee turnover are mediated because when an employee has an emotional connection to their organization, they are not likely to voluntarily leave.
The Relationship Between Transformational Leadership and Job Performance
??????????? According to Wang et al. (2011), job performance pertains to how effective an employee completes his or her job responsibilities; this is measured by how productive they are, and how much they contribute to the goals of the firm. There is a positive correlation between transformational leadership and employee job performance because transformational leadership increases employee motivation, serves to enhance employee problem-solving abilities, and improves employee job satisfaction (Choi et al., 2016). When leaders provide an intellectually stimulating work environment for their employees, encourage them to be more critical in their thinking and to find more innovative ways to tackle problems facing the organization, and this, according to Garcia-Morales et al., (2012), increases employee performance levels.
Bacha (2014) states that the work environments created by transformational leaders serve to increase employees’ intrinsic motivation, and this is a major factor in improving employee job performance. Through individualized consideration and intellectual stimulation, transformational leaders are giving their employees the power to have a sense of ownership in their work, and this creates in them the desire to achieve excellence. Additionally, with transformational leadership, according to Wang et al. (2011), organizational citizenship behaviors (OCBs), or behaviors that are voluntary in nature, and go beyond the requirements of one’s job, are improved, and this is a contributing factor to the overall success of an organization.
Finally, in their research, Jiatong et al. (2022) found that transformational leadership has a positive influence on employee job performance as it plays a mediating role in the engagement of employees. When employees are engaged in the workplace, they tend to be more motivated, productive, and committed to helping the organization achieve its goals, and this improves the overall performance of the firm.
Discussion
Increasing Organizational Commitment-The literature examined for this study shows that through transformational leadership, employee commitment to the organization is fostered because of the supportive, values-driven work environment it serves to create. When employees work with transformational leaders, they tend to feel more committed to their organizations, and this not only results in decreased employee turnover but it also results in increased levels of employee job satisfaction according to Gyensare et al. (2016). This is able to happen because transformational leaders ensure that employee values are aligned with the mission of the organization, and they provide employees with opportunities for personal and professional growth and development (Callier, 2016). Through this emotional attachment, employee loyalty is strengthened, and a more stable workforce, that is committed to their jobs is fostered and this is a recipe for the long-term success of the organization.
Improving Job Performance-There is also a direct link between transformational leadership and job performance. This is because transformational leaders enhance their employees’ motivation, and this leads to more employee innovation. When leaders intellectually stimulate their employees, they are pushing them to be more creative in their thinking and to find new ways to approach problems that they encounter in the workplace; this increases performance outcomes (Choi et al., 2016). When transformational leaders provide individualized consideration for employees, they ensure that their employees feel as if they are supported and valued members of the firm, and, according to Eliyana et al. (2019), this serves to improve job satisfaction and reduce employee job-related stress. As a result of all of this, Wang et al. (2011) assert that employees will strive to go beyond the requirements of their positions and through higher productivity and improved efficiency, contribute greatly to organizational success.
Conclusion
The impact that transformational leadership has on organizational commitment and job performance is profound. When leaders foster a work environment that is values-driven and supportive, they serve to increase the emotional attachments that their employees have for their organizations, and this reduces employee turnover and increases their levels of job satisfaction. Furthermore, this style of leadership motivates employees to be more creative in their thinking come up with new ways to approach organizational problems, and exceed expectations. Of course, for transformational leadership to be successfully implemented into an organization calls for leaders to not only develop high levels of emotional intelligence but to also be authentic so that trust is established in them, and so they can be a source of inspiration to their teams. When a firm invests in the development of transformational leadership, the likelihood that it will see vast improvements in employee engagement rates, productivity, and overall organizational success, is quite high.
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