The Effect of Transformational Leadership on Employee Job Satisfaction and Organizational Commitment: Evidence from the Banking Sector in Pakistan
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Published in Vol. 2 No. 1 (2022) of Asian Journal of Academic Research.
Asian Journal of Academic Research (AJAR) (ISSN: 2313-6596) is an international, peer-reviewed, open-access scholarly journal dedicated to publishing high-quality, original research across a broad range of academic disciplines. The journal provides a global platform for researchers, academics, professionals, and policymakers to disseminate innovative findings, exchange knowledge, and promote interdisciplinary collaboration.
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This study investigates the effect of transformational leadership on employee job satisfaction and organizational commitment within the banking sector in Pakistan. A quantitative, cross-sectional survey design was employed, with data collected from 280 employees across six commercial banks using validated scales measuring transformational leadership, job satisfaction, and organizational commitment. Data were analyzed using descriptive statistics, Pearson correlation, and multiple regression analysis. Results reveal that transformational leadership is a significant positive predictor of both job satisfaction (β = .46, p < .001) and organizational commitment (β = .39, p < .001), together explaining 34% and 28% of the variance in each outcome, respectively. Among the dimensions of transformational leadership, idealized influence and individualized consideration emerged as the strongest predictors. These findings underscore the importance of leadership development programs in the banking sector and suggest that cultivating transformational leadership behaviors may enhance both employee satisfaction and long-term organizational commitment. Practical implications for human resource management and directions for future research are discussed.
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This work is licensed under a Creative Commons Attribution 4.0 International License.
