The Impact of Transformational Leadership Style on Employee Turnover Intention in State-Owned Enterprises in Ghana. The Mediating Role of Organisational Commitment

Author(s):  
Francis Donkor ◽  
William Ansah Appienti ◽  
Ellen Achiaah
2021 ◽  
Vol 124 ◽  
pp. 08005
Author(s):  
Evelyn Gan ◽  
Mung Ling Voon

All employees deserve a decent working environment in order to be productive in their work. High employee turnover has adverse effects on economic growth as companies incur additional costs and experience drop in productivity. Hence, identifying the factors that reduce employee turnover intention is in line with Sustainable Development Goals. This review paper aims to improve our understanding of the relationship between transformational leadership style and job satisfaction, and examines their impact on reducing employee turnover intention. The literature review has proved that transformational leadership and job satisfaction greatly influence an employee’s decision to leave or stay with his or her organisation. Based on the literature, this paper also provides recommendations for future research areas that would provide valuable information in helping organisations reduce employee turnover intention, and ultimately employee turnover.


Author(s):  
Alicia Jia Ping Lim ◽  
Joshua Teck Khun Loo ◽  
Pey Huey Lee

High undesirable employee turnover is a prevalent issue in today’s contemporary business organisations which has resulted in both direct and indirect costs for organisations. This research was carried out in the Finance Shared Service Center (SSC) of a company where the employee turnover rate is increasing at an alarming rate over the past three years. This study was conducted to investigate the relationship between transformational leadership, job satisfaction, organisational commitment and turnover intention. In particular, this study focuses on the mediating effect of job satisfaction and organisational commitment on the relationship between transformational leadership and turnover intention. A total of 100 useable responses were collected from the total population in the Finance SSC of a company using survey method. The data collected were analysed by using SPSS version 22 and SMART PLS 3.0. Partial Least Squares Structural Equation Modelling (PLS-SEM) approach was deployed to validate the research model and the research hypotheses. Result reveals an insignificant negative relationship between transformational leadership and turnover intention. However, job satisfaction is demonstrated to fully mediate the relationship between transformational leadership and turnover intention. Transformational leadership indirectly influences turnover intention through mediating role of job satisfaction. This study provides both theoretical contribution and managerial recommendations. Limitation of this study relates to cross sectional design and small sample size. Hence, it is recommended that future research should consider longitudinal study and to conduct similar research for the entire industry or in other organisational contexts.


2020 ◽  
pp. 146735842097215
Author(s):  
Abu Elnasr E Sobaih ◽  
Ahmed M Hasanein ◽  
Meqbel M Aliedan ◽  
Hassan S Abdallah

This study examines the impact of both transformational leadership (TFL) and transactional leadership (TCL) on employee intention to stay (ITS) in deluxe hotels. It also examines the mediating role of organisational commitment (OC) in the relationship between leadership styles, i.e. TFL and TCL, and ITS. A pre-tested questionnaire survey was self-administered to front-line employees in deluxe hotels in Egypt, where these leadership styles were prominent. The key findings showed that TFL has more positive impact on OC and ITS than TCL. Affective commitment (AC) and normative commitment (NC) were found to partially mediate the relationship between both leadership styles and ITS. Employees exhibit higher ITS when they perceive proper leadership practices, especially TFL. Hotel executives should place more emphasis and investments on TFL to effectively achieve OC and positively influence ITS which is critical for the hotel industry that often suffers from high employee turnover.


2020 ◽  
Author(s):  
Budi Alamsyah Siregar

Abstract An owner's leadership style determines how the company carries out the activities in achieving its performance. The entrepreneurial orientation behavior present in an owner also determines how higher business performance can improve success. This study aims to understand how the role of a manager's leadership style and entrepreneurial orientation in improving his business performance. This research used a qualitative Delphi method by collecting in-depth data from 20 company owner. The results indicate the owner's transformational leadership style, a group of medium-sized enterprises that have developed and are beginning to be established, directly determines the applied entrepreneurial orientation. Finally, the application can affect the performance of the business. Behavior entrepreneurial orientation; not only promotes business growth medium, but it can also affect large enterprises' profitability due to the indirect impact achieved by large companies through cooperation in the supply of raw materials for products. The impact of increasing innovation power, proactive power, and risk-taking power on business performance arise from the support of a transformational leadership style. When transformational leadership styles and entrepreneurial orientations combine, medium-sized enterprises will achieve higher performance.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Raheel Yasin ◽  
Sarah Obsequio Namoco ◽  
Junaimah Jauhar ◽  
Noor Fareen Abdul Rahim ◽  
Najam Ul Zia

Purpose The purpose of this paper is to investigate the extent to which ethical climate mediates between responsible leadership and employee turnover intention. Design/methodology/approach This study used the deductive logic approach to develop hypotheses and analytical framework. Data were collected through convenience sampling technique from branch-level employees of the Bank of Punjab Pakistan working in Lahore, Gujranwala and Gujrat Region. Data were analyzed to test the hypotheses via descriptive analysis and structural equation modeling using SPSS and Smart PLS. Findings Results confirmed a significant positive association between responsible leadership and ethical climate and a negative association between ethical climate and employee turnover intention. Furthermore, results also confirmed the mediating role of ethical climate between responsible leadership and turnover intention. Practical implications This study enhances the existing literature regarding responsible leadership, ethical climate and turnover intention. It also helps professionals to review their policies. Originality/value The theoretical contribution of this paper lies in exploring the relationship between responsible leadership and ethical climate. The current study empirically examined the mediating role of an ethical climate between responsible leadership and employee turnover. It contributes also to the literature regarding responsible leadership, ethical climate and turnover intention.


2019 ◽  
Vol 24 (03) ◽  
pp. 2050024
Author(s):  
ANDRES FELIPE CORTES ◽  
POL HERRMANN

It is widely accepted that CEOs with a transformational leadership style can promote innovation in the organisations they lead, but the specific ways in which they influence followers and shape the organisational context to increase innovation remain largely unexplored. Improvement of our understanding of this relationship requires identifying and explaining the mechanisms that allow transformational CEOs to mobilise employees towards an active support of innovation. We argue that top managers who portray a transformational leadership style have a positive effect on organisational innovation by improving how the firm exchanges and communicates information and knowledge, that is, by increasing employees’ participation and social capital. Data from a sample of 194 executives from 97 Ecuadorian small- and medium-sized firms provide support for our hypotheses.


Sign in / Sign up

Export Citation Format

Share Document