The role of transformational leadership style in enhancing employees' competency for organization performance

Abstract

The transformational leadership style as practiced by the organization leaders was examined in their role to enhance employees’ competency for organization performance. A quantitative approach is used in this study using a survey approach through the distribution of a set of questionnaires. In this study, the sample comprised of 232 supervisors from three food manufacturing industries in various supervisory levels, departments, and sections within the production line. The hypotheses were analyzed using IBM Statistical Package for the Social Sciences (SPSS) and partial least squares (PLS-SEM) SmartPLS version 3.0. The statistical analysis results confirm that there was a significant relationship between transformational leadership styles, employees’ competency with organizational performance. The study also confirmed that the transformational leadership styles as practiced substantially contributed to employee competency. Based on the PLS-SEM’s results, this study provides evidence that transformational leadership styles also substantially contributed to organization performance. The study also found that employee competency has contributed to organization performance. Based on the mediation analysis results, the study finds that employee competency mediates the relationship between transformational leadership style and organization performance. These results add to an understanding of the role of transformational leadership style and employee competency in contributing to a higher productivity and organization performance.