How Transformational Leadership Increases Employee Performance | The Oxford Review - OR Briefings

How Transformational Leadership Increases Employee Performance

Research Briefing

Keywords: leadership, leadership development, transformational leadership, performance, employee performance, identification, engagement, proactive personality

One of the primary concerns of any organisation is that of employee performance. A raft of studies over the last 90 years has found that leadership management behaviour is a primary predictor of performance of employees. Indeed, a number of studies, particularly around service industry organisations, have gone as far as to say that the success of the organisation is largely dependent on its managers and leaders. The main reason for this statement is that it is the knowledge, attitudes, emotional capability, skills and behaviour of the leaders that have the main influence on employees’ own emotions, behaviours, thinking and attitudes.

In particular, transformational leadership has been the focus of much research and organisational interest, as it aims to engage and motivate followers to rise above their own self-interest by altering their morale, ideals, interests and values in order to motivate them to perform in a way that has the interests of the organisation at heart.

So, while the majority of the research has found that transformational leadership has a positive impact on employee performance in most situations, the mechanisms underlying the relationship is less well understood. When transformational leadership results in improved performance, understanding why can enable practitioners to focus on those enabling factors.

This research briefing is essential reading for leaders, executive coaches and anyone involved in leadership development.

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