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Transactional Leadership Style and Organizational Performance: The moderating role of emotional intelligence


Affiliations
1 Assistant Professor, School of Business, Pokhara University, Nepal, India
2 Professor, School of Business Studies, Sharda University, India
 

The basic purpose of this paper is to examine the relationship and impact of transactional leadership (TL) style on organizational performance adopting the moderating role of emotional intelligence (EI). Attainment of higher level of performance is not only possible through pre-defined goals and objectives rather also through achievement of emotional maturity. Survey response of 220 mid-level managers in the manufacturing sector of Nepal were collected. This study used two step Structural Equation Modelling (SEM) technique for data analysis. Findings of this study showed that TL insignificantly and negatively influence organizational performance (OP). Further, the overall results revealed the weak moderating role of EI in TL-OP relationship. Additionally, recruiters and managers should invest resources in management of impulsive feelings, sentiments and emotions in organization. Employees loaded with good level of Self-Management abilities can contribute towards better financial outcomes.

Keywords

Transactional leadership, Emotional Intelligence, Organizational performance, Manufacturing Companies, Structural Equation Modelling
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  • Transactional Leadership Style and Organizational Performance: The moderating role of emotional intelligence

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Authors

Ashish Thapa
Assistant Professor, School of Business, Pokhara University, Nepal, India
Daleep Parimoo
Professor, School of Business Studies, Sharda University, India

Abstract


The basic purpose of this paper is to examine the relationship and impact of transactional leadership (TL) style on organizational performance adopting the moderating role of emotional intelligence (EI). Attainment of higher level of performance is not only possible through pre-defined goals and objectives rather also through achievement of emotional maturity. Survey response of 220 mid-level managers in the manufacturing sector of Nepal were collected. This study used two step Structural Equation Modelling (SEM) technique for data analysis. Findings of this study showed that TL insignificantly and negatively influence organizational performance (OP). Further, the overall results revealed the weak moderating role of EI in TL-OP relationship. Additionally, recruiters and managers should invest resources in management of impulsive feelings, sentiments and emotions in organization. Employees loaded with good level of Self-Management abilities can contribute towards better financial outcomes.

Keywords


Transactional leadership, Emotional Intelligence, Organizational performance, Manufacturing Companies, Structural Equation Modelling

References





DOI: https://doi.org/10.23862/kiit-parikalpana%2F2022%2Fv18%2Fi1%2F212345