Impact of Transactional Leadership and Transformational Leadership on Employee Performance: A Case of FMCG Industry of Pakistan

Abstract

Leadership is one of the key roles used in any organization. Transactional leadership and Transformational leadership are two key styles who gain immense importance from past few decades. This study is about these two leadership styles having impact on employee’s performance in FMCG industry of Pakistan. Data have been collected from 318 employees and has been concluded that though both leadership styles are having positive relation with employee performance but, transactional leadership style has strongly positive correlation with the performance of the employees. Along with Pearson correlation, Linear Regression Analysis has also been used in order to predict the predictor’s contribution towards employees’ performance. Moreover, it has been recommended that if Pakistan FMCG industry focuses on Transactional Leadership Style through trainings and different manuals, then it can develop such leaders in a better way.

Keywords: Transactional Leadership Style, Transformational Leadership Style, Employee Performance, FMCG, Pakistan