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CMR College of Engineering & Technology

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Vol. 8 No. 2 April-June 2019

Referred Journal of CMR College of Engineering & Technology

ISSN (Online) : 2322-0449

UGC Approval Journal (Serial No: 46802)

A Model Proposition for Prescreening Candidates in Recruitment

Process Using Fuzzy Vikor Method

Murat Bolelli

An UGC Autonomous Institution

(Approved by AICTE, permanently affiliated to JNTU, Hyderabad)

(NAAC Accredited Institution with ‘A’ Grade)

ISSN ( ) : 2277-6753PRINT

Department of Master of Business Administration

An Integrated Marketing Communications, Media Synergies

and its effect on the Consumer Decision Making Process

Reshma Nikhat

Influence of Organizational Climate on Employee Turnover

Intention in Information Technology Industry in Kerala

Jnaneswar. K

Gayathri Ranjit

Impact of Transformational Leadership Style Dimensions

on Organizational Performance: An Empirical Analysis

Shruti Balhara

Harbhajan Bansal

Impact of Quality of Work Life on Organisational CommitmentIndu Bala, Ramandeep Saini, B.B. Goyal

Mediating Role of Personal Accomplishment among Emotional Labour

Strategies and Teaching Satisfaction among Professional College Teachers

Jitha G. Nair

Testing of Long-Run Relationship between Gold Prices and

Stock Market Return: An Empirical Analysis in India

Tanvi Bhalala

Emerging Distribution Channel Effectiveness in Rural Jharkhand

for Consumer Electronics

Punit Kumar Mishra

Girish Kumar Srivastava

Changing Role of Learning and Development Methodologies Digital

Age - A Comparison between Manufacturing and Service Industry

S. Rajeswari, D.Raghunatha Reddy

M.Ramakrishna Reddy

Creativity and Innovation in B-Schools:Potential Areas for

Development

K. Renuka Raju, Shakeel Ahmad

A. Ramachandra Aryasri

Training Effectiveness on Job Performance - An Analytical Study

with Reference to Dairy Industry

Menaka.Bammidi

Puppala. Hyndhavi

Performance Appraisal Impact on Employee Job Satisfaction

with Reference to TSSPDCL

M. Ramu

Mohd. Akbar Ali Khan

Mobile Data Usage Behavior: A Study on Bottom of the Pyramid MarketLeena Sharma

Cash to Cashless Economy: Challenges and OpportunitiesSaneem Fatima, Shakeel Ahmad

Indexed in Indian Citation Index (ICI), PROQUEST DATA BASE , Google Scholar JUSER DATA BASE, MIAR Data Base

Index Copernicus value 59.11, ISRA JOURNAL FACTOR 4.018, Sjifactor Impact factor 4.339, International Scientific Indexing Impact factor 1.332

Dr. A Kotishwar

Dr. P. Vijaya Lakshmi, Associate Professor

Editorial Board

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Declaration :

Medchal Road, Hyderabad.

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Patrons Chairman CMRGI Vice-Chairman CMRGI

Secretary & Correspondent CMRGI

Ch. Malla Reddy,Ch. Narasimha Reddy,

Ch. Gopal Reddy,

Advisory Board Director - (Academics), CMRGI

Principal - CMRCETDr. N. Satyanarayana,

Major Dr. V.A. Narayana,

Chief Editor

Professor & HOD, Dep of MBA, CMRCET

Dr. A Kotishwar,Managing Editors

ProfessorDr. P. Hima Bindu, Dr. P. Alekhya, Associate Professor

S.No Name Address

1 Honorable Former Vice-Chancellor. Telangana University, Nizamabad, Andhra Pradesh

2 Professor, Department of Commerce , Bangalore University

3 Pro-Vice chancellor, Maulana Azad National Urdu University, Hyderabad

4 Professor & Head, Department of Commerce, University of Madras, Chennai

5 Head & Associate Professor, AL Buriami University College, Oman

6 Professor & HOD, Department of Banking & Business Economics, Mohan Lal Sukhadia University, Udaipur, Rajasthan.

7 Director, School of commerce & Management Science, Swami Ramanand Teerth, Marathwada University, Nandeds

8 Head, Department of Commerce. University of Mumbai

9 Professor, SMS, JNTUH

10 Professor, School of Management Studies, University, Hyderabad

11 Professor Department of Commerce, Dr. Babasaheb Ambedkar Marathwada University, Aurangabad

12 Dean & Chairperson, Faculty of Commerce& Mgt, Bhagat Phool Singh Mahila Vishwavidyalaya, Khanpur Kalan, Haryana

13 Associate Professor, Indian Institute of Management Kozhikode, Kerala

14 Professor & Head, School of Management Studies, Punjabi University, Patiala, Punjab, India

15 Associate Professor, School of Management Studies, University, Hyderabad

16 Associate Professor, Department of Commerce, Delhi School of Economics, University of Delhi

17 Professor Finance , Indian institute of management Kozhikode, Kerala

18 Associate Professor, Department of Business Administration,

Annamalai University, Tamil Nadu.

19 Associate Professor Department of Business Administration and

Accounting, Al-Buraimi University College

(Affiliated to California State University, Northridge, USA),

Prof. Mohd Akbar Ali Khan

Dr. M Muninarayanappa

Dr. Shakeel Ahmad

Dr. S Gurusamy

Dr. Mohammed Jahangir Ali

Prof. Renu Jatana

Prof. Vani N Laturkar

Dr. Vivek Deolankar

Dr. Sindhu

Dr Mary Jessica

Prof. Walmik K. Sarwade

Prof. (Dr.) Sanket Vij

Dr. Sudershan Kuntluru

Prof. G S Batra

Dr. Chetan Srivastava

Dr. Vanita Tripathi

Dr. Rachappa Shette

Dr. A.A. Ananth

Dr. Faresa Fatima

ISSN: 2277-6753 (Print) ISSN: 2322-0449 (Online)

SUMEDHA-Journal of ManagementReferred Journal of CMR College of Engineering & Technology

April-June2019, Volume 8, No. 2

S.

No.

Title Authors Page No.

1. A Model Proposition for Prescreening Candidates

in Recruitment Process Using Fuzzy Vikor Method

Murat Bolelli* 1-19

2. An Integrated Marketing Communications, Media

Synergies and its effect on the Consumer Decision

Making Process

Reshma Nikhat* 20-32

3. Influence of Organizational Climate on Employee

Turnover Intention in Information Technology

Industry in Kerala

Jnaneswar. K*, Gayathri

Ranjit**

33-46

4. Impact of Transformational Leadership Style

Dimensions on Organizational Performance: An

Empirical Analysis

Shruti Balhara*, Harbhajan

Bansal**

47-57

5. Impact of Quality of Work Life on Organisational

Commitment

Indu Bala*, Ramandeep

Saini**, B.B. Goyal***

58-72

6. Mediating Role of Personal Accomplishment

among Emotional Labour Strategies and Teaching

Satisfaction among Professional College Teachers

Jitha G. Nair* 73-82

7. Testing of Long-Run Relationship between Gold

Prices and Stock Market Return: An Empirical

Analysis in India

Tanvi Bhalala* 83-96

8. Emerging Distribution Channel Effectiveness in

Rural Jharkhand for Consumer Electronics

Punit Kumar Mishra*, Girish

Kumar Srivastava**

97-112

9. Changing Role of Learning and Development

Methodologies in Digital Age - A Comparison

between Manufacturing and Service Industry

S. Rajeshwari*, D.Raghunatha

Reddy**, M.Ramakrishna

Reddy***

113-126

10. Creativity and Innovation in B-Schools:

Potential Areas for Development

K. Renuka Raju*, Shakeel

Ahmad**, A. Ramachandra

Aryasri***

127-133

11. Training Effectiveness on Job Performance - An

Analytical Study with Reference to Dairy Industry

Menaka.Bammidi*, Puppala.

Hyndhavi **

134-147

12. Performance Appraisal Impact on Employee Job

Satisfaction With Reference to TSSPDCL

M. Ramu*, Mohd. Akbar Ali

Khan**

148-156

13. Mobile Data Usage Behavior:

A Study on Bottom of the Pyramid Market

Leena Sharma* 157-169

14. Cash to Cashless Economy: Challenges and Opportunities

Saneem Fatima*, Shakeel Ahmad**

170-178

Chief Editor Message

As SUMEDHA Journal of Management Thirtieth issue, We look forward to the momentous

growth of our Journal, increasing in their appeal, readership and relevance to the fast-changing

world of Business Management. During these six years journey our journal has been critically

evaluated by various institutions with similar line of interest and faculty fraternity. We have

been consistently seeking advice from experts to continuously improve the quality of the

journal. Our journal has got UGC Approval Journal (Serial No : 46802 ), Indexed in Indian

Citation Index (ICI), PROQUEST Database, Google scholar JUSER Database, MIAR Data

Base, Index Copernicus value 59.11, ISRA Journal Factor 4.018, Sjifactor Impact factor 4.339,

International Scientific Indexing Impact factor 1.332. On behalf of the Management, Editorial

Board and Editorial Team, I express my profound gratitude to all our authors, reviewers,

readers and patrons for offering their overwhelming support and I anticipate a continued

and lively partnership for years to come.

All of us recognize the necessity for change, which results in progress. It gives way to new

ideas and perspectives reflecting the current and emerging environment, which builds on

the solid foundations of the past.

Last but not least valuable would be your response and suggestions on this issue. Kindly

send us your views so that we can keep on upgrading our journal.

Thanking youDr. A Kotishwar

Chief Editor

Impact of Transformational Leadership Style Dimensions on Organizational Performance: An Empirical Analysis

Shruti Balhara*, Harbhajan Bansal**

- 47 -

SUMEDHA-Journal of ManagementReferred Journal of CMR College of Engineering & TechnologyApril-June 2019, Volume 8, No. 2, pp 47-57ISSN: 2277-6753 (Print) ISSN: 2322-0449 (Online)http://cmrcetmba.in/sumedha/

Impact of Transformational Leadership Style Dimensions onOrganizational Performance: An Empirical Analysis


* Research Scholar, Haryana School of Business, Guru Jambheshwar University of Science & Technology,Hisar, India.

**Professor, Haryana School of Business, Guru Jambheshwar University of Science & Technology,Hisar, India.

Abstract

In today's competitive and complex business landscape, the organizations

have to confront a vast gamut of changes like innovation in technology,

socio-economic changes, and that calls for requirement of highly effective

leadership. The transformational leadership style is best suited in such

environment as it generates intense employee involvement, which is a key

factor of organizational performance. Th is study investigated how

transformational leadership in general and its 5 dimensions viz Intellectual

stimulation, Individualised consideration, Inspirational motivation, Idealised

influence attributed, Idealised influence behaviour in particular which impact

the organizational performance. This study has been conducted in Haryana

and NCR and the descriptive research design has been used in it. For data

collection, the survey method through a structured questionnaire has been

used which consists the sample of 139 respondents by using convenience

sampling. For the analysis of data, statistical technique like correlation and

regression analysis was used with the help of SPSS 21 version. The results

of this study revealed that the Intellectual Stimulation dimension of

transformational leadership was the most significant factor in influencing

the Organizational Performance. This study concluded that the dimension

Intellectual Stimulation signif icantly impacts th e organ izational

performance.

Keywords: Leadership Style, Transformational Leadership style, Intellectual

Stimulation, Individualised Consideration, Inspirational Motivation,

Idealised Inf luence Attributed , Id eal ised In fluence Behavior and

Organizational Performance.

JEL Classification: L200, L250, M100

PUBLISHING CHRONOLOGY

PAPER SUBMISSION DATE :

DECEMBER 19, 2018;

PAPER SENT BACK FOR REVISION :

JANUARY 10, 2019;

PAPER ACCEPTANCE DATE :

FEBRUARY 13, 2019

Reference to this paper should

be made as follows:

Shruti Balhara, Harbhajan

Bansal (2019),

"Impact of Transformational

Leadership Style Dimensions

on Organizational Performance:

An Empirical Analysis"

SUMEDHA Journal of

Management, Vol 8, No 2, PP

(47-57)



- 48 -

1. INTRODUCTION

With increasing globalization and competition, organizations are forced to face challengessuch as ever changing technology, scarcity of skilled manpower, and obsolescence of productsand services, which are forcing organizations to transform their resources for surviving andthriving in the long run. To overcome this changing scenario, the leadership styles assumesgreat importance as it is only through leadership that one can manage the change and improvesthe organizational performance. Leadership is practiced when leader utilizes the resources,and the followers achieve their target as well (Burns, 1978, p.18). The study of Das et al.,(2014) concluded that the most influenced leadership style in the organizations was foundedto be servant leadership. A transformational leader motivates their followers which encouragethem to accept challenges to do work by knowing their capabilities and potential whichboost the performance of employees (Avolio et al., 2009). Transformational leadershipstimulates confidence in followers for fulfilling their common needs through motivating themto obtain the desired objectives (Ghasabeh et al., 2015). The research of Moss &Ritossa(2007)shows that there are five dimensions of transformational style of leadership which are:Idealized Influence Attributed (IIA), Idealized Influence Behavior(IIB), Inspiration Motivation(IM), Intellectual Stimulation(IS) and Individualized Consideration (IC).

Organizational performance means the change of inputs into outputs for achieving certaindesired organizational outcomes. For the improvement in the organizational performance,the transformational leadership style plays an important role for followers which motivatethem to perform the job well and achieve the goal (Avolio, 1999). For achieving theorganizational performance, the organizations should follow the superior workplace practicesattached with the employee’s competencies (Misra& Sharma, 2017). According to (Bass&Avolio, 1993) Transformational leaders enhance the behavior of followers and give themsupport to achieve the challenging goals, which helps in enhancing organizationalperformance. Various studies on leadership like by Blake and Mouton(1964); Lewin,Lippit&White (1939) explain appropriate situation based and suitable leadership behaviorstyles for the achievement of organizational outcomes. The study conducted by Rejas, Ponce,Almonte& Ponce (2006) put forth that there is a strong relationship between transformationalleadership styleand organizational performance. It is in this backdrop that this study examinesthe impact of different dimensions of transformational leadership style dimensions onorganizational performance.

2. REVIEW OF LITERATURE

The research on various styles of leadership and organizational performance has gainedinterest over time. The research studies on leadership style and organizational performancehave underscored that leadership styles significantly impacts organizational performance(Collins & Porras, 1996; Sarros& Woodman, 1993; Goleman, 2000; Manz& Sims, 1991; Bass,1990). Another study conducted by Rejas, Ponce, Almonte& Ponce (2006) concluded thattransformational leadership styles positively impact the performance of organization.Transformational leaders are the catalysts who bring positive change in the organizational



- 49 -

performance (Densten, 2005; Senge, 1990; Slater &Naver, 1995). Muterera (2012) from theUnited States of America conducted in his study concluded dimensions of transformationalleadership behavior and organizational performance are positively correlated with each other.The study done by Bhandarker (2014) concluded that the best leadership style used by leadersfor achieving high organizational performance is transformational leadership. The leaderhas to create good and positive environment for employees which helps them to work inteam for achieving long run organizational results.

The transformational leadership style consists of having five sub dimensions which are -idealized influence attributed, intellectual simulation, idealized influence behavior, inspirationalmotivation and individualized consideration (Tharnpas& Boon-itt, 2015). Another studyconducted by Ojokuku et al. (2012) investigated the relation between styles of leadership andorganizational performance and found that leadership behavior dimensions significantly affectthe organizational performance. The study recommended that both transformational anddemocratic leadership styles should be adopted in order to perform well in a global competitiveenvironment. Limsila and Ogunlana (2008) found from their study that work-performance,transformational leadership and organizational commitment of followers were positivelycorrelated with each other. The results suggested that transformational leaders have high chancesto gain acceptance and commitment from followers as compared to transactional and laissez-faire styles of leadership. The research conducted by (Gumusluoglu and Ilsev (2007) explainsthe relationship of transformational leadership dimensions on organizational innovationvariables, and concluded that the dimensions of transformational leadership play an importantrole at organizational level which motivates their followers by empowering them which resultsinto organizational performance.

HYPOTHESIS OF THE STUDY

The following hypotheses were tested in the study as seen in Figure 1.

Hypothesis 1:Transformational leadership has a positive and significant impact onorganizational performance.

Hypothesis 2(a):Idealized influence attributed has a significant impact on organizationalperformance.

Hypothesis 2(b): Idealized influence behavior has a significant impact on organizationalperformance.

Hypothesis 2(c): Inspiration motivation has a significant impact on organizationalperformance.

Hypothesis 2(d):Intellectual stimulation has a significant impact on organizationalperformance.

Hypothesis 2(e): Individualized consideration has a significant impact on organizationalperformance.



- 50 -

Figure 1. Framework for framed hypotheses.

H 1

H 2a

H 2b

H 2c

H 2d (Dependent Variable)

H 2e

(Independent Variable)

Transformational

leadership

IIA

IIB

IM

IS

IC

OP

Note: Idealized Influence Attributed (IIA), Idealized Influence Behavior (IIB), InspirationMotivation (IM), Intellectual Stimulation (IS), Individualized Consideration (IC) andOrganizational Performance (OP).

3.RESEARCH METHODOLOGY

3.1 Research design: - The descriptive research design survey has been carried out in thisstudy as it is used to explain and describe the characteristics of a population or problembeing studied.

3.2 The sample: -The data collected from 139 respondents has been taken as sample fromHaryana and NCR by using the convenience sampling method. The respondents for the studywere middle level managers from manufacturing and service sector organizations.

3.3 THE QUESTIONNAIRE DESIGN

For collecting the primary data, structured questionnaire survey method was used. TheMultifactor Leadership Questionnaire (MLQ) scale has been used for measuring thetransformational leadership dimensions which is given by (Bass & and Avolio 1997).Thisscale is comprised of total 45 items,however, for the purpose of this study; only 20 statements(four statements each for all five dimensions of transformational leadership) have been used.For measuring these items, five-point Likert-type scale have been used to rate the items whichrange from strongly disagree (1) to strongly agree (5). For measuring the organizationalperformance, eight items has been included: productivity, product/service quality, profitability,market share, customer satisfaction level, growth of sales revenue, innovation, overall



- 51 -

organizational performance (Khandwalla, 1977; Som, 2008). For measuring these items, five-point likert-type scale have been used to rate the items which range from much lower (1) tomuch higher (5). In this study, the reliability of the MLQ full scale has been found to be 0.97as confirmed by cronbach’s alpha. For transformational leadership style dimensions, thereliability value (cronbach’s alpha) is .94 and for organizational performance is .91 as shownin Table 1.

Table 1. Reliability value analysis

Variables No. of

items

Alpha

coefficient

MLQ scale 48 0.971

Transformational

leadership dimensions

20 0.944

Organizational performance 8 0.910

Source : Complied Data

3.4 STATISTICAL TECHNIQUES

The primary data obtained by the questionnaire survey has been analyzed with the help ofSPSS. To test the hypothesis, Pearson product moment correlation and linear regression hasbeen carried out. All statistical tests were performed at 5 % level of significance.

4.FINDINGS OF THE STUDY

Table 2: Analysis of correlation statistics of the dimensions of transformational leadershipstyle (independent variable) on organizational performance (dependent variable).



- 52 -

Correlations

Correlations

Dimensions of TLS IIA IIB IM IS IC OP

IIA

Pearson correlation 1

Significance (2-tailed)

N 139

IIB

Pearson correlation .881** 1

Significance (2-tailed) .000

N 139 139

IM

Pearson correlation .870** .883** 1

Significance (2-tailed) .000 .000

N 139 139 139

IS

Pearson correlation .868** .832** .872** 1

Significance (2-tailed) .000 .000 .000

N 139 139 139 139

IC

Pearson correlation .867** .833** .847** .878** 1

Significance (2-tailed) .000 .000 .000 .000

N 139 139 139 139 139

OP

Pearson correlation .521** .555** .544** .565** .519** 1

Significance (2-tailed) .000 .000 .000 .000 .000

N 139 139 139 139 139 139

Note: **. Correlation is significant at the 0.01 level (2-tailed).

Source : complied data

Table 2 presents the correlation statistics of transformational leadership behavior dimensionsand organizational performance. On perusal of this table, it is found that all transformationalleadership style dimensions are positively correlated with organizational performance. ThePearson product-moment correlation between idealized influence attributed andorganizational performance (r = 0.521), idealized influence behavior and organizationalperformance (r = 0.555), inspiration motivation and organizational performance (r = 0.544),intellectual stimulation and organizational performance (r = 0.565) and individualizedconsideration and organizational performance (r = 0.519) are significant and positivelycorrelated. The results reveals that all the transformational leadership style dimensionsenhance the organizational performance and positively correlate with each other butintellectual stimulation has been found to be the most strong and positive correlation onorganizational performance.



- 53 -

Table 3:Analysis of regression statistics output regarding impact of the all dimensions of thetransformational leadership (independent variable) and organizational performance(dependent variable).

Dimensions of TLS R2 F statistic Standardized

beta

t P value/

significance

N

IIA .272 51.138 .521 7.151 .000* 139

IIB .308 60.907 .555 7.804 .000* 139

IM .296 57.699 .544 7.59 .000* 139

IS .319 64.316 .565 8.02 .000* 139

IC .270 50.559 .519 7.11 .000* 139

Overall TLS Dimension .329 67.080 .573 8.19 .000* 139

Note : *p = 0.05

a. Predictors: (Constant), IIA, IIB, IM, IS, IC b. Dependent Variable: OP

Source : Ccomplied Data

Table 3 presents the result of regression output statistics to test the proposed hypotheses H1,H2 (a), H2(b), H2(c), H2(d) and H2(e) framed for the study. The results shows that the pvalue of significance calculated is less than 0.05 which suggests that transformationalleadership styles dimensions such as Idealized Influence Attributed (IIA), Idealized InfluenceBehavior (IIB), Inspiration Motivation (IM), Intellectual Stimulation (IS) and IndividualizedConsideration (IC) significantly impacts the organizational performance (OP). To answer theH2 of the study, the output found is statistically significant (R square = .329, F = 67.080, P <0.05, Beta value = .573). The R square value is 0.329 which indicates that 32.9% of variabilityin organizational performance is explained by all the dimensions of transformationalleadership style. The F statistic is 67.080 and p < 0.05 explains the significant relationshipbetween all the dimensions of transformational leadership style and organizationalperformance. The beta value is .573 which explains that one unit change in all the dimensionsof transformational leadership style result in .57 unit change in Organizational performancewhich simply meansthat TLS dimensions have a positive and significant impact onorganizational performance. Thus hypothesis 1 is supported and accepted.

Out of the five dimensions of the transformational leadership style, the first dimension isIdealized Influence Attributed (IIA). The result of IIA and OP is found statistically significant(R square = .272, F = 51.138, P < 0.05, Beta value = .521). The R square value is 0.272 whichindicates that 27.2% of variability in organizational performance is explained by idealizedinfluence attributed. The F statistic is 51.138 and p < 0.05 which explains that idealized influenceattributed and organizational performance is significantly related to each other. The betavalue is .521 which explains that one unit change in idealized influence attributed result in.52 unit change in organizational performance which shows a significant and positive impact



- 54 -

between idealized influence attributed and organizational performance. Thus H2(a) of thestudy is supported and accepted.

The second dimension is Idealized Influence Behavior (IIB). The result of idealized influencebehavior and organizational performance is found statistically significant (R square = .308, F= 60.907, P < 0.05, Beta value = .555). The R square value is 0.308 which indicates that 30.8% ofvariability in Organizational performance is explained by idealized influence behavior. TheF statistic is 60.907 and p < 0.05 which explains that idealized influence behavior andorganizational performance is significantly related to each other. The beta value is .555 whichexplains that one unit change in idealized influence behavior result in .55 unit change inorganizational performance which shows a significant and positive impact found betweenidealized influence behavior and organizational performance. Thus H 2(b) of the study issupported and accepted.

The third dimension is Inspiration Motivation (IM). The result of inspiration motivation andorganizational performance is found statistically significant (R square = .296, F = 57.699, P <0.05, Beta value = .544). The R square value is 0.296 which indicates that 29.6% of variabilityin organizational performance is explained by inspiration motivation. The F statistic is 57.699and p < 0.05 which explains that inspiration motivation and organizational performance issignificantly related to each other. The beta value is .544 which explains that one unit changein inspiration motivation result in .54 unit change in organizational performance which showsa significant and positive impact found between inspiration motivation and organizationalperformance. Thus H (2c) of the study is supported and accepted.

The fourth dimension is Intellectual Stimulation (IS). The result of intellectual stimulationand organizational performance is found statistically significant (R square = .319, F = 64.316,P < 0.05, Beta value = .565). The R square value is 0.319 which indicates that 31.9% of variancein organizational performance is explained by intellectual stimulation. The F statistic is 64.316and p < 0.05 which explains that intellectual stimulation and organizational performance issignificantly related to each other. The beta value is .565 which explains that one unit changein intellectual stimulation result in .56 unit change in organizational performance whichshows a significant and positive impact found between intellectual stimulation andorganizational performance. Thus H2(d) of the study is supported and accepted.

The fifth dimension is Individualized Consideration (IC). The result of individualizedconsideration and organizational performance is found statistically significant (R square =.270, F = 50.559, P < 0.05, Beta value = .519). The R square value is 0.270 which indicates that27% of variability in organizational performance is explained by individualized consideration.The F statistic is 50.559 and p < 0.05 which explains that individualized consideration andorganizational performance is significantly related to each other. The beta value is .519 whichexplains that one unit change in individualized considerationresult in .51 unit change inorganizational performance which reveals a significant and positive impact found betweenindividualized consideration and organizational performance. Thus H2(e) of the study issupported and accepted.



- 55 -

Table 4: Summary of acceptance and rejection of research hypotheses framed for this study.

No. Hypothesis Finding Result

H1 Transformational leadership has a

positive and significant impact on

organizational performance.

Positively and significantly

impacts the organizational

performance with a beta value

(.573).

Accepted

H2 (a) Idealized influence attributed has

a significant impact on





(.521).

Accepted

H2 (b) Idealized influence behavior has a

significant impact on





(.555).

Accepted

H2 (c) Inspiration motivation has a






(.544).

Accepted

H2 (d) Intellectual stimulation has a






(.565).

Accepted

H2 (e) Individualized consideration has

a significant impact on





(.519).

Accepted

Source : Complied Data

5. RESEARCH FINDINGS

The present study explored the relationship of transformational leadership style dimensionson organizational performance. The analysis of data showed that positive relationship isfound between all the five transformational leadership style dimensions and organizationalperformance but the most significant and positive correlation is to be found in intellectualstimulation. This study also investigated the positive and significant impact betweentransformational leadership style dimensions and organizational performance. Afteranalyzing the results, this study revealed that transformational leadership style dimensionssignificantly impacts the organizational performance such as Idealized Influence Attributed(IIA), Idealized Influence Behavior (IIB), Inspiration Motivation (IM), Intellectual Stimulation



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(IS) and Individualized Consideration (IC) but intellectual stimulation dimension has beenidentified to be the most significant factor in influencing the organizational performance (Beta value = .565).

6. CONCLUSION

The results concluded above indicates that transformational leadership style dimensionssignificantly impacts organizational performance and IS has been emerged as the mostsignificant and contributing factor in enhancing the organizational performance. This studyconcluded that IS dimension significantly impacts the organizational performance andintellectual stimulation plays an important role in organizations at all levels through whichthe followers should accept the challenging task and strive towards it for achieving it whichresults in organizational growth.

6. LIMITATIONS

The researcher has to face several limitations which provide opportunity to future researchesin terms ofextending this research. This study has a limitation that it only coversmanufacturing and service sector with a sample size of 139 due to time constraints. Thisstudy only examined the transformational leadership style dimensions impacts withorganizational performance.

7. FUTURE RESEARCH DIRECTIONS

Further this study recommended that other styles of leadership like transactional, laissez-faire can also be studied which may enhance the more organizational performance. Thisstudy can also be done with other performance measures within the same sector and differentsector.

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