Proposal on

Effect of Transformational Leadership on Employees Performance in the Banking Sector.

Introduction
1 introduction of research topic:
Employee performance is a set of behavior, outcomes, actions and practices that contribute towards organizational goals. The effectiveness of employee performance depends upon the relationship between the performance measures. The principal objective an employee performance is classified into three categories. (a)Unsatisfactory (Below the standard) for which the non-monetary punishment is imposed.(b)Acceptable (Satisfactory) for which neither rewards nor punishment is invoked.(c)Outstanding, for which the company rewarded on profit sharing. Employee performance is examined in terms of its resources to enhance outcomes such as productivity & quality organization such as communication, decision making, Innovation, Labor management relations & Intrapsychic states such as employee satisfaction & commitment. Employee Involvement increases the employee performance because it is a broad strategy to increase employee performance by influencing how their work is organized & carried out. There is a strong effect of employee involvement on employee performance as it increases their Job satisfaction & little Consistency effects on productivity. Two types of metrics are used for the evaluation of employee performance, (a) Financial (b) Non Financial.

2: LITERATURE REVIEW
The research is done to examine the effect of transformational leadership components (Socially skillful, Bold and Change seeking, Knowledgeable and experienced) on the motivation, satisfaction and performance of the employees in the Healthcare centers. Researchers concluded that social skillfulness consisting of Social / interpersonal skills greatly effect the employee motivation level, Job satisfaction and Job Performance up to that extent, where social skillfulness and bold and seeking affects, (khatri and Felber) (1999). Research concluded that healthcare managers re highly skillful and knowledge but they lack in other two dimensions. The effect of transformational leadership (Individual Consideration, Intellectual Stimulation, Charismatic Personality & transactional leadership) is focused on the employee Commitment Job satisfaction and organizational citizenship behavior. Research concludes that transformational leadership not only has strong affect on Job Satisfaction, organizational Citizenship Behavior but also it has positive add on effects on transactional leadership I determining Job Satisfaction, Organizational Commitment and organization Citizenship behavior. While two transactional leadership components (Passive management by exception & Laissez-faire Leadership behavior) has negative effect on employees commitment and performance effectiveness, Nguni, Sleegers & Denessen (2006). It examined the relation between transformational leadership (Individual consideration, Intellectual Stimulation, Charismatic Personality & Inspirational Motivation), Dvir, Eden, Avolio, & Shamir (2002). A research done by Conger, Kanungo & Menor (2000) examined the relationship between charisma and its effect on followers. They checked whether charisma in personality of leaders effect the followers or not. And if so, than what direction? Positive

or negative? This study is focus on two variables; Leaders focus variables (2) Followers focused variables. The result found that charisma positively effected on all the dependent variables. The different performances of schools have different leadership styles. They used T-test transformational leadership at different levels that are managerial levels etc. They conducted that not one approach to leadership is enough for an organization, it is the blend of almost all the approaches further more there is a bit emphasis on moral leadership, Inger & Suhomlinova (2005). Study conducted by KOH (1995) examined the effects of transformational leadership on the followers attitude and performance. This study discussed three components of Transformational leadership as independent variable i.e. charisma, individual Consideration, and intellectual stimulation. Effect of these variables on student performance and teachers attitude was being examined. (Researcher) they examined 89 schools and takes information from 846 teachers using split sample techniques they classified the attitude into different components like Organizational Citizenship Behavior (OCB). Organizational Commitment, Satisfaction with leader. The result found that transformational leadership have positive effect on organizational commitment and satisfaction with leader. The result found that transformational leadership have positive effect performance in Singapore. The study conducted by Sivnathan & bairlng (2005). They wanted to check the effect of transformational leadership training on employee safety performance, for this they conducted a pretest/ posttest Qausi experiment. Their independent variable was transformational leadership training and their dependent variable was employee performance. on organizational commitment and satisfaction with leader, but it had partial positive effect on OCB and had no effect on Student

For the research study they took a sample of 18 swimming pool supervisors as their leaders and 39 swimming instructors as their subordinates and they compare the experimental group of 10 supervisors and 26 instructors with the controlled group of 8 supervisors and 13 instructors. They found that the intervention significantly improved transformational leadership behavior and perception of their supervisors safety Compliance. They found a change in instructors behavior by using pretest/ posttest experiments and found a improvement in safety behavior (FELFE & Luther, 2006). They wanted to see the influence of followers personal characteristics on their perception of leadership. For their study he took 175 students with different personality traits including Self-efficacy at time. After two weeks they divide the participants into two groups and were told about transformational and non transformational leadership style.

3: Rationale of the Study

Employee can be motivated towards their work in different ways whether it may be salary, allowances, nature of the work, working environment or supervisor's attitude. Employee is directly linked with supervisors so he learns and gets motivation directly from his working attitude. According to the past researches, supervisor's attitude has much more influence than others because they guide their sub-ordinates how to perform well or how to achieve their objectives effectively and efficiently.

Transformational leadership is now a days very popular perception in the corporate world. Ordinary supervisors and managers are no better than the necessity of any organizations. Organizations are looking towards leaders who can affect the community to work efficiently rather that to force them to do work. With the passage of time many

researchers tried to find out the relationship between Transformational leadership and employees performance. The problem is to reach elsewhere the greatest impact that affects the transformational leadership on employees performance whether it might be negative or positive in the banking sector. To see the original independent variable of transformational leadership this influences the workers performance. This study investigates the impact of transformational leadership on employees performance. The major problem of the study is to reach elsewhere the impact of transformational leadership on employees performance. For this purpose five dimensions of transformational leadership are taken into consideration.

4: Research Question
What is the effect of transformational leadership on the employee's performance in the Pakistani context? 5: Objective of the Research This study investigates the impact of transformational leadership on employees performance. The objectives of this research are: 1. To evaluate the employees performance output from the transformational leadership style. 2. To identify the factors that influences the employees performance.

3. To find solutions and recommendations to improve employees performance with the help of transformational leadership.

6: Scope of the Research

This research deals with the effects of transformational leadership on employees performance in the banking sector of Pakistan. It also analyzes and describes which factors effect and influence the employees performance in Pakistan. The title of research shows that whether the transformational leadership style affects the employee's performance positively or negatively. This research has been carried out in the banks of Peshawar.

RESEARCH METHODOLOGY

7: Sample Various methods such as questionnaire, interviews and observation etc, were used by earlier studies for investigating the effect of transformational leadership on employees performance. For this study, a questionnaire based survey design is chosen as it allowed relatively large population easily and economically. The sample size for the study was 300. The sample population for this study was the banking sector of various branches in Peshawar. The locations of Peshawar were chosen because both these places have the branches of many different banks.

8: Instrument and Measures

The research for this study was done using a questionnaire-based survey. Questionnaire was used for the data collection. This questionnaire was designed to measure the effect of transformational leadership on employees performance. 300 questionnaires were distributed in the nearest possible banks of Peshawar. In this study, main focus was unit analysis by considering individuals. Two types of questionnaires sections were designed

i.e. one for measuring Transformational Leadership traits and other for measuring employee performance. For Transformational leadership the Multifactor Leadership questionnaire (MLQ) was used. This questionnaire was developed by (B.M.Bass, 1985). In this study, 5 variables were used that are Idealized Influence, Individual consideration, Intellectual stimulation, charismatic personality, Inspirational Motivation. Questionnaire contains 4 questions for each variable. The 5 point Likert scale was used where 1= never, 2= seldom, 3= sometimes, 4= often & 5= always. For employee Performance again 5 point Likert scale was used where 1= strongly disagree, 2= disagree, 3= Indifferent, 4= agree & 5= strongly agree. For employee performance 9 questions were selected, which were taken from different research studies. These questionnaires were modified in the context in order to measure the employee performance correctly.

9: Procedure
The descriptive research method was used for this research. Data was retrieved from both the secondary sources as well as primary sources. For the purpose of secondary data sources online journals containing previously published researches were discussed. Whereas in order to retrieve the primary data sources questionnaires were distributed among the employees in various banks of Peshawar. Their feedback was then added to SPSS sheet and accordingly their frequency distribution was analyzed. Finally a conclusion based upon this feedback was derived and suggestions were recommended.

10: References
Antonakis. J, Avolio J B, Sivasubramaniam. N(2003), Context & Leadership an Examination of the Nine Factor Full-range Leadership Theory Using MLQ. The Leadership Quarterly , 14 (2003) 261-295 Boyelt Ingeer C. R & Suhomlinova. (2005) Transformational Leadership with Secondary Schools in England.Public Administration Vol. 83, No. 2, 2005 (265296).Blackwell Publishing Ltd. 2005, 9600 Garsington Road, Oxford OX4 2DQ, UK & 350 main street, Malden, MA 02148, USA. Barry M. Staw, Robert I. Sutton, Lisa H (Feb., 1994), Pelled Employee Positive

Emotion and Favorable Outcomes at the Workplace, Vol. 5, No. 1, pp. 51-71. Conger A. J, Kanungo N. R & Menor T. S.(2000) Charismatic Leadership & followers effectJournal of Organizational Behavior,J. Organiz. Behav. 21 747-764 (2000). Christopher D. Ittner, David F. Larcker, Madhav V. Rajan (Apr., 1997), The Choice of Performance Measures in Annual Bonus Vol. 72, No. 2, pp. 231-255 Charles Brown (1982). Estimating the Determinants of Employee Performance The Journal of Human Resources, Vol. 17, No. 2, (spring, 1982), pp. 178-194 Graeme Currie, Inger Boyett And Olga SuhomlinovaPublic (2005. Transformational leadership within secondary schools in england. Administration Vol. 83, No. 2, 2005 (265296) Jay A. Conger, Rabindra N. Kanungo, Sanjay T (Nov., 2000), Charismatic Leadership and Follower Effects. Menon Journal of Organizational Behavior, Vol. 21, No. 7, pp. 747-767

Khatri N, Felber

Impact of transformational leadership on employee motivation,

Satisfaction and performance in health care Organizations A. Abstract No. 1511. KOH. L William (Jul. 1995) The effect of Transformational Leadership on Teacher attitudes 7 student performance in Singapore. Journal of organizational Behavior, Vol. 16, No. 4. Pp 319-333. Samuel Nguni, Peter Sleegers, and Eddie Denessen, onine School Effectiveness & School Publication date 01. June. 2006 , Transformational and

Improvement

Transactional leadership effects on Teachers Job satisfaction, Organizational commitment and Organizational Citizenship Behavior in Primary School of Tanzania. Vol. 17, No. 2, June 2006, Pp 145-177. Seok-Hwan Lee (Sep, 2002), Dorothy Olshfski Employee commitment & Firefighters, Vol. 62, September 11, 2001, Pp 108-114