A Partial Least Squares Approach to the Leadership Styles, Organizational Culture, and Employees' Productivity: A Case of Pakistan Banking Industry

A Partial Least Squares Approach to the Leadership Styles, Organizational Culture, and Employees' Productivity: A Case of Pakistan Banking Industry

Saeeda Rehman (Institute of Management Sciences, University of Science and Technology, Bannu, Pakistan), Muhammad Zahid (City University of Science and Information Technology, Peshawar, Pakistan), Haseeb Ur Rahman (Institute of Management Sciences, University of Science and Technology, Bannu, Pakistan) and Muhammad Nauman Habib (City University of Science and Information Technology, Peshawar, Pakistan)
Copyright: © 2019 |Pages: 10
DOI: 10.4018/IJABIM.2019010104

Abstract

This study aimed to investigate the relationship between various leadership styles and employees' productivity in the banking industry of Pakistan. The study employed partial least squares (PLS) to a set of data collected through questionnaire from the employees of banks operating in Peshawar, Khyber-Pakhtunkhwa (KP), Pakistan. The findings revealed a significant positive association between transformational leadership and employees' productivity. The authoritarian leadership was found insignificantly negative while a transactional leadership style accounted for an insignificant positive association with employees' productivity. Also, the findings confirmed that organizational culture has a significantly positive role in enhancing employees' productivity in the banking industry of Pakistan. The findings are useful for managers, regulators, policymakers, and employees of the banking industry in Pakistan. Also, the findings enrich the previous limited and incongruent literature in the area.
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Literature Review

This section synthesises the previous literature regarding the relationship between leadership styles and employees’ productivity. Before explaining the relationship, this section first explains various styles of leadership and employees’ productivity.

Leadership Styles

The degree of authority exercised by individual determines the style of leadership. The exercise of authority from an individual greatly depends on his/her knowledge, experience, maturity, attitude, behaviour, personality, communication, and overall approach. Thus, there are as many leadership styles as many organisations we have (Asrar-ul-Haq & Kuchinke, 2016; Chen, 2004; Ekpe et al., 2017; Voon et al., 2011). However, the following section explains some prominent leadership styles identified by the previous literature.

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