Transformational Leadership Style and Talent Retention in Pakistani Banks: A Serial Multiple Mediation Model
Abstract
The objective of this research was to determine factors that mediate between transformational leadership style and retention of employees, as talent retention is an emerging issue for organizations due to workplace diversity. This study provides a guideline to the supervisors and leaders in managing their workforce. By using structural equation modeling (SEM), the result exhibited a positive impact between transformational leadership and talent retention, transformational leadership and job satisfaction, transformational leadership, and psychological ownership. The study also revealed a positive impact on job satisfaction and talent retention, psychological ownership, and talent retention. This model is an attempt to find out the further factors and measures that affect employee retention in the banking sector of Pakistan.
JEL Classification: J28, J54, G21
How to Cite:
Mir, M. M., Khan, A., & Abbas, Q. (2020). Transformational Leadership Style and Talent Retention in PakistaniBanks: A Serial Multiple Mediation Model. Etikonomi: Jurnal Ekonomi, 19(1), 63 – 76. https://doi.org/10.15408/etk.v19i1.11264.
Keywords
References
References
Anwar, P. M., & Miftahuddin. (2016). The Effect of Transformational Leadership and Job Satisfaction on Employee Performance. Universal Journal of Management, 4(4), 189-195. https://doi.org/10.13189/ujm.2016.040404
Assaf, N., Qudah, M. A., & Bashayreh, A. (2016). Does Transformational Leadership Style effect on Employee Commitment in the Aviation Industry. International Journal of Business and Management, 11(12), 163-176.
Bass, B. M. (1999). Two Decades of Research and Development in Transformational Leadership. European Journal of Work and Organizational Psychology, 8(1), 9-32
Bass, B. M., & Bass, R. (2008). The Bass Handbook of Leadership: Theory, Research, and Managerial Applications (4 ed.). NewYork: Free Press.
Belias, D., & Koustelios, A. (2014). Transformational Leadership and Job Satisfaction in the Banking Sector. International Review of Management and Marketing, 4(3), 187-200.
Bushra, F., Usman, A., & Naveed, A. (2011). Effect of Transformational Leadership on Employees’ Job Satisfaction and Commitment. International Journal of Business and Social Science, 2(18), 261-267.
Cummings GG, MacGregor T, Davey M, Lee H, Wong CA, Lo E, Muise M, Stafford E. (2010, March). Leadership styles and outcome patterns for the nursing workforce and work environment: a systematic review. International Journal of Nursing Studies, 47(3), 363-385.
Cho, H. P., Woocheol, K., & Ji, H. S. (2015). The Impact of Ethical Leadership on Employees’ In-Role Performance: The Mediating Effect of Employees’ Psychological Ownership. Human Resource Development Quarterly, 26(4), 385-408.
Flores, C., Boyle, A. R., & Melichar, D. Y. (2011). Assisted Living Administration and Management: Effective Practices and Model Programs in Elder Care (1st ed.). NewYork: Springer Publishing Company.
Fornell, C., & Larcker, D. F. (1981). Evaluating Structural Equation Models with Unobservable Variables and Measurement Error. Journal of Marketing Research, 18(1), 39-50.
Ghafoor, A., Qureshi, T. M., Khan, M. A., & Hijazi, S. T. (2011). Transformational Leadership, Employee Engagement, and Performance: Mediating Effect of Psychological Ownership. African Journal of Business Management, 5(17), 7391-7403.
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate Data Analysis (Seventh ed.). (D. Kindersley, Ed.) London: Pearson Education Limited.
Haier, J., Hult, G., Ringle, C., & Sarstedt, M. (2014). A Primer on Partial Least Squares Structural Equation Modeling. (PLS-SEM). Los Angeles: SAGE Publications, Incorporated.
Imam, T., Ali, H., & Soo, H. S. (2018). Mediating Role of Psychological Capital in Talent Retention amongst Pharmaceutical Employees of Pakistan: A Quantitative Study. International Journal of Academic Research in Business and Social Sciences, 8(6), 389-405.
Izidor, N., & Iheriohanma, E.B.J, (2015). The Nexus Between Leadership Styles and Employee Retention and Performance. European Scientific Journal, 11(13), 185-209.
Joo, B. K., & Lim, T. (2013). Transformational Leadership and Career Satisfaction: The Mediating Role of Psychological Empowerment. Journal of Leadership & Organizational Studies, 1(2), 1-10. https://doi.org/10.1177/1548051813484359
Jugurnath, B., Bhewa, C., & Ramen, M. (2016). Employee Satisfaction and Retention in Health Services: Empirical Evidence at the ENT Hospital Mauritius. In Proceedings of the Fifth Asia-Pacific Conference on Global Business, Economics, Finance, pp. 1-22. Mauritius.
Khalid, N., Pahi, M. H., & Ahmed, O. (2016). Losing Your Best Talent: Can Leadership Retain Employees? the dilemma of the banking sector of Hyderabad Pakistan. International Review of Management and Marketing, 6(3), 608-616.
Motlou, G. R., Singh, S., & Karodia, M. A. (2016). An Evaluation of The Impact of Job Satisfaction on Employee Retention at Lonmin Rowland Shaft North West Province. Arabian Journal of Business and Management Review, 5(10), 15-49.
Muli, B., Ngui, T. k., & Mohamed, R. (2017). Factors Determining Employee Retention in the Banking Sector. Journal of Education & Entrepreneurship, 4(10), 1-23.
Mwita, K. M., Mwakasangula, E., & Tefurukwa, O. (2018). The Influence of Leadership on Employee Retention. International Journal of Human Resource Studies, 8(2), 274-283.
Ohunakin, F., Adeniji, A. A., Oludayo, O. A., Osibanjo, A. O., & Oduyoye, O. O. (2019). Employees’ Retention in Nigeria’s Hospitality Industry: The Role of Transformational Leadership Style and Job Satisfaction. Journal of Human Resources in Hospitality & Tourism, 18(3), 1-29.
Olckers, C., & Plessis, D. Y. (2012). The Role of Psychological Ownership in Retaining Talent: a Systematic Literature Review. Journal of Human Resource Management, 10(2), 1-18.
Olzer, H., Yilmaz, A., & Olzer, A. (2008). Psychological Ownership: an Empirical Study on Its Antecedents and Impacts Upon Organizational Behavior. Problems and Perspectives in Management, 6(3), 38-47.
Fisher R.A. (1992) Statistical Methods for Research Workers. In: Kotz S., Johnson N.L. (eds) Breakthroughs in Statistics. Springer Series in Statistics (Perspectives in Statistics). Springer, New York, N
Sidek, M. H., Sami, W., & Hamid, M. R. (2017). Discriminant Validity Assessment: Use of Fornell & Larcker Criterion Versus HTMT Criterion. Journal of Physics: Conference Series, 890, 1-5. https://doi.org/10.1088/1742-6596/890/1/012163.
Sow, M., Damon, A., & Osuoha, R. (2016). The Relationship between Transformational Leadership and Employee Retention among Healthcare Professionals in the United States. Business and Economic Research, 6(2), 235-254.
Valentine, R. S., Jackson, H. J., & Mathis, L. R. (2015). Human Resource Management: Essential Perspective (7th edition ed.). California: South-Western College Pub
W, H. M., Nico W, Y. V., Barbara, W., & Kai, S. (2011). Transformational-transactional leadership styles and followers’ regulatory focus: Fit reduces followers’ turnover intentions. Journal of Personnel Psychology, 10(4), 182-186.
Wakabi, B. M. (2016). Leadership Style and Staff Retention in Organizations. International Journal of Science and Research, 5(1), 412-416.
DOI: 10.15408/etk.v19i1.11264
Refbacks
- There are currently no refbacks.
Copyright (c) 2020 ETIKONOMI
