The Relationship between Transformational, Transactional

The Relationship between Transformational, Transactional

Leadership Styles and Employees Performance

Mediating Role of Culture Dimensions of Bankers

In District D.I.Khan KPK Pakistan

Mehran Saeed

Student ID: 9005-D

PhD Management Science

Qurtuba University of Science & Information Technology,

D.I.KhanKhyber Pakhtunkhawa Pakistan

2018

The Relationship between Transformational, Transactional

Leadership Styles and Employees Performance

Mediating Role of Culture Dimensions of Bankers

In District D.I.Khan KPK Pakistan

Mehran Saeed

Student ID: 9005-D

Ph.D. Management Science

Department of Management Sciences

Supervisor: Dr. Yasir Hayat Mughal

Qurtuba University of Science & Information Technology,

D.I.KhanKhyber Pakhtunkhawa Pakistan

2018

Dedication

DEDICATED

TO

MY PARENTS

AND

THE RESPECTED SUPERVISOR

DR. YASIR HAYAT MUGHAL

i

Preface

I would like to thank Almighty ALLAH the merciful and the passionate, for providing me the

way to step in the excellent world of academia and research and for giving me this

opportunity and all the possibilities to complete this thesis. This thesis would not have been

possible unless with the guidance and supports of my supervisor, Dr Yasir Hayat Mughal

whose encouragement supervision and assistance from the preliminary to the concluding

level enabled me to develop an understanding of the subject. Above all and the most needed,

he provided me unflinching encouragement and support in various ways. His truly intuition

has made him as a constant oasis of ideas and passions in completing this thesis, which

exceptionally inspire and enrich my growth as a student, and a researcher. I am indebted to

him more than he knows. Last but not least, to my family. I owe my warm thanks to my

parents Prof: Saeed Ullah and my Mother and for their continuous pray and support, brothers,

sisters, wife and in-laws. To my beloved daughter, Mashaim Saeed, she is my sunshine.

Finally, I would like to thank everybody who was important to the successful realization of

thesis, as well as expressing my apology that I could not mention personally one by one.

ii

Approval Certificate

The thesis entitled “The Relationship between Transformational, Transactional

Leadership Styles and Employees Performance Mediating Role of Culture Dimensions

of Bankers In District D.I.Khan KPK Pakistan.” worked out and submitted by Mehran

Saeed is of sufficient standard to justify for the partial fulfillment of the requirement of

degree of Doctor of Philosophy in Management Sciences by Department of Management

Sciences Qurtuba University of Science and information Technology Dera Ismail Khan

Supervisor Dr.Yasir Hayat Mughal

External Examiners:

1._______________________

Dr. …………………………..

2. ________________________

Dr. ……………………………

iii

ABSTRACT

The aim of the study is to find the relationship between transformational leadership style its

facets i.e idealized influence behavior, idealized influence attribute, inspirational motivation,

intellectual stimulation, individual consideration and transactional leadership styles and its

facets, i.e. contingent reward, management by exception active and passive and performance

with mediating role of organizational culture. The quantitative method i.e. deductive

approach survey method for data collection is used. This study is cross sectional so data is

collected one time. Total population of this study is 64 branches of all public and private

banks in which 1012 employees are working. Total 278 was population but 450

questionnaires are distributed and 319 questionnaires are collected back. Correlation

analysis, hierarchical multiple regression and ANOVA and T-Test are used for analysis.

Transformational transactional leadership styles and performance and culture are related

with each other also results of regression show that culture does act as mediator on the

relationship between transformational transactional leadership styles and performance.

Results of ANOVA and t-test also show significant differences upon motivation. As this study

is conducted on banks so findings can be generalized only on banking sector not other

sectors.

Keywords: Transformational Leadership, Transactional Leadership, Performance, Culture.

iv

Table of Contents Dedication ...................................................................................................................................... iv

Chapter 1 ......................................................................................................................................... 1

Introduction ..................................................................................................................................... 1

1.0 Introduction ............................................................................................................................... 1

1.1 Background of the Study .......................................................................................................... 1

1.2 Problem Statement .................................................................................................................... 6

1.2.1 Theoretical Gap ............................................................................................................. 6

1.3 Objectives of the Study ............................................................................................................. 7

1.4 Research Hypotheses Development .......................................................................................... 8

1.5 Theoretical framework ............................................................................................................ 12

1.6 Significance............................................................................................................................. 12

1.7 Definition of Terms................................................................................................................. 13

1.7.1 Leadership ................................................................................................................... 13

1.7.1.2 Transactional Leadership ......................................................................................... 14

1.7.2 Organizational Culture ................................................................................................ 14

Chapter 2 ....................................................................................................................................... 15

Literature Review.......................................................................................................................... 15

2.4.2 Effectiveness of Leader with Respect to Situation ...................................................... 21

2.5.2 Sub Culture .................................................................................................................. 25

2.6.1 Formation of Organization Culture ............................................................................. 27

2.9.3 The theory of Open-Book Management (OBM) ......................................................... 36

Chapter 3 ....................................................................................................................................... 44

Research methodology .................................................................................................................. 44

3.1 Introduction to the Chapter ................................................................................................ 44

3.2 Research Design................................................................................................................. 45

3.3 Research Location, Population, and Sample...................................................................... 48

3.4 Research Instrument........................................................................................................... 50

3.4.1 Designation of Questionnaire ................................................................................ 51

3.5 Ethical Considerations ............................................................................................................ 52

3.6 Reliability Analysis ................................................................................................... 53

3.6.1 Reliability of the Research Instrument .................................................................. 53

v

3.9 Summary of the Study ............................................................................................................ 56

Chapter 4 ....................................................................................................................................... 57

Empirical analysis ......................................................................................................................... 57

4.1 Demographic Characteristics .................................................................................................. 57

4.2 Demographic Transformational and Transactional ................................................................ 59

4.3 Demographics Culture and Performance ................................................................................ 61

4.4 Data Normality Transformational Leadership Style ............................................................... 62

4.5 Data Normality Transactional Leadership Style ..................................................................... 64

4.6 Data Normality Organization Culture ..................................................................................... 65

4.7 Data Normality Performance .................................................................................................. 66

4.8 Data Reliability Transformational and Transactional Leadership .......................................... 67

4.9 Data Reliability Organization Culture .................................................................................... 69

4.10 Data Reliability Employee‟s Performance............................................................................ 70

4.11 Exploratory Factor Analysis Transformational Transactional Leadership Styles ................ 71

4.12 Exploratory Factor Analysis Organization Culture .............................................................. 74

4.13 Exploratory Factor Analysis Performance ............................................................................ 76

4.14 Inferential Statistics Correlation ........................................................................................... 78

4.15 Regression Analysis .............................................................................................................. 86

4.16 Mediation Analysis ............................................................................................................... 89

Chapter 5 ..................................................................................................................................... 111

Discussion Conclusion and Recommendation ............................................................................ 111

5.1 Introduction ........................................................................................................................... 111

5.2 Research summary ................................................................................................................ 111

5.3 Discussion and conclusion .................................................................................................... 112

5.4 Contribution of Study ........................................................................................................... 116

5.4.1 Extended Knowledge in the Literature...................................................................... 116

5.4.2 Contribution in Leadership Theory ........................................................................... 116

5.4.3 Methodological Validation ........................................................................................ 116

5.5 Contribution for Organizations ............................................................................................. 117

5.5.1 Implications for Institute of Bankers and State Bank of Pakistan ............................ 117

5.5.2 Contribution for Professionals .................................................................................. 117

5.6 Limitations of the Study........................................................................................................ 117

5.7 Directions for Future ............................................................................................................. 118

vi

5.7.1 Directions for HR Professionals ................................................................................ 118

References ................................................................................................................................... 119

Annexure-I .................................................................................................................................. 136

Annexure -II ................................................................................................................................ 141

Annexure -III .............................................................................................................................. 142

vii

LIST OF TABLES

Table No. Description Page No.

3.1 Required Sample Size 50

3.2 Scales with specification 52

4.1 Demographic Characteristics 57

4.2 Demographic Transformational and Transactional 59

4.3 Demographics Culture and Performance 61

4.4 Descriptive Statistics 62

4.5 Data Normality Transactional Leadership Style 64

4.6 Data Normality Organization Culture 65

4.7 Data Normality Performance 66

4.8 Data Reliability Transformational and Transactional Leadership 67

4.9 Data Reliability Organization Culture 69

4.10 Data Reliability Employee‟s Performance 70

4.11 initially unrotated EFA leadership 72

4.12 Rotated Component Matrix 73

4.13 Initially unrotated solution of Culture 74

4.14 Total Variance Explained 75


4.16 Initially unrotated solution of Performance 76

4.17 Total Variance Explained 77


4.19 Relationship between Motivation, Performance, and Culture 78

4.20 Relationship among Idealized behavior, Performance, and

Culture

79

4.21 Relationship among Idealized Attribute, Performance, and

Culture

80

4.22 Relationship among Individual Consideration, Performance and

Culture

81

4.23 Relationship among I Stimulation, Performance and Culture 82

4.24 Relationship among C_Reward, Performance, and Culture 83

4.25 Relationship among ME ACTIVE, Performance and Culture 84

4.26 Relationship among ME_Passive, Performance, and Culture. 85

4.27 Regression Analysis 86

4.28 Hierarchical Regression between IM, OC, P 89

4.29 Hierarchical Regression between IIB, OC, P 90

4.30 Hierarchical Regression between IIA, OC, P 91

4.31 Hierarchical Regression between IC, OC, P 92

4.32 Hierarchical Regression between IC, OC, P 93

4.33 Hierarchical Regression between CR, OC, P 94

4.34 Hierarchical Regression between MEA, OC, P 95

4.35 Hierarchical Regression between MEP, OC, P 96

4.36 T-Test Gender and Research Variables 97

viii

4.37 T-Test Sector and Research Variables 99

4.38 Homogeneity of Variances 101

4.39 ANOVA Test of Designation 102

4.40 Homogeneity of Variances Qualification 103

4.41 ANOVA Test of Qualification 104

4.42 Multiple Comparisons for Management by Exception 105

4.43 Homogeneity of Variances of Length of Service 106

4.44 ANOVA Test of Length of Service 107

4.45 Test of Homogeneity of Variances of Age 108

4.46 ANOVA Test of Age 109

ix

LIST OF FIGURES

Figure No. Description Page No.

1.1 Theoretical Frame Work 12

2.1 Five Main Gaps extracted from the literature 42

3.1 shows the research design employed to carry out this particular

research

47

“The Relationship between Transformational, Transactional Leadership Styles and Employees

Performance Mediating Role of Culture Dimensions of Bankers In District D.I.Khan KPK Pakistan.” 1

Chapter 1

Introduction

1.0 Introduction

All the important matters like research gaps in theory, framework are discussed in this

chapter. Hypotheses have been developed on basis of the previous study. Moreover, this

chapter also includes the theoretical framework of the study. The significance of the study is

also discussed. Who will take benefit from findings of the study and how academicians and

practitioners can raise awareness of leadership styles in Pakistan and how to increase the

performance of the followers. This chapter is important because it has discussed the gaps in

the literature and deficiencies in literature. How these gaps are addressed in problem

statement and how culture can effect on increasing performance of the employees.

1.1 Background of the Study

All the organizations including banks are made up to achieve goals and these

organizations achieve their goals by performing their tasks through the help of resources such

as man, machine, materials, and money etc. The vital and generating resource is manpower

(employees) which is alive while all resources are non-living and useless without human

resources (Mwita, 2000). Employees of any organization have the highest priority and are the

most important factor of production. No doubt, less attention given to other resources will

result in less productivity but if attention is reduced towards employees and their

performance it can become disastrous to the organization. So, it can be said that employees

and their performance have a vital role in the development of banks as well as all other

organizations. The success of an organization always depends on the participation and job

performance of their employees. One of the most important dependent variables is a

performance which has been studied for long decades. (Ejere &Ugochukwu, 2013).



Employee performance is most important to measure in this study . Employees‟

performance is affected by numerous factors at banks such as financial rewards, job security,

managers attitude, culture, personal problems, job content, motivation, salaries, training, and

leadership etc. but leadership is most important which can be defined as the ability through

which objectives can be achieved in an ethical, respectful and loyal manner by motivating

and influencing employees (Hersey & Blanchard, 1986). Leadership is an important part

which is considered and implemented in organizations to increase human competency, (Yukl,

2002).The aim of leadership is to increase the skill of supervisors at all levels whether

operational, tactical, strategic and personal as well. The most significant part nowadays is that

how effectively the leadership attributes can be adopted by the manager so that these

attributes can be helpful to achieve his goals. Leadership includes the process of developing

leading qualities in managers and transferring and sharing into all members of the

organization to achieve the organizational objectives (Hamilton & Cynthia, 2005).

There are two main dimensions of leadership; transformational and transactional

leadership. Leadership is related to other many variables like effectiveness, cognitive style

job satisfaction (Wang, Oh, Courtright, & Colbert, 2011).

In transactional leadership relationship between followers and leaders is made on

basis of rewards given to followers on the achievement of objectives. In this style of

leadership, the leader identifies the goals and means to achieve these goals, besides these the

leader also clarifies that achievement will imply successful rewards while failure will cause

punishments (Bass, Avolio, Jung & Berson, 2003). Hence, mutual understanding is

developed between leader and subordinates due to which trust is developed (Whittington,

Goodwin, Coker, Ickes, & Murray, 2009). This trust can motivate them to take actions that

can help to achieve the targets and lead to better job performance.(Asgari, et al., 2008; Suli-

man &Obaidly, 2013; Whittington et al., 2009).



On the other side, at the point when the individual needs of their subordinates are

considered and subordinates are urged to organize the group over the individual interests as

an approach to accomplish the objectives and goals are called transformational leaders (Bass,

Avolio & Atwater, 1996; Bass et al., 2003). These behaviors make the subordinates, that

engage in a process of social exchanges with their leaders (Goodwin, Wofford, &

Whittington, 2001) which rouse them to attempt endeavors for the association to return

positive treatment gotten by their leaders (Boerner, Eisenbeiss, &Griesser, 2007). The

initiative methodology in which the leaders take activities to endeavor to improve their

partners' attention to what is correct and imperative and to raise their partners' inspirational

development is called Transformational leadership. (Ben, 2012; Khan, Busari, Abdullah,

Mughal, 2018).

In spite of leadership, the organizational culture is also an important component

which has an impact on employees' performance. The organizational culture is defined as the

behaviors, traditions, and way of life that determines the system. Every organization has its

own culture and the efficiency of an organization is influenced by its culture. (Ogber 2003,

Schein 2004, Alvesson 2003; Ahmed & Cheng, 2018). Different organizations have different

environment, values, practices, style, emotion, traits and a feel that is unique to it. There are

diverse attributes which differentiate one firm from another firm. These attributed includes

custom and thoughts. (Forehand & von Gilmer 1964).

According to Ojo.O (2008) various studies prove that from last few decades the

impact of organizational culture on performance is observed and Argued by Shahzad,

Luqman, Khan, & Shabbir ( 2012), When the employees contribute their services and when

they are committed and have similar norms and value as per organizations have, it leads to

the success of organization. The positive relationship is examined by the Aluko (2003)

between organizational culture and employee's performance and found that when an



organization has a weak culture then employees don't perform very well together. Lack of

participation is also observed in organizations where culture is weak.

According to Bass (1985), the most researched topic in leadership is the relationship

between transformational leadership style and performance. Around thirty years this

hypothesis was used and researched by researchers. It is supported that those following

transformational leadership has shown high performance (Wang et al., 2011). But it is still a

question that how transformational leadership elicits performance is still unclear and answer

by very few studies. Maybe the answer to this question is lie in the culture. It is clear that

culture is separately correlated with transformational leadership and performance (Tims et

al.,2011).

Now the history of leadership will shed light from where and how this leadership

approaches emerged. Burn (1978) has given an idea of transformational leadership. Later on,

Bass (1980) has extended the concept of transformational leadership to the organizational

setting. Since then leadership has been the main focus of researchers since last three decades.

According to Yukl (1989), transformational leaders have to align the goals of organizations

and followers in order to achieve them. Transformational leadership is divided into five

dimensions.

Full range leadership model was given by first Bass and Avolio (1995) after the

charismatic leadership. Later on different researchers verified this style in their studies.

Transformational leadership is second name of charismatic leadership (Khan et al., 2017). In

charismatic leadership leader attracted his subordinates or followers by his behavior and same

is the case in the transformational leadership style. In this way leader wins the trust of his

followers i.e. employees of his/her organizations.



Leader by using transformational leadership style motivate his employees to achieve

that goal of organization which is very difficult. Leader related goals of organization with

goals of its followers so it is easy for them to achieve their objectives (Bass and Avolio,

2002). Leader gave new plan to employees and gives them a way or chance to think in better

way and bring some innovativeness in their work. They want their employees to handle the

old issues or problems in better way. (Avolio& Bass, 2002).

In addition, employees learn new ways of innovativeness and that bring change in

them it increases its productivity it changes their behavior and there is chance of learning new

things at their work place. In these process leaders ignores the mistakes done by the followers

or employees. when leaders ignores their mistakes it gives them courage to take initiatives

and risks. (Avolio& Bass, 2002; Busari, 2011).

The first person who introduced the idea of full range leadership i.e. transformation ,

transactional leadership and laissez faire was Bass, but bass has carried out the work of Burns

(1978). In first factor i.e. transformational leaders does not give anything tangible except

motivation and inspiration but in transactional leadership promise is made to pay some

benefits for completing tasks. This idea was first given by burns (1978). Later on carried out

by Bass.



1.2 Problem Statement

A number of studies conducted on leadership but there is still a gap lacking in the

field of leadership, culture, and performance. Abbas and Yaqoob (2009) conducted a study on

leadership and performance; In addition, Jankingthong and Rurkkhum (2012),Khan, Busari,

Abdullah, Mughal (2018) also conducted a study on the relationship between leadership and

job performance. This study was carried out by Busari (2011) but in different perspective

without any mediator or moderator i.e. culture.

1.2.1 Theoretical Gap

There are a lot of theories given on transformational leadership styles and

transactional leadership styles. The behavioral approach, contingency approach, situational

approaches, and transformational and transactional approaches were given by different

authors (Busari, 2011; Bass & Avolio, 1995). All these approaches are used and tested by

different authors in different contexts, in different cultures with different variables. For

example, transformational and transactional leadership is checked by Busari (2011) with

leadership effectiveness, also transformational and transactional leadership is checked by

Abbas and Yaqoob (2009) with performance.

In addition, Ali et al (2013) also conducted a study on leadership styles and

performance. Moreover, Thao and Hwang (2015) conducted a study on leadership and

performance but did not use any other variables in the model. But all these studies were

lacking mediators and moderators. So there was an intense need to add mediator or moderator

in the relationship between leadership styles and performance.

A huge number of articles, thesis and dissertation were read also downloaded from

impact factor journals after reviewing a number of articles it was found that culture is not

used widely among the leadership styles and employees performance. So on the basis of this



gap theory of leadership was studies that theory also suggested that this culture can be added

as a mediator in the theory of leadership styles. So this study has added this gap in this study.

1.2.2 Methodological Gap

Studies conducted on the leadership styles have used different methods and different

instruments to fill the gaps. Busari (2011) conducted a study on leadership and used an

instrument developed by Bass and Avolio (1996) in this investigation, multiple regression

was utilized to check the relationship between leadership styles and leadership effectiveness.

In the same way, Abbas and Yaqoob (2009) also conducted a study on leadership and

performance and used simple regression to test the hypotheses and validate the instrument of

leadership. Also, Ejere and Abasilim (2010), Khan et al (2017), conducted a study on

leadership and used simple linear regression to test the hypotheses. All these studies were

lacking exploratory factor analysis in order to validate the instrument of these leadership

styles and performance. According to Creswell (2009), no research is validated without

validating the instruments. So there is a need to validate the instrument of leadership styles

developed by Bass and Avolio (1995) Culture developed by Hofstede and performance in

Pakistan perspective. All those instruments of leadership styles were validated in western

perspective and were designed according to those cultures. So this study has reported these

instruments in Pakistani perspective by using exploratory factor analysis. Also, hierarchical

multiple regression has been used in this study in order to report the mediating effects of

culture with transformational and transactional leadership styles with performance.

1.3 Objectives of the Study

To identify the relationship between transformational leadership style factors (IIA,

IIB, IS, IM, IC) and performance.

To determine the relationship between transactional leadership styles factors (CR,

MEA, MEP) and performance.



To identify the mediating effect of culture among transformational leadership style

factors (IIA, IIB, IS, IM, IC) and performance.

To identify the mediating effect of culture among transactional leadership styles

factors (CR, MEA, MEP) and performance.

To find the mean difference among demographics and transformational, transactional

styles, culture, and performance.

1.4 Research Hypotheses Development

Wongyanon (2015) conducted a study on leadership styles and performance. Also,

facets of transformational and transactional leadership styles were also used in this study.

Found that idealized influence attitude has a positive relationship with performance. Also,

idealized influence behavior has a positive relationship with performance. In the same way,

inspirational motivation has a positive relationship with performance. In addition Gadot

(2005) found a strong positive relationship between transformational leadership styles and its

facets idealized influence behavior and idealized influenced attribute, intellectual stimulation,

individual consideration and inspirational motivational with employees performance. Bass

(1985) has developed a questionnaire on leadership styles after that relationship between

leadership styles and performance are found strong and significant. Bass (1997) claimed that

transformational leaders can increase the performance of the employees or followers by

treating their employees as an individual (individual consideration) and framing their work as

meaningful intellectual stimulation). According to Shamir (1991) explained that

transformational leaders are key for motivation to increase the performance of followers.

Wang et al., (2005) conducted a study on transformational leadership and follower's

performance and explained that transformational leaders have an influence on followers to

achieve exceptional performance. In addition, Conger and Kunnungo (1993) claimed that

transformational leaders have an influence on the organization as well as employees



performance. These claims have been confirmed by a number of studies that there is a strong

relationship between transformational leadership and performance (Wang et al., 2011). Lim

and Polyhart (2004) found the relationship between transformational leadership and

performance. It is therefore useful that how leaders influence, motivate and stimulate their

followers to perform their duties well in day to day operations in the organization.

H1a: Transformational leadership style factors (IIA, IIB, IS, IM, IC) has a direct

relation with performance.

H1b: idealized influence behavior has a direct relation with performance.

H1c: idealized influence attitude has a direct relation with performance.

H1d: individual consideration has a direct relation with performance.

H1e: intellectual stimulation has a direct relation with performance.

H1f: inspirational motivation has a direct relation with performance.

According to the research of Ben, et al. (2012) where correlation results show direct

and significant relations with performance of employees. One study carried out by Khan et

al., (2017) and reported the same results. Leader‟s styles have effective results on

performance and effectiveness of employees but transactional leadership and the contingent

reward was found more effective in bringing effective performance in organizations. In

support Howell and Avolio (1993) conducted the study on 78 managers and found that

individual consideration and intellectual stimulation were positively related with the

performance but in transactional leadership contingent reward and management by exception

active is negatively related with performance while management by exception passive is

positively related with performance. Moreover, Krishnan (2005) conducted a study on the

leader-member exchange, transformational leadership, and transactional leadership and found

that these two types are stronger predictors of performance of followers and employees.



Shelter and Bass (1990) and Yammarina, Spangler, and Bass (1993) reported direct results

among leadership variables and performance of employees.

Butler, Cantrell, and Flick (1999) second factor i.e. transactional leadership has some

connection with followers and their performance of tasks. Brown and Dodd (1999) reported

that there is a strong relationship between transactional leadership and performance. In

addition, Thite (1999) claimed that those managers who have idealized influence and

intellectual stimulation and used contingent reward has more productive employees and their

performance is recorded higher than other employees performance. In Bass and Avolio

(1995) study on reported that transactional leadership, contingent reward, management by

exception active and management by exception passive are negatively relating with the

performance so on the basis of above discussion following hypotheses are developed.

H2a: transactional leadership styles have a positive relationship with performance.

H2b: contingent reward has positive relation with performance.

H2c: management by exception active has a positive relationship with performance.

H2d: management by exception passive has a positive relationship with performance.

It is evident from the studies that leadership styles and its dimensions i.e.

transformational and transactional leadership styles are correlated with performance but in

few studies it was not related with the performance and other variables like organization

citizenship behavior and job satisfaction but it has indirect effect by using some mediating

variables like culture (Hutahayan et al., 2013). According to Al sardiehs (2012) reported that

there is a mediating effect of culture on the relationship between transformational leadership

and transactional leadership styles and performance. In addition, Grondutse and Hilman

(2015) used organization culture on leadership and ethics and found that culture does acts as

a mediator between leadership and ethics. Moreover, Lin (2009) conducted a study on the

effect of leadership and organizational culture on innovativeness and reported that culture



does act as mediator on the relationship between leadership and innovativeness. Also, Shehu

and Mehmood (2014) conducted a study on entrepreneurship orientation and performance

using organizational culture as mediator. PLS was used for statistical analysis and results

found that organizational culture acts as a mediator between orientation and performance.

Studies conducted by Zhang et al.,(2009) organization culture acts as a mediator between

organizational commitment and performance. While Wongyanon et al (2015) found that

organizational culture affects the relationship between transformational and transactional

leadership styles and their attributes and performance. According to Aguayo (2012)

conducted a study on Mexican managers and found that culture effects performance of

employees. In the same way, Sturnman (2012) conducted a study on the effect of culture and

performance and turnover intention and found that culture effects performance. Also,

Nazarian (2013) conducted a study on the relationship between leadership, national culture,

and performance and found that culture acts as a mediator as well as a moderator between

leadership and performance. So from the above discussion, it is clear that there is a

relationship between organizational culture, transformational leadership style, and

transactional leadership style and performance. Soon the bases of the above discussion

following hypotheses are developed.

H3: There is a positive significant mediating relationship of culture among

transformational leadership style factors (IIA, IIB, IS, IM, IC) and performance.

H4: There is a positive significant mediating relationship transactional leadership

styles factors (CR, MEA, MEP) and performance.

Mohammed et al., (2012) conducted a study on demographic factors named socio

demographic factors and transformational leadership style and found that

transformational leadership does not depend on demographic factors. The results of

Mohammed et al., (2012) also explained that education and marital status does not



influence transformational leaders. Also, Avolio (1995) reported that males have

shown higher transformational leadership style as compared to women leaders.

1.5 Theoretical framework

Figure 1.1 :Theoretical Frame Work

1.6 Significance

Center of attention of this research is the leadership, transactional and

transformational leadership and the impact of leadership on performance by considering

culture as mediating variable. Improvement in leadership is fruitful for the banking sector

because it leads towards the employees to increase performance which further results as an

improved productivity, growth, and performance of banks. Beside leadership Culture also has



been taken as a factor which affects employees' performance. Thus the culture should be

considered as a more vital factor since it will influence banking productivity.

The study is thought to be useful for management in the banking sector to know the

requirements of their employees so that they can be motivated to attain the goals of their

banks. This will help the management in planning, assessing decision making and resolving

issues related to employees' satisfaction and performance by taking the right actions required

to develop the performance.

This study can also contribute to policymakers in the banking sector by providing new

ideas and information about how to deal with leadership and performance issues faced in the

banking sector. Thus the strategic planning can be made to get more output and excellence.

The reason to relate every aspect to the employees job performance Is that it is a correct

method to reach at the overall goal of banking sector because the performance of employees

is linked to policy making, managp8erial action plan, work environment of an organization,

customer dealing and many more that‟s why the skilled and talented employees are

considered as the lifeblood of any organization. This study has also extended the literature for

those researchers and nongovernment organizations and bankers who are working in banks

because it has also reported the findings of demographic variables. Dera Ismail Khan is very

backward area and those people who are not willing to work in this area can take benefits

from the findings also state bank of Pakistan and national bank of Pakistan can take benefits

from results of T-Tests and ANOVA. It has reported interesting results of banker sin DIK.

1.7 Definition of Terms

1.7.1 Leadership

The way of influencing others is called leadership. And influence on basis of

behavior, attitude motivation is called transformational leadership. (Nelson & Quick, 2006;

Northhouse, 2001). According to Yukl (2002) the way toward affecting others to all the more



likely comprehend and concur what should be done and how it to be done and furthermore it

is the way toward encouraging others and consolidate endeavors to accomplish shared

objectives.

1.7.1.1 Transformational Leadership

Rouche et al., (1989) characterized transformational leadership that it is the capability

of a pioneer that impact the qualities, standards culture and conduct of the supporters by

working with them so as to get some mission and vision of the association). According to

Yukl (2002), transformational leaders affect major changes in attitudes of members and

create commitment for the mission objectives of the organization.

1.7.1.2 Transactional Leadership

Bass and Avolio (2002) defined Transactional Leadership as the achievement of goals on the

promise of some rewards given by organizations. Burns (1979) define transactional

leadership as one party i.e. follower provides labor services to another party i.e. leadership in

exchange of rewards. Dale and Marilyn (2008), Mughal & Kamal (2018) define transactional

leadership in the way the leader motivate its followers with different kinds of rewards.

1.7.2 Organizational Culture

According to Morgan (1998) define culture as a development of knowledge, values,

ideologies, and laws in society are called culture. Schein (2010) defined organizational

culture as shared values assumptions, expectations and norms, which stick together the

employees and organization, are called culture.



Chapter 2

Literature Review

2.1Definitions of Leadership

Burns (1977) States that the concept which has been taken in too much consideration

without being aware of it is leadership. In management, leadership has a detailed and well-off

history. It is discussed too much in research topics relating to organizational behaviors,

performance, and organizational culture but it is minimal understood in the organization

(Avolio, 2002). Bass (1990), Busari et al. (2017), also says that the definition of leadership

remains ambiguous.

On the other side (Yukl, 2002)reported connection among leaders and performance

considerations in the research range. While Stogsdill (1974) recommended that many

researchers have given a lot of definitions of leadership to define its meanings. According to

Fisher (1985), Leadership is most likely to write about the social phenomenon of the entire

time but due to its complication, it's still not well understood.

Popper and Lipshitz (1993: 24) defined leadership. According to them the results of

leadership are not instant and tangible and it's a difficult task. Nahavandi (2009) states that

there are three common elements which are found in various definitions of leadership, these

elements include (1) Teamwork (2) direction towards the goal (3) some form of hierarchy

within a team. It's not as simpler to decide circumstances and logical results connection

among leadership and performance. Leadership affects the many other aspects which are

explained in the following definitions

Gardner, (1990) In the process of leadership, the leader encourages his or her cliques

to pursue goals which are held by the leaders and his or her followers. Nelson and Quick



(2006: 214) stated that a process which guides and directs the human behaviors in the job

location is called leadership. Leadership leads towards the achievement and effectiveness of

the members of an organization by facilitating and motivating them by a leader. ( House et

al., 1991: 184)

In an association the qualities the inspiration he needs the requirements the desires

and the desires for the leaders and the adherents are expected to attain with the help of

leadership process where leaders induce followers to act for the achievement of these goals

(Burns 1978: 19). The procedure in which an individual seeks after a gathering of people to

accomplish a shared objective is called leadership (Northhouse, 2001: 3)

The process of perusing individuals to be aware of what is to be done in an effective

manner by facilitating the individuals to achieve the shared objectives by making combined

efforts is called leadership (yukl, 2002: 7). However, all these definitions highlight two main

and important elements: relational perception and the procedure of encouraging others to act

in the right direction to achieve common goals (Locke 1990)

There is some evidence reported among followers i.e. employees and their leaders

(Roast, 1994). It means that leadership is not all about that what the leader performs but it's

about that what the leader and followers collectively perform. To achieve organizations

mission and objectives, active participation of leader and followers is essential. (calano. Pond

& kelloway 2001; Khan, Busari, Abdullah, Mughal (2018))

Hence the definition of leadership for this study is developed as:

“Leadership is a process where leader supports, facilitates, encourages and motivates

his followers by making strong relationship with his or her followers to improve the

individual execution and also in general execution of the association to accomplish the

hierarchical destinations”.



The idea of leadership portrayed Eventually Tom's perusing a number of persons

toward diverse times,(Stogdill, 1974: 259).

As stated by burns (1978: 2) "leadership is practical may be a standout amongst The

greater part experiential and any rate, Seen phenomena around the earth". Likewise,

leadership needs a long, rich history over management; it will be furthermore around those

studied topics in organizational self-destructive thoughts and conduct furthermore a standout

amongst those. Any rate as caught on social forms within the organization (Avolio, 2002). As

stated by a bass. (1990) a widespread consented definition of leadership at present stays

subtle. Leadership effectiveness on the great holders kept all additionally seems will be a sign

in the initiative. Contemplate region (Fiedler, 1981; Yukl, 1998; Yukl, 2002).

Leadership term appears with a chance to be A critical a part of today's organization

in spite of the fact that a considerable measure for individuals bring attempted on characterize

administration alternately Significantly adequacy Yet it appears nobody needs to be

succeeded with giving acceptable an acknowledged result. Those challenges for defining

leadership might have been illustrated by Stogdill (1974)who recommended: "there needs aid

very nearly about leadership a significant number distinctive definitions for initiative

leadership ". moreover pointed out Leadership as a poorly characterized wonder (Northouse ,

2001). He, however, completed obviously separate the leader and leadership. The previous

will be a position; those last may be a methodology. Fisher (1985) writes, "Leadership may

be likely those A large portion composed around social wonder of everyone time", what's

more it may be still not great comprehended because of its multifaceted nature. In spite of

those differences, as stated by Popper also leadership is "a perplexing assignment in which

the conclusions would frequently the entire not quick or concrete".

As stated by Nahavandi (2009), those Different definitions of leadership stake three regular

elements:



1) One assembly phenomenon;

2) Objective directed; what‟s more

3) Some structure of the chain of importance inside an aggregation. Combination this

perspective of administration may be those trouble over deciding cause Furthermore impact

relationship between leadership activities Also viability. However, those essential thoughts of

leadership. Following are some definitions of define by different researcher n different time

are as given. As influencing others may be reflected in the taking after definitions:

As per Nelson & Quick (2006) leadership is a managerial process of directing and provide a

vision to the peoples in work situation” .

It is the management of leader who motivate employees for work, and contribute his

skills for the achievement of organizational goal (House et al., 1999: 184).

Burn define leader a person who act for motivation and inspiration of employees and

his aim to get organizational goal effectively and efficiently (Burns, 1978: 19). When a group

of people is influenced by a person to work together in a team for specific objectives is called

leadership” (Northouse, 2001: 3).According to Yukl (2002) leaders motivate followers to

work together for achieving common goals of the organization through shared efforts is

called leadership.Overall, these definitions accentuate two real elements; rational concept.

The forms from claiming prompting others to detract movements towards a regular objective

(Locke, 1990).

Leadership is just important at their need aid pioneers Furthermore supporters.

This involves leaders to propel the supporters to accomplish up to the greatest

dimensions of execution so as to achieve the hierarchical objective or obvious adequacy

(Yukl, 2002). According to Rost (2003), leadership is a process of mutual working between

subordinates and leaders.



It‟s necessary for the organization to achieve maximum output to develop active

participation by both leader and workers. When leaders and followers work together to

achieve common objectives of organizations is called leadership”. Leaders who fulfill the

imparted mission Furthermore acknowledge those dream of Those organization for backing

and support from those supporters will make evaluated similarly as should. Make that's only

the tip of the iceberg viable.

2.3 Leadership versus Management

It is reported by a number of researchers (Busari, 2011; Yukl, 2002; Khan, Mughal, &

Khattak, 2017)that contrast among supervisors and pioneers is that chief get things done in

the correct way while leaders are the individuals who do right things. The formal leader is

responsible for the effectiveness of the organization but it is possible only through with the

help of their subordinate. it is a fact that no leader can achieve the organizational goals with

their own Efforts.

This change might be illuminated as exercises of vision and choice, for example,

execution versus the exercises of learning schedules, for example, productivity (Khan et al.,

2017).

Bass (1985) offered a correct instance of the inclination with connection person

situated for terms or plans for an alternate. The point when demonstrating transformational

Also transactional leadership by using taking on these scopes with initiative and

management. For finishing so, bass (1985) utilized those haul comparative Structures Also

indicated the relationship between as many demonstrations about leaders styles.



2.4 Classical Approaches of Leadership

Yukl (2002) leadership has gained popularity in management studies. This area will

examine evaluation for hypotheses What's more exact examination for established

administration methodologies what's more entryway it identified with initiative adequacy. It

is supportive of arranging the critiques of the hypotheses Also exact examination Likewise

completed Eventually Tom's perusing Bryman (1992) under those Emulating three

approaches.

2.4.1 Trait Theory

Concept from claiming hobby has been the individual's trademark theories, which

endeavored, will be distinguishing An set about qualities that power have on as An relatable

perspective. The individual's investigations were reliant upon the thought that authority was

born, not disturb. Punctual investigations for activity endeavored ahead. Health i.e. (height,

weight, physique, energy, health, show fate. Furthermore demographic characteristics of

leaders and extra abilities of the leaders.

The initial pattern of leadership (management) with the ones qualities about

outstanding leaders. The initiative might have been attributed of the as far as anyone knows

intrinsic qualities with which an individual will be destined. It might have been accepted that

though the qualities that divided leader from. Supporters Might be identified, great pioneers

Might be fast evaluated Also set under positions about the initiative. Analysts inspected

personality, physical, Furthermore mental. Aspects and the way will achievement might have

been essentially over recognizing the people who were. Destined should be an extraordinary

leader. Those qualities writing need furnished scores for surveys looking at. Distinctive

qualities Also characteristics, and the rundown about terms characterizing these qualities

appear. Perpetual (Goldstein, 1992).



Until the late 1940s, exploration thoughtfulness regarding those issue from claiming

"leadership development". Furthermore "leadership effectiveness" might have been

concentrating on the interior state of authority (Chemers, 1995: 83). Exertions were

committed with elucidating heading toward kept tabs with respect to leaders‟. Regular

aspects Also the ability for example, such that influence, kindhearted vitality What's more

beneficial. Memory (Steers, Porter, & Bigley, 1996) an essential confirmation of looking into

administration. Viability examination throughout this duration of the time might have been

that An pioneers "lodges An position for Responsibility" to an aggregation (Stogdill, 1948:

64). Likewise, at some point of this time, discoveries have been. Being constructed toward

the hands for men assumed will make from claiming vitality also deserving of the festival.

Thusly there might have been significant enthusiasm toward the qualities of pioneers

as watched toward rank-and-file kin (Stogdill, 1948). Provided for those desires that

unrivaled qualities. Partitioned authority from followers, scientists then started will

concentrate on distinguishing the individuals. Qualities, which inevitably prompted those

introductions of trait theories of leadership.

2.4.2 Effectiveness of Leader with Respect to Situation

A further chronicled period frequently used to depict the activity. Research, as stated

by Chemers (1995) may be known as that possibility approaches. Starting with the. Late 1960

to till the 1980s, the possible method might have been propelled leader effectiveness the vast

majority. Compelling administration model Possibility "suggests that a leader's adequacy

relies upon for how great the leader's style fits the context" of the circumstance (Northouse,

2001: 75).

Hersey et al. (2001) what's additional Northouse (2001) deciphered the individuals

heading investigate throughout this. The span of the run throughout chance to be situational



again procedure. As noted inevitably Tom's examining Chemers likewise rice (1973), the

individuals. Likelihood model propelled beginning for Fiedler‟s (1964) investigate.

Fiedler explores three variable further variables imperative should this approach: 1)

the relational relations between those leaders and supporter; 2) the vulnerability of the value

of exertion gathering's task Also objectives; 3) those. Leader's capacities on prize also punish.

The Examine proceeds of the current day Furthermore. The majority of the contemporary

heading hypotheses embraced throughout this chance moved. Thoughtfulness regarding the

thought that supporters Furthermore aggregation parts have particular and essential analytics

parts. In the initiative methodology.

2.4.3 Contemporary Approaches of Leadership

The number of leadership styles has been fallen under the umbrella of contemporary

leadership approaches such as charismatic, visionary leadership and transformational.It

appears to be that “charismatic” alternately „transformational‟. Authority hypotheses bring

gained an incredible consideration since the 1980s. Sometimes, Scholar alternately analyst in

initiative research will incorporate more than you quit offering on that one kind about

heading. Variable, as it may have alluded Likewise an integrator methodology.

For example those employments for transformational Furthermore transactional heading

approach with an attention that successful leader frequently all the show a mix of the two

(Avolio & Bass, 1991).

As stated by blazes (1978), the transactional heading will be the "traditional structure

from claiming. Leadership" in the connection from claiming organizations,

Potentials As opposed to self-interests in place with profit those relationships

(Doherty & Danylchuk, 1996; Yukl, 1989). Hence those discriminating undertaking here is

on separate. Between these two methodologies which will be shown in the taking after the

following section.



It appears that „charismatic‟ or „transformational‟ authority hypotheses have gotten an

extraordinary consideration since the 1980s. Once in a while, scholar or scientist in initiative

examinations will incorporate in excess of one kind of authority variable.. Value-based

initiative methodology with a thought that powerful pioneers regularly show a mix of the two

(Avolio and Bass, 1991).

2.4.4 Transformational Leadership Theory

Transformational heading need being widely considered. Eventually, Tom's

examining many specialists should incorporate Just about at whatever kind of successful

leadership, in any case of them underlying methods. Rouche, dough puncher & rose (1989)

characterized transformational Leaders As far as the capacity of a pioneer should impact the

values, attitudes, beliefs, What's more practices of others Eventually Tom's perusing working

for Furthermore through them so as with finish those organization's mission Also dream.

Yukl (2002: 253) characterized the transformational initiative. As "the method approximately

influencing essential transforms within the attitudes furthermore presumptions approximately

about. Association parts What's more building dedication to those association's mission or

Objectives''. Transformational leadership methodologies would the individuals that impart

supporters with. Those personal longing will accomplish objectives.

This segment addresses the idea about transformational leadership about design it might have

been. Recognized Toward smolders (1978) additionally enlarged Eventually Tom's perusing

bass (1985), furthermore reviews research that needs. Tried those constructs linked with the

transformational administration, What's more, describes further. The parts for

transformational heading Bass (1985, 1990) need to be stretched out the idea of the

transformational initiative Over as much after the fact research, bass (1998: 5) likewise.

Recognized specific constructs connected with the administration that at used "inspire them.

The supporter with challenge furthermore influences giving implying Furthermore



Comprehension Stretching that followers‟ utilization of their abilities". These parts for

transformational. Administration incorporates ideate influence, individualized consideration,

motivational. Inspiration furthermore educated support incitement (Bass, 2000; Mughal &

Kamal,2018).

2.5 Definitions of Culture

The word culture is gotten from the Latin word culture which implies development

(Skeat 2010).

Culture can be defined as the collection of sets, values, communications, beliefs and

behavioral explanations that provides guidance and way of life to the people.

For many researchers like deal and Kennedy (1982), Peter and Waterman (1982) and

Kraeber and Kluckhohn (1952) Culture consists on the language, dressing, dressing,

ethics, Identities, Beliefs, ways of living, ways of thinking, customs and history etc.

Hofstede (2001, P.9) illustrates that the programming which is the collection of

mentality which differentiates the people of one group from another.

Trompenaars (1993) states that how the people act and react towards different facets,

the people give attention and value towards which things.

Culture is a structure of behaviors which give particular attributes to any society

(Zinkota and Ronkainen 2007)

Now a day‟s organizational culture got interrelation to organizational management.

(Kotter and Heskett, 1992).The two essential factors that are the stability of structure and

combination of an advanced set of organizational culture lead to good management of

organizational culture. (Schein, 1995) writes that there are many characteristics of

organizational culture which have been established among which set of beliefs, norms,

and values give perfect association. (Hodgetts and Luthans, 2003Robbins &Sanghi, 2007)

state that diverse background, racial differences, and ethics have a strong effect on



organizational performanceand sustainability. Different kinds of cultures have been

defined as followed:

2.5.1 Counter Culture

The contribution of strong culture which is based on organizational performance leads

to a strong connection between management and performance. The shared beliefs and

values of strong organizational culture which forced to gain an advantage among different

management departments and managers come under countercultures. (Kerr, J., & Slocum,

J. W., Jr. 2005).

2.5.2 SubCulture

Subcultures have been characterized as association fragments the way of life with

various arrangements of qualities and convictions on premise of occupation necessities,

departmental objectives, and land regions. (Schein,1995) The authoritative duty of

workers influences upon culture..

2.5.3 Strong Culture

The equivalent kind of values and beliefs must be considered strong which an

employee holds in culture. When employees have a strong grip on the greater part of the

culture then the values and beliefs of the organization are considered strong (Deal and

Kennedy, 1982).

2.5.4 Weak Culture

The insecure knit of organizational cultures that help to approach ideas, feelings, and

viewpoints of individuals to be more innovative. The inexactly joined culture dependent

on qualities and convictions have a relationship with immaculate sets. (Deal and Kenndy

1982) The decent variety among individual objectives and authoritative objectives has the

innovative administration of controls and occasions with the goal that ideal association

has been framed among them.



2.6 Organizational culture

This section looks into the organizational culture by defining its meanings, theories,

and approaches. According to Nongo (2012) declared that it is critical to understand the

culture of any civilization or group. Individuals come into groups through the process of

socialization. Groups having the same culture have the ability to form, manipulate and

establish group members‟ point of views, yields thoughts and indeed performance.

Burns and Stalker (1961) described the mechanistic and organic forms of

organizations. They also divided the environment into two types, a stable environment, and

unstable environment. They resembled the mechanistic organizations with the stable

environment due to conventional bureaucratic form and resembled the organic organizations

with an unstable environment based on specialized awareness approach. The livelihood,

ambitions, situations, area of learning, educational altitude and indications of employed

people are the indicators of culture.

The term organizational culture came into view in business studies around the 1970s.

In the beginning, the three different terminologies were taken into the same sense.

Organizational culture, organizational climate, and corporate culture but in 1980s many

scholars including Schein (1984) criticized that the organizational climate is a totally

different form of Organizational culture and corporate culture.

Many definitions are given by many scholars such as deal and Kennedy (1982), Hofstede

(1980), Schein (1992) & Trompenaars and Hampolentunner (1997). By combining all the

definitions there are some common thoughts which are found in all these definitions. These

are

1. The item which keeps the organization and its employees together and is based on

shared values and beliefs.



2. Organizational culture gives direction and supervision to the employees about the rules

and regulations of the organization either these are mentioned or not.

3. It gives the identification and sense of belongingness to the employees which are most

important.

Deal and Kennedy (1982) give their opinion about the organizational culture that

organizational culture is made up of values but it also includes working surroundings, heroes,

rites and rituals and cultural networks.

Values: every culture has its own opinion about good or bat, common or uncommon,

attractive or unattractive and rational and irrational.

Heroes: are the crucial folks who are liked by all.

Rites/Rituals: the customs which represents well-built representative powers.

The cultural network: The communication system which is informal.

White (1998) writes that while looking at the definitions of organizational culture one thing is

notable that the researchers pay more attention to values. However, Hofstede (2001, 1999)

give his opinion that the practices in the organization are more important than values. Peter

and Waterman (1982)argues that employees allocate the same set of beliefs and opinions in

the organization where culture is strong.

2.6.1 Formation of Organization Culture

Scholars started to focus on organizational culture at the beginning of the 1970s

(Hofstede, 1970; Pettigrew. 1979; Ouchi, 1981; Dead & Kennedy, 1982; Peters & Waterman,

1982). Some of the important aspects for selecting organization culture have an effect are

objectives, history, ownership, environment, size, person, and technologies (Handy, 1984).

Dead and Kennedy (1982) proposed that there are two factors which have an effect

on organizational culture. One is the risk which is linked to activities of the organization, the

speed at which employees and their organization get the success of planning and decisions.



Some additional factors such as the structure of ownership, size of the company and

technologies also affect the organizational culture (handy, 1980).

According to the theory of organizational structure, there are two types of

organizations Tall and flat organizations. The organizational culture will be based on the

structure of the organization. Both tall and flat organizations have their different cultures

(Thompson, 1993). Tall organizations focus on labor division, specialization in the job, and

well defined internal policies. While flat companies have normally simple procedures and

focus on two leaderships with strong authority (Greiner &Scheien, 1989). However, in these

two types of organizations, the type of leadership and heroes‟ power would be different.

2.6.2 Approaches to Organizational Culture

Different approaches to organizational culture have been introduced in this section.

Schein (2010) states that just people and style are not the assumptions of culture but policies,

structures systems are also the assumptions of the culture.

2.6.3 Interpretive versus functionalist

Two different aspects of organizational culture, anthropological aspect versus

sociological aspect has been introduced by many scholars such as smirich (1983), Cameron

and getting to (1988) and Cameron and Quinn (2011).

According to this approach, there are two groups of organizational cultures, the first

group is related to answer the questions that what the organizations are while the second

group is related to the questions that what do organizations have. according to smirich (1983)

and Cameron and Quinn (2011), there is a difference between the cultures of two

organizations as one takes the culture as anthropology (metaphor) while the other one takes

the culture as sociology .two different approaches have been developed within each of these

two groups.



One is a functionalist approach which is based on the collections ob behaviors while

the other approach which is called semiotic approach is based on individualism. The two

approaches also categorize the culture in two different kinds of variables, dependent and

independent variables, functionalist approach considers the culture in the category of

dependent variable while the interpretive approach takes the culture as the independent

variable.

Many scholars have adopted these two approaches by checking the results that which

one is best. The functionalist approach has gained popularity among Ouchi (1981) peters and

Waterman (1982) and deal and Kennedy (1982). The interpretive approach was adopted by

scholars like Gregory (1983) smirich (1983) Morgan et al (1988) Anthony (1994) meek

(1988). Broudfield et al (1998) state that the studies of all these researchers explored that how

culture is experienced by the employees in organizations.

2.6.4 Martin and Myerson’s (1987) Framework

Some of the scholars like Martin and Meyerson (1987) assume the organizations as

cultures and that they study the tradition from the anthropological point of view.

These researchers introduced three main paradigms of organizational culture.

1. Integration

The first paradigm is integration which has the three main characteristics.

Consistency: is related to those manifestations of culture that are in harmony with

each other.

Consensus: among members represents that there is a similar point of view of all

members of the organization.

Leaders as creators: The primary sources of cultural content are the leaders of the

organization that's why they are the creators of culture.



2. Differentiation

In contrast to integration, the differentiation paradigm means diversity or variety, which

doesn't focus on consistencies consensuses and doesn't take leaders as the creators of culture.

Paradigm one is totally based on the inside influences of culture which is the concept of the

closed structure while paradigm two is based on the significant impact of inside as well as

outside influences which is known as the concept of open structure.

3. Fragmentation

Paradigm three is believed in uncertainty and ambiguity. The concept of this paradigm is

separate from both of the paradigms. According to Martin et al (2006)

“The spirit of any culture is insidious ambiguity”

2.7 Organizational performance

In the 1980s the construct of organizational performance was open to doubt for

scholars. The organizational performance was viewed as the power of production in early

stages .for example Katz and khan (1966) elaborated the organizational performance as best

possible financial technological and effective return to the organization.

According to researchers such as Taylor (1911) Fayol (1916) and mayo (1933) the

maximization of productivity, minimization of costs and excellence in technology can be

achieved through good organizational performance. Later on, the performance was taken as

the alike to organizations overall aim. Some scholars Eetzioni (1964), Price (1968), Cambell

(1977) delimited the organizational performance as put in an effect of organizational goals.

Penning and Goodman (1977) depict that performance is effectual if the organization is

satisfying the rules and principles of organizations. Cameron (1983) and hall (1972)

demonstrate that the evaluation of the success of the organization in attaining its goals is

called organizational performance. however, the organizational model is used to measure the

significance (Goodman & penning,1980).



But the Cameron and whetton1983, Goodman and pening1980,zammutu1982,

furthermore, zammuto"s (1982) argue that it can be problematic because employs will focus

on their own development and career and not on organizational performance .according to

(zammutu 1982) there are two main factors, organizational culture, and timeframe that affect

the organizational performance.

According to Ojo.O (2008), various studies prove that from last few decades the

impact of organizational culture on performance is observed. Argued by Shahzad, Luqman,

Khan, &Shabbir (2012). When the employees contribute their services and when they are

committed and having similar norms and values as per organizations have, it leads to the

success of the organization. The positive relationship is examined by the Aluko (2003)

between organizational culture and employee's performance and found that when an

organization has a weak culture then employees don't perform very well together. Lack of

participation is also observed in the organizations where culture is a week.

2.7.1 Factors contributing to organizational performance

An importance to give thought to organizational performance is to search about the

factors which affect the organizational performance. The scholars have been introduced so

many factors out of which there are several factors such as characteristics of employees,

environment, organizational culture, job satisfaction, practices, and policies etc. which are

taken as important by the scholar ( Berson & Linton 2005).

According to Christensen and overlord (2000), the organizational characteristics

affect the performance. The organizational structure has a great impact on

performance (Zila 2001).

Davis et al (2000) had taken the job satisfaction as an important factor because when

employees in their workplace are satisfied they will give effective performance side

by side they will also increases the performance of the association (organization).



The internal and external environment also plays a vital role in organizational

performance because the important changes and adjustments have to make by the

organizations internally and externally (Heffered and Flood 2000).

Characteristics of human beings are also important factors which affect the

organizational performance (kellogy, et al 2006).

Research conducted by Kaplan and Nortan (2001) depicts that human being plays a

effective role in the achievement of objectives of the organization.

Same written by Lawrence and Robinson (2007) that organizational performance will

be negatively affected if a conflict occurs between organization and personnel. So job

conflict is a factor that affects the organizational performance.

There are some other factors discussed by Preffer (2005) which affect the

organizational performance. These include job satisfaction, organizational

commitment, avoiding conflict about goals, avoiding role conflict and sense of

belongingness.

Ricardo and wade (2001) state that policies and strategies of management are also a

very important thing that contributes to the result of performance because weak

management will create wastage of financial and human resources of the organization.

(steersman& Corley 2000).

2.8 Impact of organizational culture on performance

In 1982, Peters and Waterman conducted a standardized research which will compare

the relationship between organizational way of life (culture) and performance. Deal and

Kennedy defined the organizational culture in 1982 that the organizational culture affects the

structure of the organization, personnel and organizational motives which influence

organizational success and performance.



Schein (2010) described that there are many organizational issues which are answered

by the organizational culture, even when new employees join the organization they must

learn about the culture of the organization to perform well.

Frost (1985) gives resemblance to the organizational culture with glue that it holds the

many components of organizations together. He also says that the organizational culture is

important in decision making. While other many studies proved that the decision making

plays a very important role in organizations best performance.

Luthans (1995) writes that a deep interaction can be perceived between organizational

culture and organizational performance, based on two main factors shared-ness and intensity.

Shared-ness refers to when some core values are shared by all the members of organization

and intensity means strength which refers to the commitment of all members to those values

are shared.

After studying the 22 types of research on organizational performance and culture

Bogg (2004) concluded that there is a strong connection between culture and organizational

performance. Many researchers such as deal and Kennedy (1982), Peters and Waterman

(1982) Demir et al (2011) given their opinions that customs, beliefs and shared values are

important factors to maintain good performance and all these components are the elements of

strong and well-built culture.

Three grammatical paradigms such as integration, differentiation, and fragmentation

are introduced by Martin (1992). She studied the organizational performance in the light of

these three paradigms. The first paradigm is integration which has the three principal

characteristics. Integration consists of consistency, consensus, and leaders as creators even as

Consistency is related to those manifestations of culture that are in harmony with each other.

The consensus among members represents that there is a similar point of view of all members

of the organization. Leaders as creators: The primary sources of cultural content are the



leaders of the organization that's why they are the creators of culture. In contrast to

integration, the differentiation paradigm means diversity or variety, which doesn't focus on

consistencies consensuses and doesn't take leaders as the creators of culture. Paradigm one is

totally based on the inside influences of culture which is the concept of the closed structure

while paradigm two is based on the significant impact of inside as well as outside influences

which is known as the concept of open structure. Fragmentation Paradigm is believed in

uncertainty and ambiguity. The concept of this paradigm is separate from both of the

paradigms. The spirit of any culture is insidious ambiguity.

On the other hand, Broadfiled et al (1998) contend that there is less thought regarding

the connection between organizational culture and hierarchical execution (organizational

performance). Peters and Waterman (1982) also had given some illustrations in which they

state that we had not observed reasonable and consistent relationships among organizational

culture and organizational performance. Broadfiled et al (1998) argue that there are two

major problems in the research of peters and waterman. First one is that the other researchers

have raised questions about their methods of measurements and second is that some of the

companies adopted their researches as an example to improve performance by improving

organizational culture but they got financial problems.

Beside all these arguments Gordon and Ditomaso (1992) noted that strong and well-

built organizational culture is the key for organizational success. Denison et al (2004) also

communicated that short-term success in any organization can be achieved by organizational

culture.



2.9 Theories relate the organizational culture to organizational

performance

There are theories which cover the literature review. These theories relate the

organizational culture to organizational performance (Nadler M & Nadler D., 1998).

Although there are many theories this research depends on three primary speculations, for

example, The Schein's hypothesis of organizational culture, McGregor's Theory X and

Theory Y, and the John Stack's hypothesis (theory) of Open-Book Management.

Organizational culture is the inside condition of an organization. The phenomenon which is

found in the individuals and around the individuals is covered and explained by these

theories. The values of an organizational culture are intangible because these can't be seen but

these values greatly affect the behavior of human beings and on the environment of the

organization. The environment of working places can be strengthening by the strong

organizational culture (Ojo 2008).

2.9.1 Schein's theory of organizational culture

The model of authoritative culture proposed by Schein is a standout amongst the most

refer to models on culture. It serves the elevated concept and also reduces complexity. It

consists of three main domains

basic underlying assumptions

espoused beliefs

artifacts

She differentiates the noticeable and unnoticeable cultural elements. These are also called the

observable and unobservable behaviors. According to Schein, observable behaviors influence

unobservable behaviors and are also influenced by unobservable behaviors.

the surface level of an organizational culture are the Artifacts, these include the manufactured

goods physical surroundings, verbal communication, machinery, tools, outfits, legends and



memories, posted values, custom, and ceremonies, and so forth and a lot of these are tangible,

effortlessly seen and felt. Espoused values come next in the hierarchy of organizational

culture, including desires, techniques, shared assumptions, shared perceptions, ideals, norms,

and values stimulated by using the leaders and founders.

Some of the assumptions are the base level of organizational culture which are not

visible but these are granted conjectures that are shared with others. The risk taken on these

assumptions would result in anxiety and anger. Organizations just not focus on the visible

elements only because it can cause failure when invisible assumptions are ignored.

2.9.2Theory X and Theory Y

In1960 the McGregor built up a hypothetical perspective of mankind with his Theory

X and Theory Y. McGregor's hypothesis (theory) depends on the need hypothesis of

Maslow's progression. In which he partitioned the Maslow's chain of command into two

principle gatherings. One is a lower level need which comes in (theory X) while the other is a

higher level need which comes in (theory Y).according to him these two theories can be used

by the management in order to motivate their employees. He also suggested that the use of

(theory Y) can give better results as compare to (Theory Y). These two are opposite

structures. Visible organizational structures such as strategies, goals, rules and behaviors and

invisible structures such as thoughts, perceptions, ideas, and feelings. Visible organizational

structures are called Espoused justifications while invisible organizational structures are

called the Ultimate source of values and actions.

2.9.3 The theory of Open-Book Management (OBM)

Jack Stack, (2003) states that the company should give the right to the all of

employees to raise their voice about the operation of the business, right and wrong, good and

bad. According to Jack Stack job descriptions must be defined to all of the employees and all

they must know about their roles. These are the most profitable and efficient way to run the



business. Open book management theory gives the opinion that everyone in the organization

should be given the chance and power to share their ideas to make money and achieve

organizational goals. Case (2003) describes that the social and organizational environment

cause changes in the managerial approaches. The case further argues that the open book

management system realizes the employees their worth.

This literature covers the relevant study according to the study area about leadership

and approaches with theoretical as well ancient perspective. After further, study suggests that

relationship between areas of study with the definition of leadership effectiveness. This study

research on various theories about leadership emergence approaches and discoursed. This

study concerns with the model full rage leaderships by Bass and Avolio‟s, this model

described clearly transitional and transformation styles.

2.10 Relationship between Leadership Styles, Performance and Culture

Wongyanon (2015) conducted a study on leadership styles and performance. Factors

of leadership styles were extensively utilized on this study. Factors have direct connection

with performance. In the same way, inspirational motivation has a positive relationship with

performance. In addition Gadot (2005) found a strong positive relationship between

transformational leadership styles and its facets idealized influence behavior and idealized

influenced attribute, intellectual stimulation, individual consideration and inspirational

motivational with employees performance. Bass (1985) has developed a questionnaire on

leadership styles after that relationship between leadership styles and performance are found

strong and significant. Bass (1997) claimed that transformational leaders can increase the

performance of the employees or followers by treating their employees as an individual

(individual consideration) and framing their work as meaningful intellectual stimulation).

According to Shamir (1991) explained that transformational leaders are key for motivation to

increase the performance of followers. Wang et al., (2005) conducted a study on



transformational leadership and follower's performance and explained that transformational

leaders have an influence on followers to achieve exceptional performance. In addition,

Conger and Kunnungo (1993) claimed that transformational leaders have an influence on the

organization as well as employees performance. These claims have been confirmed by the

number of studies that there is a strong relationship between transformational leadership and

performance (Wang et al., 2011). Lim and Polyhart (2004) reported direct relation. It is

therefore useful that how leaders influence, motivate and stimulate their followers to perform

their duties well in day to day operations in the organization.

H1a: Transformational leadership style factors (IIA, IIB, IS, IM, IC) has direct

relation with performance.

H1b: idealized influence behavior has a direct relation with performance.

H1c: idealized influence attitude has a direct relation with performance.

H1d: individual consideration has a direct relation with performance.

H1e: intellectual stimulation has a direct relation with performance.

H1f: inspirational motivation has a direct relation with performance.

According to the research of Ben, et al. (2012) has direct and weak relation with

variables. Busari (2011) carried out a have a look at on leadership styles and discovered that

transformational and transactional leadership styles have effective results on performance and

effectiveness of employees but transactional leadership and the contingent reward was found

more effective in bringing effective performance in organizations. In support Howell and

Avolio (1993) conducted a study on 78 managers and found that individual consideration and

intellectual stimulation were positively related with the performance but in transactional

leadership contingent reward and management by exception active is negatively related with

performance while management by exception passive is positively related with performance.

Moreover, Krishnan (2005) carried out a observe at the chief-member trade or (leader-



member trade), transformational management, and transactional leadership and found that

these two types are stronger predictors of performance of followers and employees. Shelter

and Bass (1990) and Yammarina, Spangler, and Bass (1993) reported significant results

among the variables studied.

Butler, Cantrell, and Flick (1999) also reported the same results. Brown and Dodd

(1999) reported that there is a strong relationship between transactional leadership and

performance. In addition, Thite (1999) claimed that those managers who have idealized

influence and intellectual stimulation and used contingent reward has more productive

employees and their performance is recorded higher than other employees performance. In

Bass and Avolio (1995) study on reported that transactional leadership, contingent reward,

management by exception active and management by exception passive are negatively

related with the performance so on the basis of above discussion following hypotheses are

developed.

H2a: transactional leadership styles have a direct relation with performance.

H2b: contingent reward has a direct relation with performance.

H2c: management by exception active has a direct relation with performance.

H2d: management by exception passive has a direct relation with performance.

It is evident from the studies that leadership styles and its dimensions i.e. transformational

and transactional leadership styles are correlated with performance

2.10.2 Mediating Role of Culture between the Relationship of Leadership Styles and

Employees Performance

It is evident from the studies that leadership styles and its dimensions i.e.

transformational and transactional leadership styles and it elements are associated with

organizational performance but in few studies it was not related with the performance and

other variables like organization citizenship behavior and job satisfaction but it has indirect



effect by using some mediating variables like culture (Hutahayan et al., 2013). According to

Al sardiehs (2012) reported that there is the mediating effect of culture on the relationship

between transformational leadership and transactional leadership styles and performance. In

addition, Grondutse and Hilman (2015) used organization culture on leadership and ethics

and found that culture does acts as a mediator between leadership and ethics. Moreover, Lin

(2009) conducted a study on the effect of leadership and organizational culture on

innovativeness and reported that culture is acting as mediator Also, Shehu and Mehmood

(2014) conducted a study on entrepreneurship orientation and performance using

organizational culture as mediator. PLS was used for statistical analysis and results found that

organizational culture acts as a mediator between orientation and performance. Studies

conducted by Zhang et al, (2009) organization culture acts as a mediator between

organizational commitment and performance. While Wongyanon et al (2015) found that

“organizational culture affects the relationship between transformational and transactional

leadership styles and their attributes and performance”. According to Aguayo (2012)

conducted a study on Mexican managers and found that culture effects performance of

employees. In the same way, Sturnman (2012) conducted a study on the effect of culture and

performance and turnover intention and found that culture effects performance. Also,

Nazarian (2013) conducted a study on the relationship between leadership, national culture,

and performance and found that culture acts as a mediator as well as a moderator between

leadership and performance. So from the above discussion, it is clear that there is a

relationship between organizational culture, transformational leadership style, and

transactional leadership style and performance. Soon the bases of the above discussion

following hypotheses are developed.



H3: There is a indirect relation of culture transformational (IIA, IIB, IS, IM, IC) and

performance.

H4: There is a indirect relation of culture transactional leadership styles factors (CR,

MEA, MEP) and performance.

Mohammed et al., (2012) conducted a study on demographic factors named socio

demographic factors and transformational leadership style and found that

transformational leadership does not depend on demographic factors. The results of

Mohammed et al., (2012) also explained that education and marital status does not

influence transformational leaders. Also, Avolio (1995) reported that males have

shown higher transformational leadership style as compared to women leaders.

. H5: There is a mean difference among demographic variables and transformational,

transactional styles, culture, and performance.



Figure 2.1 Five Main Gaps extracted from the literature

Democratic Style, Auto

critic Style,

Mediation Model

Big Cities Of Pakistan

Commitment,

Satisfaction, climate

Direct Model

Culture

Small Cities Of Pakistan

Transformational,

Transactional Style

Employees Performance

Full Range Leadership

Model with effectiveness

Culture and

performance using

process file



2.11 Theories of Mediation

People always ask the question about mediation. Rungtusanatham, Miller, and Boyer

(2014) explained this issue regarding how formal Hypothesis for mediation effects are

developed and articulated.

He recommended two approaches which are one is segmentation and second one is

transmittal approaches. In adopting the segmentation approach, there is three hypotheses.

These are -H1) independent variable(X) effects mediator (M), H2) mediator (M) effects

outcome variable (Y) and H3) mediator effect (eg: M mediators the relationship between X

and Y). The paper which has used segmentation approach are Zhou, Benton, Schilling and

Milligan (2011), Pulraj (2011) and WU, Choi, and Rungtusanatham (2010).

The transmittal needs a single Hypothesis stating that mediator (M) mediates the

relationship between X and Y without going deep into hypothesis relating X to M and M to

Y. Rungtusanatham (2001), and Sarkis, Gonzalez-Torre, and Adenso-Diaz (2010) are some

example for theorizing mediation model related to transmitted approach. It is strongly

recommended for researchers to real thoroughly Rungtusanatham et al. (2014).

They will benefit to articulate meditational hypotheses.



Chapter 3

Research methodology

3.1 Introduction to the Chapter

This chapter discusses the methodology used to carry out this research. Its discussion

topic includes research design, population, and sample used in this study, ethical

consideration taken for this research and result of the „pilot test‟ conducted “as well as the

statistical tests that were used to analyze the data collected”.

3.2 Research Philosophies

There are different scholars presented different philosophies in different times for

example objectivism, subjectivism, positivism, interpretivism (Sauders et al., 2003). But

Creswell (2009) renamed the two philosophies as a worldview and named it to post-

positivism and phenomenology. Post-positivism believes in social reality and facts and

figures it is used in quantitative approaches while phenomenology is used for "behind the

scene" used in qualitative studies. This study used post-positivism worldview because of

quantitative in nature.



3.1.1 Research Onion

3.2 Research Design

This research was carried out quantitatively using adopted and modified

questionnaires and then distributing them among the targeted population of this study.

According to Fink (2003) and Hagan (2006), the Quantitative approach is usually used by

the researchers to conduct a survey from a small group or sample and make a

generalization of the findings of the population. Neale, Allen, and Coombes (2005) as

cited from Martin and Stenner (2004) indicated that “If the researcher desires to acquire

reproducibility and generalizability, qualitative techniques must be avoided and suitable

quantitative techniques should be used”. Therefore, as this research was also conducted to

achieve generalization of the findings with the ones obtained by this survey to the larger



population. So the quantitative approach was used as the most appropriate way to carry out

this particular research.

This study employed a survey method approach. Babbie (2002) stated that in the

studies of social sciences survey method is very popular and is used by the researcher to

study the population that is too large to be observed directly. (Mitchell & Jolley, 1992) stated

that People's belief, attitudes, and self-reported behavior are one of the most studied topics

through survey method. Moreover, This method is very suitable for describing the population

using a small group(sample). Furthermore, as this exploration is directed to evaluate the

respondents' impression of the initiative styles employed by their leaders'. So it is appropriate

for this study to be conducted through survey method approach. The advantage of this

method is that it allows accurate, step-to-step development and testing of logical explanation

(Babbie, 1990). Moreover, this method allows easier collection of data from a sample which

is later be used by the researcher to generalize about the population (Kerlinger& Lee, 2000).

Therefore, the employment of the survey method is very suitable for the researcher, as it will

enable him to provide a generalization of the findings for the particular research.

Apart from that, convenience sampling was used in this study to acquire a sample for

this study. According to Sekaran (2003), this method of sampling refers to collecting data

from those members of the targeted population who are available to the researcher. It is very

likely to be the best method to collect data in a fast and efficient manner (Sekaran, 2003). As

in some scenarios employees who are to be surveyed are unavailable during the questionnaire

distribution and collection period due to various reasons which include, attending training

courses or meetings and were on vacation or sick leaves. Hence, here the convenience

sampling approach was deemed to be the most appropriate for the collection of data for this

study. Through this approach, the researcher can easily collect the completed questionnaire

from those employees who are currently available in a short time period.



Additionally, this was also a cross-sectional study whereby the data is collected from

respondents through this questionnaire for only one time. According to Sekaran (2003), such

type of studying is also known as one short.

Figure 3.1 shows the research design employed to carry out this particular research.

Preparation of Questionnaire.

Identification of research

location and research sample

samople

Distribution of

Questionnaires to

Research Sample

Collection of Completed

Questionnaire

Data Entry of Raw Data

Collected

Normality test of data

collected

Cronbach‟s alpha test to

determine Reliability of

the research instrument

Factor analysis to

determine the validity of

Research instrument.

Correlation and Regression



3.3 Research Location, Population, and Sample

A total of 64 branches who gave their permission to the researcher for the research

were the location of this study. They allowed the researcher to distribute the questionnaires

among their employees. These employees were of all levels from the Public and Private

Banks were from this research's population, While the sample of this research was randomly

selected employees of all level of these 64 branches. The researcher was able to collect a total

of 319 samples for this research.

The population is a complete set containing all the individuals, items or events who

are subject to be analyzed (Johnson & Kuby, 2004) while the sample is a subset or part of this

population. Riley, Wood, Clarke, Wilkie, and Szivas (2000) suggested that a sample or a

small group can be used to acquire information about the characteristic of a larger group or

population. As the targeted population is generally too large to be studied, it is an impossible

task for researchers to collect data from all the population. Therefore, researchers typically

collect data from a subset or part of the population generally called sample, for generalizing

the findings to the targeted population. According to Schumacher and McMillan (1993),

researchers have to determine a suitable sample size which gives the researcher sufficient

data to answer the hypotheses of his study

Sekaran and Bougie (2013) claimed that if the size of the research sample is too large

(e.g, over 500) it will lead to researchers being likely to commit Type II error. Type II errors

refer to one accepting the findings of the research when the findings supposed to be rejected.

Therefore, Suggested sample size range that is considered as appropriate for most research is

between 30 and 500.

Moreover, regarding the method to decide a studies sample size Sekaran and

Bougie (2013) stated that many researchers have multiple or several variables

whereby the questions arise on the sample size needed to satisfy it so Sekaran and



Bougie (2013) who greatly helped the researchers to make sample size decisions

easier by providing a table that ensures the right sample size selection for a research.

The table by Krejcie and Morgan (1970).

According to Krejcie and Morgan (1970), with the expanding interest for research,

there is a need to build up a proficient technique to decide the sample size that is sufficient to

represent a given population. Krejcie and Morgan (1970) came up with a table that can be

used to determine sample size sufficient to describe a population. The table by Krejcie and

Morgan (1970) shows that with the increase in population the sample size will likewise

increment however at a lessening rate and will stay consistent around marginally more than

380.

On the other hand, Kent (1993) suggested that for a quantitative analysis, the sample

should be collected from 100 respondents while other scholars such as Ruddick, Sherwood,

and Stevens (1983) suggested that the sample size should have 40 respondents (minimum)

and the researcher is likely to obtain diminishing return as his sample size increases beyond

300. The suggestion by Ruddick, Sherwood and Stevens (1983) were similar with those of

Krejcie and Morgan (1970) as the former claimed that researcher will obtain diminishing

returns if the sample size goes beyond about 300 while the latter claimed that as the

population increases, so will the sample size increase but will be at a diminishing rate when

more than 380.

A sample size of 319 was obtained in this study which was considered appropriate for

this study as it covered the minimum sample size of 40 as per suggested by Ruddick,

Sherwood, and Stevens (1983) as well as the sample size of 100 as suggested by Kent (1983).

Moreover, the sample size of 319 is also considered as sufficient for this study as scholars

such as Ruddick, Sherwood, and Stevens (1983) claimed that the researcher obtains

diminishing returns as the sample size is going beyond about 300. while Krejcie and Morgan



(1970) claimed that as there is an increase in population the sample size would also increase

but at a diminishing rate and would remain constant around slightly more than 380 cases.

Furthermore, the sample size of 319 is also considered as appropriate as Sekaran and Bougie

(2013) claimed that for the most researches the sample size between 30 to 500is appropriate.

In 1970 Krejcie& Morgan (p.608) produced a table for determining sample size for the finite

population.

Table3.1: Required Sample Size

(Given A Finite Population, Where N = Population Size and n = Sample Size)

3.4 Research Instrument

A self-administered questionnaire was employed in this research. This questionnaire

includes a pre-formulated set of questions of which respondents were asked to answer with

the closely defined alternatives (Sekaran, 2003).

in line with Sekaran (2003), the questionnaire is an effective facts gathering method

because it lets in the researcher to is aware of correctly what's required and how he can

measure the variable that is of his interest (Sekaran, 2003). Sekaran (2003) further explained

that one of its main advantages is the short time period utilized by the researcher to collect



the completed questionnaire. In addition, these methods allow the researcher to acquire data

from a large group easily while it itself is less expensive and less time-consuming in

comparison to other methods such as mailing questionnaires and telephone interviews

(Sekaran, 2003). Moreover, researchers can easily acquire a large number of respondents for

his research.

However, the main disadvantage of this method is that the research's targeted

organization is usually very reluctant to give their company time to distribute the survey

questionnaire among its employees. On the other hand, this method is also not able to explain

the questionnaire of the respondents. Sullivan (2001) also pointed out that by utilizing a

questionnaire, the researcher is not able to observe the nonverbal response of the respondents

and neither is there guarantee who answered the questionnaire.

For this research self-administered questionnaires were handed personally by the

researcher to the person in charge of the targeted organization after permission was granted.

Who would distribute them to the other employees?

The questionnaire employed in this research was made up of 4 sections, (section A, B,

C, and D). The closed-ended questionnaire was employed for which predefined options were

given to answer. The respondents of this research were required to give answers according to

their own situation. The questionnaire was constructed in English to ensure that research

participants are able to easily understand as well as truthfully give an answer to these

questionnaires.

3.4.1 Designation of Questionnaire

Table 3.1 shows the summary of the questionnaire. These adopted and modified

questionnaires employed in this research were made by referring to several sources to achieve

the objectives.



Table 3.2Scales with specification

Section Measures Number of items Sources/contents

A Leadership styles 32

Busari, 2011;Bass &

Avolio,2002

B Culture 7 Hofsted,2008

c Performance 9 (Gul, & Oktay, E. 2008)

D Demographic information 6 items

Gender, Sector,

Qualification, Length of

service, age, Designation

3.5 Ethical Considerations

One of the most essential ethics that a researcher must follow while conducting a

research is to inform the respondents that they have the right to withdraw themselves from

the research at any time. In this study, an opt-out consent form was used whereby the

participant of this research agreed to complete questionnaires and hand over the completed

questionnaires to the researcher for this study. The front page of the questionnaire

contained information like research title, research scope, the researcher's email address,

and the researcher's contact number. As this would allow the participant to know about the

research as well as allows them to contact the researcher in case they have some inquiries

related to the research or if they have any intention to withdraw from the research. It was

also mentioned on the front page of the questionnaire that the respondent's identity will

remain anonymous and data collected will be for private use and will be kept confidential.

Hence, any question that was related to asking the personal information of the respondents

such as name, address and contact number was not used in this research. Additionally, the

result of every individual completed questionnaire will be kept confidential. The collected

data whether is in the form of hard copy such as paper or soft copy in the form of

comprised raw data stored in hard disk will only be available for the researcher and the



supervisor to view for 3 years. After which the data in the form of hard copy or paper will

be shredded and the data in the form of a soft copy or on disk will be deleted.

3.6 Reliability Analysis

Reliability is a measure used to check the consistency of the gathered information of

an investigation (Sarantakos, 1993; Schumacher and McMillan, 1993; Babbie, 2002 and

Bryman & Bell, 2003).

Sekaran (2003) further explained that reliability proves that the collected data does

not contain bias answers and consistency of measurement is ensured across time and various

other items of the instrument. On the other hand, Field (2009) indicated that reliability is used

to check whether an instrument is able to interpret under different situations.

3.6.1 Reliability of the Research Instrument

After the questionnaires were completed, they were analyzed using Cronbach‟s alpha

(α) to find out these questionnaires reliability.

Based on the test result, he Cronbach‟s alpha (α) value for the 20 transformational

management (leadership) items which is considered highly reliable. On the other hand, the

12 items that were used to measure transactional leadership Cronbach‟s alpha‟s (α) value

was found .847 and Cronbach‟s alpha (α) value was .943 for ( ). And lastly, Cronbach's

alpha (α) for ( ) was found .705. Based on the finding of this pilot test the questionnaires

were found to reliable as it obtained the minimum value of ±.50. In line with Jaccard and

Becker (1997), the questionnaire need to get a minimal value of ±.50 to be taken into

consideration or reliable.

3.7 Data Collection Method and Procedures

The data collection for this study began by contacting the identified branches of

Banks that were available in DIK. The first contact established with these Banks was done

through the telephone call and the purpose of it was to obtain information about the



procedure for acquiring permission to distribute the questionnaire and to explain the purpose

of conducting this research. Additionally, the main purpose was to seek their verbal

permission to conduct this research. All of the Banks gave verbal permission to distribute

the questionnaire.

Stage two of the data collection began with the distribution of the questionnaires to

the selected branches of Banks. As it was neither possible nor efficient way to distribute the

questionnaire to each employee individually due to the different working hours and work

nature. So questionnaires were handed to their in charge or immediate supervisor or manager

in every branch to facilitate the distribution of questionnaires as well as to collect the

completed questionnaire. The person in charge was informed about the purpose of these

questionnaires and the research. In case they have any inquiry about the study they can also

contact the researcher or the supervisor. Moreover, the front cover of the questionnaire also

contained information like guidelines for respondents to answer the question, the purpose of

the study as well as the contact information of the researcher and the supervisor. These

questionnaires were distributed on 23 July 2017 for the actual test. While some questionnaire

was distributed a week later so as to acquire the consents from the remaining awaited Banks

to distribute the questionnaires in the employees.

In the next stage of the data collection, the researcher contacted the branches of banks

to seek news of the distributed questionnaires. A larger part of the questionnaires was not

able to be completed within a week. Therefore more time allowed the respondents to

complete these questionnaires. A total of 319 of the questionnaires were able to be completed

from the 64 branches of the Public and Private Bank upon 2nd September 2017. Ample time

was given to the respondents so that they don't feel pressurized to complete the

questionnaires.



Upon completing these steps and collecting the data. The information gathered was

then dissected utilizing the Statistical Package for the Social Science (SPSS) rendition 21.0.

The information was broken down to answer the targets (objectives) and theories of this

exploration.

3.8 Data Analysis Procedure

For data analysis Statistical Package for Social Sciences (SPSS) version 21.0 was

used in this study. Statistical Package for Social Sciences (SPSS) is a computerized statistical

analysis tool which allows the researcher to enter the raw data collected through survey

method and analyzed their result. Responses are entered in the computer based on option

number of the question response. Pre-analysis data screening was conducted to determine

outliers, missing data, and normality. Any missing data will be coded into the computer using

the numeral 9 or 99. First of all, descriptive analysis was used so s to measure the frequency

and percentage of the respondents' demographic facts. For this research, best demographic

facts had been analyzed the usage of descriptive analysis while the percentage and frequency

were calculated for respondents' gender, age, ethnic, length of service, and academic

qualification.

Bivariate correlation and hierarchical multiple regression had been used to test the

hypotheses of this study (Mason & Lind, 1996).For bivariate analysis data must be normal in

this study data was first normal through skewness and kurtosis and then bivariate correlation

was used. According to Field (2013) correlation is represented by small r and its value ranges

from -1 to +1. If the value of the relationship between two variables is 0.1, 0.2, 0.3 and 0.4 it

is the weak correlation but if the values are 0.5 and 0.6 respectively it becomes moderate but

if the value is 0.7 to 0.9 it becomes strong. Next hierarchical multiple regression became used

to test the mediating consequences the usage of method record added by (Hayes, 2007).



3.9 Summary of the Study

This chapter discussed the sample obtained for this research, research instruments

used to collect the data, the data collection process and method that was employed to gather

the data for this study and ethical consideration taken for this research Furthermore, this

chapter also presented the result conducted for this research and the statistical tests that would

be employed to analyses the data for hypotheses testing purposes. The next chapter will

discuss the findings including the data screening results, reliability, validity, and demographic

characteristics of the respondents. Additionally, the next chapter will also show the results

obtained from statistical tests namely Pearson Product Moment Correlation Analysis and

Stepwise Regression Analysis that was conducted to test the hypotheses of this study.



Chapter 4

Empirical analysis

4.1 Demographic Characteristics

Table 4.1 Demographic Characteristics

Gender N %age

Male 264 82.75

Female 55 17.24

Age

21-30 131 41.06

31-40 151 47.33

41-50 27 8.46

51-60 10 3.13

Education

Bachelor/undergraduate 36 11.28

Master 227 71.15

Mphil 51 15.98

PhD 5 1.56

Experience

1-5 134 42.00

6-10 124 38.87

11-15 44 13.79

16-20 5 1.56

Above 20 12 3.76

Sector

Public 133 41.69

Private 186 58.30

Designation

OG3 105 32.91

OG2 127 39.81

OG1 77 24.13

AVP 10 3.13

The above Table shows the demographic characteristics of the respondents. There

were 264 males which are 82.75% of the sample size while the female was 55 and 17.24% of

the sample size. Further examination of results shows that in the age group 21-30 group there

were 131 respondents which are 41.06% in addition age group 31-40 were 151 which is



47.33% of sample size. Moreover, the 41-50 age group was 27, 8.46% of the sample size, 51-

60 age group 10, 3.13% of the sample size.

In education undergraduate were 36, 11.28% of total sample size while master degree

holders were 227, 71.15% of total sample size, while M.phil degree holders were 51, 15.98%

and Ph.D. degree holders were 5 which is 1.56% of total sample size. Also, length of service

respondents having experience from 1-5 years was 134, and 42% of sample size. While 6-10

years of experience are 124, 38.87%, in the same way, respondents having experience of 11-

15 years are 44, 13.79% and 16-20 were 5 and 1.56% of total sample size and in last 20 and

above were 12, 3.76%. in public and private sector 133 belong to the public sector which is

41.69% of sample size while 186 respondents belong to private sector banks which is 58.30%

of sample size. In designation 105 respondents are having officer grade 3 which is 32.91%,

and officers having grade 2 are 127 which is 39.81%, and officers having grade 1 are 77,

24.13% of total sample size while assistant vice president is 10 that is 3.13% of sample size.



4.2 Demographic Transformational and Transactional

Table 4.2 Demographic Table

Transformational Transactional

Factor N Mean S.D Mean S.D

Gender Male 264 2.388 .414 2.286 .451

Female 55 2.417 .491 2.307 .4605

Age 21-30 131 2.39 .402 2.31 .422

31-40 151 2.41 .440 2.29 .462

41-50 27 2.31 .442 2.16 .521

51-60 10 2.18 .511 2.33 .504

Education undergraduate 36 2.45 .335 2.36 .358

Master 227 2.374 .439 2.308 .461

M. Phil 51 2.43 .427 2.177 .465

PhD 5 2.30 .568 2.1000 .369

LOS 1-5 134 2.41 .376 2.31 .408

6-10 124 2.38 .470 2.28 .4627

11-15 44 2.41 .359 2.25 .480

16-20 5 2.16 .953 2.38 .934

20 above 12 2.25 .476 2.17 .503

Sector Public 133 2.392 .527 2.296 .545

Private 186 2.393 .3418 2.28 .374

Designation OG3 105 2.429 .352 2.326 .4024

OG2 127 2.381 .491 2.309 .5185

OG1 77 2.358 .391 2.213 .382

AVP 10 2.434 .585 2.263 .545

From the above Table, it is recorded that there are 55 females participated in this

study while men are 264 but females have recorded highest mean on transformational and

transactional leadership styles it means that females are giving more attention to leadership



styles i.e. (M=2.417, S.D=0.491; M= 2.307, S.D 0.4605). Further examination of results

shows that age group of 31-40 have recorded highest Mean on transformational leadership

style i.e. (M= 2.41, S.D= .440) while age group 51-60 has highest mean i.e. (M=2.33, S.D=

0.504), in addition, respondents having undergraduate education has highest mean i.e. (M=

2.45, S.D= .335) while in transactional leadership style also undergraduate has highest mean

i.e. (M= 2.36,S.D= .358). In length of service two groups having experience of 1-5 years and

11-15 years have highest Mean i.e. (M= 2.41, S.D= 0.376), while respondents having

experience of 16-20 years has the highest mean on transactional leadership style (M=2.38,

S.D= .934). while in public sector and private sector banks respondents from private sector

banks have highest mean (M= 2.393, S.D= .3418) while in transactional leadership public

sector bankers have highest Mean (M= 2.296, S.D= .545). in designation respondents having

highest rank of AVP has the highest mean of (M=2.434, S.D= .585) while in transactional

leadership style highest Mean is recorded by OG3 (M= 2.326, S.D= 0.4024).



4.3 Demographics Culture and Performance

Table 4.3 Demographics Culture and Performance

Culture Performance

Factor N Mean S.D Mean S.D

Gender Male 264 3.32 .548 3.58 .472

Female 55 3.25 .499 3.51 .521

Age 21-30 131 3.37 .542 3.63 .476

31-40 151 3.30 .518 3.54 .475

41-50 27 3.13 .602 3.40 .540

51-60 10 3.13 .587 3.69 .333

Education undergraduate 36 3.40 .537 3.54 .573

Master 227 3.34 .561 3.58 .473

M. Phil 51 3.17 .403 3.52 .467

PhD 5 3.02 .6286 3.54 .285

LOS 1-5 134 3.36 .531 3.66 .460

6-10 124 3.34 .555 3.52 .489

11-15 44 3.19 .429 3.38 .481

16-20 5 2.96 .636 3.69 .434

20 above 12 3.00 .667 3.61 .436

Sector Public 133 3.24 .541 3.61 .454

Private 186 3.36 .535 3.53 .497

Designation OG3 105 3.38 .485 3.58 .484

OG2 127 3.31 .573 3.57 .469

OG1 77 3.21 .544 3.54 .518

AVP 10 3.33 .591 3.67 .309

The above Table shows demographic characteristics of culture and performance. In

the above Table, male respondents have the highest mean on culture (M= 3.32, S.D= .548)

while the same is recorded in performance for men. Respondents having age of 21-30 has

highest mean (M= 3.37, S.D=.542) on the other hand respondents with age 51-60 has



recorded highest mean ( M= 3.69, S.D= .333). in education undergraduate degree holders

have the highest mean of (M= 3.40 S.D=.537) on culture while master degree holders have

the highest mean on performance i.e. (M= 3.58, S.D= .473). respondents having 1-5 years of

experience has highest Mean (M= 3.36, S.D= .531) while on performance respondents having

experience of 16-20 has highest mean (M= 3.69, S.D= .434) on other hand private sector

employees have highest mean for culture (M= 3.36, S.D= .535) while on performance public

sector employees have highest mean (M= 3.61, S.D= .454), in designation OG3 has highest

mean (M= 3.38, S.D= .485) while for performance AvP have recorded highest mean (M=

3.67, S.D= 0.309).

4.4 Data Normality Transformational Leadership Style

Descriptive Statistics

N Mean S.D Skewness Kurtosis

ST Std.

Error

ST Std.

Error

NIM1 319 2.3650 .85289 -.101 .137 -.209 .272

NIM2 319 2.4050 .84326 -.078 .137 -.335 .272

NIM3 319 2.4038 .87033 -.100 .137 -.363 .272

NIM4 319 2.6425 .88743 -.250 .137 -.528 .272

NIIB1 319 2.4824 .92296 -.158 .137 -.445 .272

NIIB2 319 2.4239 .86345 -.068 .137 -.412 .272

NIIB3 319 2.3746 .95282 -.119 .137 -.453 .272

NIIB4 319 2.3507 .87558 -.087 .137 -.330 .272

NIIA1 319 2.1950 .98352 -.030 .137 -.523 .272

NIIA2 319 2.3484 .95112 -.102 .137 -.469 .272

NIIA3 319 2.5232 .96981 -.194 .137 -.578 .272

NIIA4 319 2.6011 .90858 -.218 .137 -.471 .272

NIC1 319 2.3628 .92626 -.104 .137 -.436 .272

NIC2 319 2.1956 .92707 -.029 .137 -.442 .272

NIC3 319 2.3335 .93660 -.100 .137 -.441 .272

NIC4 319 2.3425 .96586 -.099 .137 -.508 .272

NIS1 319 2.3730 .94945 -.106 .137 -.471 .272

NIS2 319 2.3882 .94536 -.114 .137 -.467 .272

NIS3 319 2.3484 .94913 -.107 .137 -.470 .272

NIS4 319 2.4058 1.03021 -.177 .137 -.685 .272

Valid N

(listwise) 319



Before proceeding for data analysis it is duty of the researcher that researcher must

clean the data outliers must be removed from the data. This can be done by number of ways

one is called Shapiro wilk test, other is called K-S test, third is QQ plots and PP plots, while

some people use skweness and kurtosis. There are different ranges for skweness and kurtosis.

If sample size is 100 then range of these two test must be +1.96 to -1.96, if the sample size is

200 it must be -2.58 to +2.58 if it is more than 300 then -3.29 to +3.29. these are the values

which ar used for normality of data. In this study researcher has used the skweness and

kurtosis criteria for normality of data.

.



4.5 Data Normality Transactional Leadership Style

Table 4.5 Data Normality Transactional Leadership Style


N Mean Std.

Deviation

Skewness Kurtosis

Statistic Statistic Statistic Statistic Std.

Error

Statistic Std.

Error

NCR1 319 2.2495 .95597 -.063 .137 -.473 .272

NCR2 319 2.4272 .89976 -.129 .137 -.400 .272

NCR3 319 2.3321 1.01095 -.118 .137 -.618 .272

NCR4 319 2.5361 .94625 -.200 .137 -.531 .272

NMEA1 319 2.3841 .99080 -.136 .137 -.590 .272

NMEA2 319 2.4753 .94892 -.153 .137 -.481 .272

NMEA3 319 2.5101 .93140 -.168 .137 -.483 .272

NMEA4 319 2.3970 .95146 -.123 .137 -.402 .272

NMEP1 319 2.1281 .96660 -.009 .137 -.468 .272

NMEP2 319 2.1056 1.04790 -.006 .137 -.586 .272

NMEP3 319 1.9950 1.02313 .040 .137 -.575 .272

NMEP4 319 1.9413 1.11968 .104 .137 -.765 .272

Valid N

(listwise) 319

Before proceeding for data analysis it is duty of the researcher that researcher

must clean the data outliers must be removed from the data. This can be done by number of

ways one is called Shapiro wilk test, other is called K-S test, third is QQ plots and PP plots,

while some people use skweness and kurtosis. There are different ranges for skweness and

kurtosis. If sample size is 100 then range of these two test must be +1.96 to -1.96, if the

sample size is 200 it must be -2.58 to +2.58 if it is more than 300 then -3.29 to +3.29. these

are the values which ar used for normality of data. In this study researcher has used the

skweness and kurtosis criteria for normality of data.

In the above Table all the results in the specified range so data is normal.



4.6 Data Normality Organization Culture

Table4.6 Data Normality Organization Culture

N Mean Std.

Deviation

Skewness Kurtosis


Error

Statistic Std.

Error

C1 319 3.0784 1.20147 -.250 .137 -1.006 .272

C2 319 3.3197 1.03308 -.293 .137 -.590 .272

C3 319 3.1975 1.07948 -.325 .137 -.872 .272

C4 319 3.4577 1.06573 -.665 .137 -.331 .272

C5 319 3.3448 1.06113 -.216 .137 -.702 .272

C6 319 3.4796 .90007 -.603 .137 -.114 .272

C7 319 3.3605 1.19688 -.359 .137 -.897 .272

Valid N

(listwise) 319






sample size is 200 it must be -2.58 to +2.58 if it is more than 300 then -3.29 to +3.29. these






4.7 Data Normality Performance

Table 4.7 Data Normality Performance


N Mean Std.

Deviation

Skewness Kurtosis


Error

Statistic Std.

Error

EP1 319 3.8903 .96015 -.873 .137 .639 .272

EP2 319 3.7492 .93489 -.689 .137 .149 .272

EP3 319 3.5266 1.06329 -.670 .137 -.197 .272

EP4 319 3.4734 .98976 -.709 .137 .095 .272

EP5 319 3.6207 .91991 -.664 .137 .338 .272

EP6 319 3.3981 1.06759 -.302 .137 -.677 .272

EP7 319 3.5078 1.01518 -.602 .137 .007 .272

EP8 319 3.4922 1.01518 -.559 .137 -.319 .272

EP9 319 3.5611 1.11106 -.813 .137 -.113 .272

Valid N

(listwise) 319






sample size is 200 it must be -2.58 to +2.58 if it is more than 300 then -3.29 to +3.29. These






4.8 Data Reliability Transformational and Transactional Leadership

Table 4.8 Data Reliability Transformational and Transactional Leadership Item-Total Statistics

Scale mean if

item deleted

Scale variance

if item deleted

Corrected

item-total

correlation

Cronbach's

alpha if item

deleted

Alpha

NIM1 72.9822 150.930 .406 .841

NIM2 72.9422 151.447 .386 .842

NIM3 72.9434 152.563 .319 .843

NIM4 72.7047 151.419 .365 .842

NIIB1 72.8648 149.615 .430 .840

NIIB2 72.9233 152.065 .346 .843

NIIB3 72.9726 148.344 .471 .839

NIIB4 72.9966 150.130 .432 .840

NIIA1 73.1522 150.691 .353 .842

NIIA2 72.9989 150.067 .395 .841

NIIA3 72.8240 150.576 .364 .842

NIIA4 72.7461 150.552 .395 .841

NIC1 72.9844 152.104 .316 .843

NIC2 73.1516 155.950 .145 .848

NIC3 73.0137 153.713 .240 .846

NIC4 73.0047 147.533 .499 .838 0.847

NIS1 72.9742 151.231 .344 .843

NIS2 72.9590 151.424 .338 .843

NIS3 72.9988 148.420 .469 .839

NIS4 72.9414 147.873 .449 .839

NCR1 73.0977 148.729 .452 .840

NCR2 72.9200 149.336 .456 .840

NCR3 73.0152 147.927 .457 .839

NCR4 72.8112 149.925 .404 .841

NMEA1 72.9631 149.357 .406 .841

NMEA2 72.8719 149.899 .404 .841

NMEA3 72.8371 150.944 .365 .842

NMEA4 72.9502 150.800 .362 .842

NMEP1 73.2191 154.841 .183 .847

NMEP2 73.2416 157.926 .044 .852

NMEP3 73.3522 152.907 .246 .846

NMEP4 73.4059 154.843 .146 .849

Reliability of the instrument and internal consistency of the instrument can be checked

through the cronbach alpha. There are different authors like Gaur and Gaur (2009) Tabachnik

and Fidell (2007) Filed (2013) and Pallant (2010) who have gave different cut off level for



reliability. If the value of cronbach alpha is 0.4 it is not acceptable if it is 0.5 it is very poor, if

the value is 0.6 it is questionable if the value is 0.7 it is acceptable and value of 0.8 is very

good and 0.9 and above is excellent. Second thing is item total correlation. It is also called

ITC. Some statisticians said that each and every item of the scale must be ITC value greater

than 0.5, Hair et al (2007) while some said that 0.4 is acceptable. In this case 0.4 is cut off

level. So in the above Table cronbach alpha is 0.847 and there is no need to delete the item.



4.9 Data Reliability Organization Culture

Table 4.9 Data Reliability Organization Culture

Item-Total Statistics

Scale Mean if

Item Deleted

Scale Variance

if Item Deleted

Corrected Item-

Total

Correlation

Cronbach's

Alpha if Item

Deleted

Alpha

CUL1 14.6520 70.504 .751 .940

CUL2 14.6019 66.744 .854 .931

CUL3 14.6928 68.107 .817 .934

CUL4 14.3448 67.352 .814 .934 0.943

CUL5 14.5266 67.923 .817 .934

CUL6 14.4357 67.033 .833 .933

CUL7 14.5580 67.524 .795 .936












4.10 Data Reliability Employee’s Performance

Table 4.10 Data Reliability Employee’s Performance

Item-Total Statistics

Scale Mean if

Item Deleted

Scale

Variance if

Item Deleted

Corrected

Item-Total

Correlation

Cronbach's

Alpha if Item

Deleted

Alpha

PER1 27.8339 19.862 .494 .658

PER2 27.9373 20.455 .380 .680

PER3 27.9843 20.166 .446 .667

PER4 28.0815 21.364 .361 .683

PER5 27.8871 22.339 .232 .705 0.705

PER6 28.1912 20.784 .352 .685

PER7 28.0345 21.159 .298 .696

PER8 28.2288 19.856 .413 .673

PER9 28.1850 19.667 .432 .669












4.11 Exploratory Factor Analysis Transformational Transactional

Leadership Styles

In order to find whether there is any latent variable hidden in the instrument or data

also in order to find to what extent this data is valid in perspective of Pakistan for this

purpose, exploratory factor analysis is conducted. As the nature of this study is exploratory so

EFA is conducted rather CFA. There are many items were found problematic in the

instrument of leadership, culture, and performance but all items are used in factor analysis.

There are few rules of thumb which should be considered before conducting exploratory

factor analysis.

The aim of this factor analysis is to find whether any latent variable is hidden in the

data set or instrument or not second-factor analysis is used to reduce the number of items in

the questionnaires.(Hair et al., 2007; Brymanand Cramer, 2001).

The first rule of thumb is to check the value of KMO Kaiser Meyer Olkin measure of

sampling adequacy, its value it should be more than 0.5. if it is less than 0.5 then it means

that data is not enough for factor analysis. The second rule of thumb is to find the value of

BTS its value should be significant if the value is not significant it means that data is not

reliable for factor analysis. The third rule of thumb is to use principal component analysis,

fourth rule of thumb is to use orthogonal or oblique rotation. Last step or decision to be made

by the researcher is to use cut off level for factor loading it should be 0.4 if it is less than 0.4

then delete that item or variable. (Field, 2013).



Table 4.11 Initially Unrotated Efa Leadership

KMO and Bartlett's Test

KMO .811

BTS

Chi-Square 2231.940

Df 496

Sig. .000

Table 1

Table 4.12 Total Variance Explained

Total Variance Explained

Component Initial Eigenvalues Extraction Sums of Squared Loadings

Total % of

Variance Cumulative

% Total % of

Variance Cumulative

%

1 6.079 18.997 18.997 6.079 18.997 18.997

2 1.948 6.086 25.084 1.948 6.086 25.084

3 1.719 5.371 30.455 1.719 5.371 30.455

4 1.411 4.408 34.863 1.411 4.408 34.863

5 1.376 4.299 39.162 1.376 4.299 39.162

6 1.274 3.980 43.142 1.274 3.980 43.142

7 1.243 3.884 47.026 1.243 3.884 47.026

8 1.187 3.708 50.734 1.187 3.708 50.734

9 1.152 3.599 54.333 1.152 3.599 54.333

10 1.083 3.384 57.717 1.083 3.384 57.717

Extraction Method: Principal Component Analysis.

From the scree plot is concluded that only eight factor of leadership styles should be

retained Table (4.8) shows the outcome for PCA (Promax) for bankers. The factors having

loading of 0.4 or greater are kept in the Table show there are eight factors retained for

leadership. KMO value was 0.811 and BTS was 2231.940, p<0.001. these factors are

showing 57.7% variance.



Table 4.12 Rotated Component Matrix

Rotated Component Matrixa

Component

1 2 3 4 5 6 7 8

NIIB4 .688 NCR4 .681 NIS4 .565 NCR3 .479 NCR2 .466 NIIB2 .422 NIM3 .651 NIIB1 .574 NIM2 .557 NIIA4 .436 .502 NIM1 .497 NIM4 .436 NIIA2 .545 NIS3 .511

NMEP4 .508 .436 NIIA3 .497

NMEA1 .668 NMEA3 .566 NMEA4 .525 NMEA2 .501

NIC2 .667 NCR1 .644 NIC3 .452 NIC1 .442 NIC4 .419 NIIB3 .680 NIIA1 .587 NIS1 .457 .507

NMEP1 .725 NMEP2 .720

NIS2 .701

NMEP3 .639


Rotation Method: Varimax with Kaiser Normalization.

a. Rotation converged in 11 iterations.

From the above table outcome using the varimax method retained eight factors for the

transaction and transformational leadership. There are thirty-two items used in MLQ

multifactor leadership questionnaire for transformational and transactional leadership there

are thirty-two item used, three items are found problematic and cross-loaded on another



factor having factor loading greater then 0.4, so 29 items are validated for leadership styles in

Pakistan Perspective so the results of this study replicated the previous results of Boss and

Avolio (2002) and Busari (2011).

4.12 Exploratory Factor Analysis Organization Culture

For this study, the sample size was 319 and KMO value was 0.643 (Tabncnikand Fidell,

2007) and BTS was (175.968, p<.001), and eigen values more than 1.0, accounting for

59.474 % of the variance (Table 4.11, 4.12).

Table 4.13 Initially Unrotated Solution Of Culture


KMO .643

BTS

X2

175.968

Df 21

Sig. .000





Component Initial Eigenvalues Extraction Sums of Squared

Loadings

Rotation Sums of Squared

Loadings

Total % of

Variance

Cumulative

%

Total % of

Variance

Cumulative

%

Total % of

Variance

Cumulative

%

1 1.957 27.964 27.964 1.957 27.964 27.964 1.524 21.776 21.776

2 1.198 17.111 45.075 1.198 17.111 45.075 1.362 19.458 41.235

3 1.008 14.399 59.474 1.008 14.399 59.474 1.277 18.239 59.474


Table 4.15 Rotated Component Matrix


Component

1 2

C7 .702

C5 .682

C2 .651

C1 .601

C4 .731

C3 .672

C6 .564


Rotation Method: Varimax with Kaiser Normalization. a. Rotation converged in 3 iterations.

From the scree plot is concluded that only two factor of organization culture should be

retained Table (4.13) shows the outcome for PCA (Promax) for bankers. Two factor are

retained and having loadings of 0.4 are more. KMO value was 0.643 and BTS was 175.968,

p<0.001. total variance explained was 59.47%. From the above table outcome using the

varimax method retained two factors for culture. There are seven items used in organizational

culture scale for culture there are seven items used, so all 7 items are validated for culture in



Pakistan Perspective so the results of this study replicated the previous results of Hofsted,

(2008) having two dimension individualism and collectivism.

4.13 Exploratory Factor Analysis Performance

For this study, the sample size was 319 and KMO value was 0.715 (Tabncnikand

Fidell, 2007) and BTS was (325.852, p<.001), and eigen values more than 1.0, accounting for

53.198 % of the variance (Table 4.14, 4.15).

Table 4.16 Initially Unrotated Solution Of Performance


KMO .715

BTS

X2

325.852

Df 36

Sig. .000





Component Initial Eigen values Extraction Sums of Squared Loadings

Total % of

Variance

Cumulative

%

Total % of

Variance

Cumulative

%

1 2.471 27.457 27.457 2.471 27.457 27.457

2 1.271 14.125 41.582 1.271 14.125 41.582

3 1.045 11.616 53.198 1.045 11.616 53.198


Table 4.18

Rotated Component Matrix


Component

1 2

EP5 .724

EP3 .723

EP4 .579

EP2 .539

EP1 .439 .431

EP9 .700

EP7 .619

EP8 .618

EP6 .588

From the scree plot is concluded that only two factor of employee‟s

performance should be retained Table (4.16) shows the outcome for PCA (Promax)

for bankers. Two factors were retained in this Table for performance and all two

factors have loading more than 0.4. KMO value was 0.715 BTS was 325.8,p<0.001.

total variance explained was 53.19%.



From the above table outcome using the varimax method retained two factors for employee‟s

performance. There are nine items used in performance questionnaire for employees

performance there are nine-item used, one item is found problematic and cross-loaded on

another factor having factor loading greater then 0.4, so 8 items are validated for employees

performance in Pakistan Perspective so the results of this study replicated the previous Gul,

and Oktay (2008).

4.14 Inferential Statistics Correlation

H1: There is Positive Relationship among I Motivation, Performance, and Org Culture.

Table 4.19

Relationship between Motivation, Performance, and Culture

Variable 1 Variable 2 r p

I Motivation Performance 0.179**

0.001

I Motivation Culture 0.062 0.272

Culture Performance 0.382**

0.000

Correlation between motivation and performance is significant i.e. (r = 0.179,

p=0.001), it means that when motivation is given y leaders in organizations it in result

increase the performance of employees. On the other hand when there is no motivation

provided by leaders in results performance of employees is reduced. Further examination of

results revealed that Pearson correlation moment between motivation and organization

culture is not significant it is recorded (r = 0.062, p = 0.272). While Pearson connection

moment among culture and performance is discovered frail (weak) however positive and

significant. i.e. (r = 0.382, p = 0.000). It means that culture has a relationship with

performance when there is a working culture introduced in the organization then it increases

the performance of the employee. These outcomes (results) are in accordance with the past



results of Sokro (2012) led study on motivation, performance, and culture, reported that there

is the significant relationship between motivation and performance but there is the

insignificant relationship between motivation and culture so this hypothesis is accepted. In

addition Owes (2004) reported positive results with the variables studied.

H2: There is a Positive Relationship among Idealized behavior, Performance, and Culture.

Table 4.20

Relationship among Idealized behavior, Performance, and Culture


II Behavior Performance 0.163**

0.003

II Behavior Culture 0.130*

0.020


0.000

The Pearson correlation moment between idealized influence behavior and employees

performance is discovered (found) positive and significant i.e. (r = 0.163, p=0.003), it

means that when idealized influence behavior is given by leaders in organizations it in result

increase the performance of employees. On the other hand, when there is no idealized

influence behavior provided by leaders in results performance of employees is reduced.

Further examination of results revealed that Pearson correlation moment between idealized

influence behavior and organizational culture is significant it is recorded (r = 0.130, p =

0.020). While Pearson connection moment among culture and performance is discovered frail

(weak) however positive and significant. i.e. (r = 0.382, p = 0.000). it means that culture has

a relationship with performance when there is working culture introduced in the organization

then it increases the performance of employees.

Flamming (2017) supported these results, organizational culture and performance,

reported that there is the significant relationship between Idealized behavior, culture, and

performance so this hypothesis is accepted.



In addition (Cameron & Quinn, 2006; Hooijberg & Petrock, 1993) also conducted a study on

culture and performance and found that organizational culture impacts the ability of leaders

to improve organizational performance.

H3: There is a Positive Relationship among Idealized Attribute, Performance, and Culture.

Table 4.21

Relationship among Idealized Attribute, Performance, and Culture


II Attribute Performance 0.181* 0.001

II Attribute Culture 0.215**

0.000


0.000

Relation between attribute and performance is i.e. (r = 0.181, p=0.001), it means that

when idealized influence attribute is given by leaders in organizations it in result increase the

performance of employees. On the other hand, when there is no idealized influence attribute

provided by leaders in results performance of employees is reduced. Further examination of

results revealed that Pearson correlation moment between idealized influence attribute and

organization culture is significant it is recorded (r = 0.215, p = 0.000). While Pearson

connection moment among culture and performance is discovered frail (weak) however

positive and significant. i.e. (r = 0.382, p = 0.000). It means that culture has a relationship

with performance when there is working culture introduced in the organization then it

increases the performance of employees.

Flaming (2017) conducted study on transformational leadership trait (Idealized Attribute),

organizational culture and performance, reported that there is the significant relationship

between Idealized behavior, culture, and performance so this hypothesis is accepted.

In addition (Cameron & Quinn, 2006; Hooijberg & Petrock, 1993) also conducted a study on

culture and performance and found that organizational culture impacts the ability of leaders



to improve organizational performance. This investigation authenticated the way that

authoritative culture impacts the capacity of leaders to improve organization performance as

evident by the symbiotic relationship of each construct.

H4: There is a Positive Relationship among Individual Consideration, Performance, and

Culture.

Table 4.22

Relationship among Individual Consideration, Performance and Culture


Inconsideration Performance -0.008 0.892

Inconsideration Culture 0.092 0.103


0.000

Relationship between Consideration and performance is i.e. (r = -0.008, p=0.892), it

means that when individual consideration is given by leaders in organizations it in result

decrease the performance of employees. On the other hand, when there is no individual

consideration provided by leaders in results performance of employees is increased. Further

examination of results revealed that Pearson correlation moment between individual

consideration and organizational culture is insignificant it is recorded (r = 0.092, p = 0.103).

While Pearson connection moment among culture and performance is discovered frail (weak)

however positive and significant. i.e. (r = 0.382, p = 0.000). it means that culture has a

relationship with performance when there is working culture introduced in the organization


These results are in line with the previous results of Ndwiga and Ngaithe (2016)

conducted study on individual consideration, organizational performance, reported that there

is the insignificant relationship between individual consideration, the performance so this

hypothesis is rejected.



In addition, Zehir, Ertosun, Zehir, &Müceldili( 2011) also conducted a study on culture and

performance and found that organizational culture has weak impact on the ability of leaders

to improve organizational performance.

H5: There is Positive Relationship among I Stimulation, Performance, and Culture.

Table 4.23

Relationship among I Stimulation, Performance and Culture


I Stimulation Performance 0.052 0.352

I Stimulation Culture 0.114*

0.043


0.000

Relationship between stimulation and performance is i.e. (r = 0.052, p=0.352), it

means that when intellectual stimulation is given by leaders in organizations it in result

increase the performance of employees. On the other hand, when there is no intellectual

stimulation provided by leaders in results performance of employees is reduced. Further

examination of results revealed that Pearson correlation moment between intellectual

stimulation and organization culture is significant it is recorded (r = 0.114, p = 0.043). While

Pearson connection moment among culture and performance is discovered frail (weak)




These results are in line with the previous results of Kuang Chi,Ren Yeh,Huei Yu

(2012) conducted study on transformational leadership trait (intellectual stimulation),


between intellectual stimulation, culture, and performance so this hypothesis is accepted.



In addition, Khalidand Salama,(2018) also conducted a study on culture and

performance and found that organizational culture impacts the ability of leaders to improve

organizational performance.

H6: There is a Positive Relationship among C_Reward, Performance, and Culture.

Table 4.24

Relationship among C_Reward, Performance, and Culture


C_Reward Performance 0.106 0.05

C_Reward Culture 0.194*

0.001


0.000

Relationship between Rewards and performance is i.e. (r = 0.106, p=0.05), it means

that when the contingent reward is given by leaders in organizations it in result increase the

performance of employees. On the other hand, when there is no contingent reward provided

by leaders in results performance of employees is reduced. Further examination of results

revealed that Pearson correlation moment between contingent reward and organization

culture is significant it is recorded (r = 0.194, p = 0.001). While Pearson connection moment

among culture and performance is discovered frail (weak) however positive and significant.

i.e. (r = 0.382, p = 0.000). It means that culture has a relationship with performance when

there is working culture introduced in the organization then it increases the performance of

employees.

These results are in line with the previous results of shah and Hamid (2015)

conducted study on transactional leadership trait(contingent reward), organizational culture

and performance, reported that there is the significant relationship between contingent

reward, culture, and performance so this hypothesis is accepted.



In addition, Ker andSlocum,(2018) also conducted a study on culture and

performance and found that organizational culture impacts the ability of leaders to improve

organizational performance.

H7: There is a Positive Relationship among ME_Active, Performance, and Culture.

Table 4.25

Relationship among ME ACTIVE, Performance and Culture

Variable 1 Variable 2 r P

ME_Active Performance 0.210**

0.000

ME_Active Culture 0.222**

0.000


0.000

Relationship between MEA and performance is i.e. (r = 0.210, p=0.000), it means

that when management by exception active is given by leaders in organizations it in result

increase the performance of employees. On the other hand, when there is no management by

exception active provided by leaders in results performance of employees is reduced. Further

examination of results revealed that Pearson correlation moment between management by

exception active and organizational culture is significant it is recorded (r = 0.222, p = 0.000).

While Pearson connection moment among culture and performance is discovered frail (weak)




These results are in line with the previous results of Wongyanon,Wijaya,Soeaidy (2015)

conducted study on transactional leadership trait (management by exception Active),


between management by exception, culture, and performance so these hypotheses are

accepted.



In addition, Memon ( 2014) also conducted a study on culture and performance and found

that organizational culture impacts the ability of leaders to improve organizational

performance.

H8: There is a Positive Relationship among ME_Passive, Performance, and Culture.

Table 4.26

Relationship among ME_Passive, Performance, and Culture.


ME_Passive Performance 0.035 0.533

ME_Passive Culture 0.121*

0.031


0.000

Relationship between MEP and performance i.e. (r = 0.035, p=0.533), it means that

when management by exception passive is given by leaders in organizations it in result

increase the performance of employees. On the other hand, when there is no management by

exception passive provided by leaders in results performance of employees is reduced.

Further examination of results revealed that Pearson correlation moment between

management by exception passive and organizational culture is significant it is recorded (r =

0.121, p = 0.031). While Pearson connection moment among culture and performance is

discovered frail (weak) however positive and significant. i.e. (r = 0.382, p = 0.000). it means

that culture has a relationship with performance when there is working culture introduced in

the organization then it increases the performance.

Atwell (2016) also conducted study and reported the same results with culture

performance and leadership. so this hypothesis is accepted.

In addition (Ogbonna & Harris, 2000) also conducted a study on culture and performance and

found that organizational culture impacts the ability of leaders to improve organizational

performance.



4.15 Regression Analysis

Table 4.27

Regression Analysis

DV IV R R2

Adj R2

B Beta Sig

Performance Constant 0.179 0.032 0.029 3.208 0.000

I_Motivation 0.179 0.001


II_Behavior 0.163 0.003


II_Attribute 0.181 0.001

Performance Constant 0.008 0.000 -0.003 3.586 0.000

I_Consideration -.008 0.892


I_Stimulation 0.052 0.352


C_Reward 0.106 0.059


ME_Active 0.210 0.000

Performance Constant 0.035 0.001 -.002 3.520 0.000

ME_Passive 0.035 0.533


Transf_L 0.157 0.005


Transc_L 0.167 0.003


Leadership 0.181 0.001


Culture 0.382 0.000

Regression analysis was used to test the impact of one variable upon other variables.

Through regression researcher wants to study the dominant factor among variables.



For bankers concerning performance, inspirational motivation (p = 0.001), , R2=

0.032 inspirational motivation has shown 3.2% variance upon performance. It appears that

inspirational motivation has a positive effect on employees performance (β = 0.179, p

=0.001) is found significant.

For bankers concerning performance, idealized influence behavior (p = 0.003), , R2= 0.027

idealized influence behavior could explain 2.7%% variance upon performance. It appears that

idealized influence behavior has a positive effect on employees performance (β = 0.163, p

=0.003) is found significant.

For bankers concerning performance, idealized influence attribute (p = 0.001), , R2= 0.033

idealized influence attribute explain variance 3.3% variance upon performance. It appears

that idealized influence attribute has a positive effect on employees performance (β = 0.181,

p =0.001) is found significant.

For bankers concerning performance, individual consideration (p = 0.892), , R2=

0.000 , individual consideration has explained/reported 0% variance upon performance. It

appears that individual consideration has a negative effect on employees performance (β = -

0.008, p =0.892) is found insignificant.

For bankers concerning performance, intellectual stimulation (p = 0.352), , R2= 0.003

intellectual stimulation has reported 0.3% variance upon performance. It appears that

intellectual stimulation has a positive effect on employees performance (β = 0.052, p =0.352)

is found insignificant.

For bankers concerning performance, contingent reward (p = 0.059), , R2= 0.011

contingent reward has reported 1.1% variance upon performance. It appears that contingent

reward has a positive effect on employees performance (β = 0.106, p =0.059) is found

significant.



For bankers concerning performance, management by exception active (p = 0.000), ,

R2= 0.044 management by exception active has explained/reported 4.4% variance upon

performance. It appears that management by exception active has a positive effect on

employees performance (β = 0.210, p =0.000) is found significant.

For bankers concerning performance, management by exception passive (p = 0.533), ,

R2= 0.001 management by exception passive has reported 0.1% variance upon performance.

It appears that management by exception passive has a positive effect on employees

performance (β = 0.035, p =0.533) is found insignificant.

For bankers concerning performance, transformational leadership (p = 0.005), , R2=

0.025 transformational leadership has reported 2.5% variance upon performance. It appears

that transformational leadership has positive effect upon employees performance (β = 0.157,

p =0.005) is found significant.

For bankers concerning performance, transactional leadership (p = 0.003), , R2= 0.028

transactional leadership has reported 2.8% variance upon performance. It appears that

transactional leadership has a positive effect on employees performance (β = 0.167, p =0.003)

is found significant.

For bankers concerning performance, leadership (p = 0.001), , R2= 0.033 transactional

leadership has reported 3.3% variance upon performance. It appears that leadership has a

positive effect on employees performance (β = 0.181, p =0.001) is found significant.

For bankers concerning performance, culture (p = 0.000), , R2= 0.146 culture has

explained 14.6% variance upon performance. It appears that culture has a positive effect on

employees performance (β = 0.382, p =0.000) is found significant.

From the above Table, it is found that culture is found most dominant factor among

all variables on the basis of beta value, i.e. β = 0.382, p=0.000.



4.16 Mediation Analysis

H: There is significant Mediation effect of Culture on the relationship between Inspirational

Motivation and Performance

Table 4.28

Hierarchical Regression between IM, OC, P

DV IV R R2

Coefficient

Sig F Sig

Culture Constant 0.616 0.0038 0.0571 0.2725 1.20 0.2725

I_Motivation (a)

Performance Constant 0.4130 0.1706 0.3318 0.000 32.49 0.000

Culture(b)

I_Motivation(C‟) 0.1288 0.0025


I_Motivation©

Referring above Table for bankers concerning performance and inspirational motivation

shows R2

= 0.0038, while coefficient for this model is found insignificant i.e. coefficient

= 0.0571, p= 0.2725, this model represents path (a). in second model culture is entered in

regression equation and shows R2 = 0.1706, coefficient = 0.3318, p=0.000 and coefficient

= 0.1288,p=0.0025, represents path (c‟), while in path (c) R2

= 0.0321, coefficient =

0.1478, p= 0.0013 is found significant. Overall all the models were found fit the goodness

of fit index is measured by F value, for model 1 F= 1.20, p= 0.2725, for model 2 F =

32.49, p= 0.000, while for model 3 10.52, p=0.0013. normal theory test i.e. Sobel test

value is found insignificant Sobel = 1.0770, p= 0.2815 it means that organizational

culture does not act as a mediator in the relationship between inspirational motivation and

performance. So this hypothesis is rejected. Theses mediation results are supported by

Ahmadi,Rezaei, and Gorizan (2015) conducted study on culture, dimensions of



transformational leadership style and performance and reported that there is no mediating

effect of culture on these two variables.

H: There is significant Mediation effect of Culture on the relationship between Idealized

Influence Behavior and Performance

Table 4.29

Hierarchical Regression between IIB, OC, P

DV IV R R2

Coefficient

Sig F Sig


II_Behavior (a)


Culture(b)

II_Behavior(C‟) 0.0960 0.0273 8.6704 0.0035

Performance Constant 0.1632 0.0266 0.1357 0.0035

II_Behavior©

Referring above Table for bankers concerning performance and idealized influence

behavior shows R2

= 0.0169, while coefficient for this model is found significant i.e.

coefficient = 0.1216, p= 0.0201, this model represents path (a). in second model culture is

entered in regression equation and shows R2 = 0.1593, coefficient = 0.3270, p=0.000 and

coefficient = 0.0960,p=0.0273, represents path (c‟), while in path (c) R2

= 0.0266, coefficient

= 0.1357, p= 0.0035 is found significant. Overall all the models were found fit the goodness

of fit index is measure by F value, for model 1 F= 5.45, p= 0.0201, for model 2 F = 29.95, p=

0.000, while for model 3 8.6704, p=0.0035. normal theory test i.e. sobel test value is found

significant sobel = 2.1984, p= 0.0279 it means that organization culture does act as mediator

in the relationship between idealized influence behavior and performance. So this hypothesis

is accepted.



Theses mediation results are supported by Rabia and Haque (2011) conducted study on

culture, dimensions of transformational leadership style (vogue) and performance and

reported that there is mediating effect of culture on these two variables.

H: There is significant Mediation effect of Culture on the relationship between Idealized

Influence Attribute and Performance

Table 4.30

Hierarchical Regression between IIA, OC, P

DV IV R R2

Coefficient

Sig F Sig


II_Attribute (a)


Culture (b)

II_Attribute(C‟) 0.0835 0.050


II_Attribute ©

Referring above Table for bankers concerning performance and idealized influence

attribute shows R2





= 0.0329, coefficient =

0.1457, p= 0.0011 is found significant. Overall all the models were found fit the goodness of

fit index is measured by F value, for model 1 F= 15.41, p= 0.001, for model 2 F = 29.32, p=

0.000, while for model 3 10.79, p=0.0011. Normal theory test i.e. Sobel test value is found

significant Sobel = 3.378, p= 0.0007 it means that organization culture does act as a partial

mediator in the relationship between idealized influence attribute and performance. So this

hypothesis is accepted. Theses mediation results are supported by lembang, Soetjipto and



Sutrisno (2011) conducted study on culture, dimensions of transformational leadership style

(vogue) and performance and reported that there is mediating effect of culture on these two

variables.

H: There is significant Mediation effect of Culture on the relationship between Individual

Consideration and Performance

Table 4.31

Hierarchical Regression between IC, OC, P

DV IV R R2

Coefficient

Sig F Sig


I_Consider (a)


Culture(b)

I_Consider(C‟) -.0360 0.4099

Performance Constant 0.0077 0.0001 -.0064 0.8915 0.0186 0.8915

I_Consider ©

Referring above Table for bankers concerning performance and individual

consideration shows R2

= 0.0084, while coefficient for this model is found insignificant i.e.



coefficient = -0.0360,p=0.4099, represents path (c‟), while in path (c) R2


= -0.0064, p= 0.8915 is found insignificant. Overall all the models were found fit the

goodness of fit index is measure by F value, for model 1 F= 2.677, p= 0.1028, for model 2 F

= 27.46, p= 0.000, while for model 3 0.0186, p=0.8915. Normal theory test i.e. Sobel test

value is found insignificant Sobel = 1.5841, p= 0.1132 it means that organization culture does

not act as mediator in the relationship between individual consideration and performance. So

this hypothesis is rejected.



Theses mediation results are supported by Rabia and Haque (2011) conducted study on

culture, dimensions of transformational leadership style (vogue) and performance and

reported that there is mediating effect of culture on these two variables.

H: There is significant Mediation effect of Culture on the relationship between Intellectual

Stimulation and Performance

Table 4.32 Hierarchical Regression between IC, OC, P

DV IV R R2

Coefficient

Sig F Sig

Culture Constant .1136 .0129 .0977 .0425 4.1466 .0425

I_Stimulati (a)

Performance Constant .3825 .1463 .3395 .000 27.08 .000

Culture(b)

I_Stimulati(C‟) .0069 .8642

Performance Constant .0523 .0027 .0400 .3519 .8692 .3519

I_Stimulati ©

Referring above Table for bankers concerning performance and intellectual

stimulation shows R2






= 0.0400, p= 0.3519 is found insignificant. Overall all the models were found fit the goodness

of fit index is measured by F value, for model 1 F= 4.1466, p= 0.0425, for model 2 F = 27.08,

p= 0.000, while for model 3 0.8692, p=0.3519. Normal theory test i.e. Sobel test value is

found significant Sobel = 1.9444, p= 0.0519 it means that organization culture does act as a

full mediator in the relationship between intellectual stimulation and performance. So this

hypothesis is accepted. Theses mediation results are supported by Hashmi, Rehman and Ilyas



(2018) conducted study on culture, dimensions of transformational leadership style and

performance and reported that there is mediating effect of culture on these two variables

H: There is significant Mediation effect of Culture on the relationship between Contingent

Reward and Performance

Table 4.33 Hierarchical Regression between CR, OC, P

DV IV R R2

Coefficient

Sig F Sig


CR (a)


Culture(b)

CR(C‟) .0246 .5319


CR ©

Referring above Table for bankers concerning performance and contingent reward

shows R2

= .0375, while coefficient for this model is found significant i.e. coefficient =

0.1612, p= 0.0005, this model represents path (a). In second model culture is entered in

regression equation and shows R2 = 0.1473, coefficient = 0.3347, p=0.000 and coefficient =

0.0246,p=0.5319, represents path (c‟), while in path (c) R2

= 0.0112, coefficient = 0.0785, p=

0.0588 is found significant. Overall all the models were found fit the goodness of fit index is

measured by F value, for model 1 F= 12.34, p= 0.0005, for model 2 F = 27.29, p= 0.000,

while for model 3 3.59, p=0.0588. Normal theory test i.e. Sobel test value is found significant

Sobel = 3.1245, p= 0.0018 it means that organization culture does act as a full mediator in the

relationship between contingent reward and performance. So this hypothesis is accepted.

Theses mediation results are supported by Burton and Peachey (2014) conducted study on

culture, dimensions of transformational leadership style and performance and reported that

there is mediating effect of culture on these two variables.



H: There is significant Mediation effect of Culture on the relationship between Management

by Exception Active and Performance

Table 4.34 Hierarchical Regression between MEA, OC, P

DV IV R R2

Coefficient

Sig F Sig


MEA (a)


Culture(b)

MEA(C‟) .0989 .0129


MEA ©

Referring above Table for bankers concerning performance and management by

exception active shows R2

= .0492, while coefficient for this model is found significant i.e.





= 0.1576, p= 0.0002 is found significant. Overall all the models were found fit the goodness

of fit index is measured by F value, for model 1 F= 16.41, p= 0.0001, for model 2 F = 30.72,

p= 0.000, while for model 14.67, p=0.0002. Normal theory test i.e. Sobel test value is found

significant Sobel = 3.4373, p= 0.0006 it means that organization culture does act as a partial

mediator in the relationship between management by exception active and performance. So

this hypothesis is accepted. Theses mediation results are supported by Naderi and Jadidi

(2014) conducted study on culture, dimensions of transactional leadership style and

performance and reported that there is mediating effect of culture on these two variables.



H: There is significant Mediation effect of Culture on the relationship between Management

by Exception Passive and Performance.

Table 4.35 Hierarchical Regression between MEP, OC, P

DV IV R R2

Coefficient

Sig F Sig


MEP (a)


Culture(b)

MEP(C‟) -.0082 .8272

Performance Constant .0350 .0012 .0252 .5334 .3888 .5334

MEP ©

Referring above Table for bankers concerning performance and management by

exception passive shows R2

= .0146, while coefficient for this model is found significant i.e.



coefficient = -0.0082, p=0.8272, represents path (c‟), while in path (c) R2

= 0.0012,

coefficient = 0.0252, p= 0.5334 is found insignificant. Overall all the models were found fit

the goodness of fit index is measure by F value, for model 1 F= 4.70, p= 0.0307, for model 2

F = 27.09, p= 0.000, while for model 3 .3888, p=0.5334. Normal theory test i.e. sobel test

value is found significant sobel = 2.0632, p= 0.0391 it means that organization culture does

act as full mediator in the relationship between management by exception passive and

performance. So this hypothesis is accepted.

Theses mediation results are supported by Imran Zahoor and Zaheer, (2014) conducted a

study on culture, dimensions of transactional leadership style and performance and reported

that there is mediating effect of culture on these two variables

“The Relationship between Transformational, Transactional Leadership Styles and Employees Performance Mediating Role of Culture Dimensions of Bankers In

District D.I.Khan KPK Pakistan.” 97

H: There is a Mean Difference between Gender and Research Variables

Table 4.36 T-Test Gender and Research Variables

Levenes T-Test

F Sig. t df Sig. (2-tailed) Mean

Difference

S.E Difference 95% C.I Difference

L U

I_Motivation

Equal variances assumed .322 .571 -1.034 317 .302 -.08942 .08646 -.25954 .08069

Equal variances not

assumed

-.998 75.548 .321 -.08942 .08958 -.26785 .08901

II_Behavior

Equal variances assumed .398 .529 -.311 317 .756 -.02672 .08582 -.19557 .14213

Equal variances not

assumed

-.323 81.077 .748 -.02672 .08283 -.19152 .13809

II_Atribute

Equal variances assumed 5.764 .017 -.976 317 .330 -.08665 .08878 -.26133 .08802

Equal variances not

assumed

-.821 67.787 .415 -.08665 .10558 -.29734 .12403

I_Consideration

Equal variances assumed 6.740 .010 1.185 317 .237 .10101 .08526 -.06674 .26876

Equal variances not

assumed

1.012 68.532 .315 .10101 .09978 -.09807 .30010

I_Stimulation

Equal variances assumed .555 .457 -.497 317 .619 -.04639 .09329 -.22993 .13715

Equal variances not

assumed

-.466 73.590 .643 -.04639 .09955 -.24478 .15199

C_Reward

Equal variances assumed 1.307 .254 .229 317 .819 .02208 .09635 -.16749 .21165

Equal variances not

assumed

.210 72.163 .834 .02208 .10527 -.18776 .23192

ME_Active

Equal variances assumed .557 .456 .241 317 .810 .02296 .09529 -.16451 .21044

Equal variances not

assumed

.258 84.006 .797 .02296 .08911 -.15424 .20017

ME_Passive

Equal variances assumed .369 .544 -1.087 317 .278 -.10772 .09909 -.30268 .08724

Equal variances not

assumed

-1.135 81.783 .260 -.10772 .09488 -.29648 .08104



First of all the very first assumption of t-test is to check the Levene's test on the off

chance that the estimation of Levene's test is insignificant, the researcher (specialist) can

continue to significant two-tailed value in the event that the presumption is violated, there is

no compelling reason to continue to significant two-tailed value. In above Table, the value for

inspirational motivation, idealized influence behavior, intellectual stimulation contingent

reward, management by exception active and passive are found insignificant so the researcher

can proceed to significant two-tailed but for idealized influence attribute and individual

consideration is the significant assumption is violated so null hypotheses is accepted.

For inspirational motivation levene‟s F = 0.322, p =0.571 significant 2 tailed = 0.302,

so null hypotheses for this inspirational motivation is accepted. Further examination of results

shows that idealized influence behavior Levene‟s Test F= 0.398, p=0.529, sig 2 tailed= 0.756.

so null hypotheses for idealized influence behavior is accepted. In same way for idealized

influence attribute F= 5.764,p=0.017 is found significant so 2 tailed = .415 so null hypotheses

is accepted for this idealized influence attribute. In addition, I.C F = 6.740,p=0.010, p =

0.315, for I.S F = 0.555, p= .457, p = .619, for C.R F = 1.307, p = 0.254, p = 0.819, for

management by exception active F = .557, p = .456, 2 tailed = 0.810, for management by

exception passive F = .369, p = 0.544, p = 0.278. hypotheses is rejected because of no

difference in mean.

“The Relationship between Transformational, Transactional Leadership Styles and Employees Performance Mediating Role of Culture Dimensions of Bankers In

District D.I.Khan KPK Pakistan.” 99

H: There is a Difference among public and private Sector and Variables

Table 4.37 T-Test Sector and Research Variables

Levene t-test s

F Sig. t df Sig. (2-tailed) Mean

Difference

S.E Difference 95% C.I

L U

I_Motivation

Equal variances assumed 1.963 .162 2.900 317 .004 .18995 .06549 .06110 .31881

Equal variances not

assumed

2.830 257.602 .005 .18995 .06712 .05778 .32213

II_Behavior


Equal variances not

assumed

.091 215.315 .927 .00638 .07002 -.13163 .14439

II_Atribute

Equal variances assumed 8.616 .004 -1.602 317 .110 -.10869 .06785 -.24217 .02480

Equal variances not

assumed

-1.529 232.547 .128 -.10869 .07110 -.24877 .03139

I_Consideration


Equal variances not

assumed

-1.026 237.045 .306 -.06997 .06821 -.20434 .06440

I_Stimulation

Equal variances assumed 10.784 .001 -.350 317 .726 -.02503 .07148 -.16567 .11561

Equal variances not

assumed

-.336 238.805 .737 -.02503 .07449 -.17178 .12171

C_Reward

Equal variances assumed 9.415 .002 1.300 317 .195 .09570 .07363 -.04915 .24056

Equal variances not

assumed

1.243 234.866 .215 .09570 .07700 -.05599 .24740

ME_Active


Equal variances not

assumed

.747 243.325 .456 .05656 .07571 -.09256 .20568

ME_Passive


Equal variances not

assumed

-1.494 212.445 .137 -.12083 .08088 -.28027 .03861




chance that the estimation of Levene's test is insignificant, the researcher (specialist) can

continue to significant two-tailed value in the event that the presumption is violated, there is

no compelling reason to continue to significant two-tailed value. In above Table, the value for

inspirational motivation, idealized influence behavior, intellectual stimulation contingent

reward, management by exception active and passive are found insignificant so the researcher

can proceed to significant two-tailed but for idealized influence attribute and individual

consideration is the significant assumption is violated so null hypotheses is accepted.

For motivation F = 1.963, p = .162, p = 0.004, in public and private sector banks

difference is reported in motivation of public sector and private sector employees. In

addition, for idealized influence behavior F = 15.575, p =0.000, p = 0.927, for idealized

influence attribute F = 8.616, p =0.004 p = .128, for IC F = 7.741, p = 0.006 p = 0.306, for IS

F = 10.784, p =0.001, p 0.737, for CR F = 9.415, p = 0.002, p 0.215, for MEA F = 5.498, p =

0.020 p= 0.456, for MEP F = 17.650 p = 0.000, p= .137.

It is concluded that the only sector has a difference for motivation in the public and

private sector while for other variables it does not have any difference.



Designation

H: There is Mean Difference among designation and Research Variables.

Table 4.38 Homogeneity of Variances

Levene Statistic df1 df2 Sig.

I_Motivation .597 3 315 .617

II_Behavior 4.757 3 315 .003

II_Atribute 2.808 3 315 .040

I_Consideration 1.254 3 315 .290

I_Stimulation 3.583 3 315 .014

C_Reward 1.733 3 315 .160

ME_Active .637 3 315 .592

ME_Passive 2.146 3 315 .094


chance that the estimation of Levene's is not significant, researcher ca use other p value in

order to see whether rule of thumb is violated or not. for idealized influence behavior,

attribute and stimulation are found significant so the assumption for ANOVA is violated for

these variables but for other variables, it is insignificant i.e. motivation, consideration,

contingent reward, management by exception active and passive. So the researcher can

proceed for ANOVA Table.



Table 4.39

ANOVA Test of Designation

ANOVA

Sum of

Squares

df Mean

Square

F Sig.

I_Motivation

Between

Groups .486 3 .162 .474 .701

Within Groups 107.749 315 .342

Total 108.236 318

II_Behavior

Between

Groups 1.120 3 .373 1.118 .342


Total 106.304 318

II_Atribute

Between

Groups 1.342 3 .447 1.250 .292


Total 114.072 318

I_Considerati

on

Between

Groups .522 3 .174 .523 .667


Total 105.359 318

I_Stimulation

Between

Groups .204 3 .068 .171 .916


Total 125.667 318

C_Reward

Between

Groups 1.967 3 .656 1.565 .198


Total 133.972 318

ME_Active

Between

Groups 1.579 3 .526 1.280 .281


Total 131.039 318

ME_Passive

Between

Groups .258 3 .086 .191 .902


Total 142.203 318

For inspirational motivation is F = 0.474, p = 0.701, for IIB F = 1.118,p = 0.342, for

IIA F = 1.250 p = .292, for IC= 0.523, p = 0.667, further examination of results shows that

intellectual stimulation F = 0.171, p = 0.916, for contingent reward F = 1.565, p = 0.198, for



management by exception F = 1.280, p = 0.281, for management by exception passive F =

0.191 p = 0.902.

H: There is a Difference IN Qualification and Variables

Table 4.40 Homogeneity of Variances Qualification

` Levene Statistic df1 df2 Sig.

I_Motivation .142 3 315 .935

II_Behavior .263 3 315 .852

II_Atribute 2.158 3 315 .093



C_Reward 1.216 3 315 .304

ME_Active .192 3 315 .902

ME_Passive .581 3 315 .628

Researcher has to see whether assumption of ANOVA is violated or not. P value for idealized

influence behavior, attribute and stimulation are found significant so the assumption for

ANOVA is violated for these variables but for other variables, it is insignificant i.e.

motivation, consideration, CR, MEA, and MEP. So the researcher can proceed for ANOVA

Table.



Table 4.41

ANOVA Test of Qualification

ANOVA

Sum of

Squares df Mean

Square F Sig.

I_Motivation

Between

Groups 2.085 3 .695 2.062 .105


Total 108.236 318

II_Behavior

Between

Groups .679 3 .226 .675 .568


Total 106.304 318

II_Atribute

Between

Groups 1.634 3 .545 1.526 .208


Total 114.072 318

I_Consideration

Between

Groups .829 3 .276 .832 .477


Total 105.359 318

I_Stimulation

Between

Groups .660 3 .220 .554 .646


Total 125.667 318

C_Reward

Between

Groups .687 3 .229 .541 .654


Total 133.972 318

ME_Active

Between

Groups 1.026 3 .342 .828 .479


Total 131.039 318

ME_Passive

Between

Groups 4.460 3 1.487 3.399 .018


Total 142.203 318

For inspirational motivation is F = 2.062, p = 0.105 for IIB F = 0.675,p = 0.568, for

IIA F = 1.526 p = .208, for IC= 0.832 p = 0.477, further examination of results shows that





3.399 p = 0.018.

Table 4.42Multiple Comparisons for Management by Exception

Tukey HSD

(I) Qualification

(J) Qualification

Mean

Difference (I-J)

Std.

Error Sig.

95% Confidence Interval

Lower

Bound Upper

Bound

GRADUATE

Master -.08291 .11863 .897 -.3893 .2235

M.phil .20037 .14395 .505 -.1714 .5722

PhD .44267 .31560 .499 -.3725 1.2578

MASTER

Graduate .08291 .11863 .897 -.2235 .3893

M.phil .28327* .10247 .031 .0186 .5479

PhD .52557 .29897 .296 -.2466 1.2978

M.PHIL

Graduate -.20037 .14395 .505 -.5722 .1714

Master -.28327* .10247 .031 -.5479 -.0186

PhD .24230 .30989 .863 -.5581 1.0427

PHD

Graduate -.44267 .31560 .499 -1.2578 .3725

Master -.52557 .29897 .296 -1.2978 .2466

M.phil -.24230 .30989 .863 -1.0427 .5581

*. The mean difference is significant at the 0.05 level.

From ANOVA Table F value is found significant so post hoc test is applied on this variable

i.e. management by exception passive. Post hoc test and Tukey value are applied it gives a

significant difference between two groups i.e. master and M.Phill. It means that respondents

having the master and M.Phil degree have the difference in their management by exception

passive leadership style.



H: There is a Difference in Length of Service and Variables.

Table 4.43Homogeneity of Variances of Length of Service


I_Motivation 1.373 4 314 .243

II_Behavior 2.450 4 314 .046

II_Atribute 3.478 4 314 .008



C_Reward 2.590 4 314 .037

ME_Active 1.112 4 314 .351

ME_Passive 1.629 4 314 .167

Researcher has to see whether assumption of ANOVA is violated or not. P value for

idealized influence behavior, attribute and stimulation are found significant so the assumption

for ANOVA is violated for these variables but for other variables, it is insignificant i.e.

motivation, consideration, contingent reward, management by exception active and passive.

So the researcher can proceed for ANOVA Table.



Table 4.44

ANOVA Test of Length of Service

ANOVA

Sum of

Squares df

Mean

Square F Sig.

I_Motivation

Between

Groups 2.047 4 .512 1.513 .198


Total 108.236 318

II_Behavior

Between

Groups 1.852 4 .463 1.392 .236


Total 106.304 318

II_Atribute

Between

Groups .387 4 .097 .267 .899


Total 114.072 318

I_Consideration

Between

Groups 1.834 4 .458 1.391 .237


Total 105.359 318

I_Stimulation

Between

Groups 1.204 4 .301 .759 .553


Total 125.667 318

C_Reward

Between

Groups 1.741 4 .435 1.033 .390


Total 133.972 318

ME_Active

Between

Groups 1.294 4 .323 .783 .537


Total 131.039 318

ME_Passive

Between

Groups 3.460 4 .865 1.958 .101


Total 142.203 318

for inspirational motivation is F = 1.513, p = 0.198 for IIB F = 1.392,p = .236, for IIA

F = .267 p = .899, for IC= 1.391 p = 0.237, further examination of results shows that



intellectual stimulation F = 0.759, p = 0.553, for (CR) F = 1.033, p = 0.390, for (MEA) F =

0.783, p = 0.537, for (MEP) F = 1.958 p = 0.101.

H: There is a Difference between Age and Variables

Table 4.45

Test of Homogeneity of Variances of Age


I_Motivation .186 3 315 .906

II_Behavior .470 3 315 .704

II_Atribute 2.327 3 315 .075

I_Consideration .773 3 315 .510

I_Stimulation .803 3 315 .493

C_Reward 1.132 3 315 .336

ME_Active .295 3 315 .829

ME_Passive 2.489 3 315 .060

Researcher has to see whether assumption of ANOVA is violated or not. P value. for

idealized influence behavior, attribute and stimulation are found significant so the assumption

for ANOVA is violated for these variables but for other variables, it is insignificant i.e.

motivation, consideration, contingent reward, management by exception active and passive.

So the researcher can proceed for ANOVA Table.



Table 4.46

ANOVA Test of Age

ANOVA

Sum of

Squares

df Mean

Square

F Sig.

I_Motivation

Between

Groups 1.179 3 .393 1.156 .327


Total 108.236 318

II_Behavior

Between

Groups 1.899 3 .633 1.910 .128


Total 106.304 318

II_Atribute

Between

Groups 1.197 3 .399 1.114 .344


Total 114.072 318

I_Consideration

Between

Groups .920 3 .307 .925 .429


Total 105.359 318

I_Stimulation

Between

Groups 2.567 3 .856 2.189 .089


Total 125.667 318

C_Reward

Between

Groups .656 3 .219 .517 .671


Total 133.972 318

ME_Active

Between

Groups 1.320 3 .440 1.068 .363


Total 131.039 318

ME_Passive

Between

Groups .594 3 .198 .440 .724


Total 142.203 318

for inspirational motivation is F = 1.156, p = 0.327 for IIB F = 1.910,p = .128, for IIA

F = 1.114 p = .344, for IC= .925 p = 0.429, further examination of results shows that





0.440 p = 0.724.



Chapter 5

Discussion Conclusion and Recommendation

5.1 Introduction

In this chapter, the link is created with the previous chapter i.e. empirical results. This

chapter has details of all the research its summary and its conclusions and its discussion along

with the implications and recommendation for future research and researchers. So this section

is very important because in this crux of the research is given.

5.2 Research summary

This is a cross-sectional investigation in which one time information was gathered and

utilized for examination. This study has used a deductive approach and positivist philosophy.

Primary data was collected from the banks of Pakistan.

In first chapter different things are mentioned and discussed in detail like a

background, nature of problem theoretical and methodological gap objectives hypothesis

significance of the study and definition of transformational and transactional leadership styles

culture and performance along with theoretical framework

The second chapter consists of the definition of leadership theories of leadership facet

of leadership i.e. Idealize influence attribute idealize influence behavior, Inspirational

motivation, individual consideration, intellectual stimulation, contingent reward, management

by exception passive management by exception active, also theories of culture facets

definitions also discussed along with performance definitions.

The third chapter is about research methods in which research philosophy design

research onion population sampling techniques measurements data collection methods and

research ethics are discussed.



In data analysis chapter solution of the problem using different data analysis

techniques are mentioned and used. In this survey 450 questionnaires were distributed in

banks out of which 319 completed questionnaires were collected back which were used in

this study the questionnaire consisted of 4 sections section a consists of transformational and

transactional leadership styles adopted from ( Bass & Avolio, 2002: Busari 2011) the second

section consists of culture adopted from (Hofstede, 2011) the third section consists of

employees performance adopted from (Gul, & Oktay, 2008) the fourth section consists of

demographic department qualification gender length of service and sector.

5.3 Discussion and conclusion

The first hypothesis was to identify the relationship between transformational

leadership styles and its facets and employees performance the second hypothesis was to

distinguish the connection between transactional leadership style its elements and

performance the third hypothesis was to decide the intervening impact of organizational

culture on the connection between transformational leadership its aspect and Performance.

The fourth hypothesis (speculation) was to examine the interceding impact of culture on the

connection between transactional leadership its elements and employees performance. The

last hypothesis was to find the mean difference between demographic variables and

transformational transactional, performance and culture.

First of all normality of the data was checked through skewness and kurtosis

according to Julia Pallant (2010), the acceptable range of skewness and kurtosis is -3 to +3.

According to Andy field, (2013) range of skewness and kurtosis is -1.96 to + 1.96 for sample

size 100. For sample size 200 it should be -2.58 to + 2.58. for sample size 300 and above it

should be in the range of -3.29 to + 3.29. in this study, all the data is found normal because of

all the values of skewness and kurtosis in the range.



Next reliability analysis was run to check the internal consistency. According to field

2013, the value of reliability i.e Cronbach alpha should be between 0 and 1 the value of .7 is

acceptable, .8 is considered good and .9 is excellent but value less .7 is questionable, .5 is

poor and .4 is not acceptable. In this study, all the questionnaires are found reliable.

In next step to check the validity of the questionnaire, validity can be checked through

exploratory factor analysis in EFA first KMO value and BTS value is checked for sampling

adequacy the value of KMO should be between 0 and 1. According to Blaike (2003), the

value of KMO is greater than .5 is acceptable. It is found that the value of KMO for

transformational leadership, transactional leadership performance and culture is discovered

(found) greater than .5. Then initial eigen values and factor loadings are also checked. It is

found that for transformational and transactional leadership 8 factors are found hence

replicated and validated the previous study of (Boss &Avolio 2002: Busari 2011) in the same

way factor analysis of performance and culture also replicated and validated the previous

study of (Hofsted 2011: Gul, H.,& Oktay, E. 2008).

In order to test the hypothesis, inferential statistics are used in which correlation is used to

check the hypothesis. Bivariate correlation is used when data is normal. The relationship

between motivation and performance is significance, while the relationship between

motivation and culture is insignificance and the relationship between culture and performance

is significant. The relationship between behavior and performance is significance while the

relationship between behavior and culture is also significant.

The relationship between attributes and performance is significant and the relationship

between attributes and culture is significant. The relationship between consideration and

performance is insignificance while the relationship between consideration and culture is

significant. The relationship between simulation and performance is insignificance while the

relationship between simulation and culture is significant. The relationship between reward



and performance is significance while the relationship between reward and culture is also

significant.

There is significant relationship between management by exception active and

performance. while the relationship between management by exception and culture is also

significant. There is insignificant relationship between management by exception passive and

performance while the relationship between management by exception passive and culture is

also significant.

The next objective was to find the most dominant factor among all the variables it is

found that among all variables i.e inspirational motivation, behavior, attributes, stimulation,

consideration reward active-passive, performance and culture. The beta value of culture is

found highest i.e 38.2 % higher than all variables. So the culture is the most dominant factor

in the model.

Hierarchical multiple regression introduced by Andrew F Hayes is used for mediation.

It is found that culture does not act as a mediator between inspirational motivation and

performance. Further examination of results found that culture act as a partial mediator

between idealizes influence behavior and performance. in the same way, culture does act as a

partial mediator between idealizing influence attribute and performance. but culture does not

act as a mediator between individual consideration and performance but act as a full mediator

between intellectual stimulation and contingent reward and performance but culture act as a

partial mediator between management by exception active and full mediator between

management by exception passive and performance.

T-test and ANOVA were performed to find the mean difference it is found that there is

no difference found on gender and research variables, in the same way, there is no difference

found between the sector and research variables except inspirational motivation shows the

difference on basis of the public and private sector. Further examination of result found that



designation brings no difference in leadership styles culture and performance. in addition,

qualification does not bring any difference in motivation behavior attribute stimulation

consideration rewards and management by exception active but Master and M.Phil.

Qualification brings change in the management by exception passive also age and length of

service do not bring any difference.

On the basis of above discussion, it is concluded that transformational leadership style

and its facets like idealized behavior and attitude, stimulation, motivation, and consideration

are positively related with performance and culture it means that when organizations would

improve their culture and leadership styles it would also increase the performance of the

employees and vice versa. Similarly, transactional leadership styles and its attributes rewards,

management by exception active and passive are positively related few of them are

insignificant but weak and positive, related to performance and culture. These results are in

line with the results of Advan and Abbas (2015) conducted a study on the transformational

and transactional leadership styles and performance and found a positive relationship.

Further, these results are also in line with the previous studies if Awamleh (2004) also

reported a positive relationship among transformational and transactional leadership styles

and performance. In addition, Alsheikh et al (2017) also reported that culture and

performance has a positive relationship between each other. Also, Imran Zahoor and Zaheer

(2012) reported that organizational culture mediated the relationship between leadership

styles i.e. transformational and transactional leadership styles and performance. On the basis

of above discussion, the first two objectives are approved while objectives three and four are

partially accepted. Because organizational culture does not act as a mediator between a few

variables and the last objective is partially accepted.

Our hypotheses are in line with those studies which have a direct relationship between

the construct so these studies are in line with our study, our mediation Hypotheses are in line



with those studies which have been conducted outside Pakistan and data was collected from

another sector.

The theory of leadership culture and performance need to be bridged and tested in

southern Kp and its Banks operating in that area, so this study has contributed to body of

Knowledge for banker, banks, state bank, IBP, and for manager of Banks to understand the

culture and its importance is highlighted in the form of most dominant factor in this study.

5.4 Contribution of Study

This research study has some novel contribution and has added in the literature and

results of leadership and culture.

5.4.1 Extended Knowledge in the Literature

Organization culture is very important in management settings. In this study culture is

added as mediator as suggested in the previous studies. The results of leadership with

performance and culture were very crucial to add in the literature of this area. So this study

has added culture as mediator in the theory of leadership styles.

5.4.2 Contribution in Leadership Theory

As this research project has used bass and Avolio model of leadership and added

culture as mediator so this study has contributed in the theory of leadership by adding

performance and culture as variables and try to report significant results with each other. This

study has led support from the studies of Bass and Avolio (1985) Bass and Avolio (2002) and

Busari (2011).

5.4.3 Methodological Validation

This study has validated the instrument of leadership styles taken from Bass and

Avolio (2002) and Busari (2011). All items are validated in Pakistan perspective and

instrument of performance and culture are also validated in Pakistan perspective adopted

from (Hofstede, 2011; and Gul& 2008). All the instruments reliability is checked and found



reliable the acceptable level of reliability is 0.7. Exploratory factor analysis was performed on

all instrument and found that this study has replicated the previous studies. This theory has

used process files for mediation; different results are reported in this study as previous studies

in banks used hierarchical regression identified by the Barron and Kenny (1986). The study

has used Also ANOVA and T-test for reporting results of leadership, performance, and

culture of banks with different demographics of bankers.

5.5 Contribution for Organizations

In this study various leadership styles are used and their results are reported these

results are helpful for the banking industry in Pakistan. Different banks can use these findings

and seek help in policy making for bankers in all over Pakistan. Because banks everywhere in

Pakistan have the same procedures and criteria for operations.

5.5.1 Implications for Institute of Bankers and State Bank of Pakistan

Almost every bank is working under the rules of state bank of Pakistan and Institute

of bankers in Pakistan. So these two institutes can take benefit from the findings of this study.

5.5.2 Contribution for Professionals

Those bodies are professional who have consultancies and training workshops can

raise awareness of the culture and leadership styles in the seminars and conferences and take

benefit from this work.

5.6 Limitations of the Study

Some restrictions or limitations are addressed here:

This study is conducted only in the city of Dera Ismail Khan, also this study has used

a very small sample size of 319. In addition, this study has used only one method of data

collection. The survey questionnaire was used for statistics collection. Also, this study has

used cross-sectional way of data collection.



5.7 Directions for Future

From this study, the researcher has some suggestions for upcoming research and for

new researchers who wish to work in the same area.

First of all, in the future study can use culture as a moderator also future studies can

use other leadership styles like digital leadership, ethical leadership can be used. in addition,

other mediator and moderator can be used in a future study for example decision making

talent management, knowledge management, and followership. Future study can also focus

on followership study along with leadership studies. This study has used cross-sectional way

of data collection, future study can use longitudinal data collection, qualitative data collection

or future study can use mix method also future study can use big sample size and use AMOS-

SEM and PLS-SEM for empirical analysis. State bank of Pakistan can use the findings and

enhance the culture of banks in Dera Ismail Khan as it is an unattractive area of Pakistan.

There is one more future direction that very limited studies conducted on leadership using the

qualitative approach with induction method and grounded theory. It would bring in-depth

information.

5.7.1 Directions for HR Professionals

Professionals can focus on the full range leadership model as well as other

management (leadership) models. Professionals can use their ways to inject the importance of

the culture and other leadership theories and models to change and enhance the performance

of employees.



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Annexure-I

The Relationship between Transformational, Transactional Leadership

Styles and Employees Performance Mediating Role of Culture Dimensions

of Bankers in District D.I.Khan KPK Pakistan

Dear valued participant,

You have been selected to be a participant in this study. This questionnaire is designed to

describe your leader‟s style and employee‟s performance as you perceive it. The mediating

effect of organizational culture also being measured. Please answer all items on this booklet.

The relationship of leadership style and employees performance with organizational culture

has not been widely researched and it is important to fill in the gaps that exist in particular in

the Pakistan‟s banking context. The findings of this research will be useful for IBP to

contribute for policy development regarding banking employees.

Regards

Dr. Yasir Hayat Mughal

Mehran Saeed Assistant Professor

Ph.D. Scholar Qurtuba University Management Science

Qurtuba University Ph.D Malaysia

Management Science FCSHD

[email protected]

Email:[email protected]

D.I.Khan

Pakistan



HOW TO FILL IN THE

QUESTIONNAIRE

1. This questionnaire is divided into four

(4) sections. You are required to fill in

all the sections. It will take

approximately 20-30 minutes to

complete.

2. Most of the questions require you to

circle [0] or tick [√] the best option

that represents your view.

3. There are no right or wrong answers.

Thus, your frank and complete

response is very much appreciated.

4. In some of the questions, you may find

it difficult to decide a response. If this

happens, choose an option that suits

you best.

5. Please return the completed

questionnaire in the envelope

provided.

6. If you need any assistance on how to

fill in the questionnaire or interested

for the final results of this study,

please contact me via the above

address.

ASSURANCE OF CONFIDENTIALITY

1. Your responses to every part in this

questionnaire are strictly confidential.

2. The returned questionnaires will be treated

with the utmost confidence and no identities

will be included within the final report.

Code:________________

[The purpose of this code are:

o to avoid sending another set

of questionnaire to the same

person

o to match between leaders and

followers]

Thank you very much indeed for your precious time and co-operation.

SECTION A: Transformational & transactional Leadership styles

Instructions: Please answer honestly and CIRCLE [0] the option that you feel best represents

the person you are describing There are no right or wrong answers. Use the following rating

scale

Not at all Once in a

while Sometimes Fairly Often

Frequently, if

not always

0 1 2 3 4

S# Items

Scales 0 1 2 3 4

1 Talks enthusiastically about what needs to be

accomplished 0 1 2 3 4

2 Talks optimistically about the future 0 1 2 3 4

3 Articulates a compelling vision of the future 0 1 2 3 4



4 Expresses confidence that goals will be

achieved 0 1 2 3 4

5 Talks about their most important values and

beliefs 0 1 2 3 4

6 Specifies the importance of having a strong

sense of purpose 0 1 2 3 4

7 Considers the moral and ethical consequences

of decisions 0 1 2 3 4

8 Emphasizes the importance of having the

collective sense of mission 0 1 2 3 4

9 Instills pride in me for being associated with

him/her 0 1 2 3 4

10 Goes beyond self-interest for the good of the

group 0 1 2 3 4

11 Acts in ways that builds my respect 0 1 2 3 4

12 Displays a sense of power and confidence 0 1 2 3 4

13 Spends time teaching and coaching 0 1 2 3 4

14 Treats me as an individual rather than just as a

member of a group 0 1 2 3 4

15 Considers me as having different needs,

abilities, and aspirations from others 0 1 2 3 4

16 Helps me to develop my strengths 0 1 2 3 4

17 Re-examine critical assumptions to question

whether they are appropriate 0 1 2 3 4

18 Seeks differing perspectives when solving

problems 0 1 2 3 4

19 Gets me to look at problems from many

different angles 0 1 2 3 4

20 Suggests new ways of looking at how to

complete assignments 0 1 2 3 4

Transactional leadership styles

21 Provides me with assistance in exchange for my

efforts 0 1 2 3 4

22 Discusses in specific terms who is responsible

for achieving performance targets 0 1 2 3 4

23 Makes clear what one can expect to receive

when performance goals are achieved 0 1 2 3 4

24 Expresses satisfaction when I meet expectations 0 1 2 3 4

25 Focuses attention on irregularities, mistakes,

exceptions, and deviations from standard 0 1 2 3 4

26 Concentrates his/her full attention on dealing

with mistakes, complaints, and failures 0 1 2 3 4

27 Keeps track of all mistakes 0 1 2 3 4

28 Directs my attention toward failures to meet

standards 0 1 2 3 4

29 Fails to interfere until problems become serious 0 1 2 3 4

30 Waits for things to go wrong before taking

action 0 1 2 3 4



31 Shows that he/she is a firm believer in “If it

ain‟t broke, don‟t fix it” 0 1 2 3 4

32 Demonstrates that problems must become

chronic before taking action 0 1 2 3 4

SECTION B: Organizational Culture & Employee Performance

Instructions: How far do you Agree or Disagree with the following statements on 5-point scale:

Strongly Agree Agree Undecided Disagree Strongly Disagree

5 4 3 2 1

1. In this society, power is: Shared throughout the society 5 4 3 2 1

2. In this society, orderliness and consistency are stressed, even at the

expense of experimentation and innovation. 5 4 3 2 1

3. In this society, leaders encourage group loyalty even if individual

goals suffer.

5 4 3 2 1

4 In this society, man is more likely to serve in a position of high

office

5 4 3 2 1

5 In this society, women is more likely to serve in a position of high

office

5 4 3 2 1

6 In this society, people place more emphasis on: Solving current

problems.

5 4 3 2 1

7 In this society, people are rewarded for excellent performance 5 4 3 2 1

Employee Performance

8 I devote a lot of energy to my job 5 4 3 2 1

9 I complete my work in time 5 4 3 2 1

10 I can overreach my targets in my work. 5 4 3 2 1

11 I‟m sure that I overreach the standards against the quality of service

I supplied.

5 4 3 2 1

12 I can reach ready solutions whenever a problem shows up. 5 4 3 2 1

13 Weak performance evaluates results lead to punishment 5 4 3 2 1

14 Employees are capable of performing multi-task in specific time

period.

5 4 3 2 1

15 Employees possess abilities to communicate effectively. 5 4 3 2 1

16 Employees have professional dealing with their colleagues 5 4 3 2 1



SECTION C: DEMOGRAPHIC CHARACTERISTICS

Please mark a tick in the appropriate box

1.Deptt/Institution: ___________________________________

2.Designation: OG-III OG-II OG-I AVP

3.Qualification: Graduate Master MS/MPhil

4.Gender: Male Female

5.Length of Service: 1-5 6-10 11-15 16-20 Above 20

6.Age: 21-30 31-40 41-50 51-60 Above 60



Annexure -II

List of Banks (Public & Private) In District D.I.Khan

Bank Name

No. of Branch’s

in District

D.I.Khan

No. of

Employee

50% of the total

population

SBP 1 36 18

NBP 14 196 98

Bank of Khyber 3 50 25

Bank of Punjab 2 26 13

Khushkhali Bank 2 50 25

ABL 6 114 57

UBL 8 116 58

MCB 3 40 20

Meezan Bank 1 16 8

Faysal bank 1 15 7

JS bank 1 18 9

Al-Barka Bank 1 18 9

Al-Falah Bank 4 68 34

Bank Islami 2 22 11

Askari Bank 2 24 12

Zarai Taraqiati Bank 3 36 18

HBL 7 133 66

Habib Metro Bank 1 12 6

Bank Al-Habib 2 22 11

Total employees 64 1012 506



Annexure -III

Documents

The Relationship between Transformational, Transactional