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Abstract
In today's competitive and complex business landscape, the organizations have to confront a vast gamut of changes like innovation in technology, socio-economic changes, and that calls for requirement of highly effective leadership. The transformational leadership style is best suited in such environment as it generates intense employee involvement, which is a key factor of organizational performance. This study investigated how transformational leadership in general and its 5 dimensions viz Intellectual stimulation, Individualised consideration, Inspirational motivation, Idealised influence attributed, Idealised influence behaviour in particular which impact the organizational performance. This study has been conducted in Haryana and NCR and the descriptive research design has been used in it. For data collection, the survey method through a structured questionnaire has been used which consists the sample of 139 respondents by using convenience sampling. For the analysis of data, statistical technique like correlation and regression analysis was used with the help of SPSS 21 version. The results of this study revealed that the Intellectual Stimulation dimension of transformational leadership was the most significant factor in influencing the Organizational Performance. This study concluded that the dimension Intellectual Stimulation significantly impacts the organizational performance.
Keywords: Leadership Style, Transformational Leadership style, Intellectual Stimulation, Individualised Consideration, Inspirational Motivation, Idealised Influence Attributed, Idealised Influence Behavior and Organizational Performance.
JEL Classification: L200, L250, M100
1. Introduction
With increasing globalization and competition, organizations are forced to face challenges such as ever changing technology, scarcity of skilled manpower, and obsolescence of products and services, which are forcing organizations to transform their resources for surviving and thriving in the long run. To overcome this changing scenario, the leadership styles assumes great importance as it is only through leadership that one can manage the change and improves the organizational performance. Leadership is practiced when leader utilizes the resources, and the followers achieve their target as well (Burns, 1978, p.18). The study of Das et al., (2014) concluded that the most influenced leadership style in the organizations was founded to be servant leadership. A transformational leader motivates their followers which encourage them to accept challenges to do work by knowing their capabilities and potential which boost the performance of employees (Avolio et al., 2009). Transformational leadership stimulates confidence in followers for fulfilling their common needs through motivating...