Impact of Transformational and Transactional Leadership On Employee Job Performance and Job Satisfaction in UAE Banking Sector

Past three to four decades leadership concept has become increasingly complex and highly structured. Leader is one who can motivate people thus ensuring that the set goals and targets are achieved. Different persons (leaders) may approach different ways, methods and means of achieving the same. Leadership is not merely a display of characteristics. It is a continuous journey – a journey of moving from one place to another place, one level to another level. Every leader needs followers - followers who are committed, dedicated and willing. Even when the leader returns to the same point, there is a different level of maturity, understanding and thinking. This research aims to identify the impact of transformational and transactional leadership styles on employee job performance and job satisfaction through focusing on management styles in three different banks by collecting opinions of the bank employees. Objectives include (i) study difference between transactional and transformational leadership (ii) identify and evaluate the impact of leadership on employee job performance (iii) identify and evaluate the impact of leadership on employee job satisfaction and finally put forward few recommendations in relation to the evaluation of results and analysis. A Multifactor Leadership questionnaire (MLQ) questionnaire was designed for the survey that included a total of 28 questions, of which 20 questions were based on transformational leadership style and the rest 8 questions on transactional leadership style. Survey was conducted in three banks in Al Ain, UAE which included 54 participants. Results of the questionnaire were analyzed in percentages. The survey results indicated that though transactional method of leadership still persists in minor form but overall the management should take into consideration transformational leadership. There is no doubt that being able to inspire people, stimulate them to think differently and pay attention to their needs are great ways for a leader to behave. It is emphasized that if a leader has good content and integrity and can present a case for change with enough enthusiasm to inspire people there can be better communication. Being inspirational is most useful in situations where there is no evidence or the facts are unclear. This is especially true with clashes of values or standards of behavior. The truth is, however, that different influencing styles work better with different audiences.