Link between Transformational Leadership and Organizational Efficiency & Employee Performance

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The British University in Dubai (BUiD)
The study investigated the impact of transformational leadership on efficiency and employee performance in engineering organizations in the United Arab Emirates (UAE). During the last two decades, transformational leadership (TL) has gained much importance and a conspicuous place in leadership philosophies. Therefore, it is not surprising that the current evolution in leadership theory and practice has increased a lot of attention from researchers and practitioners in the context of organizational efficiency. The problems in all organizations are present, and moving on with them is necessary. The issues addressed in this proposal and solved are related to efficiencies and completing tasks and projects on time. The study’s specific objectives were to analyse the impact of transformational leadership on the efficiency of organizations, to identify the impact of transformational leadership on employee performance, and to recommend way through which the efficiency of organizations can be improved using the TL approach by the end of 2024. Therefore, this investigation will explain the best approach to managing the followers and improving the overall efficiency of business operations without negatively influencing followers’ motivation. The specific problem addressed in this study is finding inspiration among followers through the TL approach and completing all the tasks in time without losing motivation. For this purpose, the companies operating in the construction engineering sector will be presented with recommendations for improving efficiency. The primary methodologies adopted in the study included a descriptive research design and a quantitative research approach that influenced the selection of subsequent techniques. Purposive sampling was used in selecting participants from whom the data was collected using a 5-point Likert scale questionnaire adapted from past studies and modified to suit the current investigation’s aims. Descriptive statistics were used to analyse demographic data while inferential statistics, including linear regression analysis and correlation analysis to determine and test the nature of relationships between independent and dependent variables. The findings demonstrated that transformational leadership significantly influences organizational efficiency, a determination which aligns with previous studies. Besides, it was found that TL further significantly influences employee performance in the UAE’s engineering and construction sector. Based on the findings, it was recommended that leaders should set clear and challenging goals, create a supportive and collaborative work environment, and provide opportunities for employee development and growth. Besides, they should foster an environment of innovation and creativity and ensure that communication and feedback channels are open and effective. Hence, organizations can nurture a culture that supports transformational leadership to foster creativity and innovation, critical in strengthening internal competitiveness.
transformational leadership, organizational efficiency, employee performance, United Arab Emirates (UAE)