Authors:
Kirthi F. Chapparamani, Asila Abdullah Saif Al Hinai, K. Latha, Nasima Khaleel Ahamed

Addresses:
Department of Sociology, School of Humanities and Social Sciences, JAIN (Deemed-to-be University), Bengaluru, Karnataka, India. College of Economics and Business Administration, University of Technology and Applied Sciences (UTAS), Nizwa, Ad Dakhiliyah, Sultanate of Oman. Department of Commerce, SCMS School of Technology and Management (SSTM), Cochin, Kerala, India. Department of Agribusiness and Commerce, Lincoln University, Lincoln, Canterbury, New Zealand.

Abstract:

Motivating employees, aligning strategy to direction, and culture change are all critical parts of leadership that impact organisational results. The present study was conducted across Indian organisations and examined the association between leadership styles and organisational outcomes. It used a quantitative cross-sectional design and administered the survey to 350 employees from the IT, manufacturing, healthcare, and financial services sectors in Delhi NCR, Mumbai, Bengaluru, and Pune. The Multifactor Leadership Questionnaire and the Organizational Performance Scale were used to collect data. Researchers tested the hypothesis that transformational leadership would have a statistically significant positive effect on organisational performance compared with transactional and laissez-faire leadership. Researchers found that transformational leadership was used in 48% of organizations; these organizations had average performance scores of 4.32 (on a 5-point scale), compared with 3.67 and 2.85 for transactional and laissez-faire leadership, respectively. Results provide statistical evidence that transformational leadership explains 39.2% of the variance in organisational performance (β = 0.418, p < 0.001). Transformational leadership thus facilitated a 58% improvement in employee engagement and a 77% improvement in innovation capacity compared to their laissez-faire counterparts. According to the study, transformational leadership is the most effective approach for modern Indian firms. To benefit from transformational leadership, many organisations must systematically develop leadership. Transformational capabilities help companies outperform competitors financially, innovate more, and retain personnel. 

Keywords: Transformational Leadership; Organisational Performance; Employee Engagement; Leadership Effectiveness; Organisational Culture; Financial Services; Transformational Capabilities.

Received on: 07/01/2025, Revised on: 30/03/2025, Accepted on: 13/07/2025, Published on: 09/05/2026

DOI: 10.69888/FTSML.2026.000650

FMDB Transactions on Sustainable Management Letters, 2026 Vol. 4 No. 2, Pages: 48-55

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