THE EFFECT OF LEADERSHIP STYLES (TRANSACTIONAL

& TRANSFORMATIONAL) ON TURNOVER INTENTION OF

THE WORKERS OF PUBLIC SECTOR; THE ROLE OF
AFFECTIVE COMMITMENT AS A MEDIATOR
ALI ABDUL RAZZAQ (Corresponding Author)
Superior College of Accountancy, Superior University, Lahore
Email: alirazzaq39@hotmail.com

RAMSHA KHALID
Superior College of Accountancy, Superior University, Lahore
Email: Ramshakhalid44@gmail.com
 Introduction
 Actual leaders are those who by their thoughtfulness and moderate
behavior, engage people for collective gains and pluralism (Mintzberg,
2010).

 This study mainly targeted the organizations of public sector of Pakistan in

which the turnover rate is going up very rapidly during last two years. This
study investigated and explored the association among Transformational
leadership, Transactional leadership, Affective commitment and Turnover
intention of the employees. Primarily, this research anchors role of affective
commitment as a mediator in relationship of Leadership Behaviors
(Transactional & Transformational) with Turnover intention of public sector
employees.
 Problem Statement

 Towering unpleasant employee’s turnover is a ubiquitous affair for the

organizations of Private as well as Public sector in today’s world which arose
large costs for the organizations. Also Organizations with large turnover rate
cannot have a competitive advantage over its competitors and experienced staff.

 The Problem was whether leadership styles actually impact the turnover intention
of the employees of the public sector of the Pakistan and what is the role affective
commitment in such scenario.
 Purpose of the Study
 The main purpose of the study was to find the relationship of
leadership styles and turnover intention in the pubic sector of Lahore,
Pakistan.

 Also to check the affective commitment as a mediator among the

leadership styles and turnover intention to find the actual role that
affective commitment plays while considering the leadership styles.;
 Literature Review

 Anku-Tsede, Amankwaa (2015).

 Hamidifar (2010).

 To get the job done by the subordinates, leaders are required to supply the right level
of motivation, stimulation and rewards to them.

 Whether it is to use strict procedures or giving preference to the employees and their
interest, leadership has always been consequential in nature (Northouse, 2007).
 Transformational Leadership

 Buns (1978) , Bass (1985)

 Transformational leaders influence followers’ organizational commitment by

encouraging followers to think critically by using novel approaches, involving
followers in decision-making processes (Avolio, 1999; Bass & Avolio, 1994).

 Bass And Riggo et al. (2006) (Enthusiasm, Imagination, passion and energy)

 Transformational leadership has significant direct impact on the employee's

turnover Intention of the employees. ( Lim, Loo, Lee (2017).
 Transactional Leadership
 It is conventional way of leadership which mainly emphasizes on cost and benefit
exchange to do certain tasks that leads to the achievement of the organization
targets or goals (Northoue, 2006).

 Transactional leadership is aligned with maintaining the status quo and focuses
on the transactions between leaders and their Followers. (Bass & Avolio, 1990).

 There is a strong association exists between transactional leadership style and

Turnover Intention of the employees ( Angeline , Sudha (2014) . Same views
have been supported by the research of Lim, Loo and Lee (2017).
 Affective Commitment
 Affective commitment which refers to the level of mental attachment that an
employee has though feelings such as loyalty, affection for the organization. etc.
(Jaros al...).

 If an employee can identify himself or herself to the organization, it is likely that

the employee will have higher level of organizational ( Affective Commitment)
and lower level of Turnover Intetnion.(Avanzi, Fraccaroli, Sarchielli, Ullrich and
Dick (2014).

 Affective Commitment Contributes positively to organizational outcomes such as

improved performance and productivity, improved inovation, higher level of job
satisfaction, lower level of absenteesm and turnover intention. (Natarajan, 2011).
 Turnover Intention
 Turnover intention can be described as a deliberate desire of the employees to
leave the organization within near future (Harpert, 2013).

 According to khan (2015) before an employee reach a conclusion of quitting the

organization there is a final concluding process that is called turnover intention.

 Leadership styles (Transactional and Transformational) have a very strong impact

on turnover intention (Tes & Lam, 2008: Wells and Peachy, 2011).

 The turnover intention is also influenced by other variables like job satisfaction,
job commitment, job performance, job commitment. (Chan, Yeoh, Lim & Osman,
2010; Zimmerman & Darnold, 2009; Yucel, 2012).
 Hypotheses

 H1: The intention of the workers of public sector about abandoning the job is
inversely affected by the transformational leadership style of the leaders.

 H2: The intention of the workers of public sector about abandoning the job
has the positive relationship with transactional leadership style of the leaders.

 H3: Affective commitment affects the relationship of transformational

leadership with turnover intention of the workers as a mediator.

 H4: Affective commitment affects the relationship of transactional leadership

with turnover intention of the workers as a mediator.
 Theoretical Framework

Transformational
Leadership

Affective H3, H4 Turnover

Commitment Intention

Transactional
Leadership
 Methodology

 Research Philosophy: Positivism

 Research Approach: Deductive
 Research Strategy: Survey Method
 Research Choice: Mono Method
 Research Design: Cross-sectional (Snapshot Study)
 Data Collection Methods: Self-Administered Questionnaires
 Response rate is 93%.
 Reliability Analysis
Variables Cronbach Alpha VLUE
ITEMS USED TO MEASURE
0.797
TRANSACTIONAL LEADERSHIP

ITEMS USED TO MEASURE

0.826
TRASFORMATIONAL LEADERSHIP

ITEMS USED TO MEASURE

0.796
AFFECTIVE COMMITMENT
ITEMS USED TO MEASURE
0.66
TURNOVER INTENTION
 Demographic
Classification Categories Frequencies Percentages
Gender Male 184 60.3
Female 121 39.7
Age 20-to-25 Y.O 66 21.6
25-to-30 Y.O 33 10.8
30-to-35 Y.O 113 37.0
35-to-40 Y.O 16 5.2
40-to-45 Y.O 7 2.3
45-to-50 Y.O 18 5.9
>51 Y.O 52 17.0
Sector Public 305 100.0
Private 0 0.0
Experience Status <1 Y 15 4.9
1-to-2 Y 38 12.5
2-to-3 Y 34 11.1
3-to-4 Y 14 4.6
4-to-5 Y 7 2.3
5-to-6 Y 16 5.2
6-to-7 Y 68 22.3
 Correlations

TSL TFL AC TI
TRANSACTIONAL Correlation 1.00
Significance
Total responses 305
TRANSFORMATIONAL Correlation -.756** 1.00
Significance .000
Total responses 305 305
AFFECTIVE_COMMITM Correlation -.696** .822** 1.00
ENT Significance .000 .000
Total responses 305 305 305
TURNOVER_INTENTIO Correlation .721** -.738** -.633** 1.00
N Significance .000 .000 .000
Total responses 305 305 305 305
 Model Summary: Regression

Model R R Square Adjusted R Std. Error of

Square the Estimate

1 .779 .606 .604 .62697

 ANOVA

Model Sum of square Df Mean square F Sig.

Regression 182.835 2 91.417 232.557 .000

Residual 118.715 302 .393

Total 301.550 304

 Coefficients

Standardize
Unstandardized d
Coefficients Coefficients
Model B Std. Error Beta T Sig.
1 (Constant) 3.321 .332 9.990 .000
TRANSFORMATIONA
-.472 .058 -.450 -8.163 .000
L_Leadership
TRANSACTIONAL_
.416 .060 .380 6.888 .000
Leadership
Mediation: Preacher and Hayes (2016)

.1932**
0.0689
 Conclusion
 The study has found that Transformational Leadership has a consequential negative impact on the
Turnover Intention of the Employees of public sector.

 The study has found that Transactional Leadership has a consequential positive Impact on the
Turnover intention of the employees of public sector.

 This study unique contribution is mediation of Affective Commitment in the relationship between
Transactional Leadership and Turnover Intention of the employees.

 Another Unique Contribution of this Study is that Turnover Intention of employees is not indirectly
affected by the transformational leadership through Affective commitment (Mediator). So affective
commitment has no mediating effect in the relationship between transformational leadership and
Turnover Intention of the employees.
 Limitations & Future Directions
 This study has used Cross-Sectional design, ignoring the time sequence of the
variables, which made it impossible to understand the causality. Therefore more
data or longer style of research design might predict better results.

 SPSS 23.0 was used for quantitative analysis. More sophisticated software (such
as AMOSS) or techniques can be used (Such as SEM).

 Limited geographic, sample size and the size of the population has been used for
the study that may affect generalization of outcomes of results. So, higher level
of sample size might produce better results.

 A future study may be done with large population, other sampling techniques and
should examine other factors with Turnover Intention.