The Effect of Branch Managers' Transformational Leadership on Job Performance: Focusing on the Mediating Effect of Psychological Empowerment in the Financial Sector

Abstract

This study was conducted to investigate the effect of branch managers' transformational leadership on job performance and to understand the mediating effect of psychological empowerment in the financial sector. In order to achieve the purpose of the study, a survey was conducted on all employees except the branch manager working at N Bank, and the responses of 243 copies were used for analysis. For hypothesis verification, SPSS 21.0 and AMOS 23.0 were used to analyze factor analysis, correlation analysis, and estimate coefficients in structural equations. As a result of the analysis, it was found that the branch manager's transformational leadership had a positive (+) effect on job performance and psychological empowerment, and psychological empowerment mediated the relationship between transformational leadership and job performance. This study presented theoretical and practical implications in terms of how branch managers should demonstrate leadership for members in the financial sector, which is highly dependent on excellent human resources due to the nature of providing face-to-face services to customers.