A Study of Transformational Leadership Behavior and Employee Performance in Chinese Futures Firms

Abstract

This study purpose is to propose that transformational leaders provoke organizationally beneficial behaviours (e.g., better task performance and helping behaviours) in their followers by igniting their followers’ commitment to work with various behaviours. Employees who are motivated by transformational leaders are more likely to be immersed in their work, and organizational commitment will lead to better task performance. In this study, we used a quantitative research method. The design of this study collected data on the relationship between transformational leadership, employee performance, and organizational commitment from 750 employees in ten futures companies in five cities, Shanghai, Beijing, Guangzhou, Shenzhen, and Chengdu, China, through interviews and questionnaires, and used multiple regression tests and structural equation modelling techniques to validate the results. After discussing the concept of transformational leadership and its dimensions, as well as the idea of employee performance and organizational commitment and their influencing factors, the findings confirmed a correlation model between transformational leadership, employee performance, and organizational commitment and further assessed the correlation among the three and argued that they showed a positive correlation. Through questionnaire survey and data analysis, the influence paths and intensity of influence are clarified, the theoretical model is further revised, and the modelling foundation is solidified to provide a theoretical basis for research related to employee job performance in Chinese futures companies. For the theoretical and practical implications, this study contributes to the research on leadership during the transition period of China’s futures industry and analyses its impact on job performance indicators.