Transformational and Transactional Leadership as a Function of Employee Performance

Purpose: Using responses from 176 employees working in the top leadership role in the FMCG sector of Pakistan, this study aimed to investigate the effect of transformational and transactional leadership on employee performance. Design/Methodology/Approach: A quantitative approach was adopted, while a convenience sampling technique was used for data collection. The results were analyzed using the SmartPLS and SPSS, i.e., Partial Least Square, and the Measurement Model included Confirmatory Factor Analysis and Factor Loadings. Findings: According to the findings of our study, transactional (TRLS) and transformational leadership (TFLS) are positively correlated with employee performance. Thus, transformational and transactional leadership positively affect employee performance in Pakistan’s FMCG sector Implications/Originality/Value: This study shall help the directors, top management, and executives working in the leadership roles to develop better pathways for achieving high objectives in terms of performance.