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Transformational leadership and employee engagement in the banking sector in Bangladesh

Author

Listed:
  • Soleman Mozammel
  • Perry Haan

    (Gulf University, Bahrain
    Tiffin University, USA)

Abstract

Transformational leadership is needed today to facilitate employee engagement and increase productivity. This quantitative study aimed to determine the connection concerning transformational leadership and engagement among personnel in the banking sector in Bangladesh. The study involved the financial sector of Bangladesh. The financial sector of Bangladesh is small and underdeveloped. The banking sector, which is included in the financial sector, is emergent but still underdeveloped compared to international standards. The banking sector of Bangladesh has improved compared to the 1990s. Bangladesh banks’ leadership or supervisory system is one of the reasons for its ineffectiveness, because employee well-being is not considered a priority in Bangladesh. However, effective leadership and engaged employees are important in any organization. Since the banking sector of Bangladesh is still underdeveloped and inefficient, the study investigated whether employee engagement would help develop the banking sector. Because transformational leadership facilitates employee engagement the specific problem this study examined was the connection between a transformational leadership style and employee engagement in the branch-banking sector in Bangladesh. This quantitative study examined the connection between transformational leadership and engagement among personnel in the branch-banking sector in Bangladesh. The independent variable was transformational leadership, which relates to the capability of the leader to provide an environment that engages their employees. The dependent variable was work engagement, which pertains to the level of commitment among employees in the organization. The main research question examined the correlation between the study variables among employees in the branch-banking sector in Bangladesh. The outcomes of this study revealed that in a work environment, applying transformational leadership style does not assure that the employees will be fully engaged. However, the results of the current study are not aligned with the existing body of literature on transformational leadership and employee engagement that state there is alignment between these variables.

Suggested Citation

  • Soleman Mozammel & Perry Haan, 2016. "Transformational leadership and employee engagement in the banking sector in Bangladesh," Journal of Developing Areas, Tennessee State University, College of Business, vol. 50(6), pages 43-55, Special I.
  • Handle: RePEc:jda:journl:vol.50:year:2016:issue6:pp:43-55
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    Cited by:

    1. Change Doris Otieno & Teresia Linge & Damary Sikalieh, 2019. "Influence of idealized influence on employee engagement in parastatals in the energy sector in Kenya," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 8(5), pages 123-135, September.
    2. Nazia Habib & Sajid Hussain Awan & Shaheryar Naveed & Chaudhry Shoaib Akhtar, 2020. "Effectiveness of Interpersonal Leadership for Engagement and Task Performance of Nurses," SAGE Open, , vol. 10(2), pages 21582440209, May.
    3. Anouk Decuypere & Wilmar Schaufeli, 2021. "Exploring the Leadership–Engagement Nexus: A Moderated Meta-Analysis and Review of Explaining Mechanisms," IJERPH, MDPI, vol. 18(16), pages 1-34, August.
    4. Xiangyu Song & Mishal Khosa & Zeeshan Ahmed & Abdulaziz Fahmi Omar Faqera & Nhat Tan Nguyen & Shafique Ur Rehman & Yueyong He, 2022. "Linking Transformational and Despotic Leadership to Employee Engagement: Unfolding the Role of Psychological Distress as a Mediator," Sustainability, MDPI, vol. 14(14), pages 1-21, July.
    5. Change Doris Otieno & Teresia Linge & Damary Sikalieh, 2019. "Influence of intellectual stimulation on employee engagement in parastatals in the energy sector in Kenya," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 8(6), pages 148-161, October.

    More about this item

    Keywords

    leadership; employee engagement; banking; transformation;
    All these keywords.

    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M19 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Other

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