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Rethinking Transformational Leadership and Workforce Dynamics for the Human -Centric Tech Era: Insights into Employee Engagement, Satisfaction and Job Performance

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  • Krywalski-Santiago Joanna

    (Universidade de Lisboa, ISEG – Lisbon School of Economics and Management, Portugal)

Abstract

Objective This study examines the impact of transformational leadership on key employee outcomes, including affective organizational commitment, job performance, employee engagement, and job satisfaction, within the context of today’s rapidly evolving, human -centric tech era. With the integration of advanced technologies and shifting workforce expectations, understanding leadership’s role in fostering adaptability, motivation and satisfaction becomes increasingly critical. While transformational leadership is often praised for its positive effects, this research investigates whether its influence is consistently beneficial, particularly in the current organizational climate shaped by the interplay of technology and human values. Methodology A quantitative research approach was employed, gathering data via an online survey from employees across diverse industries. A final sample of 251 responses was analysed using SmartPLS software to construct and estimate a Partial Least Squares Structural Equation Model (PLS-SEM). This method enabled the rigorous evaluation of relationships between transformational leadership and the selected employee outcomes. Findings The findings confirm that transformational leadership significantly enhances affective organizational commitment and employee engagement. Notably, the strongest relationship in the model was between employee engagement and job satisfaction, underscoring the critical role of engagement as a mediator. While transformational leadership positively influenced engagement and commitment, its direct impact on job performance was showed to be negative, revealing nuanced dynamics in the leadership -performance relationship. Value Added This study contributes to academic discourse by extending the understanding of transformational leadership’s effects on employee outcomes. It highlights the pivotal role of engagement as a driver of job satisfaction, challenging traditional perspectives that prioritize direct leadership -performance links. Furthermore, in the context of the rapidly evolving human -centric tech era, where technology and leadership intersect, the findings offer important insights into how transformational leadership can adapt to the changing nature of work. As digital transformation reshapes organizational environments, leaders must balance technology integration with maintaining meaningful human connections, ensuring that employees remain engaged, motivated and satisfied. These insights bridge theoretical gaps, offering a timely contribution to leadership theory by incorporating the emerging role of technology in shaping employee outcomes, and provide practical implications for leadership strategies in contemporary organizational settings. Recommendations Organizations should prioritize leadership development initiatives that focus on cultivating transformational leadership behaviours, particularly those that enhance employee engagement and satisfaction. By aligning leadership strategies with these insights, companies can foster more supportive and motivating work environments, ultimately boosting both employee well -being and organizational performance. As the workplace continues to evolve with the integration of human -centric technologies, organizations should also equip leaders with the skills to effectively leverage these technologies to enhance employee experiences, engagement and overall satisfaction. Additionally, future research should explore the role of contextual factors and moderating variables, including the influence of emerging technologies, that may impact the effectiveness of transformational leadership behaviours.

Suggested Citation

  • Krywalski-Santiago Joanna, 2024. "Rethinking Transformational Leadership and Workforce Dynamics for the Human -Centric Tech Era: Insights into Employee Engagement, Satisfaction and Job Performance," Journal of Intercultural Management, Sciendo, vol. 16(4), pages 42-94.
  • Handle: RePEc:vrs:joinma:v:16:y:2024:i:4:p:42-94:n:1002
    DOI: 10.2478/joim-2024-0014
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    References listed on IDEAS

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    2. Fong-Yi Lai & Hui-Chuan Tang & Szu-Chi Lu & Yu-Chin Lee & Cheng-Chen Lin, 2020. "Transformational Leadership and Job Performance: The Mediating Role of Work Engagement," SAGE Open, , vol. 10(1), pages 21582440198, January.
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    More about this item

    Keywords

    transformational leadership; affective organizational commitment; employee engagement; job satisfaction; job performance;
    All these keywords.

    JEL classification:

    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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