Loyalty as Mediator in the Relationship of Leadership Style and Performance: An Examination among Commercial Banks Employees in Klang Valley, Malaysia
Amer Darus1, Bidayatul Akmal Mustafa Kamil2, Muhd Zulfadli bin Ishammudin3
1Amer Darus*, School of Business Management, University Utara Malaysia, Kedah, Malaysia.
2Bidayatul Akmal Mustafa Kamil, School of Business Management, University Utara Malaysia, Kedah, Malaysia.
3Muhd Zulfadli bin Ishammudin, RHB Banking Group, Bandar Baru Bangi Selangor, Malaysia.
Manuscript received on September 03, 2019. | Revised Manuscript received on September 22, 2019. | Manuscript published on October 30, 2019. | PP: 3401-3410 | Volume-9 Issue-1, October 2019 | Retrieval Number: A2626109119/2019©BEIESP | DOI: 10.35940/ijeat.A2626.109119
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: This paper attempts to present a snapshot of leadership’s style impact and influence and other related effecting reasons towards the employee‘s performance and loyalty in banking industry. Base on review of past literatures, majority of the studies had identified a positive relationship between transformational leadership and transactional leadership style toward employee loyalty and performance within the company. The study population comprised five headquarter offices of commercial banks around Kuala Lumpur City. There sult of this research did support most of there searches done previously in ceith as been found that both leadership styles have significant (positive) relationship towards employee performance in banking industry. This paper also concluded that employee loyalty do have mediation effect between transformational leadership and employee performance as well as between transactional leadership and employee performance. Additionally, it also proves that demographic characters do not have significant influence on employee loyalty and performance within an organization.
Keywords: Transformational Leadership Style, Transactional Leadership Style, Employee Performance, Employee Loyalty.