Research Project

LEADERSHIP STYLE ENHANCES THE EMPLOYEE
ORGANIZATIONAL COMMITMENT: A CASE STUDYOF

EDUCATIONAL INSTITUTIONS IN LAHORE
By
M Usman Mirza
Registration #: FA11 MBO- 023
SESSION: Fall2011-2012
Department of Management Sciences,

COMSATS Institute of Information & Technology,
Lahore.
i
BY
M Usman Mirza
SESSION: Fall 2011-2012
MBO 1.5 Research Project
In
Department of Management Sciences,

COMSATS Institute of Information & Technology,
Lahore.
ii
COMSATS Institute of Information & Technology, Lahore.

A Research Project Presented to COMSATS Institute of Information

&Technology, Lahore.
In Partial Fulfillment of the Requirements for the Degree of Masters of

Business Administration (MBA)
BY
M Usman Mirza
2011-2012
iii
A Research Project presented to COMSATS institute of Information Technology,

Lahore in partial fulfillment of the requirements for the degree of Masters of
Business Administration (MBA) By Muhammad Usman Mirza. Registration#
FA11-MBO-023
SUPERVISOR
Mr. Fahad Javaid
Lecturer; Department of Management Sciences.
COMSATS Institute of Information& Technology, Lahore.
iv
DECLARATION
This research paper is the only of its kind. The content in this research
paper has not been plagiarized from anywhere nor has it been taken from
any other existing project, within or outside COMSATS Institute of
Information Technology, Lahore. The material taken from any other
website or article or book has been mentioned in the references.
_________________
Muhammad Usman Mirza
Registration # FA11-MBO-023
_________________
Mr. Fahad Javaid
Lecturer; Department of Management Sciences
COMSATS Institute of Information &Technology, Lahore.
v
DEDICATION
I dedicate this research project to my teacher Mr. Fahad Javaid for his
guidance in each and every step of this research project.
I also dedicate this project to my loving parents whose prayers have
been source of determination and motivation for me.
vi
ACKNOWLEDGEMENT
I would like to thank Mr. Fahad Javaid for the constant help that he has
provided me with throughout this research paper. I would like to thank
to my parents whose prayers have been source of determination and
motivation for me. I would also like to thank the officials of the
organizations that I selected for my questionnaire analysis. I also want to
appreciate all the faculty members who actively participated in
completing my survey. Lastly, I would like to thank CIIT LHR for
offering such a valuable subject. Surely, this will be helping us in many
of our future projects.
vii
ABSTRACT
To highlight which leadership style whether transformational or transactional is more effective in

enhancing employees’ commitment among the faculty members of selected educational
institutions of Lahore. A developed questionnaire is used by taking guidance from Multifactor
Leadership Questionnaire (Bass & Avolio, 1995) and A Study of Organizational Commitment,
its Antecedents and Outcomes: The Context of Higher Education Institutes of Pakistan to collect
the data from faculty members of selected educational institutions in Lahore. The data was
analyzed and interpreted through SPSS 17.0 statistical software. Pearson correlation indicates
that there is considerable positive relationship between both transformational-transactional
leadership style and employees’ organizational commitment. Multiple Regression analysis
indicates that all the values of T-statistic are significant. Transformational leadership style had
41% impact on employee commitment and transactional leadership had 16% impact on
employee commitment. Transformational leadership style shows more significant relationship
with employee organizational commitment than transactional leadership. Transformational
leadership style is found to be the most effective style that enhances employee’s organizational
commitment; whereas transactional leadership style is found to be less effective. This research
study is limited to the faculty members of selected educational institutions of Lahore and all
other educational institutes, small and medium scale industries and all other organizations are
excluded.
Key Words: Transformational Leadership; Transactional Leadership; Employees Organizational

Commitment; Educational Institutions
viii
Table of Contents
DECLARATION........................................................................................................................... v
DEDICATION.............................................................................................................................. vi
ACKNOWLEDGEMENT .......................................................................................................... vii
ABSTRACT ................................................................................................................................ viii
LIST OF TABLES ....................................................................................................................... xi
LIST OF ABBREVIATIONS .................................................................................................... xii
Chapter No. 1 ................................................................................................................................ 1
Introduction to Research Problem .............................................................................................. 1
1.0 INTRODUCTION ........................................................................................................................ 2
1.1 STATEMENT OF PROBLEM ..................................................................................................... 3
1.2 RESEARCH OBJECTIVES ......................................................................................................... 3
Chapter No. 2 ................................................................................................................................ 4
Literature Review ......................................................................................................................... 4
2.0 THEORATICAL FRAMEWORK ................................................................................................ 5
2.1 LITERATURE REVIEW ............................................................................................................. 6
2.2 HYPOTHESIS OF STUDY ....................................................................................................... 19
Chapter No. 3 .............................................................................................................................. 20
Research Methodology and Design ........................................................................................... 20
3.0 Significance of the study ............................................................................................................. 21
3.1 Purpose of the Study ................................................................................................................... 21
3.2 Population & Target Population ................................................................................................. 21
3.3 Sampling Method ....................................................................................................................... 21
3.3.1 Transformational leadership ............................................................................................ 22
3.3.2 Transactional leadership .................................................................................................. 22
3.3.3 Organizational commitment ............................................................................................. 22
3.3 MODE OF DATA COLLECTION............................................................................................. 23
3.4.1 Data Collection Tools.............................................................................................................. 23
3.4.2 Structured Questionnaire................................................................................................... 23
3.5 Sample Composition: .................................................................................................................. 24
3.5.1 Sample Composition by Gender: ....................................................................................... 24
ix
3.5.2 Sample Composition by Age: .......................................................................................... 25
3.5.3 Sample Composition by Universities: ................................................................................ 25
3.6 Data Analysis ............................................................................................................................... 26
Chapter No. 4 .............................................................................................................................. 27
Results and Findings ................................................................................................................... 27
4.0 Research Findings ...................................................................................................................... 28
4.1 Table 1: Relationship between Transformational Leadership, Transactional Leadership and
Employees’ commitment ........................................................................................................................ 28
4.2 Table 2: Descriptive Statistics of Transformational, Transactional Leadership and Employee
organizational commitment .................................................................................................................... 29
4.3 Table 3: Model Summary of Transformational, Transactional Leadership and Employee
4.4 Table 4: ANOVA of Transformational, Transactional Leadership and Employee organizational
commitment ............................................................................................................................................ 31
4.5 Table 5: Coefficients of Transformational, Transactional Leadership and Employee
4.6 LIMITATIONS .......................................................................................................................... 33
Chapter No. 5 .............................................................................................................................. 34
Conclusion and Recommendations ........................................................................................... 34
5.0 CONCLUSION ........................................................................................................................... 35
5.1 RECOMMENDATIONS ............................................................................................................ 36
REFERENCES ............................................................................................................................ 37
APPENDIX No .1 ........................................................................................................................ 43
x
LIST OF TABLES
Table 1 :Gender............................................................................................................................. 24
Table 2: AGE ................................................................................................................................ 25
Table 3 :UNIVERSITIES ............................................................................................................. 26
Table 4: Correlations..................................................................................................................... 28
Table 5: Descriptive Statistics ...................................................................................................... 29
Table 6: Model Summary ............................................................................................................. 30
Table 7: ANOVA .......................................................................................................................... 31
Table 8: Coefficients ..................................................................................................................... 31
xi
LIST OF ABBREVIATIONS
TFL Transformational Leadership
TSL Transactional Leadership
EOC Employee Organizational Commitment
TCM Three Component Model
ANOVA Analysis of variance test statistics
R Square Coefficient of determination
SPSS Statistical Package for Social Sciences
xii
Chapter No. 1
Introduction to Research Problem
1
1.0 INTRODUCTION
The wide topic of my study is Leadership style enhances employees’ organizational

commitment. There have been varied research studies, books and many theorists to highlight the
relationship between leadership style and employees organizational commitment.
In simple terms, leadership is a process by which one individual motivate or influence others to
achieve organization goals. It is the process of enhancing and encouraging the self-esteem of
employees to achieve organizational task and goals. Employee commitment is a way to achieve
unusual goals. The business definition of employee commitment is that the extents to which
employees are bound emotionally or psychologically to the organization.
In achieving organizational goals, employees are considered to be the most effective source.
Employees have the tendency to utilize the organizational capital efficiently and increase the
productivity and profitability of the organization. The well-qualified, capable and talented
workforce is needed to achieve organization strategic goals. In order to advantageously utilize
that asset, leadership style is considered being the most important determinant to increase
employee commitment. Induction of Hardworking, commitment and motivation in employees is
at the core of an organizational success. The committed workforce is an important success factor
for organizations to achieve their desire goals. The significant importance of committed
workforce is that it has less intention to leave the organization. The employees’ commitment,
performance and productivity should definitely increase if they are treated with good leadership
style. The research studies have found that good leaders retain good workforce and bad leaders’
loose best workforce.
Effective leaders have a desired to achieve challenging goals and to attain the highest level
successfully. Leaders have an ambition to always go ahead. Leaders are more energetic and full
of life than non-leaders. They have physical and mental strength that make them to lead others.
Leaders have high consistency and tenacity than non-leaders. It means leaders are consistent and
full of determination in accomplishing task. Effective leaders take initiatives. They have the
ability to make decision and take corrective actions without the guidance of others, i.e.
empowered people. Leaders are full of motivation to become a role model for other. They also
influence or motivate their followers towards success. According to Harvard psychologist David
2
McClelland, there are two different types of dominance. Personal power motive (a motive to
become powerful and superior to others) other is socialized power motive (a motive to achieve
goals with mutual coordination of other people. They don’t work for their personal motive but
for the whole society).Honesty and integrity are the most important traits of successful leader. It
builds trust between leader and follower. Leader must be self-confident and have a high control
on his nerves. Self-confidence is important in decision making and to lead others. If their
decisions turn out to be wrong, leader admits his mistake and try to get out of worse situation.
Emotional stable leaders are calm and confident during critical conditions. Cognitive ability is
needed by successful leaders to understand and handle the technical issues. They have the ability
of knowing, understanding and learning the technical issues. Effective leaders have a good
understanding about his company, market and stakeholders. A good knowledge about business is
required in effective decision making. The core job of a leader is to set vision of his organization,
then share and communicate vision with followers and then develop strategy to achieve vision.
Great leaders must have high moral and ethical values to become role model for others
(Kirkpatrick & Locke, 1991).i
1.1 STATEMENT OF PROBLEM
To highlight which type of leadership style (transformational and transactional) more enhances
employee’s commitment towards organization among the faculty members of selected
educational institutions of Lahore.
1.2 RESEARCH OBJECTIVES
 How employee commitment is enhances by transformational leadership style?

 How employee commitment is enhances by transactional leadership style?
 Among the Leadership styles, which is the most preferred by the employees?
 Are transformational leadership style enhances employee organizational
commitment more than the transactional leadership style?
 Are transactional leadership style enhances employee organizational commitment
more than the transformational leadership style?
3
Chapter No. 2
Literature Review
4
2.0 THEORATICAL FRAMEWORK
There are various factors which effect employee’s commitment at workplace. My research
methodology and research design will be based on two major variables that enhance the levels of
employee’s commitment at work place- Transformational Leadership and Transactional
Leadership style.
Independent Dependent
Variable Variable
Transformational
Leadership
Employee
Organizational
Commitment
Transactional
Leadership
5
2.1 LITERATURE REVIEW
The word Leadership has been derived from Latin word “leith” which means “goes ahead and
dies”. The Leadership and study of this concept has emerged in the era of civilization.
Leadership is a practice by which one personality motivates or influences others to achieve
organization goals. Three points in leadership definition must be emphasized. First, the process
of leadership must involve two participants; leader and followers. Second, leadership evokes
intentional act on the side of follower. Third, leader gives direction to his follower to attain
goals. The concept of leadership has changed over time. During the first half of twentieth
century, researchers focused on that leaders are by born leaders. They possess some superior
qualities that distinguish them from non-leaders. The “great men” leadership theory describe that
great leaders have got leadership traits from inheritance. Ralph Stogdill, a well-known theorist
said “No traits were universally associated with effective leadership, situational factors were also
influential.” Trait theory had been criticized on several points. Individuals who possess specific
traits that make them effective leader in one situation may be ineffective leader in other situation.
These studies were conducted on samples of lower level managers. This approach does not
recognize the importance of followers in leadership process. Later, in the beginning of 1950s
research shifted from thinking about leader traits to leader behaviors. Four research studies have
provided the foundation for behavior approach. Ohio State studies, University of Michigan
studies, Boys Club studies conducted by K- Lewin and Managerial Grid by Blake and Mouton.
These theorists described leadership styles based on two main types of behaviors, task behaviors
and relationship behaviors. In task behaviors, leader emphasizes on task or goal accomplishment
and productivity targets. Task oriented leaders were production-centered. In contrast,
relationship behaviors leader is concerned about his or her followers’ needs, wants, problems and
development. Relationship oriented leaders were employee-centered. The contingency leadership
theory proposed by Fiedler’s states that there must be a strong relation between leader’s direction
and effectiveness of circumstances that result in completion of task. Favorability or effectiveness
is determined when followers trust and respect the leader, task is highly structured and leader has
control over rewards and punishments. Path Goal theory proposes that the main task of a leader
is to smooth the path of followers towards goal, by using four leadership behavior styles i.e.
6
directive, supportive, participative and achievement oriented. The contingency variables in this
theory are workplace characteristics and follower characteristics. Vroom-Yetton-Jago decision
making model emphasized the decision making style of the leader. The style ranges from strong
autocratic to strongly democratic labeled AI, AII, CI, CII and G. This model has been criticized
for its complexity, inconsistency between decision maker goals with organizational goals and for
ignoring the skills needed to arrive at group decisions to difficult problems.
Since 1970s, the studies on leadership concept have been advanced. Leader member exchange
theory focuses to establish a dyadic (one-on-one) relationship between leader and individual
followers. A leader form two group of followers: in-groups and out-groups. In-group members
tend to have similar characteristics of leader. They are given more attention, more rewards and
greater responsibilities. This results in better organizational performance, lower turnover and job
satisfaction. On the other side, out group members receive less attention and fewer rewards as
compared to in group members.
Beginning in the 1970s, transactional and transformational leadership theories emerged.

Transactional leadership is a type of exchange relationship in which the leader and follower are
engaged in some kind of trade which may be economic, social or psychological. This theory
focuses on where organization is today and only maintains status quo. There are predefined
agreements with the subordinates in transactional leadership. The transformational leadership
have discussed about collective decision making. Transformational leader motivates individuals
to achieve goals. Trust between leader and follower is very important in transformational
leadership. Leader sets goals through mission and vision of organization and empowers the
follower to achieve them. Servant leadership is the extension of transformational leadership. This
theory define follower interest is primary and organizational interest is peripheral. The alternate
for leadership theory have been proposed by Kerr and Jermier in 1978. They propose that
distinctiveness of organization, tasks and subsidiary may be the substitutes for leadership.
Characteristics of organization i.e. formalization, hard rules and returns are the substitute for
leadership. Likewise, characteristics of task i.e. routine and repetitive tasks and characteristic of
subordinates which include experience, training, knowledge and ability are good substitute for
leadership (Leadership Theories and Studies). ii
7
The degree to which leadership style enhances employee organizational commitment has been
widely discussed by many researchers. This section summarizes some of the research studies that
have been done in order to prove certain hypothesis, which have helped me in my research
project. Following is the literature review of all the articles I am using in my research project:
The concept of transformational leadership has been described as a relationship of mutual

encouragement and attitude that replaces followers into leaders and leaders into moral agents.
The aim of transformational leadership is innovation and motivating people. Transformational
leader motivate followers how to excel among competitors. He is more concerned about taking
competitive advantage through investing in human capital, enhancing their skills and abilities by
training and developmental programs. He introduced collaborative environment in an
organization through team-building, open communication, participative decision making, and
employees’ involvement.
Transforming leader alters the attitudes, values and goals of followers towards organizational
goals. Transformational leadership style increases the confidence of followers, transform
follower, raises follower expectations, encourages employee performance and empower
followers. Followers viewed transformational leader like an ideal leader, which they want to
follow. Transformational leader does not criticize followers for their mistakes. He motivates
followers to consider their mistakes as an opportunity for future better performance.
Transformational leaders display different leadership behaviors.
 Idealized or Charismatic transformational leadership style talk about purpose, values.
Tries to build trust among followers. Charismatic leadership style creates confidence and
commitment among followers through attractive or magnetic personality that is catchy to
followers. Employees try to imitate their leader’s behavior and values and are committed
towards vision. Specifies importance of strong sense of determination. Idealized
leadership style displays self-sacrifice for others benefits. Leader’s behavior is consistent
and he shares in any risk taken. Leader displays high moral and ethical conduct.
 Inspirational motivation leadership style inspire follower towards achieving organization
mission and vision, motivate followers and build confidence.
8
 Intellectual stimulation leadership style encourages followers to make decision with
nontraditional style, suggest innovative ways to complete assignments and resolve
issues.
 Individualized consideration transformation leadership style is towards employee
oriented, employee’s goals, needs and values are given more importance. Investment in
self-development of employees through teaching and coaching.
Transactional leadership is a system of treating employees through rewards and penalties -
Rewards in terms of recognition, pay increases and advancement etc. Employees who fail to
meet expectations are penalized. Transactional leadership style has been traditional way of
treating followers to perform the predefined tasks and focuses towards planned goals (Bolden et
al. 2003).iii
The role of transactional leader is to ascertain that organization operations are in a normal flow
according to pre defined disciplines and standards. Transactional leader is more concerned about
running organization functions smoothly. He does not worry about how to excel among
competitors. Transactional leader leads followers with a bossy or traditional attitude through
rewards, punishments, rules and principles.
Transactional leaders motivate their followers in the direction of established goals by clarifying
role and task requirement. The following are the transactional leader’s characteristics.
 By providing contingent rewards, a transactional leader established contracts to replace

rewards for efforts; encourage follower achievements through pay increases and
advancement for employees. Identify the pre-defined goals and objectives to get
organizational rewards.
 Active management by exception is a transactional leadership style in which leader take
corrective action before if see variance from standardize rules and policies. It means
leaders actively watch or monitor the work of employees and take corrective action
immediately if see variance.
 Passive management by exception is a leadership style that involves leaving employees to
do their job without interfering them. Avoid making decisions and quit responsibilities
9
until something goes wrong. It means leaders intervene only when standards or
performance are not met.
 Laissez-faire style of leadership gives more opportunities and least possible guidance to
employees in decision making. The leaders perceive that employees perform
extraordinary when they will get the chance to respond to responsibilities and duties in
their own ways.
Transactional leadership is like an exchange relationship that involves reward for efforts,
productivity and loyalty. Transactional leaders are mostly indulged in maintaining the “status
quo” for their organizations. Transactional leader has high confidence and is more demanding.
On the other hand, transformational leader is not concerned with status quo making revolutionary
change in organization. The advantage of transformational leadership is having high motivation,
satisfied employees and decrease employee absenteeism. The characteristics of transformational
leader includes: build a shared vision, develop strategies to achieve desired vision, strong
analytical thinking, encourage employee involvement, motivate employees, develop culture of
team working, enhance skills of employees through creative and tough assignments and role
model through strong ethical and moral values. Research has shown that transformational leaders
are more innovative and creative and they also encourage their followers to be creative, too.
Transformational leadership strongly correlates with higher productivity, greater employee
satisfaction and lower employee turnover. Transformational theories of leadership claim that
people will follow leaders who are inspirational. The leader will develop a vision, sell the vision
and lead the way (Conyers).iv
The researchers also have studied the difference between two leadership styles; transformational
and charismatic leadership. The charismatic leadership style may want from follower to adopt
the leader style and philosophy. On the other side, transformational leadership is broader than
charismatic leadership. Leader motivates their followers to go beyond the established views and
empowered followers (Robbins & Judge, 2010) (Judge, 01 Jan 2010).v
Employee commitment is defined in a way as the employee's emotional attachment to the

organization (Marmaya1et al. 2010).vi
10
Organizational commitment has usually been considered as an individual’s attachment with the
organization and his or her readiness to utilize energy for organizational wellbeing (Walumbwa
et al., 2005).vii
Organizational commitment has been defined as an employee’s willingly participation,
involvement and commitment with the organization (Walumbwa, Orwa, Wang, & Lawler,
2005).viiiOrganizational commitment can be described as a two way process, i.e. recruiting right
sort of employees by creating good corporate policy and brand image. Secondly dealing all
employees according to corporate values and norms.
Employee commitment has been contingent to various kinds of variables. Organization
recruitment procedure should be transparent, fair and according to employee’s perception. In this
way, employee feeling of commitment and attachment with the organization develops. Employee
commitment will be increased if there is a positive correlation among employee expectation with
the organization and organization policies and rules for employee welfare.
A good induction and training program will make new employees to know the organization
culture and increases job satisfaction. Studies have found good relationship between employee
and its immediate manager will be able to judge the employee commitment with the
organization. Organizations that treated their employees with fairness and integrity, it would
result in enhanced employee commitment and trust. Several other variables like promotions pay
and rewards, work life balance have also found to be positively related to employee commitment
(Robinson).ix
The concept of organizational commitment has also been defined as employee thoughts and as a
set of behavioral intentions: employee strong commitment towards organizational goals. Further
the researchers defined organizational commitment as employee willingness to achieve
organizational goals, employee strong attachment with the organization and acceptance of
organization values and mission. Employee commitment can be increased if there would be a
positive link between employee individual goals and overall organizational goals (Yew, 2007).x
The number of studies has examined the relationship between work ethics and organizational
commitment. Employees show more commitment when their own values are congruent with
organizational values. Islamic work ethics strongly talked about commitment and hard work.
Prophet Muhammad (SAW) said “‘no one eats better food than that which he eats out of his
11
work”. Employees who strongly confirm Islamic work ethics are more committed to their
organization and more likely to bring change (Yousef, 2000).xi
The employee’s organizational commitment is used to forecast employees’ performance,
turnover, job satisfaction and other behaviors. It has also been observed that committed work
force employ extra efforts such as creativeness. The introduction of better compensation
packages, working conditions and effective policies are the ways that might be used by the
management to increase the level of commitment in an organization. The studies also put
forward that employee organizational commitment might be enhanced by announcing good
rewards, flexible rules and procedures and healthy working environment. The organization top
management have to increase employee involvement in decision making, effective
communication to enhance employee commitment.
Affective commitment is defined as an employee's emotional attachment to the organization.
Affectively committed employee has strong desired to remain a part of the organization and put
positive efforts towards organizational goals (Marmayal et al., 2010).xii
The researchers described the concept of affective commitment in a way; affective commitment
is like an employee strong attachment, involvement and identification with the organization. The
research studies have described the concept of continuance commitment by referring the realized
outlay related with parting the organization. Normative commitment is like the alleged employee
responsibility to stay in organization (Meyer et al., 2010). xiii
The three component model (TCM) of employee commitment survey has described three forms
of organizational commitment, aspiration-based (affective commitment), responsibility-based
(normative commitment) and cost-based (continuance commitment). Employees with a strong
affective commitment want to stay and inclined to perform better and those with strong
normative commitment stay because they feel obligation towards organization. Employees with
strong continuance commitment stay because they have cost concerns; such as losing a good pay
and other forms of material benefits, established contacts, image, etc(Meyer & Allen,
2004).xivSometimes employees show continuance commitment because of personal long term
and huge amount of investments. These may be in both monetary and non-monetary form: for
example special skills specific to particular organization, close relationship with peers and
shareholders etc.
12
If employees believe that there are less job opportunities outside their organization, the realized
cost of leaving current job will be high so this will develop a stronger sense of continuance
commitment. Employees’ normative commitment represents feeling of responsibility to stay
within the organization. Employees think they should stay because of their moral obligation to
do so: organization invested in their career development, education and training etc. Employees’
organizational commitment is valuable asset for an organization and it can produce very real
outcomes. Research shows affective commitment gives more desired organizational outcomes.
Employees having more motivation and emotional attachment to organization participate more
towards achieving organizational goals. So, organization should need to design policies (both
short term and long term) which will increase affective commitment. Short term policies include
 Treat employees with respect
 Employees must feel part of family
 Encourage employees and involve them in decision making
 Give respect to its employees
 Provide secure and healthy work environment
Long term organizational policies are human resource practices, these are
 Recruitment and selection process should be clearly defined to attract right sort of
candidates
 Providing supportive environment and timely invest in training and development of
employees
 The perception of fairness in assessment and promotion process tend to increase affective
commitment
 Employees’ affective commitment is likely to increase if they judge fairness in rewarding
compensation and benefits (Dordevic, 2004).xv
The concept of Organizational commitment can be well elaborated by divided it into various
components, like attachment, involvement, ethical, structural and affective. Attachment involves
employee’s strong affiliation with organization interest and values. Involvement includes
employees association and belongingness towards organization. Employee ethical attachment
means sense of joint commitment with the organization. Affective attachment means employees
emotional relation and satisfaction. Finally, structural involvement include employee affianced in
13
an economic transaction. Employees having strong affective commitment always perform better,
due to strong emotional attachment with their fellow workers and supportive working
environment. The researchers propose that this is the most important form of commitment;
affectively committed employees always exert more effort and try to go beyond their normal
duties. Normative committed employees perceived that the organization always take care of their
interest, so they also fulfill their part of responsibility toward organization. Continuance
committed employee have believed they are indulge in a monetary exchange relationship with
the organization. They have found no suitable alternative so they remain stay within the same
organization (Dilys Robinson).xvi
Individuals develop a sense of affective commitment toward their organizations when they feel
important part of organization and having goal similarity with the organization. There are many
factors that determine the level of affective commitment. They can be divided into two major
groups: organizational factors and individual factors. I.e. management support, organizational
culture and organizational policies and rules are considered as organizational factors and
personality, education and age are considered as an individual factor.
The researchers further propose that manager perceive affective commitment to be positively
linked with organizational citizenship behavior and job performance. Continuance commitment
will be positively correlated to job tenure and age and negatively correlated with education. The
managers, who considered their employees to be affectively committed, give them more
promotions (Shore et al., 1995).xvii
It has been studied that perceived organizational support and satisfaction with rewards (both
intrinsic and extrinsic) are significant to measure employee job involvement and two forms of
organizational commitment (affective and continuance). Perceived organizational support (org
care about employees and encourage their contribution) was strongly related with job
involvement and emotional attachment to the organization. Similarly, intrinsic reward
satisfaction was strongly related to both job involvement and affective commitment (Driscoll &
Randall, 1999).xviii
14
The three forms of employee commitment are not always resulted into best performance. For
instance, an employee who has high continuance commitment but low affective commitment
stays in an organization due to cost concerns associated with leaving the organization.
Transformational leadership is considered to be the most effective leadership style. Avolio et al.
(2004) declared that transformational leadership style definitely enhance employee
commitment. xix Limsili and Ogunlana (2008) declared that transformational leadership is an
effective leadership style to influence employee commitment. xx Ismail and Yusuf (2009)
considered the very momentous effect of transformational leadership style on employee
organizational commitment.xxi
The study found that if leaders motivate employees, invest in training to enhance skills, invest in
education, consider their personal goals and finally empowered employees, it will definitely
increase the level of employee commitment with the organization (Bushra, Usman&Naveed,
2011). xxii
Transformational leadership style has also received more recognition in the field of education. It
was observed among special education teachers, they have varying needs and specific job related
challenges. Therefore, an effective transformation leader must be required to accomplished
diverse needs of special teachers by using different leadership traits. Through individual
consideration, leader will give more recognition to staff as compared to work and will empower
their staff. Through inspirational motivation and idealized influence, transformational leader
must communicate high anticipations and provide a role model to follow (Horn-Turpin,
2009).xxiii
One of study has found that transformational behavior of headmaster was certainly interrelated
with teacher’s organizational commitment. It shows the more the headmaster displays
transformational behaviors i.e. inspirational motivation, intellectual stimulation, and individual
consideration etc., it will enhance employee’s level of affective, continuance and normative
commitment (Sharif, Nazarudin & Fauzee). xxiv
15
Transformational leadership style has also leads to increase employee commitment in service
sector firms of Pakistan. The study concluded that transformational leadership behaviors like
inspirational motivation, idealized influence, individual consideration and intellectual stimulation
leads to higher employee commitment and employee work engagement. The employees feel
devoted and motivated towards their work (Raja, 2012).xxv
The research also identifies the impact of transformational and transactional leadership styles in
UAE Banking sector. The survey results confirm that transformational leadership style of bank
managers increased employees’ commitment. The employees’ job commitment was reflected
through their positive attitude, increase trust in leadership and performance at work. Although,
employees are found to be less innovative, less risk taking and transactional style of leadership
still observed in minor form (Reddy, 2011).xxvi
The outcome of research conducted in Yemeni universities indicates that both transformational
and transactional leadership styles have positive impact on three types of employee commitment;
affective, normative and continuous (Saeed, 2011). xxvii One of the studies conducted from three
hundred and twelve (312) private sector Pakistan colleges’ teachers to measure the consequence
of transformational and transactional leadership style on organizational commitment. The results
revealed that transformational leadership style was significantly less correlated with employees’
commitment (thirty one percent impacts) and transactional leadership was significantly more
correlated with employees’ commitment (Dr Qadar Bakhsh Baloch).xxviii
One of research study conducted in an Islamic school located in a large urban centre in Canada,
to classify the rapport between Principal’s leadership style and teachers ‘commitment. The
majority of teachers hired were Muslims so they were emotionally committed with Islamic
School. The study also found that transformational leadership style was more effective to
influenced the teachers overall commitment as compared to transactional leadership style
(Hussein). xxix
One of the researches was conducted at Bharat Heavy Electricals Ltd to find out the collision
between leadership styles and employees’ commitment. The study revealed that transformational
leadership style was most productive than transactional leadership style. Senior engineers and
16
trainee engineers have preferred transformational leadership style (Raja & Palanichamy). xxxThe
perception of employees working in public and private sector banks in Chandigarh was positive
towards transformational leadership behavior. However in case of transactional leadership
behavior, the employees of public sector banks have more positive perception than employees of
private sector banks. The public sector employees influenced more towards the idealized
influence and intellectual stimulation characteristics of transformational leadership and
management by exception characteristic of transactional leadership (Kaur, 2012).xxxi
One of study is conducted among the employees of CehaveLandouwbelang’s Dutch subsidiary
companies to foresee the employees commitment depend on various organizational factors. The
study proposed that employees of Dutch subsidiary companies have higher levels of normative
than affective commitment. The employees are committed particularly because of moral
obligations and to some extent because of emotional attachment and affection. The
transformational leadership style was more dominant and more positively influenced employee’s
commitment and transactional leadership was less apparently related with employees’
commitment (Delden, 2008).xxxii
As we have observed that transformational leadership is based on four different leadership

qualities i.e. idealistic inspiration, individualistic deliberation, rational arousal and inspirational
motivation. There is a significant relation between these above stated characteristics and
employee commitment. The researchers’ have stated that individualize consideration has positive
relationship with affective and normative commitment; likewise there is significant relationship
between intellectual stimulation and normative, affective organizational commitment.
(TabassumRiaz)xxxiii
One of the research states that the transformational leadership was positively related with
affective, continuance and normative organizational commitment. But the more significantly
correlated with affective commitment. On the other hand, transactional leadership is found more
positively correlated with both continuous and normative commitment. This means transactional
leader encourage or motivate employees through monetary rewards, clarifying their roles and by
giving timely feedback (Alqudah, 2011)xxxiv
17
The levels of employee’s commitment are positively related to transformational and transactional
leadership styles. Some research studies reveal that there is strong correlation exist between
transformational style and affective commitment- normative commitment. Thus,
transformational leadership style enhances employees’ affective commitment. On the other hand,
continuance commitment means opportunity cost of leaving the organization is not significantly
related with transformational leadership. However, the impact of leadership styles on
organizational commitment varies across different geographical areas. This indicates that
managers cannot use the same transformational leadership traits for enhancing employee
commitment (Ramachandran& Krishnan, 2008).xxxv
This relationship between leadership style and the staff commitment was examined in one
research study among the Iran State Retirement Organizations. The research study has founded
direct and positive relationship among all independent variables and dependent variable
(leadership styles and employee commitment) (Ahmadi et al., 2012).xxxvi
The study conducted in Viettel Telephone Company Call Center founded that transformational
leadership and transactional leadership styles have positively correlated with affective
commitment; have positively normal correlation with normative organizational commitment. The
negative correlation was studied between continuance commitment and transformational style no
correspondence exists between continuance commitment and transactional leadership style. The
results of research study also observed that transactional leadership style is more strongly related
to affective and continuance organizational commitment as compared to transformational style
(Lung, 2009).xxxvii One of the studies was conducted among the call centers of telecom sector in
Islamabad. The study aimed to establish the relationship of leadership styles, organizational
commitment and organizational performance. The research found that employees organizational
commitment respond as mediated role between leadership style (transformational and
transactional) and organizational performance (Khan, Hafeez, Rizvi, Hasnain, & Mariam,
2012).xxxviii
18
2.2 HYPOTHESIS OF STUDY
H1: Transformational leadership style enhances employee organizational commitment

H01: Transformational leadership style does not enhances employee organizational commitment
H2: Transactional leadership style enhances employee organizational commitment

H02: Transactional leadership style does not enhances employee organizational commitment
H3: Transformational leadership style enhances employees’ organizational commitment more

than transactional leadership style
H03: Transformational leadership style does not enhance employees’ organizational commitment
more than transactional leadership style.
19
Chapter No. 3
Research Methodology and Design
20
3.0 Significance of the study
By this study we try to find whether or not the transformational or transactional leadership styles
enhance employees’ organizational commitment among the faculty members of selected
educational institutions in Lahore. Level of hard work, enthusiasm and sense of obligation of
employees define the probability of success of an organization. To be successful in achieving the
targets, dedicated workforce proves to be a crucial intangible reserve for an organization. Clever
leadership implies increased employees’ productivity, performance and organizational
commitment.
3.1 Purpose of the Study
The objective of this study is to discover, which leadership style whether transformational or
transactional is more effective in enhancing employees’ commitment among the faculty
members of selected educational institutions of Lahore.
3.2 Population & Target Population
The data was gathered from five selected educational institutions in Lahore, wherein non-
probability sampling technique was used to conduct primary research. Because of time restraints
and references in the above cited institutions, convenience sampling was used for setting the
selection criteria. My choice of selecting an institute was dependent on factors such as level of
cooperation on the organization’s part, time restraint, good representation of the population etc.
3.3 Sampling Method
A sample size of 60 people was set. 10 questionnaires were distributed in four institutions each
and remaining 20 questionnaires were distributed in one institution. The Questionnaire contained
19 questions, divided into 3 constructs. These constructs were transformational leadership (5
items), transactional leadership (4 items) and organizational commitment (10 items).The
questions were mainly regarding the two mentioned forms of leadership styles and their
characteristics, which improve employee organizational commitment.
21
3.3.1 Transformational leadership
To quantify the perception of respondent, five items were adopted from transformational
leadership index: leader’s ability to build trust, leader’s self integrity, leader’s ability to
inspire people, leader’s innovation and leader’s active involvement with followers. These
items were labeled as TFL01, TFL02, TFL03, TFL04 and TFL05 respectively.
All items were “5-Point Likert Scale i.e [5]= Strongly Agree, [4]= Agree, [3]= Neutral, [2]=
Disagree & [1]= Strongly Disagree.
3.3.2 Transactional leadership
To quantify the perception of respondent, four items were adopted from transactional leadership
index: leader’s reward system, leader’s ability to monitor mistakes, leader’s approach to
organizational problems & leader’s coaching skills. These items were labeled as TSL01,
TSL02, TSL03, and TSL04 respectively.
3.3.3 Organizational commitment
To quantify the perception of respondent, ten items were adopted from organizational
commitment index: sense of obligation towards organization, organization deserves my
loyalty, organizational reward and benefit procedure, leaving would disrupt my life, very
hard to leave organization, sense of belonging towards organization, emotionally attached
with organization, organization as a part of the family, consider organization problems like
my own problems & spend rest of my career in this organization. These items were labeled
as EOC01, EOC02, EOC03, EOC04, EOC05, EOC06, EOC07, EOC08, EOC09 and EOC10
respectively.
22
3.3 MODE OF DATA COLLECTION
To quantify the perception of respondent, ten items were adopted from organizational
commitment index: sense of obligation towards organization, organization deserves my
loyalty, organizational reward and benefit procedure, leaving would disrupt my life, very
hard to leave organization, sense of belonging towards organization, emotionally attached
with organization, organization as a part of the family, consider organization problems like
my own problems & spend rest of my career in this organization. These items were labeled
as EOC01, EOC02, EOC03, EOC04, EOC05, EOC06, EOC07, EOC08, EOC09 and EOC10
respectively.
3.4.1 Data Collection Tools
For the purpose collecting data, the questionnaire was developed by taking guidance from
Multifactor Leadership Questionnaire (Bass &Avolio, 1995) and ‘A Study of Organizational
Commitment, its Antecedents and Outcomes: The Context of Higher Education Institutes of
Pakistan’. The questionnaire comprised of 19 questions in total, and both open & close ended
questions were included. Faculty members of selected institutes will fill the form and they will
be provided sufficient time to answer all questions.
3.4.2 Structured Questionnaire
Both close ended and open ended questionnaires are developed including questions
relevant to the study is considered for data collection. Questionnaire consisting of 19 different
questions is filled manually by faculty members of selected educational institutions keeping in
view that they are being provided with enough time to answer all the questions.
23
3.5 Sample Composition:
The information about following demography has been collected from the questionnaires
filled by the faculty members of educational institutions in Lahore.
Gender has been coded as 1 = Male and 2= Female.
Age Group has been measured in year and coded as 1= 20-22, 2 = 23-25, 3= above 25
University has been coded according to sectors like public sector and private sector and coded as
Public Sector = 1 and Private Sector = 2.
Following section presents sample composition by demographics. Sample composition by each

demographic was explained in detail with tabulated information.
3.5.1 Sample Composition by Gender:
Table 3.1 shows gender segregation of respondents of present study. Out of 60

respondents, 40 were male and 20 female. That makes 67% male while 33% female
respondents.
Table 1:Gender
GENDER 3.1
Frequency Percent Valid Percent Cumulative Percent
Valid Female 20 33.0 33.0 33.0
Male 40 67.0 67.0 100.0
Total 60 100.0 100.0
24
3.5.2 Sample Composition by Age:
Table 3.2 shows age wise segregation of respondents of present study. In total, data was
collected from 60 respondents. There were 15 respondents each lie in age group between 20-22
& 23-25. From this table, it can be seen, that 30 out of 60 people within the age group of 26 &
above. Whereas, 25% respondents were belonged to age group between 20-22 and 23-25
whereas, 50% respondents were from age group 26 & above.
Table 2: AGE
AGE 3.2
Valid 20-22 15 25.0 25.0 25.0
23-25 15 25.0 25.0 50.0
26&Above 30 50.0 50.0 100.0
Total 60 100.0 100.0
3.5.3 Sample Composition by Universities:
Table 3.3 shows University wise segregation of respondents of present study. In total, data was
collected from 60 respondents. 30 questionnaires were filled by respondents selected from
public sector universities and 30 from private sector universities respectively. Male respondents
are in majority with 40 responding to our study. There were 20 females in the survey. In terms
of percentage, public sector universities respondents were 50% and private sector universities
respondents were 50%.
25
Table 3 :UNIVERSITIES
UNIVERSITIES 3.3
Valid Public 30 50.0 50.0 50.0

Sector
Private 30 50.0 50.0 100.0

Sector
Total 60 100.0 100.0
3.6 Data Analysis
For analyzing the data gathered, no complicated calculations will be used in fact SPSS will be
used for the interpretation of the data.
26
Chapter No. 4
Results and Findings
27
4.0 Research Findings
4.1 Table 1: Relationship between Transformational Leadership, Transactional

Leadership and Employees’ commitment
Table 4: Correlations
Correlations
TRFLAA TRLVA EOCAA
TRFLA Pearson Correlation 1 .550** .505**

A Sig. (2-tailed) .000 .000
N 60 60 60
TRLVA Pearson Correlation .550** 1 .655**

A Sig. (2-tailed) .000 .000
N 60 60 60
EOCAA Pearson Correlation .505** .655** 1
Sig. (2-tailed) .000 .000
N 60 60 60
**. Correlation is significant at the 0.01 level (2-tailed).
From the above table 1, Pearson’s correlation value for transformational leadership is 1 and
transactional leadership is .550 respectively. When Pearson’s correlation value is more close to
1, this means there is strong relationship between our two variables (transformational leadership
and employee commitment). This means that changes in one variable are strongly correlated with
changes in the second variable. On the other side, Pearson’s r value for transactional leadership
is .550, it shows positive correlation exists between transactional style and employee
commitment but not as strong relationship as it is between transformational style and employee
commitment.
28
Table 1 indicates that Sig. (2-tailed) value for all variables is less than 0.5. It indicates that there
is a significant positive relationship between transformational and transactional leadership style
and employees’ commitment. Therefore H1 & H2 which states that Transformational leadership
and Transactional Leadership style enhances employee organizational commitment. There is
significant relationship prevails between transformational leadership and Transactional
leadership styles and employees’ commitment.
4.2 Table 2: Descriptive Statistics of Transformational, Transactional Leadership and

Employee organizational commitment
Table 5: Descriptive Statistics
Descriptive Statistics
Std.
Mean Deviation N
TRFLA 3.9800 .62458 60

A
TRLVA 3.7333 .64746 60

A
EOCAA 3.4742 .49936 60
Table 2 shows three variable of research which were transformational and transactional
leadership (independent variables) and employee organizational commitment (dependent
variable). As in the above table the second column shows the mean value for transformational
leadership style is 3.98 when this figure is round off it will be 4 and on the questionnaire, 4
represents agree option which means maximum people give their response in agree that
transformational style enhance employee commitment. Standard deviation is a mathematical tool
to help us assess how far the values are spread above and below the mean a high standard
deviation shows that the data is widely spread (less reliable) and a low standard deviation shows
that the data are closely around the mean (more reliable). Standard deviation value of
transformational leadership style is .62458 which shows that data is less spread from mean value
and close to 0.5.
29
The mean value for transactional leadership style is 3.733 when this figure is round off it will be
4 and on the questionnaire, 4 represents agree option which means maximum people give their
response in agree that transactional style enhance employee commitment. Standard deviation
value of transformational leadership style is .64746 which shows that data is less spread from
mean value but more spread than transformational leadership from mean value.
Whereas, mean value for employee organizational commitment is 3.4742 which means
maximum people give their response in agree that both transformational and transactional
leadership styles enhances employee commitment. Standard deviation value of employee
commitment transformational leadership style is .49936 which shows that data is less spread
from mean value and more reliable.
4.3 Table 3: Model Summary of Transformational, Transactional Leadership and

Employee organizational commitment
Table 6: Model Summary
Model Summaryb
Adjusted R Std. Error of Durbin-

Model R R Square Square the Estimate Watson
1 .678a .459 .440 .37363 1.722
a. Predictors: (Constant), TRFLAA, TRLVAA
b. Dependent Variable: EOCAA
Table 3 shows the value of R is (.678), the value of R square is (.459) and standard error of
estimate is (.37363). The coefficient of determination (R Square) which indicates that forty five
percent (45%) of the variance or variability in employees’ commitment can be reported for by
Transactional Leadership and transformational Leadership styles. The value of R square
indicates the acceptable value for explaining variability of employee organizational commitment.
30
4.4 Table 4: ANOVA of Transformational, Transactional Leadership and Employee
organizational commitment
Table 7: ANOVA
ANOVAb
Sum of
Model Squares Df Mean Square F Sig.
1 Regression 6.755 2 3.378 24.196 .000a
Residual 7.957 57 .140
Total 14.712 59
a. Predictors: (Constant), TRFLAA, TRLVAA
b. Dependent Variable: EOCAA
ANOVA (Analysis of variance test statistics) indicates that the model is significant. The
ANOVA shows that both independent variables (transformational and transactional styles) have
significantly related with employee organizational commitment ( F= 24.196) (Sig 0.000).
4.5 Table 5: Coefficients of Transformational, Transactional Leadership and Employee

organizational commitment
Table 8: Coefficients
Coefficientsa
Unstandardized Standardized Collinearity

Coefficients Coefficients Statistics
Model B Std. Error Beta T Sig. Tolerance VIF
1 (Constant) 1.257 .340 3.695 .000
TRLVAA .418 .090 .541 4.641 .000 .697 1.434
TRFLAA .165 .093 .207 1.773 .082 .697 1.434
a. Dependent Variable: EOCAA
31
Table 5 indicates that all the values of T-statistic are significant. Transformational leadership
style had 41% impact on employee commitment and transactional leadership had 16% impact on
employee commitment. Transformational leadership style shows more significant relationship
with employee organizational commitment than transactional leadership. Transformational
leadership style is found to be the most effective style that enhances employee’s organizational
commitment; whereas transactional leadership style is found to be less effective.
32
4.6 LIMITATIONS
The outcomes of this research should only be considered applicable for Lahore as the research
was limited only in this city. More research needs to be carried out to broaden the scope of the
research topic.
 Sample size of number of institutes was small due to time constraint. But still, I have
tried to the best of my ability to take a fair representation of the population.
 In depth comparison could not be made between different levels, the reason being time
constraint.
 Lack of time implies convenience sampling to be used as the first choice which might
lead to bias but all possible efforts are made to avoid any bias.
33
Chapter No. 5
Conclusion and Recommendations
34
5.0 CONCLUSION
H1: Transformational leadership style enhances employee organizational commitment

H01: Transformational leadership style does not enhances employee organizational commitment
H2: Transactional leadership style enhances employee organizational commitment
H02: Transactional leadership style does not enhances employee organizational commitment
After the research study and in depth analysis of transformational and transactional leadership
styles, I accept the H1 & H2 hypothesis that a both transformational and transactional leadership
style enhances employee organizational commitment.
A developed questionnaire is used by taking guidance from Multifactor Leadership

Questionnaire (Bass & Avolio, 1995) and A Study of Organizational Commitment, its
Antecedents and Outcomes: The Context of Higher Education Institutes of Pakistan to collect the
data from faculty members of selected educational institutions in Lahore. The data was analyzed
and interpreted through SPSS 17.0 statistical software. Multiple Regression analysis indicates
that all the values of T-statistic are significant. Transformational leadership style had 41% impact
on employee commitment and transactional leadership had 16% impact on employee
commitment. Transformational leadership style shows more significant relationship with
employee organizational commitment than transactional leadership. Transformational leadership
style is found to be the most effective style that enhances employee’s organizational
commitment; whereas transactional leadership style is found to be less effective.
H3: Transformational leadership style enhances employees’ organizational commitment more

than transactional leadership style
H03: Transformational leadership style does not enhance employees’ organizational commitment
more than transactional leadership style.
I accept the H3 hypothesis that transformational leadership style enhances employee
organizational commitment more than transactional leadership style. In conclusion, one major
finding to be discussed is that we can never fully and accurately measure which type of
leadership style can be more enhances employee organizational commitment. It all depends on
35
different circumstances, and other factors like gender, age and management level. For an
organization to achieve employee commitment levels at its best, it should be able to assess the
needs of its employees and should use the best combination of transformational and transactional
leadership styles. Depending on only one type of leadership styles will never be as fruitful as
using the combination of both.
5.1 RECOMMENDATIONS
I have used only two leadership styles in my research study to view their impact on employee
commitment. I recommend using other leadership styles which also enhance employee
organizational commitment. I have selected a very small sample size of educational institutions
due to time constraints. I suggest broadening the scope of this study by selecting a large sample
size of educational institutions. I have used only two independent variables in my study and no
intervening variables are used, therefore I recommend using various other intervening and
contingent variables which also enhances employee commitment and then analyze the results.
36
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42
APPENDIX No .1
43
Survey Questionnaire
A multifactor leadership questionnaire is designed to evaluate the various factors that are related
to leadership and how these factors determine the efficiency of a leader. Leaders require a range
of skills in order for them to mobilize other people with whom common interests and goals are
shared. Leaders are influential and they have an impact on how other people behave. List below
there is a set of statements that represents your feelings about the various dimensions of
organizational commitment as well as its antecedents and outcomes. Consider your feelings and
experiences in your institution and indicate your degree of agreement or disagreement with each
statement. The survey is going to take 10-12 minutes of your time. This research is only for
academic purposes and all results will be kept confidential. Your responses are very important
for the success of this research project. For any inquiries regarding this study kindly contact Mr.
Muhammad Usman Mirza: usman583@yahoo.com Informed Consent: Thank you for agreeing to
participate in this study. By filling this form you agree to take part in the study. Please remember
that this is an unnamed and unsigned form and all the results that I am getting are completely
anonymous and there is no way I can track who has filled the form.
AGE:
GENDER: MALE FEMALE

FEMALE
FEE
University:
44
Strongly Strongly
Agree Agree Neutral Disagree Disagree
Transformational Leadership 5 4 3 2
1
1. How do you rate your leader’s ability to

build trust among people?
2. How do you rate your leader’s self

integrity?

inspire other people?
4. How do you rate your leader’s

innovation?
5. How do your rate your leader’s active

involvement with other people?
Transactional Leadership
6. How do you rate your leader’s reward

system?
monitor mistakes?
8. How do your rate your leader’s approach
to organizational problems?
9. How do you rate your leader’s coaching
skills?
10. I would not leave my University right
now because I have a sense of obligation to
45
the people in it.
11. This University deserves my loyalty.
12. One of the major reasons I continue to

work for this University is that leaving
would require considerable personal
sacrifice; another University may not
match the overall benefits I have here.
13. Too much of my life would be

disrupted if I decided I wanted to leave my
University right now.
14. It would be very hard for me to leave

my University right now, even if I wanted
to.
15. I do not feel a strong sense of

belonging to my University.
16. I do not feel "emotionally attached" to

this University.
17. I do not feel like "part of the family" at

my University.
18. I really feel as if this University

problem is my own.
19. I would be very happy to spend the rest

of my career in this University.
46
47
48
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LEADERSHIP STYLE ENHANCES THE EMPLOYEE

ORGANIZATIONAL COMMITMENT: A CASE STUDYOF

Registration #: FA11 MBO- 023

Department of Management Sciences,

Registration #: FA11 MBO- 023

SESSION: Fall 2011-2012

MBO 1.5 Research Project

Department of Management Sciences,

LEADERSHIP STYLE ENHANCES THE EMPLOYEE

A Research Project Presented to COMSATS Institute of Information

In Partial Fulfillment of the Requirements for the Degree of Masters of

Registration #: FA11 MBO- 023

A Research Project presented to COMSATS institute of Information Technology,

Mr. Fahad Javaid

Lecturer; Department of Management Sciences.

COMSATS Institute of Information& Technology, Lahore.

Muhammad Usman Mirza

Mr. Fahad Javaid

Lecturer; Department of Management Sciences

COMSATS Institute of Information &Technology, Lahore.

To highlight which leadership style whether transformational or transactional is more effective in

Key Words: Transformational Leadership; Transactional Leadership; Employees Organizational

TFL Transformational Leadership

TSL Transactional Leadership

EOC Employee Organizational Commitment

TCM Three Component Model

ANOVA Analysis of variance test statistics

R Square Coefficient of determination

SPSS Statistical Package for Social Sciences

The wide topic of my study is Leadership style enhances employees’ organizational

1.1 STATEMENT OF PROBLEM

1.2 RESEARCH OBJECTIVES

 How employee commitment is enhances by transformational leadership style?

Beginning in the 1970s, transactional and transformational leadership theories emerged.

The concept of transformational leadership has been described as a relationship of mutual

 By providing contingent rewards, a transactional leader established contracts to replace

Employee commitment is defined in a way as the employee's emotional attachment to the

As we have observed that transformational leadership is based on four different leadership

H1: Transformational leadership style enhances employee organizational commitment

H2: Transactional leadership style enhances employee organizational commitment

H3: Transformational leadership style enhances employees’ organizational commitment more

3.1 Purpose of the Study

3.2 Population & Target Population

3.3 Sampling Method

3.3.2 Transactional leadership

3.3.3 Organizational commitment

3.4.1 Data Collection Tools

3.4.2 Structured Questionnaire

Gender has been coded as 1 = Male and 2= Female.

Following section presents sample composition by demographics. Sample composition by each

3.5.1 Sample Composition by Gender:

Table 3.1 shows gender segregation of respondents of present study. Out of 60

Frequency Percent Valid Percent Cumulative Percent

Valid Female 20 33.0 33.0 33.0

Male 40 67.0 67.0 100.0

Total 60 100.0 100.0

Frequency Percent Valid Percent Cumulative Percent

Valid 20-22 15 25.0 25.0 25.0

23-25 15 25.0 25.0 50.0

26&Above 30 50.0 50.0 100.0

Total 60 100.0 100.0

3.5.3 Sample Composition by Universities:

Frequency Percent Valid Percent Cumulative Percent

TRFLA Pearson Correlation 1 .550 .505

TRLVA Pearson Correlation .550 1 .655

EOCAA Pearson Correlation .505 .655 1