The Impact of Transformational Leadership on Employee Performance

Session

Management Business and Economics

Description

Transformational leadership is one of the most influential leadership models, directly affecting employee motivation, engagement, and performance, and playing a key role in organizational success. This study examines its impact in Kosovo and Albania, focusing on its application across both public and private sectors. Drawing on the four core dimensions of transformational leadership-idealized influence, inspirational motivation, intellectual stimulation, and individualized consideration-the research investigates their relationship with employee outcomes such as job satisfaction, productivity, and organizational commitment. The study employs a quantitative approach, using a Likert-scale questionnaire administered to employees in various organizations. Statistical methods, including correlation and regression analysis, were applied to test hypotheses and evaluate the significance of leadership components on performance indicators. The results show that transformational leadership has a significant positive effect on productivity, innovation, satisfaction, and well-being. Furthermore, sectoral comparison highlights that its impact is stronger in the private sector, where organizational flexibility allows for higher levels of innovation and engagement, while public sector effects remain moderate due to structural and bureaucratic constraints. The study concludes that investing in transformational leadership practices can enhance employee motivation and organizational performance. It recommends that organizations in both countries strengthen leadership training and development programs, while policy frameworks should encourage supportive environments that foster vision, innovation, and long-term sustainability.

Keywords:

Transformational leadership, employee performance, motivation, engagement, productivity

Proceedings Editor

Edmond Hajrizi

ISBN

978-9951-982-41-2

Location

UBT Lipjan, Kosovo

Start Date

25-10-2025 9:00 AM

End Date

26-10-2025 6:00 PM

DOI

10.33107/ubt-ic.2025.431

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Oct 25th, 9:00 AM Oct 26th, 6:00 PM

The Impact of Transformational Leadership on Employee Performance

UBT Lipjan, Kosovo

Transformational leadership is one of the most influential leadership models, directly affecting employee motivation, engagement, and performance, and playing a key role in organizational success. This study examines its impact in Kosovo and Albania, focusing on its application across both public and private sectors. Drawing on the four core dimensions of transformational leadership-idealized influence, inspirational motivation, intellectual stimulation, and individualized consideration-the research investigates their relationship with employee outcomes such as job satisfaction, productivity, and organizational commitment. The study employs a quantitative approach, using a Likert-scale questionnaire administered to employees in various organizations. Statistical methods, including correlation and regression analysis, were applied to test hypotheses and evaluate the significance of leadership components on performance indicators. The results show that transformational leadership has a significant positive effect on productivity, innovation, satisfaction, and well-being. Furthermore, sectoral comparison highlights that its impact is stronger in the private sector, where organizational flexibility allows for higher levels of innovation and engagement, while public sector effects remain moderate due to structural and bureaucratic constraints. The study concludes that investing in transformational leadership practices can enhance employee motivation and organizational performance. It recommends that organizations in both countries strengthen leadership training and development programs, while policy frameworks should encourage supportive environments that foster vision, innovation, and long-term sustainability.