Impact of Transformational Leadership on Team Efficacy: An Empirical Study in Telecommunication Sector of Pakistan

Abstract

The criterion of success has been shifted from ―how hard organizations work‖ to ―how innovatively organizations work to be succeeded‖. In this current era, innovation has considered the lifeblood of competitive organizations. Employees have well thought-out to be the most valuable asset of organization. In order to profitably exploit that talent their commitment intensity should be increased; and leadership style has one of the most important determinants that have an effect on commitment of personnel. The current study intended to explore the correlation between transformational leadership and team efficacy. The second required rationale incorporated in the scope of this study has to figure out that how employee commitment mediated the relationship between transformational leadership and team efficacy. The nature of this study required probability sampling in which Stratified Random Sampling was employed. The research was carried out on selected sample of 65 teams functioning in the Telecommunication Sector of Lahore (Pakistan). A 5-point Likert scale questionnaire, containing 20 items, divided into three components has been developed to measure the responses of the employees. Overall, 350 questionnaires were disseminated, out of which 325 returned back were indicating response rate of 91%. SPSS was used for analyzing data. Results of the study depicted that a significant and positive relationship exists between transformational leadership and team efficacy. Results also revealed that transformational leadership is a strong dimension of employee commitment. Furthermore, the current study suggested that organizations ought to exercise transformational leadership style in order to enhance the effectiveness of teams working in Telecom Sector and provides realistic implications for researchers interested in investigation the team efficacy with regard to transformational leadership in broader context.