ROLE OF LEADERSHIP IN EMPLOYEE ENGAGEMENT

Role of Leadership 

Leadership is perhaps the most powerful driver of employee engagement. Leaders not only set the tone and pace of organizational operations but also influence what employees experience, think, and do at the workplace. Effective leaders create a workplace culture in which employees feel empowered, valued, and encouraged to give their best.

Transactional Leadership focuses on individual tasks, monitoring performance, and rewarding or penalizing behavior based on outcomes. While it provides structure and accountability, it is often lacking in emotional engagement, and thereby restricts motivation to compliance and duty.

Transformational Leadership, on the other hand, is centered on vision, inspiration, intellectual stimulation, and individual consideration. It promotes more emotional involvement, independence, and innovation. Employees under transformational leaders are more likely to show discretionary effort and loyalty in the longer term (Bass, 1990).

Leaders who are emotionally intelligent—leaders who exhibit empathy, self-awareness, and social skill—are far better able to maintain high levels of engagement, especially in volatile or fast-changing enterprises, claims Goleman (1998).

Successful leadership is also dependent on the leader's inclination to listen, recognize contributions, resolve disagreements in an unbiased manner, and communicate an inspiring vision. Leaders who are visible, accessible, and transparent tend to be the most successful at generating trust and commitment. 

Gallup (2023) research shows that managers account for at least 70% of the variation in employee engagement across teams. In fact, one of the most frequent explanations for job departure is poor management. Conversely, teams with empathetic and emotionally intelligent leaders experience 59% less turnover and 21% higher productivity.

In Jetwing Hotels, transformational leadership is exercised by department heads as they empower workers with decision-making opportunities, cross-functional learning, and leadership by example. In spite of low tourist seasons, most employees remain committed due to the sense of belongingness and recognition established by leaders.

In contrast, transactional leadership is more often exercised at certain apparel factories or small production firms, where supervisors focus mainly on quotas being met and punishments for mistakes. This will often result in employees doing just enough to get along, with low morale and high turnover.

In MAS Holdings, one of Sri Lanka's largest apparel exporters, leadership development programs focus on empathy, coaching, and strategic vision. This has helped maintain high employee engagement levels across its 99,000 employees in 17 countries.

References

• Bass, B.M. (1990). From transactional to transformational leadership: Learning to share the vision. Organizational Dynamics.

• Goleman, D. (1998). Working with Emotional Intelligence.