The Impact of Leadership Effectiveness on Employee Commitment and Engagement Within Corporate Workplaces

Sendhilkumar Manoharan, Ayasa Kanta Mohanty, Pompi Das Sengupta, Raja Yn, Kalai Lakshmi TR, Zuleika Homavazir, Roopa Traisa and Sukhman Ghumman

Management (Montevideo), 2025, vol. 3, 175

Abstract: Introduction: Effective Leadership is the foundation of corporate success, influencing attitudes among employees, performance, and engagement. However, many corporate workplaces struggle with disengaged employees and low commitment levels due to ineffective leadership practices. The research investigates the impact of managerial approaches on commitment and involvement of employee in business settings, concentrating on transformative, transactional, and servant leadership, and their impact on affective commitment and behavioral engagement. Methodology: Data were acquired by using structured surveys from 400 individuals across business organizations in the information technology (IT), financial, and manufacturing sectors. The Hypothesis (H1-H8) was developed, and implemented in IBM SPSS statistic version 26. Data analysis included Pearson correlation, descriptive data, Structural Equation Modelling (SEM) and multiple regression analysis to explore both direct and indirect relationships among variables. Results: The findings showed transactional leadership (TL) had the most impact on employee commitment (EC) with a path coefficient (0.40) and employee engagement (EE) 0.43. The Servant leadership (SL) and transactional leadership (TSL) with moderate impact with path coefficients in SL (0.22, and 0.19) for EC and EE, in TSL (0.16) for EC, and (0.13) for EE. Conclusion: The research by SEM reveals that leadership Effectiveness is an important aspect in influencing how employees act, underlining the need to engage in leadership development efforts that enhance compassion, interaction, empowerment, and ethical behavior to increase motivation, commitment, and engagement.

Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:dbk:manage:v:3:y:2025:i::p:175:id:1062486agma2025175

DOI: 10.62486/agma2025175

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