A study of impact of transactional leadership on employee Productivity in non- banking financial companies of pune city

Abstract

In an increasingly competitive business environment, effective leadership has become essential for enhancing employee performance and achieving organizational success. Transactional leadership—characterized by structured policies, reward systems, and task-oriented supervision—remains a dominant style, particularly in compliance-driven sectors. This study investigates the impact of transactional leadership on employee productivity within non-financial banking companies in Pune City. To explore this relationship, the researcher collected responses from 50 senior-level managers across various non-financial banking institutions in Pune. Drawing from an extensive literature review, six independent variables were identified to measure transactional leadership: (1) Clarity in Expectation & Reward System, (2) Active Performance Monitoring Correction, (3) Problem-based Intervention, (4) Goal & Objective Setting, (5) Recognition of Achievement, and (6) Constructive Feedback. Correspondingly, six dependent variables were defined to evaluate employee productivity: (1) Timely Task Completion, (2) High Work Quality, (3) Goal Achievement, (4) Effective Time Management, (5) Sustained Productivity under Pressure, and (6) Proactive Effort. The relationship between these variables was analyzed using canonical correlation analysis. The results indicate a significant and positive association between transactional leadership behaviors and employee productivity. These findings suggest that while transactional leadership effectively promotes structured performance outcomes, integrating complementary leadership styles may be beneficial for fostering innovation and long-term employee engagement. The study also highlights the importance of leadership adaptability in evolving organizational contexts.