A Study of the Effects of Transactional Leadership on Employee Motivation and Performance in the Malaysian Retail Sector

Abstract

Effective leadership is an essential factor in managing organizations as it significantly impacts employee behaviour and performance. One such leadership style commonly employed in the business world is transactional leadership, which focuses on providing rewards and punishments to motivate employees towards achieving specific objectives. Nevertheless, the extent to which transactional leadership affects employee motivation and performance within the retail sector of Malaysia has not been fully explored. Therefore, this journal study aimed to explore the potential effect of transactional leadership on employee motivation and performance within the retail sector in Malaysia. The findings indicate that transactional leadership significantly and positively influenced both employee motivation and performance. Furthermore, employee motivation was found to mediate the relationship between transactional leadership and performance. These results highlight the importance of transactional leadership in the promotion of employee motivation and performance, suggesting that organizations within the Malaysian retail sector should consider adopting transactional leadership practices to enhance employee outcomes. Implications and future research directions are discussed.