Mediating role of organizational trust between transformational leadership and workplace deviant behavior of employees in banking sector of Pakistan

Abstract

PURPOSE: Based on theory of social exchange and theory of the psychological contract, this explanatory study reconnoiters the mediating factor of organization trust on transformational leadership in connection with workplace contradictory behavior in the banking sector to mitigate the incidents as evident from different bank reports and newspapers. RESEARCH DESIGN: Cluster sampling is properly applied on the key recommendations of previous studies and survey questionnaire from 400 (Male = 240 Female = 160) potential respondents from various banks were carefully composed to test using SEM-Amos. FINDINGS: The results shown that TL characteristically considers no candid connection with WDB in the finance sector, however organizational trust purely clarified the unique bond between TL and WDB more commendably. Commercial Banking industry can persuasively progress the irregular conduct of local bankers by appropriately smearing this logical investigation, likewise, standing procedures can also be upgraded in the stern nimble of the extracted outcomes of this study. ORIGINALITY: This study realistically contributes to the literature of leadership style and deviant behavior based upon social Exchange and psychological contract philosophy and mediating factors affecting deviant behavior and transformational leadership. It established the causative factors that bridged the theoretical gaps between TL and WDB in the banking industry.