The Influence of Transformational Leadership on Work Stress in Banking: Unveiling the Mediating Role of Emotional Intelligence

Abstract

The objective of this research is to conduct a comprehensive investigation into the factors that contribute to job stress among banking employees in Karachi. This study aims to elucidate the relationship between transformational leadership and work stress, in the social exchange theory. The study collected data from multiple individuals employed at various banks in Karachi. A questionnaire was employed to gather information from a total of 380 employees. The analysis of this study was conducted using the SMART-PLS4. For this quantitative research study, convenient sampling was employed, along with a cross-sectional technique. The findings suggest that transformational leadership and work stress are positively correlated. Additionally, emotional intelligence factors, including self-awareness, self-regulation, motivation, and empathy, were found to mediate the relationship between transformational leadership and job stress. However, the study did not find evidence to support the mediating effect of social skills on this relationship. In Karachi's banking sector, putting transformational leadership into practice and giving emotional intelligence training top priority can greatly lower workplace stress, improve the well-being of workers, and create a more optimistic and successful work atmosphere. The cross-sectional approach and sample size of this study restrict the findings to the banking industry in Karachi. For a more comprehensive knowledge of the evolution of work stress and wider generalizability, future studies should make use of longitudinal approaches and take into account other mediators and moderators. The research examines the relationship between transformational leadership and work stress through the novel mediator, emotional intelligence. The five components of emotional intelligence enable a more thorough investigation to gain a deeper understanding of workplace dynamics. Utilizing the study's structure to deliver valuable insights to the organizations.