The effect of transformational leadership on organizational performance: in the case of Injibara Town Administration

Abstract

This study investigates the effect of transformational leadership on organisational performance within the Injibara Town Administration's public sectors. Transformational leadership, known for motivating and inspiring followers to exceed performance expectations, comprises four key components: idealised influence, inspirational motivation, intellectual stimulation, and individualised consideration. The research collected primary data via questionnaires and interviews from 314 employees, with secondary data sourced from books, articles, and previous research. Statistical analysis using SPSS and methods like correlation coefficients and multiple regression revealed that intellectual stimulation had the strongest positive effect on performance, followed by inspirational motivation. Individualised consideration showed a moderate positive relationship, while idealised influence had a weaker positive effect. All transformational leadership components were found to affect organisational performance significantly. The study concludes that when leaders apply these components, organisational performance improves, recommending that public sector leaders focus on these leadership practices to enhance overall performance.