Impact of Leadership Style of Managerial Employees on Turnover Intention of Non-Managerial Employees: An Empirical Investigation with Special Reference to Screenline (Pvt) Limited

Abstract

Employee turnover has been always a key concern faced by organizations regardless of their location, size or nature of business. In general, any organization plays a crucial role in promoting human capital to achieve competitive advantages. Therefore, having high employee turnover an organization definitely find it difficult to achieve competitive advantages. Leadership is a one of antecedents of turnover intention of employees. Hence, understanding about how leadership styles affect turnover intention of employees is vital to maintain workforce stability and for organization effectiveness. The objective of this research is to examine the impact of transactional and transformational leadership styles of managerial employees on turnover intention of non-managerial employees. Screenline (Pvt) Limited was selected as the study context. This research reviews the basic theory and previous researches on what extent leadership styles have effect on employee turnover intention. The sample of this study comprise of 55 non-managerial employees in Screenline (Pvt) Limited. Questionnaire method was used to collect data from the selected sample. Two hypotheses were advanced, and tested using SPSS by employing the multiple regression analysis, and using the Pearson correlation coefficient. It was found that there was considerable impact of transformational leadership style on turnover intention of non-managerial employees while there was no significant impact of transactional leadership style on turnover intention of employees. However, both transactional and transformational leadership styles have negative relationship with turnover intention of employees. According to the results of this study, the relationship between transactional leadership style and turnover intention was not significant. The researcher suggested some strategies in order to be adapt with relevant leadership styles by managerial employees or supervisors base on followers and situation. The limitation of this study as well as directions for future researches based on findings have been provided.