The Role of Leadership Effectiveness and HRM Policies in Enhancing Organizational Performance: Mediating Effect of Employee Motivation
DOI:
https://doi.org/10.63075/wsqm3k92Abstract
The current competitive and fast changing business world has put more and more pressures on organizations due to the forces of globalization, technological change and shifting expectations of the workforce. The study analyzes the association between leadership performance, human resource management (HRM) and organizational outcome and specific to employee motivation as a mediator. The design employed was a quantitative, cross-sectional design, where 300 employees and managers in service and manufacturing companies were in Lahore in Pakistan were surveyed. Measures like the Multifactor Leadership Questionnaire (MLQ), which were tested and proved valid in European countries, were used to guarantee the validity and reliability. Structural Equation Modeling (SEM) was used to analyze data in AMOS with bootstrapping methods to test mediation effects. The findings suggest that the effectiveness of leadership is a significant and positive influence on the organizational performance, and visionary and inspiring leadership should be valued as the contributor to the innovation and success. The HRM policies were discovered to have a strong impact on the motivation of employees, which is in line with the Ability-Motivation-Opportunity (AMO)-theory. Moreover, employee motivation became one of the key mediators, as it connected leadership and HRM policies with some actual performance results. The model also showed superior fit indices proving it to be valid and theoretically sound. The research also adds to the theory by incorporating leadership, HRM, and motivation in the same framework to have a holistic picture of what drives organizational performance. In practice, it offers useful lessons to managers and HR experts on how to align leadership practices with HR systems to have a motivated and engaged workforce. Its cross-sectional nature and regional orientation are its limitations and future studies should be based on longitudinal and cross-cultural designs to be more general.
Keywords : Leadership Effectiveness; HRM policies; Employee motivation; Organizational performance; Mediation; Structural Equation Modeling (SEM); High-Performance Work Systems (HPWS); AMO framework; JD-R model.
