Leadership Styles and Pygmalion Effect among Banking Employees

Abstract

The study aimed to explore the relationship between leadership styles and Pygmalion effect among the managers and subordinates of private and public sector banks. The sample (N=210) was taken from different banks of Islamabad and Rawalpindi, including both men and women with age range of 20 to 55 years. To measure leadership styles of bank managers, the Multifactor Leadership Questionnaire was used, while Pygmalion effect was measured through Expectation and Readiness Scale. The results of the study showed that Pygmalion effect was significantly correlated with transformational leadership style and negatively associated with transactional leadership style. Managers with extended experience were more inclined to practice transformational leadership style and Pygmalion effect was high among their subordinates as compared to mangers with lesser experience. Managers of private sector banks make more use of transformational in leadership style while managers of public banks were mostly transactional. Implications strongly focused on the revenue generation in a bank grounded to enhance Pygmalion effect among subordinates.