The Influence of Leadership Style on Employee Performance in Jordanian Banks: The Mediating Role of Perceived Organizational Support

Abstract

This study aimed to identify the impact of leadership style, with its various elements (transformational leadership and transactional leadership), on improving employee performance in Jordanian commercial banks. The study also aimed to identify the mediating role of perceived organizational support in determining the relationship between leadership style and employee performance in the banks under study. The study population consisted of Arab Bank, Jordan Ahli Bank, Jordan Capital Bank, and Jordan Commercial Bank, where purposive sampling was used by publishing an electronic questionnaire (online questionnaire) via the Google Form website to assistant managers, supervisors, and executive directors; 356 responses were received. The data was subjected to statistical analysis. The study concluded that the combined elements of leadership style had an impact on improving employee performance in the Jordanian banks, given the presence of perceived organizational support. The effect of perceived organizational support on the relationship between transactional leadership style and employee performance was not proven. The study recommended that the banking sector focus on inspiring, motivating, and supporting its employees with a clear vision, personalized attention, and intellectual stimulation. However, the banks need to develop a culture of perceived organizational support.