Contents

CHAPTER: 1..................................................................................................................................4

1.1 INTRODUCTION:......................................................................................................................4

1.2 PROBLEM STATEMENT:...........................................................................................................5

1.3 GAP ANALYSIS:......................................................................................................................6

1.4 RESEARCH OBJECTIVE:...........................................................................................................7

1.5 RESEARCH QUESTION:............................................................................................................7

1.6 SIGNIFICANCE OF STUDY:.......................................................................................................8

1.7 AIM OF STUDY:.......................................................................................................................8

1.8 STRUCTURE OF THESIS:..........................................................................................................8

1.9 KEY DEFINITIONS:..................................................................................................................9

1.9.1 EMPLOYEE ENGAGEMENT:..................................................................................................9

1.9.2 TRANSFORMATIONAL LEADERSHIP:..................................................................................10

CHAPTER 2..................................................................................................................................12

LITERATURE REVIEW:................................................................................................................12

2.1 INTRODUCTION:....................................................................................................................12

2.2 TRANSFORMATIONAL LEADERSHIP:.....................................................................................14

2.3 TRANSFORMATIONAL LEADERSHIP THEORY:.......................................................................15

2.4 EMPLOYEE ENGAGEMENT:...................................................................................................16

2.6 HYPOTHESIS:........................................................................................................................18

2.8 RELATIONSHIP BETWEEN IDEALIZED INFLUENCE AND EMPLOYEE ENGAGEMENT:.............20

2.9 RELATIONSHIP BETWEEN INDIVIDUAL CONSIDERATION AND EMPLOYEE ENGAGEMENT:...22

 2.10 RELATIONSHIP BETWEEN INTELLECTUAL STIMULATION AND EMPLOYEE ENGAGEMENT: 23

CHAPTER 3..................................................................................................................................24

3.1 METHODOLOGY:...................................................................................................................24

3.2 RESEARCH APPROACH:.........................................................................................................25

3.3 SAMPLE TECHNIQUE:............................................................................................................25

3.4 POPULATION:........................................................................................................................26

3.5 SAMPLE SIZE:.......................................................................................................................26

3.6 RESEARCH PHILOSOPHY:......................................................................................................26

3.7 INSTRUMENT SCALE:............................................................................................................27

3.8 RESEARCH ANALYSIS:..........................................................................................................28

3.8.1 RELIABILITY:.....................................................................................................................28

3.8.2 VALIDITY:..........................................................................................................................28

3.8.3 CORRELATION:..................................................................................................................29

3.8.4 REGRESSION:.....................................................................................................................29

CHAPTER 4..................................................................................................................................30

4.1 RESULTS AND ANALYSIS:.....................................................................................................30

4.2 DESCRIPTIVE STATISTICS:....................................................................................................30

TABLE # 1 DESCRIPTIVE STATISTICS:.........................................................................................31

4.3 CORRELATION ANALYSIS:....................................................................................................32

TABLE # 2 CORRELATION...........................................................................................................33

4.4 RELIABILITY ANALYSIS:.......................................................................................................33

TABLE # 3: RELIABILITY ANALYSIS...........................................................................................34

4.5 MODEL SUMMARY:............................................................................................................35

4.6 ANNOVA TABLE:.............................................................................................................35

CHAPTER 5..................................................................................................................................36

DISCUSSION AND CONCLUSION:..................................................................................................36

5.1 INTRODUCTION:....................................................................................................................36

5.2 DISCUSSION OF FINDINGS.....................................................................................................36

5.3 RESULTS OF HYPOTHESIS:....................................................................................................37

5.4 INSPIRATIONAL MOTIVATION TESTING:................................................................................38

5.5 IDEALIZE INFLUENCE TESTING:............................................................................................38

5.6 INDIVIDUAL CONSIDERATION TESTING:...............................................................................38

5.7 INTELLECTUAL STIMULATION TESTING:...............................................................................39

5.8 LIMITATIONS OF THIS STUDY:..............................................................................................39

5.7 CONCLUSION:.......................................................................................................................40

5.8 MANAGERIAL IMPLICATIONS................................................................................................41

Abstract:

In every firm employee engagement is one of the key element in order to retain intellectual

capital. Leader is the one who work for the motivation and engagement of employees. In every

organization there is a need of leader who transform the behavior of employees, encourage

innovation, adaptability and creativity. These factors identify the transformational leadership

value in organization. The main aim of this paper is to find the “impact of transformational

leadership on employee engagement in Allied Engineering & service Ltd”. To identify the

relationship between both variables we collect data from the organization through self-

administered questionnaire by using (likert scale). Total population of this study is above 5000

therefore sample size is 375 that is calculated by using formula. As this research follows survey

research strategy so; Questionnaire were distributed in the organization. SPSS 2.0 is used to

analyze the required data. Regression analysis were done to analyze the impact of independent

variable on dependent variable. Moreover, regression analysis prove that all the aspects

transformational leadership have significant and optimistic impact on Employee Engagement in

Allied Engineering & Service Ltd. In the end we conclude that to keep employees engaged

effective team performance is essential and to increase the proficiency of employee’s

engagement is the key element. After all this study provide future recommendation i.e. research

should also be done to examine the application of aspects of transformational leadership.

Key words: Transformational leadership, Engagement, Intellectual stimulation.

Chapter: 1

1.1 Introduction:

This field of study is to understand the literature, it’s important to split the content into the key

modules. The study focuses on the impact of transformational leadership on employee

engagement. To start focusing on the present literature on employee engagement.

Transformational leadership can also be known as renewal. Its main aim is to give organization a

new life[ CITATION Cla15 \l 1033 ].

According to Harriss, (2016) the applied leadership style in engineering organizations need to

develop from transformational approach. Leaders should apply transformational leadership style

which is capable enough in changing and developing its employee’s positive engagement for the

effectiveness of overall organization. This could be through implementing the approach that

make employees engage by giving them motivation and allow employees to beat their own

expectations and their performance to show their effectiveness for the organization.

According to (Widiartanto & Harwiki, 2015) the concept of transformational leadership is the

solution to task. According to this concept it is a leader’s duty to encourage their employees to

accomplish the work up to their hopes. Transformational leaders try to lift up their employees by

giving them positive responses, inspiring and giving them their right which are harmony,

freedom, stability, justice and molarity which is not a primary based on emotions. Rewarding

and satisfying the employees need will be advantageous for both the organization and

employees. Employees need to fulfill the organizations demand to flourish the organization
goals, in the mean time employees wants a nice job environment, a chance to contribute and to

show their skills, suitable salaries, a chance to be promoted and a decent bond with their seniors

and juniors.

Although, transformational leadership style can change the organization values by its actions.

Leaders should affect the employee’s motivation and their sense of identity in progressing to

come up with the good performance on the far side expectations and worker engagement which

should be the core objective of effective organization. This leadership style should be practiced

on a huge span for employees to engage so as to go with the encircling dynamic

situations[ CITATION Ham12 \l 1033 ].

1.2 Problem Statement:

In today’s world environment is changing rapidly and because of that it is difficult to make high

employee engagement to achieve organizational goals[ CITATION Col17 \l 1033 ].

According to [ CITATION Ham12 \l 1033 ] there are only some leaders who fully understand

the importance of influential leadership style and its influence on employee engagement.

Behavior of employee is often formed and control by leaders through both interpersonal

communication and material reward which have a serve transformation on the performance and

engagement of employees.

Leadership style is a mixture of leaders general personality, communication style, guiding

towards reaching organizational goals etc. however the mystery is still remaining unresolved that

which one leadership style is more effective[ CITATION Cla15 \l 1033 ].

Harriss, 2016 successfully managing employee engagement in big organization have become a

critical issue that must be understand by leaders in order to full fill organizational goals.
However, employee engagement is more significant in any business but it is difficult to manage

in large organizations such as engineering companies. Employee engagement have potential to

raise the level of organizational profitability[ CITATION Col17 \l 1033 ].

In this rapidly changing environment managing employee engagement have become a complex

issue especially for engineering industry where changing of technology effect more. This issue

exit because of increasing challenges of leadership [ CITATION Ham12 \l 1033 ]. The aim of

this study is to describe how transformational leadership impact and inspire employee

engagement in this rapidly changing environment to achieve the organizational success and goals

of organization.

1.3 Gap Analysis:

There are very few articles found on “Impact of Transformational Leadership on Employee

Engagement” on engineering companies in Pakistan.

The issues on employee’s engagement and the impact on an engaged employee is measured as a

paramount in articles. The importance of the impact of transformational leadership on employee

engagement is explored and therefore the impact is also measured to confirm the impact on

engineering companies in Pakistan [ CITATION Ham12 \l 1033 ].

Alqatawenh, 2018 Further the research will be on employees within the specific organization to

see their perception on what they think are the reasons to engage in their duties despite of the

rapidly changing environment and to understand in detail that if the leader is impactful in

engaging the employees.

1.4 Research Objective:

H1: To find the impact of inspirational motivation on employee engagement.

H2: To find the impact of idealized influence on employee engagement.

H3: To find the impact of individual consideration on employee engagement.

H4: To find the impact of intellectual stimulation on employee engagement.

1.5 Research Question:

H1: What is the impact of inspirational motivation on employee engagement?

H2: What is the impact of idealized influence on employee engagement?

H3: What is the impact of individual consideration on employee engagement?

H4: What is the impact of intellectual stimulation on employee engagement?

1.6 Significance of Study:

This research will be significant for the future organizations leaders on how to engage their

employees in this fast growing environment with transformational leadership style, because

many leaders don’t know how to engage and encourage employees positively in their

responsibilities for the organization effectiveness [ CITATION Cla15 \l 1033 ].

1.7 Aim of Study:

The main aim of this paper and study is to develop a wide study on influence of transformational

leadership on engagement of employees, and to light up the relation between leaders behaviors
towards engagement and commitment in the institute and firms. The main aim is to know and

find out the positive impact of transformational leadership on employee’s engagement this will

then give leaders to discover more in order to increase and develop employee’s engagement for

the productivity of organization [ CITATION Ham12 \l 1033 ].

1.8 Structure of Thesis:

Quansah, 2013 this research is organized into 5 large chapters. The parts of the chapters focuses

on the different zones that are important to complete the research and to make this research

valuable.

Chapter: 1

This includes introduction which covers previous papers of the study and their findings, research

problem, research questions and research objectives, gaps. This will also include significance of

study.

Chapter: 2

This chapter comprises literature review from different articles to know the impact of

transformational leadership on employee’s engagement. It will also include the brief literature on

every single independent variable that have an impact on employee’s engagement which will

help in understanding the topic.

Chapter: 3

This chapter consist of methodology of the study, which further describes the research design,

methods and procedures, population, sample techniques, data collection, instruments.