Transactional Leadership Style and Its Impact on Employee Performance in the IT Sector

Abstract

This study investigates the impact of transactional leadership style on employee performance within the Information Technology (IT) sector using a quantitative research approach. Transactional leadership, characterized by clear goal setting, structured rewards, and a focus on performance management, is widely adopted in IT organizations to drive efficiency and accountability. The research employs a survey methodology, utilizing a structured questionnaire based on a 5-point Likert scale distributed to IT professionals across multiple companies. Data collected from 105 respondents are analyzed using SPSS to assess the direct and indirect relationships between transactional leadership, employee performance, and key mediating factors such as job satisfaction and trust. Findings reveal that transactional leadership significantly enhances employee performance by establishing clear expectations and providing contingent rewards. The analysis also demonstrates that job satisfaction and trust act as positive mediators, strengthening the relationship between leadership style and performance outcomes. However, job stress is found to have no significant mediating effect within this context. The results suggest that IT organizations can optimize employee performance by fostering transactional leadership practices that prioritize transparency, recognition, and trust-building. This study contributes to the literature by empirically validating the effectiveness of transactional leadership in the dynamic and high-pressure environment of the IT sector.