Transformational Leadership Style and Its Impact on The Performance of Construction Companies

Abstract

“Leadership is one of the most observed and least understood marvels on earth” (Burn, 1978). This paper intended to probe the influence of transformational leadership style and its impact on the performance in construction companies. Leadership is related to organizational and staff performance, the researcher of this study became eager to determine the leadership style of construction companies and to assess their transformational leadership practices toward company performance of Pampanga, Philippines, 2021-2022. A quantitative research, descriptive-correlational method is used to determine the demographic profile of the respondents in terms of gender, position, age, educational attainment, year of work experience, perception of the respondents in transformational styles, relation to team commitment, relation to organizational culture and the project performance of the selected construction companies. This also tested if there is significant difference in the respondent’s perception toward transformational styles, relation to team commitment and to organizational culture between team members and project manager and is there significant relationship between the respondent’s transformational styles and project performance of the selected construction companies. Findings reveals that majority of respondents in construction companies in Pampanga, Philippines are male team members age 41 to 50 years old having a Master’s Degree with a 5 to 7 years’ experience. The respondent’s perception is strongly agreed or strong positive response in statements relating to transformational leadership styles, an agree or positive response in statements relating to team commitment, a neutral or undecided response in statements relating to organizational culture. In hypothesis testing results also revealed that there is significant difference in the respondent’s perception toward transformational styles, relation to team commitment and to organizational culture between team members and project manager and there is no significant relationship between the respondent’s transformational styles and project performance of the selected construction companies. Overall results showed that transformational leadership style has no impact on the performance of construction companies but has significant influence on respondent’s perception and attitudes.