IMPACT OF TRANSFORMATIONAL LEADERSHIP DEVELOPMENT THROUGH ORGANIZATION DEVELOPMENT INTERVENTION ON EMPLOYEE ENGAGEMENT AND FIRM PERFORMANCE: A CASE ST
IMPACT OF TRANSFORMATIONAL LEADERSHIP DEVELOPMENT THROUGH ORGANIZATION DEVELOPMENT INTERVENTION ON EMPLOYEE ENGAGEMENT AND FIRM PERFORMANCE: A CASE ST

Summary/Abstract: As the rate of unprecedented changes in business environment is growing and firms do not have any more capital to further invest in products, marketing and other staff motivational programs, leadership effectiveness of managers is crucial to lead their followers and organization to achieve common purposes. Though a lot of attention on transformational leadership and its positive impact on employee engagement and organization performance have increased, little empirical studies have been conducted in a foreign-owned lending business in Thailand. This study examines the organizational development intervention (ODI) impact on transformational leadership development of 42 Branch Managers on employee engagement elements: job satisfaction and extra effort and organization performance on improvement of sales revenue, staff attrition and customer complaints. A control group of 33 team leaders of similar business was employed to compare the outcomes. Alpha analysis, t-tests and correlation were employed to judge data reliability and the statistical significance measurement of the organization development intervention. The results indicate statistically significant of both employee job satisfaction and extra effort as a result of the intervention. It was also found that there is statistically significant improvement of organization performance between pre-and post-OD intervention as opposed to the negative findings in the control group.

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