Impact of Leadership Style on Employee Engagement

The main purpose of the study is to investigate the impact of leadership style (Transactional/Transformational) on employee engagement. Survey was conducted among 55 subjects in a beverages company using questionnaire. The Utrecht Work Engagement Scale, developed by Schaufeli et al. (2002) was used to measure employee engagement. The Multifactor Leadership Questionnaire (Bass, Avolio, 2000) was used to measure leadership style. The data collected was analyzed using various statistical tools - Mean, Correlation, Regression and Chi-square test with the help of SPSS. The findings revealed that there is significant positive correlation between transactional leadership and employee engagement as well as between transformational leadership and employee engagement. It is also found that transformational leadership is a better predictor of employee engagement when compared to transactional leadership. The study also concluded that the demographic variables influence employee engagement.