Transformational leadership, interim leadership, and employee human capital benefits: an empirical study

Managing turbulent economic environment, organizations realize the importance of developing transformational leaders since these leaders immensely contribute to human capital creation process for managing and implementing changes and consequently, improve organizational performance. This paper explores how employees' perceptions on leaders' transformational style and employees' interim leadership simultaneously and positively affect their human capital benefits and analyzes the existence of the differences between private and public Indian manufacturing industries on these relationships. For these purposes, 470 responses were collected from middle and top level management employees who have experienced interim leadership. The results show that these leadership factors have strong and significant potential to influence employee perceived human capital benefits, and importantly, such direct and significant relationships are widely observed among private sector employees. (C) 2010 Elsevier Ltd. All rights reserved.