Is it possible to identify transformational leadership in a financial institution?

Abstract

Purpose – The aim of this study is to analyze the perception of employees of a Brazilian financial institution about transformational leadership and, subsequently, compare the results amongst the different groups of respondents. Design/methodology/approach – The authors present herein an empirical, descriptive and quantitative study, in which the survey was used as the main data collection technique. The survey was applied to a national sample composed of 603 employees (followers) operating in a financial institution. The authors utilized a few statistical techniques to analyze the data collected, namely descriptive statistics, factor analysis, variance analysis and linear regression. Findings – The results indicate that employees have a high perception toward transformational leadership; no significant differences between the groups of respondents were found. Followers perceive their leader as a transformational agent, who inspires, encourages, considers and motivates them. Practical implications – The relevance of this research theme and the main findings of this research contribute to managerial practices since the leadership style under investigation is associated with positive outcomes. Originality/value – This research sought to explore transformational leadership in an unexpected context. The originality of the study relies on the identification of a positive leadership style in the national financial system, which is usually more focused on economic criteria. There is a lack of research on leadership in Brazil, especially when it comes to quantitative studies. Not only the methodology but also the sample representing the entire Brazilian territory bring about the originality of this research.

Keywords

• Leadership
• Transformational leadership
• Transactional
• Financial institutions