The Relationship Between Transformational Leadership and Organisational Learning Capability with the Mediating Role of Perceived Human Resource Effectiveness

Abstract

The study investigates the relationship between transformational leadership (TL) and organisational learning capability (OLC) and explores the mediating role of human resource (HR) effectiveness. A quantitative survey method was used to gather data from the software industry in Pakistan through a self-administered questionnaire ( N = 504). Both exploratory and confirmatory factor analyses were conducted to check the reliability and validity of the research instrument. In addition, structural equation modelling (SEM) was used to test the proposed hypotheses. Research findings have demonstrated that TL positively affects OLC in software companies. Moreover, perceived HR effectiveness mediates the relationship between TL and OLC. Current research has several theoretical and practical implications as it extends the ability-motivation-opportunity (AMO) theory by considering perceived HR effectiveness as an important facilitator of a firm’s learning capability. This study provides valuable insights for organisational leaders to ensure HR effectiveness in terms of HR practices including recruitment, training and compensation for the development of learning capabilities. It also recommends managers to adopt TL for utilising HR effectiveness in order to improve learning at an organisational level.

Critical factors influencing learning from quality failures in the construction of grid infrastructure

“…Besides ability-related human causes, incentive-enhancing practices positively affect employees’ motivation to perform actions and commitment to improving organizational performance (Kundu and Gahlawat, 2018). Transformational leadership would increase employees’ motivation and commitment to perform actions and participate in decision-making (Kazmi et al ., 2021).…”

“…For example, efficient knowledge management boosts organizational learning through knowledge acquisition, distribution and understanding (Walker, 2016). Human resource management allows exchanging knowledge and experience at the individual level and developing adaptive learning capability at the organizational level (Kazmi et al, 2021). The positive intervention of incentive mechanisms in learning has been acknowledged (Rahimi et al, 2021).…”

How does human relations climate and organizational support affect readiness to change? The mediating role of employee participation and leadership excellence

“…Overall, the social exchange perspective, which focuses on the role of high‐quality interactions and exchange on individualized outcomes (Cropanzano & Mitchell, 2005), provides a useful framework for developing a linkage between organizational support factors, change experiences of individuals and eventual readiness to change. Using the social exchange theory, it is argued that there is a direct positive relationship between organizational support factors, managerial leadership excellence and organizational outcomes (Begum & Mujtaba, 2016; Kazmi et al., 2021). Moreover, the presence of support factors improves the motivation of employees and enables them to openly participate in organizational decision‐making.…”

What Makes Human Resource Professionals Effective? An Exploratory Lesson From Techno-Based Telco Firms of a Developing Country

“…This is also supported by the Guest and Conway (2011) , who signified the profound qualitative investigation for exploring HR effectiveness. Recent study by Kazmi et al (2021) has explored the role of HR effectiveness as a mediator between transformational leadership and an organizational learning capability, suggesting researchers can also use qualitative and mixed approaches in the future. To address the aforementioned gaps in the literature, the current study pursues two main objectives.…”