Title: The impact of leadership styles on group effectiveness in public sector commercial banks

Authors: Alagirisamy Kamatchi Subbiah Sukumaran

Addresses: School of Management, SASTRA University, Thirumalaisamudram, Thanjavur 613 401, India

Abstract: Banking industry was considered to be a stable industry. Previous literature identified leadership behaviour falling into transformational, transactional, and passive styles. The present study examined the relationship between the styles of leadership behaviour of the branch managers of public sector commercial banks and group effectiveness and found that transactional and passive leadership styles of behaviour significantly affected group effectiveness. The present study, however, found that group effectiveness did not affect group performance measured in terms of customer satisfaction. Need was expressed in the previous literature for studies linking leadership age and experience with group effectiveness. Hence, the present study used leadership age and experience as moderators to address this gap and found that leadership age and their total experience did not make any difference on the effect of the transactional style of leadership behaviour on group effectiveness in the commercial banking industry.

Keywords: leadership styles; commercial banking industry; transactional leadership; transformational leadership; passive leadership; group effectiveness; customer satisfaction.

DOI: 10.1504/IJBEX.2024.140586

International Journal of Business Excellence, 2024 Vol.33 No.4, pp.523 - 545

Received: 09 Oct 2020
Accepted: 29 Apr 2021
Published online: 28 Aug 2024 *

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