An Empirical Analysis of Transformational Leadership, Organisational Culture and Employee Performance in the Hospitality Industry of Southern Romania

Abstract

Our paper analyzes the relationship between transformational leadership, organizational culture, and employee performance in the hospitality industry of southern Romania. The study was conducted on a sample of 193 operational employees from hospitality and other related industries, testing three hypotheses related to the abovementioned variables using the partial least square structural equation modeling. Our findings have shown that the transformational leadership style has a strong and positive influence on organizational culture and employee performance, and, at the same time, organizational culture strongly and positively influences employee performance. Hospitality managers and HR professionals can use our results to create and develop a positive organizational culture based on commitment, creativity, innovation, and leadership development programs to increase employees’ performance.