Effect of leadership style on employee performance in banking industry

Abstract

This study investigates the impact of leadership styles on employee performance in Myanmar’s rapidly evolving banking sector. Through analysis of secondary sources including industry reports and academic literature the research evaluates how transformational, transactional, ethical, servant, adaptive, and digital leadership influence employee motivation, satisfaction, and productivity. Findings reveal that transformational leadership strongly enhances performance by inspiring innovation and commitment, whereas transactional leadership supports operational efficiency but may limit creativity. The effectiveness of these styles is shaped by Myanmar’s unique context: collectivist cultural norms that value respect and hierarchy, economic volatility, and accelerated digital transformation. The study concludes that integrative leadership approaches, combining inspirational, ethical, and adaptive practices, are essential for fostering employee performance amid sector-specific challenges. Practical recommendations are offered for developing leadership strategies that align with both cultural values and contemporary demands in Myanmar’s banking industry.