DefinePK

Abstract

Pakistan is currently grappling with an unprecedented political and economic crisis, which calls for committed and capable public managers to enhance institutional performance and address economic challenges. However, government efforts to emphasize the role of leadership in fostering organizational commitment among public servants have remained limited. This study examines the impact of leadership styles and employee performance on the effectiveness of public sector organizations. Data were collected via online surveys from 279 middle managers across six public institutions: the Capital Development Authority (CDA), Islamabad Electric Supply Company (IESCO), Sui Northern Gas Pipelines Limited (SNGPL), National Database and Registration Authority (NADRA), Pakistan International Airlines (PIA), and Capital Hospital. Adopting a quantitative approach and purposive sampling, the responses were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results indicate that both transformational and transactional leadership styles significantly enhance employee performance. Moreover, employee motivation and training serve as mediators, strengthening the relationship between leadership and performance outcomes. Notably, Organizational Citizenship Behavior (OCB) moderates the motivation–performance link but not the training–performance link, emphasizing the importance of fostering OCB within institutions. These findings support prior research and highlight the dynamic role of leadership in driving organizational success.