The impact of transformational leadership dimensions on organisational performance in the South African mining sector

Abstract

This research examines the transformational leadership dimensions of intellectual stimulation, individualised consideration and inspirational motivation impact on organisational performance in the South African mining industry through the lense of The Balanced Scorecard (BSC), the study investigates the relationship between each dimension and each of the four perspectives and wider organisational outcomes. The results show that although inspirational motivation has a significant positive impact on financial performance, individualised consideration has the greatest impact on employee productivity and performance. Intellectual stimulation, however, shows a positive impact on employee performance as it fosters innovative and problem-solving behavior. These findings are in line with the existing literature which shows transformational leadership effectiveness is nuanced, where individual dimensions only affect certain performance areas instead of universal improvements. To this end, the study concludes that an improvement of broader overall performance in the mining sector requires synergies in employee-centric leadership and strategic management strategies to effectively address regulatory and macro economic challenges. This paper advances insights into how adaptive leadership can contribute to solving sector specific challenges while creating an environment of sustainability and high performance.