The purpose of the article: This research explored and contributes to the leadership literature by investigating the influence of transactional leadership over employee engagement at certain banks located in KPK and Punjab province of Pakistan. It observes the influence of main aspects i-e contingent reward, active management by exception (MBE active) on worker’s regular job commitmentMaterials and methods: This distinctive combination of leadership behaviors are compared with attention given specifically to everyday work settings. Twenty banks are selected involving 180 employees. Questionnaires and interviews are conducted to collect data.Results of the research: The relationships among variables are examined through the Spearman Rank-order correlation coefficient.  The moderating effects associated with corporate culture are observed by employing multiple regression analyses. A positive and significant relationship is revealed between transactional management and chosen variables except “passive management by exemption”. It is safely predicted that employee job satisfaction can be greatly elevated through transactional leadership. It is established that “contingent reward” and “active management by exemption” improve worker's engagement in contrast to passive management by exemption.

Applications: This research can be used for universities, teachers, and students.

Novelty/Originality: In this research, the model of Drivers of Employee Engagement and Role of Transactional Leadership-Case of Pakistani Banking Sector is presented in a comprehensive and complete manner.


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