Chapter 8: Leadership’s Influence on Workplace Happiness

This study investigates the impact of transformational and transactional leadership (TRL) styles on workplace happiness among employees. The primary objective is twofold: first, to identify and validate the underlying dimensions of both leadership styles, and second, to analyse their influence on employee happiness. Data were collected through structured questionnaires administered to 238 employees, employing validated scales. Descriptive statistics, exploratory factor analysis (EFA), confirmatory factor analysis (CFA), and multiple regression analysis were conducted using SPSS and SmartPLS. The analysis revealed two distinct dimensions within each leadership style, both exhibiting significant and positive impacts on workplace happiness. Transformational leadership (TFL), particularly through intellectual stimulation and individualised consideration, showed a slightly stronger influence. The findings imply that organisations can enhance employee well-being by adopting a balanced leadership approach. The study provides actionable insights for leadership development, promoting a happier, more engaged, and productive workforce.