Abstract
The purpose of this study is to examine the presence of toxic leadership in banking sector
of Pakistan with its influence on various job related outcomes which are psychological
wellbeing, employee engagement and turnover intention of employees. Through random
sampling technique six conventional private and public banks were selected based on
quantitative approach. In total, 393 participants completed a self-completion structured
questionnaire based on voluntary participation. Structural Equation Modelling (SEM)
technique was employed by using SmartPLS version 3.0. Results supported the presence
of toxic leadership in banking sector of Pakistan due to which turnover intention
increases. Toxic leaders also seemed to have significant negative influence on
psychological wellbeing and employee engagement. Furthermore, the relationship among
toxic leadership and employee’s turnover intention is partially intervened by
psychological wellbeing and employee engagement. Understanding leaders’/supervisors’
behavior is essential for banks which assist them in retaining employees by creating an
environment that boost their wellbeing and make them engaged in their work. The HR
managers should focus on considering employees’ feedback regarding their supervisors
in the form of survey or one on one interviews which will help in identifying supervisors
with toxic traits. This study contributes to the existing literature by studying an
understudied emerging concept of toxic leadership and its various consequences in the
banking sector of Pakistan. This study is the first to consider toxic leaders as an
antecedent of turnover intention in banking sector in Pakistani context.
Fizza Naeem, Sobia Khurram. (2020) Influence of Toxic Leadership on Turnover Intention: The Mediating Role of Psychological Wellbeing and Employee Engagement, Pakistan Journal of Commerce and Social Sciences, Volume 14, Issue 3.
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