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Research Article | Volume 1 Issue 4 (Dec, 2025) | Pages 1 - 16
Transformational Leadership and Employee Outcomes: Intrinsic Motivation as a Catalyst in NBFCs
 ,
1
Research Student, Neville Wadia Institute of Management Studies and Research, Pune
2
Associate Professor, Poona Institute of Management Sciences and Entrepreneurship and Research Guide, NWIMSR
Under a Creative Commons license
Open Access
Received
Nov. 5, 2025
Revised
Nov. 20, 2025
Accepted
Dec. 1, 2025
Published
Dec. 8, 2025
Abstract

This study examines the influence of transformational leadership on employee outcomes, particularly work performance, burnout, and social loafing, with intrinsic motivation serving as a mediating variable. Utilizing self-determination theory and leadership literature, the study adopts a quantitative methodology, employing validated measures to gather data from 331 mid-level and frontline managers in Non-Banking Financial Companies (NBFCs). The results indicate that transformative leadership exerts a direct favourable influence on work performance while significantly mitigating burnout and social loafing. Intrinsic motivation partially mediates the links between transformational leadership and both work performance and burnout; however, it does not mediate the association with social loafing. The findings underscore the pivotal influence of leadership behaviours in cultivating intrinsic motivation, thus improving employee performance and well-being while mitigating stress and disengagement. These insights enhance organizational behaviour literature and offer practical implications for leaders and policymakers to develop training programs that reinforce transformational leadership techniques, ultimately fostering motivated and resilient workforces.

Keywords
Transformational leadership; intrinsic motivation; work performance; burnout; social loafing; organizational behaviour; employee outcomes; NBFCs.
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