Effects of Transformational Leadership and Organizational Justice on Employee Engagement Among Selected Pharmaceutical Companies in Davao City, Philippines

Abstract

The importance of employee engagement is well known as crucial for organizational success. The challenging procedures of generating interest and resolving employee concerns still remain a dilemma for many organizations. Transformational leadership and organizational justice concerning employee engagement in selected pharmaceutical companies in Davao City were the focal points of this study. A descriptive-correlational design was used with 50 non-managerial employees to complete standardized survey questionnaires. Transformational leadership (M = 3.87) and organizational justice (M = 3.56) were both perceived at high levels, as was employee engagement (M = 3.43); however, vigor and dedication were at moderate levels only. Correlational analysis indicated positive relationships between transformational leadership and engagement (r = 0.002) and between organizational justice and commitment (r = 0.513, p < .001). The results of multiple regression analysis showed that organizational justice (β = 0.016) predicted engagement, while transformational leadership (β = 0.153, p = .36) did not. The model accounted for 27.7% of the variation in engagement. These findings indicate that, although transformational leadership contributes to an employee-supportive climate, perceptions of procedural fairness, communication fairness, and treatment fairness are more decisive in maintaining engaged behavior. The study reiterates that an increased emphasis on organizational justice should be considered a strategic intervention in terms of employee commitment and in the service of effort.