Abstract
Studies mention idealised influence and inspirational motivation factors of transformational leadership as pivotal for employee and organisational performance. However, so few and inconsistent information exists on how the aforementioned factors affect the performance of the banking sector employees in the Dar-es-Salaam region of Tanzania. The study investigated the Effect of Idealised Influence and Inspirational Motivation on the Performance of the Banking Sector employees in Dar-es-Salaam region. Positivism paradigm, deduction approach, cross-sectional survey and quantitative research design are adopted. The units of observation were 131 staff of the banking sector. Multiple linear regressions were used for data analysis. The findings show that idealised influence has a positive significant effect on the performance of the banking sector employees in Dar-es-Salaam region. The findings also show that inspirational motivation has a positive significant effect on the performance of the banking sector employees in the Dar-es-Salaam region. Thus, leaders in the banking sector in Dar-es-Salaam region should improve employees’ performance through becoming the role models and inspiring employees to committing to firm’s vision for optimal performance. The study adds the literature in Tanzania and also reveals that idealised influence and inspirational motivation are the behaviours that employees can learn rather than the individual personality traits. Moreover, the study comes with a novel idea that because not all transformational leaders bring the positive work outcomes, employees should think out of the box while being led by those leaders.