IMPACT OF PANDEMIC ENVIRONMENT ON EMPLOYEES WORKING MORALE THROUGH MEDIATING ROLE OF PERFORMANCE AND MODERATING ROLE OF TRANSFORMATIONAL LEADERSHIP

Abstract

This study examined a mediating moderation model for pandemic environment that has drastically affected the employee working morale and performance in contagious environment with the strengthening relation of transformational leadership. Data were collected from top ranked officers of financial institutions who have worked under stress in difficult time of pandemic. PLS-SEM was employed to validate data and examine the hypothesized relationships. Empirical results revealed that employee performance mediates the link between pandemic environment and employees' working morale. Transformation leadership is found to enhance the employees’ performance by reducing the pandemic effect and expand employees’ experience in strengthening their working morale. More specifically, pandemic environment positively contributes for sustainability of employees working that develop their working performance. Transformational leadership also positively effect and accelerate the job performances and morale at workplace for financial managers. This research contributes to business management literature by describing mediating moderation mechanisms through which pandemic environment influences top ranked employees’ performance and reduced their working morale. The study guided the practitioners by emphasizing that employees during infectious time experienced low working morale which can be reinforced through transformational leadership.