CONSEQUENCES OF DESPOTIC LEADERSHIP FOR WORK ENGAGEMENT WITH MEDIATING ROLE OF PERCEIVED JOB INSECURITY: STUDY OF BANKING SECTOR OF PAKISTAN

Abstract

In response to the challenging and uncertain business landscape, organizations, particularly in Pakistan's banking sector, are compelled to enhance employee engagement for sustained competitiveness. This study, conducted in six major Pakistani banks, delves into the impact of despotic leadership on employees' work engagement, considering the mediating role of perceived job insecurity. Addressing four research questions and hypotheses through a deductive approach and a cross-sectional design, the study sampled 625 employees via judgmental sampling. Structural Equation Modeling (SEM) analysis in AMOS revealed that despotic leadership significantly diminishes work engagement. Moreover, the study highlighted the partial mediating effect of perceived job insecurity on the relationship between despotic leadership and work engagement. The findings offer practical insights for human resource decisions, emphasizing the need for leadership development and careful policy reviews to foster improved work engagement. Additionally, the study contributes to knowledge enhancement by integrating recent literature reviews, advancing understanding in the field.