REWARD AND RECOGNITION’S MODERATING EFFECT ON THE ASSOCIATION BETWEEN LEADERSHIP STYLES AND WORKERS’ INCLINATION TO STAY WITH MALAYSIAN MANUFACTURING FIRMS
DOI:
https://doi.org/10.35631/IJEMP.933017Keywords:
Employee Retention, Intention to Stay, Reward and Recognition, Transformational Leadership, Transactional LeadershipAbstract
This research examines the influence of leadership styles on employees’ intention to stay in Malaysian manufacturing firms, highlighting the moderating effect of reward and recognition. The study aims to determine if rewards enhance these connections and how transformational and transactional leadership styles influence retention. Employees of multinational companies (MNCs) in the electrical and electronics (E&E) manufacturing sector in Penang and Kedah were administered structured questionnaires as part of a quantitative methodology.SPSS was employed to analyse the statistics of 132 individuals and to evaluate hypotheses utilising regression analysis and moderation techniques. The findings indicate that workers’ propensity to remain is considerably and positively influenced by both transformational and transactional leadership styles. Nonetheless, this association appeared unaffected by reward or acknowledgement. These data indicate that although excellent leadership techniques promote retention, the impact may not be enhanced just by incentives. The study’s findings have practical significance for human resource strategy, namely in adjusting leadership methods to improve staff retention. This research examines the dynamics of Malaysia’s electronics and electrical manufacturing business, providing insights pertinent to organisational success in capital-intensive industries.
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