Impact of transformational leadership, human capital, and job satisfaction on organizational performance in the manufacturing industry

Performance management (PM) is a common practice used by organizations to assess and manage employees’ work. Much of PM research is closely related to management practices. Corporations in the public and nonprofit sector continuously develop PM programs to ensure the sustainability of their organizations.
The study aims to analyze the impact of strategic human resources planning on the organizational performance of Jordanian public shareholding companies for senior management and functional unit managers (human resources, marketing, finance, and accounting). The researchers surveyed all the public shareholding companies registered with the Jordan Securities Commission (JSC) in 2019, wherein they found that only 60 companies applied strategic planning and human resources planning (HRP) together. Two hundred and twenty questionnaires were distributed in 52 companies surveyed, and 203 were adopted for statistical analysis. Several statistical methods were used, most notably the multiple regression analysis. The researchers found out a statistically significant impact of the strategic human resources planning (integration of HRP and strategic planning; strategic participation) on organizational performance. The results showed that adopting the strategic HRP dimensions leads to an increase in an organization’s overall productivity, employee satisfaction and reputation, as well as reduced operating costs. HR managers must understand the effectiveness of strategically designed HR practices across functions.

Industrial development in any nation plays a vital role in the strengthening of the economy and employs human resources as per specifications and directly towards the mainstream of the nation. In Saudi Arabia, there was rapid industrialization for four decades. Some manufacturing industries performed well, while some internal and external business environment factors influenced the others’ performance. The study focuses on historical development, as well as recent trends of well-performing and poor-performing industries of Saudi Arabia. Small manufacturing industries in Saudi Arabia are underdeveloped and need more attention to attain sustainable and progressive growth rate in the form of the number of establishments to enjoy the potential. Manufacture of tobacco, computer, electronics and optics, pharmaceuticals and transport equipment are the deprived and underdeveloped industries of the manufacturing sector. There should be some easy credit schemes for the development of deprived or underdeveloped manufacturing industries. To attain sustainable growth and development of the manufacturing sector, a positive attitude of the government towards underdeveloped manufacturing industries, favorable labor laws, and entrepreneurial awareness, technical and financial assistance are necessary. The growth and development of the manufacturing sector of Saudi Arabia will be helpful in the attainment of goals of Vision 2030.

The public sector is facing multiple changes. In a constantly changing environment, that is more and more demanding in terms of innovation and performance, the concept of leadership is of particular importance, as it is one of the few tools available to public managers.
Based on the transformational leadership theory, the aim of this study is to explore how transformational leadership characteristics influence organizational change within the public sector in Lebanon. To serve this purpose, a qualitative approach is adopted based on a series of semi-focused interviews conducted with ten public managers running 10 public administrations. These administrations have undergone significant changes over the past five years.
The results point out the importance of transformational behaviors adopted by public managers in leading change within the public sector in Lebanon, despite the multiple obstacles. They confirmed the role of two transformational dimensions related to idealized influence and inspirational motivation in the successful implementation of organizational change. This study contributes to better understanding of the role of transformational leadership in promoting change in the public sector.