Impact of Leader's Idealized Influence, Individualized Consideration and Focusing on Effectiveness Behavior on Organizational Performance Mediated by Monetary Reward in Engineering Colleges in Nepal

This paper is the outcome of a research carried out to assess the impact of leader’s idealized influence,individualized consideration and focusing on effectiveness (change) on organizational performance, and also themediation effect of monetary rewards on it in the context of engineering colleges in Nepal. Sample size of 181was determined using Slovin’s formula. A detailed survey preceded by a pilot survey was carried out during theperiod of August to November, 2024 in the target population of thirty engineering colleges operating inKathmandu valley, Nepal. Cronbach’s alpha’s value came out to be .965 giving high reliability to the questionnairedesign. Two hundred eighty-five closed questionnaire forms were prepared based on five-point Likert Scale andwere administered in-person by the researcher to the senior level employees of administrative and academicfaculty departments of those engineering colleges. Two hundred twenty-five responses were received, out ofwhich twenty-four were screened out and the valid two hundred and one questionnaire forms were used for thestatistical analysis. Statistical analysis was performed using SPSS-27 and PROCESS Macro loaded on SPSS todetermine descriptive statistics and inferential statistics such as ANOVA, multiple linear regression, total effect,and direct and indirect effects. The findings show that all the three independent variables have positive, strongand significant impact on organizational performance, giving highest regression coefficient (β=.5901) to theleader’s focusing on effectiveness (change). The findings also show that the indirect effect through the mediatorof monetary rewards is insignificant for all variables. The study concludes that the transformational leadershipbehavior largely has significant impact on organizational performance for its improved and growth of engineeringcolleges in Nepalese context.