Happiness at work (HAW) plays a pivotal role in enhancing employee outcomes by fostering a positive work environment and significantly boosting job performance (JP). This study investigates the relationship between transformational leadership (TL) and JP, with HAW serving as a mediating factor. This research involved 230 business process outsourcing (BPO) employees from the National Capital Region in the Philippines. A predictive-causal approach and partial least squares (PLS) path modeling were used to analyze the hypothesized relationships. The results revealed that TL positively and significantly influenced JP and HAW. Furthermore, HAW was found to have a substantial positive impact on JP and mediated the relationship between TL and JP. Grounded in affective events theory (AET), this study highlights how transformational leaders can shape employees’ decisions and behaviors. The emotional responses explained by AET demonstrate how HAW and JP are formed in response to workplace stimuli, even within the unique context of the BPO industry.
Lacap et al. (Thu,) studied this question.