The Impact of Transformational Leadership on Employee Resistance in Bosnia and Herzegovina's Banking Sector

Adequate management of organizational changes is a crucial determinant of business success for banks today. Transformational leadership aligns with the conditions of dynamic changes in banks by creating an appropriate business climate of trust, thus impacting the achievement of the organization’s goals and results. Today, banks strive to be leaders in change, continuously providing innovative business solutions, which require proper management. Given the strategic decisions of banks to pursue new ideas and new ways of conducting business, which alter culture, climate, and value systems, it is crucial to apply the appropriate leadership style to effectively achieve desired results and business objectives. The problem in achieving these tasks is the occurrence of employee resistance to change, hence the significant role of the leader as the bearer of change. This paper presents the results of empirical research conducted in the banking sector in Bosnia and Herzegovina, aimed at determining the impact of transformational leadership on employee resistance to change in banks. The research included 90 respondents from 15 banks (65% of the total number of banks). Each bank included 6 respondents, with managers as the first stratum and employees as the second stratum. The authors believe that the application of transformational leadership in the banking sector can lead to a reduction in resistance to change, as well as expand scientific knowledge in the field of leadership in banking and create concrete recommendations for bank managers to apply in practice to improve business operations. Demonstrating transformational leadership as the dominant style of leading changes in the banking sector and determining its impact on employee resistance is the fundamental goal of this paper. It provides bank managers with valid information on the adequacy of applying appropriate leadership styles, thus offering a reliable basis for decision-making related to the process of implementing changes and ultimately achieving better business results.