The scale of work of nongovernmental organizations (NGOs) in Pakistan has drastically increased in\r\nthe last few years due to man-made and natural disasters. These disasters have brought huge funding\r\ninto Pakistan for implementation of emergency, relief and rehabilitation projects implemented by\r\nGovernment, United Nations, Population Welfare Department, International and Local NGOs. Effective\r\nImplementation of these projects was not possible without transformational leaders that could promote\r\nethical values within organizations and contribute for increasing employee performance through their\r\nsupportive role. Researchers have focused on linkage of transformational leadership with ethical\r\nleadership. This study focused on how leadership qualities and organizational culture support\r\nemployee performance. This study also analyzes how ethical leadership plays a mediating role between\r\norganizational culture and despotic leadership. In order to test the research hypotheses, this study\r\nused structural equation model (SEM) technique. Stratified random sampling was used and data were\r\ncollected from 377 management staff of local and International NGOs working in Pakistan. The study\r\nhas found positive and significant relationship among transformational leadership, organizational\r\nculture, ethical leadership and employee performance. The study further found negative relationship\r\nbetween ethical leadership and despotic leadership. The study findings are important for NGOs in\r\npromoting ethical values in organizations contributing to employee performance.
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