Transformational leadership and its effects on human resource practices and organisational performance in South Africa’s mining sector
Abstract
South Africa’s mining companies face increasing pressure to enhance productivity, ensure worker safety, and fulfil stakeholder expectations regarding environmental, social, and governance (ESG) accountability. Transformational leadership (TL) is increasingly employed as a strategic response; however, a significant gap remains in understanding the mechanisms through which TL translates into measurable organisational performance (OP) via integrated human resource (HR) systems. This study investigates the direct impact of TL on OP and the mediating contributions of talent development management (TDM), work-life balance (WLB), succession planning (SP), and employee involvement (EI). A cross-sectional, quantitative survey collected data from managers and front-line employees across underground and open-pit mining operations. Validated instruments were analysed using partial least squares structural equation modelling (PLS-SEM) with 5,000-sample bootstrapping to assess reliability, validity, and predictive relevance. TL demonstrated a strong, positive direct relationship with OP (β = 0.236, p < 0.001). TDM was the only significant mediator, confirming complementary mediation (indirect β = 0.050, p = 0.003); WLB, SP, and EI yielded non-significant mediation effects, and EI showed no direct effect on OP. Mining executives and HR leaders should invest in structured talent development systems aligned with transformational leadership behaviours to translate leadership capability into performance gains. Longitudinal designs are recommended to establish causal pathways and explore context-specific processes beyond TDM. By testing four concurrent HR practice mediators, this study extends contingency-based leadership theory and the resource-based view (RBV) of HRM bundles, showing that leadership operates through a singular developmental pathway (TDM) rather than a uniform HR bundle.