Developing Positive Workplace Environments: Strategies for Transforming Problematic Workers into Contributing Members

This study addresses the persistent challenge of rehabilitating underperforming employees by proposing a leadership-driven behavioral transformation framework grounded in Transformational Leadership Theory and Positive Relationship Theory. Despite extensive literature on workplace engagement, a critical gap remains in integrating psychological, relational, and motivational strategies to restore productivity among disengaged employees. Using a quantitative design, the study employed Partial Least Squares Structural Equation Modeling (PLS-SEM) to analyze responses from 375 employees across diverse sectors in Metro Cebu, Philippines, who met criteria related to tenure and leadership exposure. Findings revealed that transformational leadership dimensions—individualized consideration (β = 0.428), intellectual stimulation (β = 0.392), inspirational motivation (β = 0.345), and idealized influence (β = 0.376)—significantly enhanced work engagement, which in turn predicted higher productivity (β = 0.615). Intrinsic motivation also moderated the engagement–productivity pathway (β = 0.283), affirming its role as a psychological catalyst; these insights contribute a validated, scalable model for inclusive leadership, employee recovery, and strategic organizational development.