85 International Peer Reviewed Journal Mediating Effect of Happiness at Work in the Relationship between Transformational Leadership and Job Performance: A Literature Review ANGELA DENISE S. POJANES https://orcid.org/0000-0001-9605-0472 angeladspojanesreal@gmail.com Polytechnic University of the Philippines Sta. Mesa, Manila, Philippines GENARO V. JAPOS https://orcid.org/0000-0001-7627-0988 gvjapos@pup.edu.ph Polytechnic University of the Philippines Sta. Mesa, Manila, Philippines Originality: 100% • Grammarly: 100% • Plagiarism: 0% ABSTRACT This study aimed to examine scientific articles as the basis for a literature review on the possible Mediating Effect of Happiness at Work in the Relationship between Transformational Leadership and Job Performance in the Philippines’ Business Process Outsourcing (BPO) industry. The study used a qualitative method using a literature review that applies the content of scientific articles from reputable databases such as Google Scholar and many other websites. Vol. 50 · October 2022 DOI: https://doi.org/10.7719/jpair.v50i1.692 Print ISSN 2012-3981 Online ISSN 2244-0445 This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License. mailto:angeladspojanesreal@gmail.com mailto:gvjapos@pup.edu.ph http://creativecommons.org/licenses/by-nc/4.0/ http://creativecommons.org/licenses/by-nc/4.0/ 86 JPAIR Multidisciplinary Research Volume 48 • March 2022 The results of the study show that happiness at work doesn’t exert a mediating relationship between transformational leadership and job performance. However, this concludes that happiness at work has exerted a significant and positive effect on job performance. Keywords — Social Science, happiness at work, job performance, transformational leadership, qualitative, Philippines INTRODUCTION The Philippines’ Business Process Outsourcing (BPO) industry remains the global leader in voice business process management services and is a preferred location for non-voice services (Cabaluna & Mbaw, 2021; Chen & Shao, 2022; Peck & Hogue, 2018; Santiago et al., 2021). Although the BPOs work in a dynamic environment with a range of cultural perspectives, effective leadership is essential in several situations, including those involving employee job satisfaction, job performance, etc. (Cabaluna & Mbaw, 2021). In 2020, World Health Organization (WHO) declared a new coronavirus disease (COVID-19) outbreak in Hubei Province, China as a Public Health Emergency of International Concern (Adhikari et al., 2020; Chathappady et al., 2021; Chawla et al., 2020; Hua & Shaw, 2020; Rodríguez-Morales et al., 2020). As COVID-19 entered the Philippines, a strict lockdown was implemented in the country due to the rapid increase of covid-19 cases, which forced companies to adopt virtual working practices like working from home (WFH) (Caringal-Go et al., 2021). WFH is what we want, but doing it daily is not as smooth as it sounds, and practicing it may impart stress and burnout, especially in BPO operations (Chi et al., 2021; Deery et al., 2013; O’Brady & Doellgast, 2021; Santiago et al., 2021). When it comes to WFH, activities are positive factors, including the ability to manage their work more flexibly and the existence of a work-life balance (Chung & Van der Lippe, 2020; Felstead & Henseke, 2017; Gigauri, 2020). Employees become happier at work if they don’t have to deal with traffic on their way to work, are able to breathe cleaner air, and are more satisfied with their personal lives (Cabaluna & Mbaw, 2021; Davies, 2015; Sangwan & Bhatia, 2020). Numerous hypotheses suggested explaining why happy employees perform better at work because of leadership (Atmojo, 2015; Azoury et al., 2013; Bernarto et al., 2020; Ng, 2018). Thus, according to Cummings et al. (2010), in leadership, bosses at work who are transformational leaders improve the employees’ Job Performance (JP) 87 International Peer Reviewed Journal at work for better outcomes. Likewise, it was found that the level of the JP of typical employees, in general, is significantly improved under Transformational leadership (TL) (Miao & Cao, 2019; Parr et al., 2013). TL has significant involvement in improving both organizational performance and employee job performance, and JP is a beneficial behavioral consequence of leadership (Akdere & Egan, 2020; Antonakis et al., 2004; Malik & Dhar, 2017). Also, TL works on both the worker’s JP and HAW, so it deserves consideration and explanation (Eisenberger & Stinglhamber, 2011; Holten et al., 2018; Pan & Lin, 2015; Patiar & Wang, 2016; Salas-Vallina et al., 2017). OBJECTIVES OF THE STUDY The intention of the study is to discover the mediating effect of HAW in BPO settings precisely on TL and JP in the Philippines. Aiming to generate empirical literature on the mediating effect of HAW on TL and JP both in foreign and Philippines contexts. METHODOLOGY The method study used a systematic literature review that applies the content of scientific articles from reputable databases. The focus is to analyze the data with an interpretive, naturalistic approach to its subject matter (Coughlan et al., 2013). It is equivalent to conducting a research study using the data that the researcher gathered as representing an embedded study (Rahman, 2020). The literature review researchers compiled and selected relevant literature and studies in order to explore the Mediating Effect of Happiness at Work in the Relationship between Transformational Leadership and Job Performance in the Philippines’ Business Process Outsourcing (BPO) field. RESULTS AND DISCUSSION Affective Event Theory One of the underlying theories in this study is AET. AET is a psychological model that takes into account employees’ environmental stimuli in the workplace (Ashkanasy et al., 2016; Cropanzano et al., 2017; Goleman, 2018; Hülsheger et al., 2013; Zhang & Xu, 2021). It concentrates on the causes, structures, and outcomes of emotional responses and experiences that influence a person’s 88 JPAIR Multidisciplinary Research Volume 48 • March 2022 attitudes and subsequent workplace behavior (Bohns & Flynn, 2013; Hagemeister & Volmer, 2018; Matta et al., 2014; Wakefield & Wakefield, 2016). Emotion is an important aspect of TL, according to Gooty et al. (2010). It is associated with positive rather than negative effects (Akdere & Egan, 2020; Bissing-Olson et al., 2013; Tepper et al., 2018). Employee moods and emotions are effects, whereas attitudes are evaluative and cognitive judgments based on emotions (Brackett et al., 2013; Carlson et al., 2011; Innes & Ahrens, 2020; Ortony et al., 2022; Wong & Law, 2017). In the 1970s and 1980s, leadership style was initially defined as transformational (Bass, 1999; Bennett, 2009; Kara et al., 2013; Lord et al., 2017). Leadership style is an important management tool because, when used correctly, it can improve employee relationships, the organizational climate, happiness doing the work, and job performance (Bennett, 2009; Lasrado & Kassem, 2021; Wambugu, 2014). Leaders can elicit strong positive emotions in team members at the team level (Meneghel et al., 2016; Menges & Kilduff, 2015; Peng et al., 2021; Wu & Wang, 2015), influencing their attitudes and behavior at Work (Cropanzano et al., 2017; Doh & Quigley, 2014; Hu & Kaplan, 2015; Mindeguia et al., 2021). Furthermore, team members form job ratings by comparing the coherence of job traits that drive behaviors like self-esteem, self-pursuit, and expectations that influence their emotions and JP (Ajzen et al., 2018; Breevaart et al., 2015; Carlson et al., 2011; Tan et al., 2015). Mediating Variable of the Study This part of the study is the literature and studies that are relevant and related to the researcher’s study. These will be used to understand further and to determine the mediating effect and significance of the variable on the PUP Students and alumni working in Financial Services type of BPO Companies. Happiness at Work Pryce-Jones (2010) detailed HAW as the positive feeling of workers whenever they work. Gavin and Mason (2004) cited that HAW involves taking pride and self-esteem in what the employee has accomplished. Happiness and satisfaction are subjective perceptions (Chowdhury, 2021). Each employee may perceive happiness in monetary perks, appreciation at work, conversely, motivation to achieve more. Amirullah (2017) found that HAW is reasonably related to income, relationships with peers, employment status, and activities done on the daily grind. Employees thrive when they feel comfortable with the people they work 89 International Peer Reviewed Journal with, want improvement, and feel respected and recognized in their workplace. Brooks (2021) pointed out that employees feel happier when aligned with their employer’s beliefs and values. Sharing the workload, adopting new strategies, and rewarding will earn them HAW (Daisley, 2019; Curwen et al., 2013; Dasgupta, 2013; Lin et al., 2021). If employees are happy, they will work at their best and generate better results faster, which will increase earnings (Elnaga & Imran, 2013; Grayson & Hodges, 2017; Goleman, 2017; 2018; Sirota & Klein, 2013). The effectiveness of an employee is related to how satisfied they are with their ideals and career (Bin & Shmailan, 2015; Hanaysha, 2016; Platis et al., 2015; Pongton & Suntrayuth, 2019). Therefore, it is evident that a skilled and capable employee would produce the appropriate learning outcomes, provided he is happy with his line of work or profession in the Philippine environment (Laguador, 2017). According to Singh and Jain (2013) and Armenta et al. (2017), happy people are expected to be more productive and have lower turnover. In this context, Mroueh and de Waal (2020) surveyed HAW and organizational performance to increase employee satisfaction, suggesting that overall work is better for employees. Backed their analogy that it resulted in better individual performance. Thus, this is supported by Fluegge-Woolf (2014), where HAW is positively associated with the task and creative performance. Ganta (2014) stated that satisfied employees are more motivated and can bring more creative output to employers. However, Wesarat et al. (2014) showed that job satisfaction is essential in improving productivity or JP. Happy people think they are productive individuals, but unhappy people may need to pay more attention to what they are working on (Diener & Tay, 2017; Peiró et al., 2019; Wesarat et al., 2014). In another study, Spicer and Cederstrom (2015) argued that promoting happiness did not increase productivity. Both sides struggle when an employee wants to run her HAW. Isa et al. (2019) and Yassin (2014) stated that HAW decreases when there are communication gaps between employees, employee ignorance of ideas, lack of accomplishment, and lack of appreciation for work done. The same study, also emphasized by Salas-Vallina et al. (2017), confirms that HAW can be degraded if employees do not fully understand what their job entails. Setiawan et al. (2020) investigated the relationship between TL and HAW and found that TL positively affected their HAW, with important implications when mediated via organizational learning capacity. According to a study by Ghadi et al. (2013), the TL style develops employees’ sense of the work that meets their needs. This means transformational leaders encourage the importance of employee needs, so employees can develop positive feelings about 90 JPAIR Multidisciplinary Research Volume 48 • March 2022 working collaboratively with leaders and the organization (Afsar et al., 2019; Setiawan et al., 2020; Sundi, 2013; Wang et al., 2017). Moreover, when employees receive more support, they are more likely to achieve job satisfaction (Isa et al., 2019). Salas-Vallina et al. (2017) suggested that the administrator integrate her TL into the component; this increases the amount of HAW. They also said TL promotes strength, positive perceptions, and a sense of belonging (Salas-Vallina et al., 2017; Mi et al., 2019; Paulsen et al., 2013). Latent Variables of the Study This part of the research is the literature and studies that are relevant and related to the researchers’ study. These will be used to understand further and to determine the relationship between the variables on the PUP Students and alumni working in Financial Services type of BPO Companies. Transformational Leadership In the Philippine setting, it is argued that a contextual method should be used to measure Filipino leaders’ leadership behaviors since cultural values affect transformational leadership behaviors (Atmojo, 2015; Azoury et al., 2013; Purnomo et al., 2020; Charoensukmongkol & Puyod, 2021; Ng, 2018; Rivera & Ng, 2018; Yaghi, 2017). Even if transformational leadership is widely recognized, it must be acknowledged that its roots are in Western culture— the study of leadership benefits from essential insights from cultural context (Choi et al., 2016; Kim & Shin, 2019; Koh & Joshi, 2019; Shields. 2017). Studies on transformational leadership are rare in Asia and rarely concentrate on the construct’s dimensional features. Leaders must motivate and empower employees to initiate and implement innovative ideas that improve the overall quality and performance of the organization (Afsar et al., 2019; Edghiem & Mouzughi, 2018). Chen et al. (2020) claim that TL is characterized by passion and optimism, focusing on a positive vision of what can be attained. This type of leadership is likely to deliver high-performance levels in the long run because it focuses on inspiring, motivating, and meeting people’s basic needs (Saeed et al., 2018). Transformational leaders enable employees to think beyond their interests, provide feedback, set performance standards, support employees to be more innovative and creative, and pay attention to employee needs (Bednall et al., 2018). This type of leader treats employees based on their personality rather than just workers (Weib & Süb, 2016). Therefore, the most influential leaders actively collaborate with their subordinates and develop strong relationships 91 International Peer Reviewed Journal through personal mentoring and support (Andreani & Petrik, 2016; Atan & Mahmood, 2019). Additionally, Cleavenger and Munyon (2013) found that transformational leaders motivate employees, improve performance, find new ways of working, and inspire creativity. These leaders share their organization’s vision with their employees, stick with them, listen to them, ask for good suggestions, and try to capitalize on every opportunity. According to Cherry (2021), it is a leadership style that brings positive change to those who follow. They try to focus on helping each member of the group succeed. This is very relevant to promoting a positive impact on HAW personnel. This has been confirmed by the University of Massachusetts Global (2020), which found that these leaders know how to get their employees to perform meaningfully. White (2018) stated that these leaders trust trained employees to have authority over decisions about their assigned work. It aims to promote creativity, innovation, and problem-solving skills. C e r t a i n people with that type of leadership are Jeff Bezos and Steve Jobs. Morkeviciute et al. (2019) wrote that the TL style is a positive way of communicating with employees. Instead of leading to a negative, it becomes a positive. Furthermore, Isa et al. (2019) found that leaders willing to listen to good thoughts and ideas, a positive attribute of transformative leaders, make employees happier. In addition, the circle of transformational leaders is more involved and invested in their Work (Zhu et al., 2016). TL enables engagement in work by motivating people to improve their skills and focus more on contributing to the organization’s long-term success (Koech & Namusonge, 2010; Pradhan & Pradhan, 2015; White, 2018). Several studies have reported that employees are more likely to focus on organizational success and think outside the box when led by a transformational leader (Bak et al., 2022; Shafi et al., 2020). Furthermore, Dalluay and Jalagat (2016) found that TL significantly affects job performance, not happiness at work. Transformative leaders can significantly change employee attitudes and behaviors, leading to improved performance and achievement of organizational goals (Ahamad & Kasim, 2016). A study by Caballes (2020) showed a strong relationship between TL and organizational performance in selected institutions in Metro Manila. Furthermore, employee performance is influenced by transformational leaders who foster organizational cultures of mutual trust and positive emotions (Harms & Crede, 2010; Le & Lei, 2018). Transformational leadership, according to Zacher et al. (2018), is associated with greater happiness at work and enables, for instance, employees to concurrently fulfill leadership and responsibilities. Thus employees’ perception of transformational leadership impacts happiness at work and job dedication but 92 JPAIR Multidisciplinary Research Volume 48 • March 2022 not job performance (Xu et al., 2022); there has been evidence of a reciprocal relationship between the two (Peng et al., 2021). A remarkable individual who has a good impact on others is a transformational leader. This kind of leader can motivate people to develop distinctive and original strategies to challenge the status quo and alter the environment to foster success. Transformational leaders care about the development and success of their people. Also, they try to instill a sense of pride in workers when they work with a specific manager, which has been shown to have an augmentation effect, boosting productivity, contentment, and effectiveness (Bass, 1999). According to Bass (1999), transformational leadership inspires followers to go above and beyond their expectations by increasing followers’ awareness of the significance and value of stated and idealized goals, encouraging followers to put the interests of the team or organization before their own, and luring followers to meet higher-level needs. Bass separates transformational leadership into four categories: 1. Leaders with idealized influence—also known as charisma—set an example for their followers, who identify with them and try to emulate them. Because of their attitudes and behaviors that encourage attractiveness, they serve as models that employees attempt to copy (Cabaluna & Mbaw, 2021). 2. Inspirational vision: Successful leaders must have an inspiring vision. Through symbols and emotional appeals, the leader motivates groups to make an extra effort. Such management encourages a sense of unity (Cabaluna & Mbaw, 2021). 3. Intellectual Stimulation: In addition to challenging the status quo, leaders encourage followers to be creative. They encourage staff members to try out novel processes and specialized learning opportunities. Such a boss encourages staff to come up with innovative solutions to production issues. 4. Individualized consideration: Personalized support and encouragement are provided by transformational leaders to each of their followers. They keep the lines of communication open between leaders and followers, allowing followers to openly offer their ideas and allowing leaders to express their appreciation for each follower’s participation. In an effort to assist followers in reaching their full potential, leaders work as mentors and counselors. These leaders might use delegation to help followers get over their hurdles (Cabaluna & Mbaw, 2021). 93 International Peer Reviewed Journal Job Performance Job performance is the extent to which an employee demonstrates their behavior and characteristics to achieve results related to task performance, civic performance, and unproductive performance development within a given time (Ramawickrama et al., 2017; 2019). Alsheikh and Sobihah (2019) define job performance as the individual behavior of employees resulting from their work and related skills and knowledge. From another perspective, Rhee et al. (2017) investigate job performance and the degree to which work-related tasks can be successfully performed within usual workplace constraints while using available resources, task and function performance, and contextual or external performance of roles. A company’s success depends on the organization’s performance, depending on each individual within the company (Osabiya, 2015). Improving and nurturing individual performance is necessary to establish good organizational performance. Therefore, in order to improve organizational productivity, companies must find ways to improve the JP of their employees (Obeidat, 2016). In a study conducted in Cavite, Philippines, by Dalluay and Jalagat (2016), researchers carefully observed that in addition to leadership style, leadership attributes should be considered while assessing employee job satisfaction and performance. This point of view emphasizes that any leadership style, when misused, can have detrimental effects on both the job performance of the individual and the entire organization. So, leadership is the secret to properly managing the organization; an improved JP can arise from a TL. This concept has been interpreted as comparing the productivity of individual employees to their peers in various work-related behaviors and outcomes (Perko et al., 2014). A direct relationship between JP and TL has been empirically demonstrated in previous research (Zhu et al., 2016). Followers of transformational leaders show immediate productive outcomes, including job performance (Buil et al., 2019). Transformational leaders motivate followers to share a common vision of the organization’s desired goals and performance criteria and support them in achieving those goals (Masa’deh et al., 2016). Yahaya and Ebrahim (2016) reported that this leadership style increases task completion. Research highlights that TL positively correlates with individual and organizational performance (Khan et al., 2020). Armenta et al. (2017) reported that positive emotions enhance skills and interpersonal relationships, generate resources for future achievement, and predict long-term productivity. Accomplishment is facilitated by positive emotions such as her HAW through 94 JPAIR Multidisciplinary Research Volume 48 • March 2022 increased flexibility, integration, thought efficiency, and creativity (Van de Voorde & Van Veldhoven, 2016). According to Proto (2016), based on most fact-finding, positive emotions, including HAW, drive performance and influence employees’ ability to innovate. Adnan Bataineh (2019) confirmed that HAW could affect employee performance. HAW is a condition that directly contributes to tissue productivity (Oswald et al., 2015; Raziq & Maulabakhsh, 2015; Schermerhorn Jr. et al., 2020). It can also be described as a tool that helps people improve their quality of life and work performance (Mizuno, 2020). Salas-Vallina et al. (2017) report that HAW is a labor resource that significantly impacts employee performance. The impact of resource mobilization is outstanding when employees have higher HAW levels (Thun & Bakker, 2018). Research Gap and Direction for Further Study No investigation has been conducted yet linking HAW as the mediator to TL, JP, and other discourses. This paper will serve as a new addition for haw as a mediating effect. Most of the mediators have discussed the effect of TL on job satisfaction, grit, employee engagement, work engagement, perceived organizational support, knowledge management, life satisfaction, and job engagement (Atmojo, 2015; Purnomo et al., 2020; Bernarto et al., 2020; Bushra et al., 2011; Lacap, 2020; Ng, 2017; Purwanto, 2020; Valentine, 2018). Also, this literature review will provide empirical support to hypothesis development and provide useful directions for future research that do not result in unnecessary or redundant research. Research Hypotheses and Their Justification TL is a behavior-based approach in which leaders inspire followers to change by displaying four distinct behaviors: idealized influences, inspirational motivation, intellectual stimulation, and individual consideration (Schuckert et al., 2018). Then according to Salas-Vallina et al. (2017), TL related to organizational learning can be the driving force of HAW, which is often seen as a very challenging workplace. On the other hand, the involvement of transformational leaders creates a climate of trust related to raising employees’ positive perceptions of their professional life and happiness (Restubog et al., 2010). Employees with independent thinking, initiative, and positive characteristics are more engaged in their work, with engagement being a HAW aspect (Bailey et al., 2017; Weierter, 1997). Previous researchers have also demonstrated that TL has a direct effect on HAW (Abdullah et al., 2017). Besides studies linking TL to JP, previous studies have also shown that HAW has mediating effects on another study. 95 International Peer Reviewed Journal Leaders motivate and inspire employees in the company to create a working environment that will cultivate learning, collaboration, and teamwork to achieve the target organizational goals and objectives (Maina & Gichinga, 2018; Klingborg et al., 2006; Okoli et al., 2022). Team leads must ensure that all employees can understand, accept, and work towards aiming corporate goals, which have a mediate effect on employee performance and overall organizational performance. According to Sosa-Fey (2001), TL indirectly improves company and employee performance through trust and engagement, leading to positive work outcomes. It resulted in organizational performance mediated by institutional learning and innovation (Nguyen & Luu, 2019). Furthermore, a study by Andriani et al. (2018) found TL is a leadership style that encourages employees to have a vision, mission, and goals, encouraging and motivating employees to perform at their best in their job. They have demonstrated that positive and significant effect between TL and JP and that employees perform better under TL. Previous researchers have found that transformational leadership styles have a direct positive effect on job performance (Tubay, 2020; Schwarz, 2017). After a thorough review of the literature, we have discovered that transformational leadership affects happiness at work. However, happiness at work may not always be related to job performance. Iaffaldano and Muchinsky (1985) observed a weak 0.17 association between job performance and happiness at work, for instance. Scarpello and Vandenberg (1987) discovered that as supervisors are crucial in managing employees’ direct reports, they have an impact on organizational management. They describe supervisory satisfaction as the degree to which an employee is pleased with their supervisor’s competence to monitor and satisfy the expectations and objectives of the subordinates. Spector (1997) states that if managers follow their subordinates’ preferred style, treating workers with respect and fairness, this is shown to increase happiness at work while affecting the organization’s functioning. So the research suggests that: H1: Employees’ level of perception about transformational leadership style significantly affects their happiness at work except for job performance. Core self-evaluation CSE is a self-assessment or evaluation that ranges from positive to negative inward levels of appraisals (O’Neill et al., 2016). Despite the fact that the original goal of CSE research was to link the trait to job satisfaction, the literature has expanded significantly beyond this criterion (Judge et al., 2020). Motivation and job performance are two areas where core self-evaluation theory has been used in previous studies (Ferris, 2013). In a meta-analysis of 105 correlations, Chen et al. (2016) linked the core self-evaluation traits to job performance: 96 JPAIR Multidisciplinary Research Volume 48 • March 2022 1. The weakest correlation was emotional stability 2. Self-esteem was the strongest 3. The average correlation across the traits was the same as the validity of conscientiousness in job performance Thus, core self-evaluations are an important dispositional of job performance alongside conscientiousness as it results positively in employees. H2: Employees with core self-evaluations are at a positive level, which results in positive job performance. According to Salas-Vallina et al. (2017), TL, together with organizational learning, can be a driver for HAW, which is generally considered a very challenging workplace. On the other hand, the role of transformational leaders builds a climate of trust which is linked to an increase in employees’ positive perception of their work-life and level of job satisfaction (Basak & Akter, 2022). Workers with independent thinking, pro-activeness, and positive characteristics are more engaged at work, with engagement being a HAW dimension (Bailey et al., 2017); Previous researchers also proved that TL has a direct influence on HAW (Abdullah et al., 2017). Thus, we propose that: H3: Happiness at Work does not act as a moderator between transformational leadership and job performance. Happiness relates to how people experience and appraise their lives (Carr et al., 2014). According to Adnan Bataineh (2019), HAW is more than a possession of a sense of pleasure, positive affective experience, good feelings, and enjoyment that can influence the employee’s performance. People are deemed happy when they feel positive emotions while at work which, in turn, can assist in shaping the outcomes of the job market, productivity, and performance of the organization (Field & Buitendach, 2011). Numerous studies proved that Transformational leadership affects Happiness at Work, not the other way around (Abdullah et al., 2017; Dalluay & Jalagat, 2016; Gyensare et al., 2017; Masa’deh et al., 2016; Sallas-Vallina et al., 2017; Setiawan, 2020). Furthermore, Dalluay and Jalagat (2016) found that TL significantly affects job performance, not happiness at work. Transformative leaders can significantly change employee attitudes and behaviors, leading to improved performance and achievement of organizational goals (Ahamad & Ka- sim, 2016). A study by Caballes (2020) showed a strong relationship between TL and organizational performance in selected institutions in Metro Manila. Furthermore, employee performance is influenced by transformational leaders who foster organizational cultures of mutual trust and positive emotions (Harms 97 International Peer Reviewed Journal & Crede, 2010; Le & Lei, 2018). No study was found linking Happiness at work as the mediator between transformational leadership and the job performance of employees. Thus, this investigation proposes that: H3.a: Happiness at Work has no discernible and positive impact on transformational leadership. In the latest study, it was reported that employees who are happy at work appear to be more involved in tasks while enjoying a greater level of job performance (Awada & Ismail, 2019). According to Grawitch and Ballard (2014), employers recognize the importance of making their employees happy, and in fact, these employers are stepping up their efforts to ensure their employees’ happiness. In Taiwan, the current annual survey Taiwan by Common Wealth and Cheers magazines also mentioned making employees happy as the primary factor that led to the recognition of the best employer (Sánchez-Hernández et al., 2019). According to numerous studies, happy employees are more likely to be productive, generate new ideas, and attempt to complete similar tasks using different groundbreaking methods to improve effectiveness and reduce time spent (Saenghiran, 2014, cited in Adnan Bataineh, 2019). Furthermore, among the expected benefits of having effectively committed employees are improved professional endeavor and performance, positive employee outcomes and behaviors, and innovative behavior demonstrated by employees (López-Cabarcos et al., 2015). Moreover, a review of the available research proves that having happiness at work experience towards the organization makes employees work harder at their jobs and show better performance as opposed to those that have a less effective commitment (Ammari et al., 2017; Bahjat Abdallah et al., 2017). It is a common consensus that a happy-at-work employee will become a productive employee (Abualoush et al., 2018; Joo & Lee, 2017) and will improve their JP (Salas-Vallina et al., 2020). Previous researchers also proved that HAW has a significant positive influence on JP (Urrutia et al., 2019). Thus, we propose that: Thus this study suggests: H3.b: Happiness at Work has exerted a significant and positive effect on job performance Synthesis of the Reviewed Literature and Studies The present study conducted examines the phenomena observed by the re- viewers on the journey taken by the employees working in a BPO. 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