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Abstract

Purpose – This study examines the impact of Islamic leadership styles, including transformational, transactional, and charismatic approaches, on Generation Z employees’ performance. Rooted in ethical and moral paradigms, Islamic leadership underscores principles that resonate with the importance of work-life balance, a key priority for Generation Z.
Methodology – Adopting a quantitative research methodology, this study evaluates the mediating role of work-life balance and the moderating influence of Islamic work ethics on the interplay between leadership styles and employee performance. Data were gathered through structured questionnaires completed by 101 Generation Z employees across diverse organizational settings.
Findings – The findings reveal that charismatic leadership significantly enhances employee performance, with Islamic work ethics serving as a crucial moderating factor that strengthens the relationship between charismatic leadership and work-life balance. Conversely, transformational and transactional leadership styles demonstrate no significant impact on performance, highlighting Generation Z's preference for flexible and relational leadership.
Implications – These results provide valuable insights for organizations aiming to integrate Islamic values into their leadership frameworks, fostering a unified and performance-driven work environment tailored to the aspirations of the modern workforce.
Originality – This study uniquely explores the impact of Islamic leadership styles on Generation Z employees, emphasizing their distinct work-life balance priorities. It also introduced Islamic work ethics as a moderating factor, offering fresh insights into culturally relevant leadership practices.

Keywords

Islamic leadership styles Work-life balance Employee performance Generation Z

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Copyright (c) 2025 Hesti Eka Setianingsih, Hendratmi Achsania

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How to Cite
Setianingsih, H. E., & Achsania, H. (2025). Islamic leadership and work-life balance: Impact on Generation Z performance. Asian Journal of Islamic Management (AJIM), 7(1), 19–40. https://doi.org/10.20885/AJIM.vol7.iss1.art2
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