EXPLORING THE IMPACT OF ETHICAL LEADERSHIP, WORKPLACE FUN, AND WORK-LIFE BALANCE ON EMPLOYEE PERFORMANCE IN THE SERVICE SECTOR

Abstract

Employee performance is a critical determinant of effectiveness and sustainability within service organizations, particularly in dynamic economies such as Pakistan. This study, focusing on the professional services sector, investigates how ethical leadership, workplace fun, and work-life balance influence employee performance. Drawing from social learning theory and conservation of resources theory, the research examines how workplace culture, individual well-being, and leadership behavior interact to shape employee outcomes. Employing a quantitative research design, data were collected through structured questionnaires administered to 169 employees from a leading audit firm in Pakistan. The findings reveal that while ethical leadership positively affects performance, workplace fun and work-life balance have stronger effects, with work-life balance being the most influential. These results highlight the value of an employee-centered approach that goes beyond psychological and emotional resource perspectives. This study contributes valuable insights to the expanding literature on organizational behavior in developing economies.