ABSTRACT
The health care industry in Ghana involves the continual introduction of new clinical interventions and technologies designed to improve patient and business outcomes, which require a transformational behavior of leadership. The research was carried out with the intention of examining the employee’s perception of the effect of transformational leadership on institutional innovation. The research adopted descriptive survey design. The target population was 400 comprising all the employees at the South Suntreso Hospital. The data was collected from 50 respondents which was made up of thirty two (32) females and eighteen (18) males. A questionnaires as tested by Cronbach’s alpha recorded the value of 0.703 was used to collect the data. Descriptive statistics such as frequencies and percentages was used to analyse the data. The study revealed that majority (71.9%) of the respondents either agree or strongly agree that transformational leadership behaviours affect the employees’ perception of leadership effectiveness. In addition, most respondents (71.9%) either agree or strongly agree that transformational leadership has influence on innovations. Moreover, majority (59.5%) either agree or strongly agree that there are challenges of transformational leadership on innovations. To this end, the study recommend that institutional heads should develop strategies and make decisions to increase their employees’ job satisfaction and increase their enthusiasm to work. In addition a wider range of samples from different types of organizations across various industries should be used to test the proposed model and generalized the findings. Thus, the study contributes to the existing pool of knowledge on Transformational1leadership.