Chapter Fourteen

1. Chapter Fourteen Transformational Leadership

2. Reading 33The Role of Collective Efficacy in the Relations between Transformational Leadership and Work Outcomes • Collective efficacy refers to each individuals assessment of his or her group’s collective capability to perform job-related behaviors • Collective efficacy appears to account for important organizational outcomes • Because of this, a better understanding of how organizations could boost collective efficacy is important

3. Transformational Leadership, Collective Efficacy and Work Outcomes • Although there is a theoretical basis to expect transformational leadership behavior will influence perceptions of withdrawal behaviors, this area of research has received less research attentions • By showing respect and confidence in their followers, transformational leaders are able to bring a high degree of trust and loyalty on the part of followers

4. Transformational Leadership and Collective Efficacy • Transformational leaders are able to influence their followers by connecting followers’ self-concept to the mission of the group, ‘such that followers’ behavior for the sake of the group becomes self-expressive • Transformational leaders can promote collective efficacy by: • By emphasizing the group mission • Stressing shared values and ideology • Connecting followers’ individual and group interests

5. Transformational Leadership and Collective Efficacy • The self-concept theory can help explain how transformational leadership influences collective efficacy • This theory suggests increasing followers’ self- efficacy and facilitating followers’ self-identification with the group as mechanisms through which transformational leaders motivate followers

6. Hypotheses • Hypothesis 1: Transformational leadership will be positively associated with collective efficacy • Hypothesis 2a: Collective efficacy will mediate the relations between transformational leadership and organizational commitment • Hypothesis 2b: Collective efficacy will mediate the relations between transformational leadership and job satisfaction • Hypothesis 3: Collective efficacy will mediate the relations between transformational leadership and withdrawal behaviours

7. Table 1 Means, Standard Deviations, Coefficient Alphas and Correlations of Study Variables

8. Reading 34Transformational Leader Behaviors and Their Effects and Followers’ Trust in Leader, Satisfaction, and Organizational Citizenship Behaviors • Transactional behaviors are founded on an exchange process in which the leader provides rewards in return for the subordinate’s efforts • Transformational or charismatic behaviors are believed to augment the impact of transactional leader behaviors on employee outcome variables • The majority of empirical research has focused on the impact of transformational leader behaviors on in-role performance and follower satisfaction, rather than “extra-role” performance

9. Trust, Satisfaction, and OCB • Extra-role performance of transformational leaders has not been emphasized in studies • Follower’s trust has not been given attention in empirical research as a potential mediator of the effects of transformational leader behaviors • Another potential mediator is employee satisfaction • Transformational leaders enhance followers’ work attitudes and satisfaction • The transformational leader can influence organizational citizenship behaviors (OCBs) directly, indirectly, or a combination of the two

10. Figure 1Conceptual Relationship between Transformational Leader Behaviors, Potential Mediators, and Organizational Citizenship Behaviors

11. Transformational Leader Behaviors • Identifying and articulating a vision • Providing an appropriate model • Fostering the acceptance of group goals • High performance expectations • Providing individualized support • Intellectual stimulation

12. Aggregate Effects of Leader Behaviors on OCBs Transformational leader behaviors • Has no direct effects on OCBs • Influenced both employee trust and satisfaction • Trust influenced OCBs, but employee satisfaction did not Transactional leader behaviors • Influenced OCBs directly, rather than indirectly • The difference can be explained by the fact that these behaviors are founded on some sort of exchange between the leader and subordinate

13. Individual Effects of Leader Behaviors on OCBS • Intellectual stimulation was found to have a negative impact on both trust and satisfaction • Possible explanations for this finding: • The effect of intellectual stimulation on role ambiguity, conflict, and stress • The destabilizing nature of intellectual stimulation itself • An additional finding: • High performance expectations reduced employee trust

14. Reading 35Leader-Member Exchange (LMX) as a Mediator of the Relationship between Transformational Leadership and Followers’ Performance and Organizational Citizenship Behavior • When followers attribute exceptionally strong positive qualities, such as the ability to articulate visions, to a transformational leader, personal identification occurs • Internalization of beliefs and values of a leader is driven more by the desire to identify with a collective cause than by a desire to emulate the leader • OCB is behavior, largely discretionary, and seldom included in formal job descriptions • A positive association between transformational leadership and OCB has been supported empirically

15. Leader-Member Exchange • LMX and task performance • Task performance is a form of currency in the social exchange between leader and follower, and a means of fulfilling obligations for reciprocity • LMX and organizational citizenship behavior • In high-quality LMX relationships, obligations are often diffuse and unspecified, and no standard or value against which gifts, favors, or contributions can be measured is present • A positive association between LMX and OCB is expected

16. Studies of both Transformational Leadership and LMX • Deluga (1992) argues that a transformational leader “catalyzes” conventional social exchanges, stimulating subordinates to surpass initial performance goals and self interest • None of the cited studies showed that transformational leadership and LMX are related to each other and to work performance • Transformational leadership theories are still at early stages of specifying the development mediating processes between leader behavior and performance

17. Hypotheses • Hypothesis 1: Transformational leadership is positively related to the task performance and organizational citizenship behaviors of followers • Hypothesis 2: Leader-member exchange relates positively to the task performance and organizational citizenship behaviors of followers • Hypothesis 3: Leader-member exchange mediates the relationship between transformational leadership and followers’ task performance and organization citizenship behavior

18. Table 3 Means, Standard Deviations, and Correlationsa

19. Discussion • Transformational leadership behaviors are social currency, nourishing high-quality LMX • Transformational leadership is associated positively with task performance and OCB • Transformational leaders enhance follower receptivity to role-expanding offers and extra role behaviors through processes of personal and/or social identification • LMX makes transformational leadership more personally meaningful

20. Figure 1Results of Structural Equation Modeling on the Mediating Effect of LMX

21. Practical Implications • The effectiveness of leadership programs aimed at developing the quality of leader-follower dyadic relationships can be enhanced by incorporating training in transformational leadership skills