Effect of Transformational Leadership on on Organization

Therefore brief introduction of each variable is described low. Transformational Leadership The concept of transformational leadership was initially introduced by leadership expert and presidential biographer James Mac Gregory Burns. According to Burns, transformational leadership can be seen when “leaders and followers make each other to advance to a higher level of moral and motivation. ” Through the strength of their vision and personality, transformational leaders are able to inspire followers to change expectations, perceptions and motivations to work towards common goals.

Later, researcher Bernard M. Bass expanded upon Burns original ideas to evolve what is today referred to as Bass’ Transformational Leadership Theory. According to Bass, transformational leadership can be defined based on the impact that it has on followers. Transformational leaders, Bass suggested, garner trust, respect and admiration from their followers. The major components of Transformational Leadership are as follows: Intellectual Stimulation: The leader encourages followers to explore new ways of doing things and new opportunities to learn. Individualized consideration: Transformational leadership also involves offering support and encouragement to individual followers. Inspirational motivation: These leaders are able to help followers experience the same passion and motivation to fulfill the goals. Idealized influence: The transformational leaders serve as a role model for followers. Working for a Transformational Leader can be a wonderful and uplifting experience. They put passion and energy into everything. They care about you and want you to succeed.

They usually build the vision, sell the vision, and find the way forward and leading the charge. Transformational Leaders are often charismatic, but are not as narcissistic as ere Charismatic Leaders, who succeed through a belief in themselves rather than a belief in others. One of the traps of Transformational Leadership is that passion and confidence can easily be mistaken for truth and reality. Whilst it is true that great things have been achieved through enthusiastic leadership, it is also true that many passionate people have led the charge right over the cliff and into a bottomless chasm.

Just because someone believes they are right, it does not mean they are right. Paradoxically, the energy that gets people going can also cause them to give up. Transformational Leaders often have large amounts of enthusiasm which, if relentlessly applied, can wear out their followers. Transformational Leaders also tend to see the big picture, but not the details, where the devil often lurks. If they do not have people to take care of this level of information, then they are usually doomed to fail. Finally, Transformational Leaders, by definition, seek to transform.

When the organization does not need transforming and people are happy as they are, then such a leader will be frustrated. Like wartime leaders, however, given the right situation they come not their own and can be personally responsible for saving entire companies. Transactional Leadership The transactional style of leadership was first described by Max Weber in 1947 and then by Bernard Bass in 1981. This style is most often used by the managers. It focuses on the basic management process of controlling, organizing, and short- term planning.

The famous examples of leaders who have used transactional technique include McCarthy and De Gaulle. Transactional leadership involves motivating and directing followers primarily through appealing to their own self- interest. The power of transactional leaders comes from their formal authority and responsibility in the organization. The main goal of the follower is to obey the instructions of the leader. The style can also be mentioned as a ‘telling style’. The leader believes in motivating through a system of rewards and punishment.

If a subordinate does what is desired, a reward will follow, and if he does not go as per the wishes of the leader, a punishment will follow. Here, the exchange between leader and follower takes place to achieve routine performance goals. I I I These exchanges involve four dimensions: I I Contingent Rewards: Transactional leaders link the goal to rewards, clarify expectations, provide necessary resources, set mutually agreed upon goals, and I I Provide various kinds of rewards for successful performance. They set SMART (specific, measurable, attainable, realistic, and timely) goals for their I I subordinates.

I I Active Management by Exception: Transactional leaders actively monitor the work of their subordinates, watch for deviations from rules and standards and I taking corrective action to prevent mistakes. I I Passive Management by Exception: Transactional leaders intervene only when standards are not met or when the performance is not as per the expectations. I I I They may even use punishment as a response to unacceptable performance. Laissez-fairer: The leader provides an environment where the subordinates get many opportunities to make decisions.

The leader himself abdicates responsibilities and avoids making decisions and therefore the group often lacks direction. Assumptions of Transactional Theory Employees are motivated by reward and punishment. The subordinates have to obey the orders of the superior. The subordinates are not self-motivated. They have to be closely monitored ND controlled to get the work done from them. The transactional leaders overemphasized detailed and short-term goals, and standard rules and procedures. They do not make an effort to enhance followers’ creativity and generation of new ideas.

This kind of a leadership style may work well where the organizational problems are simple and clearly defined. Such leaders tend to not reward or ignore ideas that do not fit with existing plans and goals. The transactional leaders are found to be quite effective in guiding efficiency decisions which are aimed at cutting costs and improving productivity. The orientations leaders tend to be highly directive and action oriented and their relationship with the followers tends to be transitory and not based on emotional bonds. The theory assumes that subordinates can be motivated by simple rewards.

The only ‘transaction’ between the leader and the followers is the money which the followers receive for their compliance and effort. Organizational Citizenship Behavior Organizational Citizenship Behavior (organizational citizenship behavior) is something which is very different from the usual job performance . If some individual is not involved in this behavior he is not held responsible or liable by he organization but ultimately it is for the betterment of the organization Organizational Citizenship Behaviors (organizational citizenship behavior s) are the personal choice of the employees he is not paid for this behavior.

Organizational citizenship behaviors are having a very positive and clear impact on the functioning of organization. Organizational citizenship behaviors are often considered a subset of employee’s conditions and their evaluation on their job. It is described as Organizational citizenship behavior (COB) plays very important role for the better functioning of any organization, defined as behavior that a) is something extra beyond the basic job description, (b) is without any compensation, and (c) is for the betterment to the organization. Lambert, S. J. , 2006, p. 503-525) Another writer explains Organizational Citizenship Behavior as follows: “Organizational citizenship behavior is behavior that, although not a part of job of employee, but play a very important role for the functioning of organization”. (Lee and Allen, 2002, p 132) Variables involved in Organizational Citizenship Behavior Job satisfaction and organizational commitment: job satisfaction is found to eave positive relationship with job performance and organizational citizenship behavior. Role perceptions: role of leader of directly proportional to job performance and COB Leader behavior and leader-member exchange: leadership has very strong influence to focus their employee towards organizational citizenship behavior. Fairness perception: it is the perception of employees about their fair treatment in the organization. Individual disposition: it refers to individuals personality traits. It is negatively related to organizational citizenship behavior. Motivational theories: individual’s motives are directly related to organizational citizenship behavior.

Motivation is measured in terms of internal processes, perception, own concept and goal recognition. Employee age: younger and older employees have different orientation towards the job performance and job commitment. As defined by Organ (1998), COB reflects a “good solider syndrome” which is necessary for the prosperity and good functioning of every organization. It means doing a better job, making an effort and beyond formal requirements, and filling the gap between procedures and regulations on the one hand, and yeoman reality on the other hand.

Literature Review Up till now, researchers have analyzed effects of transformational leadership on COB and results vary accordingly. (Organ et al. , 2006) Smith, Organ and Near (1983) explains COB as individual’s extra contribution towards work in organization. COB can be regarded as flexible, related or extra performance. Recently, COB has gained immense importance (Organ, 1997). COB can be predicted by ELM, trust, justice, and POS. According to WWW Sin and WWW Chiming transformational was introduced contrary to transactional leadership, which inspired followers to perform beyond expectation.

Moreover, employee productivity increases when they perceive fair treatment by the leaders (Williams, Pitter and Zanzibar 2002). Current study defines relationship between transformational leadership and Organizational justice; citizenship behavior supported by leader-member exchange and perceived organizational support. Due to the technological development and globalization, working environment has changed in recent years which have made organizations gone through dramatic changes. Total quality management and business process engineering are also a source of this transformation.

In the transformation of an organization leadership is an important factor. Researchers have found that leadership paradigm needs to be changed. The leaders, going through transformation needs to be more change-centered. These leaders inspire and motivate people to achieve the vision. Anderson and King (1993) also concluded that clear vision and mission promotes innovation. Howell & Viola, 1989 said that leaders who encourage their followers’ to be creative and risk taking are likely to succeed in transformational process in organizations. In 1992,

Barman presented the theories of transformational and charismatic leadership. According to Bass charisma is a sub dimension of transformational leadership. Transformational leaders inspire and motivate their workers to get the best out of them. The leadership development programs now first identify the transactional and transformational leadership qualities of the target leaders. Multiple leadership questionnaire (ML) is fill out by followers’ before the training workshop, to obtain a profile of leader on transformational and transactional leadership dimensions. We will first discuss Bass’ leadership model.

Then we’ll look how leadership qualities are identified in transformational leadership development programs. Theoretical Framework Problem Statement: “Effects of transformational v/s transactional leadership style on organizational citizenship behaviors (COB)” The Theoretical Framework of our project will describe the relationship of variables under consideration. It contains the following features. Inventory of variables: The problem statement of our research project contains two variables which are as follows: Independent variable: Leadership Styles (Transformational v/s Transactional Leadership)

Dependent variable: Organizational Citizenship Behaviors (COB) Relationship and direction of variables: Proposition 1: “Social skills, even- temperateness, charisma leadership, active management- by-exception, passive management-by-exception are ascribes that influence transformational and transactional leadership styles”. Factors assessing leadership styles: a. Social skills: Social skills measure the adeptness of inducing desirable responses in others. Social skills, also referred to as interpersonal control or relationship management skills, represent a predisposition towards effectively handling interpersonal legislations.

These are extremely important in establishing trust and negotiating with people, thereby leading employees to work beyond the call of duty. B. Even-temperateness: Even-temperateness or emotional stability is a contrast to neurotics, a Big Five personality factor that represents negative emotionality such as feeling anxious, nervous, sad, and tense. Empathy, a requirement for effective interpersonal interactions, is the ability to respond to changes in the emotional states of others through sensitivity and even-temperateness.