McGraw-Hill/IrwinCopyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter Fourteen Transformational Leadership

14-2 Reading 33 The 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

14-3 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

14-4 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

14-5 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

14-6 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

14-7 Table 1 Means, Standard Deviations, Coefficient Alphas and Correlations of Study Variables

14-8 Reading 34 Transformational 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

14-9 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

14-10 Figure 1 Conceptual Relationship between Transformational Leader Behaviors, Potential Mediators, and Organizational Citizenship Behaviors

14-11 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

14-12 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

14-13 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

14-14 Reading 35 Leader-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

14-15 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

14-16 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

14-17 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

14-18 Table 3 Means, Standard Deviations, and Correlations a

14-19 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

14-20 Figure 1 Results of Structural Equation Modeling on the Mediating Effect of LMX

14-21 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