INTRODUCTION:

The topic under consideration for the research study is “Effects of Transformational v. Transactional Leadership Style on the Organizational Citizenship Behavior”. First of all, we should have knowledge about each variable under consideration. Therefore brief introduction of each variable is described below.

Transformational Leadership

The concept of transformational leadership was initially introduced by leadership expert and presidential biographer James Mac Gregor 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 develop 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 pure 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 into 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.

These exchanges involve four dimensions:

	· Contingent Rewards: Transactional leaders link the goal to rewards, clarify expectations, provide necessary resources, set mutually agreed upon goals, and provide various kinds of rewards for successful performance. They set SMART (specific, measurable, attainable, realistic, and timely) goals for their subordinates.
	· Active Management by Exception: Transactional leaders actively monitor the work of their subordinates, watch for deviations from rules and standards and taking corrective action to prevent mistakes.
	· Passive Management by Exception: Transactional leaders intervene only when standards are not met or when the performance is not as per the expectations. They may even use punishment as a response to unacceptable performance.
	· Laissez-faire: 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 and controlled to get the work done from them.

The transactional leaders overemphasize 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 transactional 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 the 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 (OCB) 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 have positive relationship with job performance and organizational citizenship behavior.

· Role perceptions: role of leader of directly proportional to job performance and OCB

· 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), OCB 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 dynamic reality on the other hand.

Literature Review

Up till now, researchers have analyzed effects of transformational leadership on OCB and results vary accordingly. (Organ et al., 2006)

Smith, Organ and near (1983) explains OCB as individual’s extra contribution towards work in organization. OCB can be regarded as flexible, related or extra performance. Recently, OCB has gained immense importance (Organ, 1997). OCB can be predicted by LMX, trust, justice, and POS. According to WU Xin and WU Zhiming 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, Pitre and Zainuba 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 reengineering 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 & Avolio, 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, Bryman 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 (MLQ) 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 (OCB)”

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 (OCB)

Relationship and direction of variables:

Proposition 1:

“Social skills, even- temperedness, 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 relationships. These are extremely important in establishing trust and negotiating with people, thereby leading employees to work beyond the call of duty.

b. Even-temperedness:

Even-temperedness or emotional stability is a contrast to neuroticism, 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-temperedness.

c. Charismatic leadership:

Charismatic leadership (C) is shown by leaders who act as role models, create a sense of identification with a shared vision, and instill pride and faith in followers by overcoming obstacles. This dimension is also known as idealized influence.

d. Employee empowerment:

Employee empowerment is a strategy and philosophy that enables employees to make decisions about their jobs. Employee empowerment helps employees own their work and take responsibility for their results. Employee empowerment helps employees serve customers at the level of the organization where the customer interface exists.

e. Active management-by-exception:

In active management-by-exception, leaders are vigilant for errors and ready to provide guidance. Active management by exception is the recognition of managers that the goals they set are not being met and corrective action is required.

f. Passive management-by-exception:

In passive management-by-exception, leaders provide feedback only when differences from the standard are blatantly manifest.

g. Contingent reward:

It is an exchange process between leaders and followers in which efforts by followers is exchanged for specified rewards. In this type of leadership, the leader tries to obtain agreement from followers on what must be done and what they payoffs will be for the people doing it.

Proposition 2:

“Altruism, conscientiousness, civic virtue, courtesy and sportsmanship are the empirically proven and robust distinct factors and attributes that assess Organizational Citizenship Behaviors (OCB)”

Factors assessing OCB:

a. Altruism:

The discretionary factor that has effect of helping a specific working colleague or a coworker with an organizationally relevant task or problem and explained as the selflessness of an employee towards organization refers to altruism.

Altruism’ is concerned with going beyond job requirements to help others with whom the individual comes into contact. Altruism is accounted as a one of the significant antecedents of

Organizational Citizenship Behavior (OCB), behaviors such as helping a colleague who has been absent from work, helping others who have heavy workloads, being mindful of how one’s own behavior affects others’ jobs, and providing help and support to new employees represent clear indications of an employee’s interest for its work environment. Socially driven values emphasizing the group over individual concerns are likely to encourage altruistic behaviors benefiting the group. Altruism and compassion may arise as a natural consequence of experiences of interconnection and oneness. Altruism or helping coworkers makes the work system more efficient because one worker can utilize his or her slack time to assist another on a more urgent task.

b. Conscientiousness:

The behaviors that go well beyond the minimum role requirement of the organization refer to the conscientiousness. Such behaviors indicate that employees accept and adhere to the rules, regulations and procedures of the organization. Conscientiousness is used to indicate that a particular individual is organized, accountable and hardworking. It is defined as dedications to the jobs which exceeds formal requirements such as working long hours, and volunteer to perform jobs besides duties. In addition to that, studies have also revealed that conscientiousness can be related to organizational politics among employees.

c. Civic Virtue:

The Behaviors that indicate employees’ deep concerns and active interests in the life of the organization refer to civic virtue. It also encompasses positive involvement in organization’s concerns and consulting others before taking actions. Civic virtue is defined as subordinate participation in organization political life and supporting the administrative function of the organization. It is referring to the responsibility of the subordinates to participate in the life of the firm such as attending meetings which are not required by the firm and keeping up with the changes in the organization. This dimension of OCB is actually derived from findings which stated that employees should have the responsibility to be a good citizen of the organization.

These behaviors reflect an employees’ recognition of being part of organization and accept the responsibilities which entails.

Example: an employee attends meetings and keeps up with what is going on in an organization.

d. Courtesy:

The discretionary behaviors that aim at preventing work related conflicts with others refer to courtesy. Courtesy includes behaviors, which focus on the prevention of problems and taking the necessary step so as to lessen the effects of the problem in the future. In other words, courtesy means a member encourages other workers when they are demoralized and feel discouraged about their professional development. Early research efforts have found that employees who exhibit courtesy would reduce intergroup conflict and thereby diminishes the time spent on conflict management activities.

Example:

1- Asking fellow employees if they would like a cup of coffee while an employee is getting one for himself.

2- Making extra copies of meeting agenda for an employee’s teammate.

e. Sportsmanship:

Sportsmanship is defined as willingness on the part of employee that signifies the employee’s tolerance of less than ideal organizational circumstances without complaining and blowing problems out of proportion. It is an employee’s ability to roll with the punches’ even if they do not like or agree with the changes that are occurring within the organization. Sportsmanship can also be defined as the behavior of warmly tolerating the irritations that are an unavoidable part of nearly every organizational setting. It is revealed that good sportsmanship would enhance the morale of the work group and subsequently reduce employee turnover.

Example: an employee does not complain about trivial matters.

Proposition 3:

“The leadership styles (transformational v/s transactional) affect the Organizational Citizenship Behavior (OCB)”.

There is a positively proportional relationship between the two variables. The more the effective leadership style the more positive will be the Organizational Citizenship Behavior (OCB).

Ope rationalization:

Problem Statement: “Effects of transformational v/s transactional leadership style on organizational citizenship behaviors (OCB)”

Variable Inventory: Independent variable: Leadership Styles (Transformational v/s Transactional Leadership)

Dependent variable: Organizational Citizenship Behaviors (OCB)

Independent Variable: Leadership Styles

1- Transformational Leadership Style:

According to view of Noel M. Tichy and David O. Ulrich. “The Leadership Challenge – A Call for the Transformational Leader”. Tichy and Ulrich call for a new breed of leaders who can help an organization develop a new vision, gather support and buy-in from stakeholders, guide the organization through a transformative phase and possess the capacity to institutionalize changes over time. These leaders are called transformational leaders because they create something new from something old.

The transformational leadership style passes through the steps of

· Developing the vision

· Selling the vision

· Finding the way forwards

· Leading the charge

2- Transactional Leadership Style:

Transactional leadership is a leadership approach that uses a system of rewards and disciplinary measures to motivate employees. Transactional leadership seeks to motivate followers by appealing to their own self-interest. Its principles are to motivate workers by the exchange of status and wages for the work effort of the employee.

According to Max Weber and Bernard Bass: 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.

Dimensions of Transformational Leadership Style:

· Dimension 1- Charisma:

“The term charisma (from the Greek, meaning "favor given" or "gift of grace") is the compelling attractiveness or charm that can inspire devotion in others, or a divinely conferred power or talent”. It is also defined as: “Charisma (what we actually refer to as "personal charisma" is the possession of highly-developed emotional and social communication skills. Charismatic individuals are brilliant and effective communicators who communicate emotions very well - particularly positive emotions”.

Elements: Following are the elements that measure charisma of a leader

1- Emotional and social expressiveness

2- Emotional and social sensitivity

3- Emotional and social control

4- Power and influence

e.g. “I am ready to trust the person I am rating to overcome any obstacle”.

· Dimension 2- Individualized influence:

Individualized influence occurs when leaders earn the trust and respect of their followers by doing the right thing rather than ensuring that the subordinates do things right. When the leaders focus on doing the right thing, which they usually do by using stories and symbols to communicate their vision and their message, they serve as role models. Humphreys and Einstein (2003) have found that transformational leaders operate out of deeply held personal value systems that include qualities like justice and integrity. By expressing these personal standards, transformational leaders unite their followers. But, more importantly, they can change their followers’ goals and beliefs for the better.

Elements: Following are the elements of individualized influence of a leader

1- Earn trust

2- Engagement in constructive matters

3- Serving as role models

4- Valuing justice and integrity

e.g. “the person I am rating has ability to do right things”.

· Dimension 3- Intellectual stimulation:

According to Shin, Shung, Zhou, and Jing (2003), inspirational motivation is related to the formulation and articulation of a vision and/or challenging goals. Intellectual stimulation promotes intelligence, rationality, and careful problem-solving abilities. It also involves engaging the rationality of the subordinates, getting them to challenge their assumptions and to think about old problems in new ways. Leaders who engage in intellectual stimulation do not answer all their employees’ questions; instead, they make them seek the answers on their own.

Elements: Following are the elements of Intellectual stimulation of a leader

1- Broadness of vision

2- Ability of challenging goals

3- Ability to solve problems

4- Equivalency among the subordinates

e.g. “The person I am rating introduces new projects and new challenges”.

· Dimension 4- Individual consideration:

Individual consideration is concerned with treating the employees as individuals and not just members of a group. Leaders exhibit this trait by being compassionate, appreciative, and responsive to the employees’ needs and by recognizing and celebrating their achievements.

Elements: Following the elements of individual consideration of a leader

1- Treatment with employees as individuals

2- Appreciation and response to the employees

3- Recognition of employee status

e.g. “The person I am rating listens to my concerns”.

· Dimension 5- Inspirational motivation:

Conger and Kanungo (1988) have found that inspirational motivation and charisma are companions. Transformational leaders inspire their followers to accomplish great feats by communicating high expectations by using symbols to focus efforts and by expressing important purposes. Transformational leaders tend to pay close attention to the individual differences among their followers and often act as mentors to their subordinates, typically coaching and advising the followers with individual personal attention.

Elements: Following are the elements of Inspirational motivation of a leader

1- Highlighting purposes

2- Awareness of high expectations

3- Focus on individual differences

e.g. “the person I am rating can accomplish great endurance”.

Dimensions of Transactional Leadership Style:

· Dimension 1- Contingent Reward:

Elements: Following are the elements of Contingent Reward of a leader

1- Specific rewards

2- Gain of agreement from the supporters

3- Payoffs and payments to the employees

e.g. “The person I am rating works out agreements with me on what I will receive if I do what needs to be done”.

· Dimension 2- Active Management by Exception:

Elements: Following are the elements of Contingent Reward of a leader

1- Cautiousness for errors

2- Provision of guidance

3- Requirement for further improvement

e.g. “The person I am rating focuses attention on irregularities, mistakes, exceptions and deviations from what is expected of me.”

· Dimension 3- Passive Management by Exception:

In passive management-by-exception, leaders provide feedback only when differences from the standard are blatantly manifest.

Elements: Following are the elements of Contingent Reward of a leader

1- Chronic problems

2- Deviation of desired goal from the achieved ones

e.g. “Problems have to be chronic before the person I am rating will take action”.

Dependent variable: Organizational Citizenship Behavior

· Dimension 1: Altruism:

“Altruism is helping behavior that is motivated by a selfless concern for the welfare of another person.”

Not all helping behavior is altruism. Only selfless helping is considered altruism.

Elements:

1. Helping absent employees

2. Voluntarily do work

Help in orientation of new employees

· Dimension 2: Civic virtue:

“Civic virtue is morality or a standard of righteous behavior in relationship to a citizen's involvement in society.”

An individual may exhibit civic virtue by voting, volunteering, organizing a book group, or attending a meeting.

Elements:

1. Attending a function that is not required, but that help the company image

2. Giving suggestions to improve the operations

3. Keeping abreast of changes in organization

· Dimension 3: Conscientiousness:

It includes such elements as self-discipline, carefulness, thoroughness, organization, deliberation (the tendency to think carefully before acting), and need for achievement.”

It is an aspect of what has traditionally been called character. Conscientious individuals are generally hard working and reliable. When taken to an extreme, they may also be workaholics, perfectionists, and compulsive in their behavior.

Elements:

1. Enhancing the levels of attendance

2. Responding to phone calls, messages and other requests for information promptly

3. Obeying organization’s rules and regulations even when no one is watching

4. Housekeeping

5. Conserving resources and related matters of internal maintenance.

· Dimension 4: Courtesy:

“Courtesy is gentle politeness and courtly manners. The discretionary behaviors that aim at preventing work related conflicts with others refer to courtesy.”

Courtesy includes behaviors, which focus on the prevention of problems and taking the necessary step so as to lessen the effects of the problem in the future.

Elements:

1. Protection of others’ rights

2. Consideration of the effect of employees work on others

3. Preventing problems by keeping others informed of one’s decisions and actions

· Dimension 5: Sportsmanship:

“Sportsmanship expresses an aspiration or ethos that the activity will be enjoyed for its own sake, with proper consideration for fairness, ethics, respect, and a sense of fellowship with one's competitors.”

Being a "good sport" involves being a "good winner" as well as being a "good loser"

Elements:

1. Making problem bigger than it really is

2. Thinking only about own work, and not others

3. Tolerating the inevitable inconveniences and impositions of work without whining and grievances.

Research Design

It is the overall picture or road map of our research.

Purpose of study:

There can be three basic purposes of our research:

· Exploratory research

· Descriptive research

· Hypothesis testing / explanatory research

The research method used in our study is exploratory research.

Exploratory Research:

In our research the basic purpose of study used was exploratory research. In it we have tried to find the relationship between the dependent and the independent variables. In the research, the independent variable was Leadership Styles (Transformational v/s Transactional Leadership), while the dependent variable was Organizational Citizenship Behaviors (OCB). The effect of leadership style was found on the organizational citizenship behavior in our research.

Types of Investigation:

There are two basic types of research investigations.

· Casual research

· Co relational research

The research investigative method used in our research is co relational research.

Co relational Research:

In it we have discussed that both the variables i.e. Leadership Styles and Organizational Citizenship Behaviors (OCB), affect each other by the use of questionnaire. Normal environment was used for the purpose of our study and data was collected in the normal environment from the respondents.

Study Setting:

There are two basic types of study settings:

· Non contrived or field experiments

· Contrived or lab experiments

The study settings used in our research is non contrived or field experiment.

Non-contrived Experiments:

In our research normal environment was used for the research purpose. No special environment was created for the study. The individuals were interviewed not in any special environmental conditions.

Sampling:

Sampling can be done by the use of two basic sampling techniques.

· Probability sampling

· Non probability sampling

The sampling technique used in our research is non probability sampling

Non probability Sampling:

In our research the results need not to be generalized to the whole population as we are using exploratory research for our research. In our research time constraints are there and our basic focus is not on errors.

Non probability sampling can further be done by the following methods:

· Convenience sampling

· Purposive sampling

Purposive Sampling: Purposive sampling can be done by the following two methods:

1. Judgmental sampling

2. Quota sampling

The research method used in our research is purposive sampling.

Questionnaire Specimen

This questionnaire is about your perception of the leadership style of your boss. Keeping in view your experience in this organization, select the appropriate option given below:

He displays a sense of power and confidence