Psychological processes underlying the relationship between transformational leadership and multi-foci organizational citizenship behaviors: A multiple-level approach
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How do leaders in organizations motivate their employees to achieve individual performance as well as group effectiveness? What specific efforts on the part of the leaders move individuals and groups forward in order to achieve their individual and group goals? How and why do the individuals in groups react to their leaders in ways that the leaders inspire them to perform better? These are the questions that explain and emphasize fundamental roles of leaders in organizations. To respond to these questions, two main issues were addressed in this study. First, the current study examined the underlying psychological processes between transformational leadership and multi-foci organizational citizenship behaviors (OCBs). Despite the presence of a great deal of research on the positive relationship between transformational leadership and its effectiveness, the underlying psychological processes in the relationship have not been clearly addressed. Second, the underlying psychological mechanisms between transformational leadership and multi-foci OCBs in the current study were investigated at the individual - and group-levels of analysis (i.e., a multi-level approach) . In order to test the nine hypotheses proposed in this study, a survey method was used for a total of 55 work groups, including 207 employees (i.e., 55 supervisors and their 152 immediate subordinates) in 25 branches of a large, American-based, multi-national bank located in Korea. Four major analytic techniques were combined in order to explore the multi-level models of this study: (1) correlation and multiple regression analyses, (2) partial least squares (PLS) structural equation modeling technique, (3) mediation analyses using mediated regression analysis and a nested as well as full model comparison using PLS, and (4) multi-level analyses using Within And Between Analysis (WABA) along with one-way analysis of variance (ANOVA) and group inter-rater reliability (rwg ). In addition, in order to investigate the potential psychological processes that may exist for the relationship between individual- and group-level transformational leadership and multi-foci OCBs, post hoc analyses using mediated regression analyses and PLS also were conducted. The overall results from hypothesis testing revealed that the nine hypotheses were not sufficiently supported: each hypothesized relationship in the individual- and group-level models was significantly correlated with each other; the sequences of the models, however, were not sufficiently supported. Specifically, while some mediation effects of the group-level model were found (procedural justice climate [arrow right] group self-esteem [arrow right] group identification [arrow right] group-directed OCBs), no mediation effects were found in the individual-level model. Furthermore, the overall results from post hoc analyses did present some interesting findings: The individual-level results suggest that interactional justice and leader identification may mediate the relationship between individualized consideration and leader-directed OCBs. Procedural justice climate and group identification, on the other hand, may mediate the relationship between charisma and group-directed OCBs. Theoretical and practical implications, limitations, and suggestions for future research were discussed.