followers by providing them with a sense of meaning and challenge. They work enthusiastically and optimistically to foster the spirit of teamwork and commitment Intellectual stimulation Intellectual stimulation is often related to a leader who emphasizes the concept of intelligence, rationality, logic, and problem solving in an organization (Ismail, et al. 2011). Thus, he encourages his followers to be more creative (Avolio, 2004), innovative, imaginative, and recognize their values, beliefs, and mind set (Avolio, 2004). Individualized Individualized consideration is when a leader cares about the needs and achievement of his followers. These concerns can further develop these leaders to being coaches and mentors. Leaders act as mentors to their followers and reward them for creativity and innovation. The followers are treated differently according to their talents and knowledge. They are empowered to make decisions and are always provided with the needed support to implement their decisions. Transformational leadership influences the fundamental attitudes and assumptions of an organization's members, creating a common mentality to attain the firm's goals. .Although evidence shows that the transformational leader exercises a substantial influence on performance, understanding of the processes through which he or she exerts this influence is still limited and largely speculative. We have Mahatma Gandhi and Obama as transformational leaders. Psychological empowerment Consequently, the followers will respect the leader, their commitment to the organization will increase, and organizational goals are attained (Amiri, Ranjbar & Nikman, 2015; Khan, Khan, & Shahzad, 2013). The organizational leadership show that the ability of leaders to properly implement transformational leadership may invoke the employees’ sense
of psychological empowerment. For example, according to Khan, et al. (2013), implementation of each dimension of transformational leadership styles (idealized influence, individual consideration and intellectual stimulation) will produce employees with high confidence level in making decisions, and it will make them more accountable for their responsibilities (Shah, et al. 2011). Psychological empowerment can be described through four different dimensions: meaning, competence, self-determination, and impact or outcomes (Attari, 2013; Balaji & Krishnan, 2014; Mazaheri & Nowrak, 2014). Psychology of meaning Meaning is often associated with the Leaders’ sense of meaningfulness in performing their jobs; competence is often associated with capable and skilled workers; self- determination refers to Leaders who are independent and intelligent in controlling their behaviour while making decisions; and impact refers to the Leaders who feel that they are influential to the decisions made by the organization (Attari, 2013; Balaji & Krishnan, 2014). In general, psychological empowerment is often associated with a leader who is willing to delegate his power to his followers in managing organizational functions (Attari, 2013). Psychological empowerment is continuous Psychological empowerment is considered as a continuous variable used in the management system of JSCA which is only utilized in a particular work environment (Balaji & Krishnan, 2014). Within the scope of transformational leadership, multidimensionality of psychological empowerment can serve as a mediating effect in the relationship between socio-structural and individual behaviour in strategic organizational management (Gagne, Senecal & Koestner, 1997). As a result, Leaders will feel more meaningful, powerful, and passionate in achieving organizational strategies and goals (Ahmadi, 2014; Balaji & Krishnan, 2014). Surprisingly, a careful observation on effective leadership styles reveals that relationship between
transformational leadership and psychological empowerment may lead to enhanced organizational commitment (Kark, Shamir & Chen, 2003; Avolio, 2014). Components of Leader’s behaviour There are three important components to organizational commitment that influence Leaders’ behaviour: affective, continuance, and normative commitment. According to Chadna & Krishnan (2009) and Ramachandran & Krishnan (2009), affective commitment refers to an Leader’s emotional attachment to, identification with, and involvement in the association. Continuance commitment refers to Leader’s perceived costs of leaving the association (such as reduction in pay, pension, benefits or facilities (Verma & Krishnan, 2013). Normative commitment refers to an Leader’s obligation to remain in association. Leadership commitment A substantial number of studies have noted that organizational commitment refers to the loyalty and performance of the employees in executing their tasks within the association up to the attainment of associational goals (Batool, 2013; Thamrin, 2012). Leadership commitment is a very important element to both manager and association because it leads to a successful association (Shah, et al. 2011). Therefore, the implementation of transformational leadership is an appropriate action taken by managers of JSCA in encouraging their leaders to continue improving their commitment to the association. Indirectly, enhancing leaders commitment can improve the performance of the manager and the association. Thus, the implementation of this leadership style is very important toward establishing interpersonal skill between leaders and followers (Lussier & Achua, 2013). Mediating variable Within transformational leadership model, most researchers think that transformational leadership, psychological empowerment, and organizational commitment
are different, but they are actually highly interrelated concepts (Kark, Shamir & Chen, 2003; Avolio, et al. 2004; Boonyarit, et al. 2010). For example, the implementation of transformational leadership, which evokes the sense of psychological empowerment among the followers, may lead to enhanced organizational commitment. Although studies have been done, little is known about the role of psychological empowerment as a mediating variable in the transformational leadership models (Bartram & Casimir, 2007; Ismail, et al. 2011). Competitiveness Most scholars argue that this condition may be due to several factors: first, previous studies described too many characteristics of transformational leadership as conceptual discussion of definition, nature, purpose and importance of this leadership. Second, many previous studies used simple correlations in their research methodology and less emphasis on the relationship of mediating or moderator. Third, previous studies were more interested in studying the perception of transformational leadership as a whole. Accordingly, the above approach did not produce much information that could useful to guide practitioners in understanding the strategic actions to improve the effectiveness of transformational leadership in a competitive organization. Consequently, it is not being highlighted in the leadership literature (Meyerson & Kline, 2008). Thus, this has motivated us to further explore the issue. This study has two important objectives: firstly, to examine the correlation between transformational leadership and psychological empowerment; secondly, to examine the role of psychological empowerment as a mediating variable in the correlation between transformational leadership and organizational commitment.
Transformational leadership and psychological empowerment. There is a positive relationship between transformational leadership and psychological empowerment. Transformational leadership, psychological empowerment and organizational commitment. More importantly, studies that examined the transformational leadership used the indirect effects model based on various samples, such as the perceptions of a group of bankers in several US banking organizations (Kark, et al. 2003), 520 staff nurses working at a large public hospital in Singapore (Avolio, et al. 2004), 154 public school teachers from a central province of Thailand (Boonyarit, et al. 2010), 118 usable questionnaire gathered from employees of a US firm in East Malaysia (Ismail et al., 2011), 88 employees of six telecom companies in India (Shah, et al. 2011), and 310 employees of the Interior Ministry of Malaysia (Ahmadi, 2014). Findings from these studies indicated that the ability of the leaders to appropriately practice idealized influence, intellectual stimulation, and individualized consideration in executing organizational functions invoked their followers’ sense of psychological empowerment, and this could lead to enhanced organizational commitment. Key observations The work of Hailey and Smillie (2001) on NGO leadership is one of the very first systematic research in this area which is mostly focused on the characteristics of successful Non-Governmental Organisational leaders in Bangladesh, India and Pakistan. All the organisations covered in the study are big NGOs with complex management structures. The study does not focus on medium sized, local and more membership type NGOs. Some of the practices and anecdotal evidences show that second- line leadership development has been a challenge for most of the development NGOs irrespective of size, focus and origin. • The founder leaders do most of the representations in external meetings and forum, and also get directly involved in all decision-making and day-to-day management. These indicate the absence of suitable alternative people in these organisations.
• Many founder leaders get scared when something goes wrong in their personal life (e.g. sickness). One such leader was heard to say to a partner organsation saying, “what will happen to my organisation if I die tomorrow?” Some staff members are unwilling to express their opinion even on small issues without talking to their leaders. When a donor asked to revise the annual plans and budgets of a local NGO, the staff members said, “We cannot do it because [the leader] prepared the annual plans and budgets before leaving for the current foreign tour which was several weeks even before the process started”. • There have been a wide range of complaints from outgoing staff of associations about their leaders’ unwillingness to let potential staff grow for future leadership roles. According to Fowler (2000), the knowledge gap in the study of leaders and leadership in associations may have important consequences for thinking, policies and practice in the development field such as • It may set unwarranted boundaries around the concepts, frameworks and theories applied to understand how societies generate, appreciate and distribute leadership. • It limits and may distort the picture of leadership that gives rise to the “actual configurations of civic institutions and organisational behaviours to be found across the world”. In a politically weak state with less accountability to citizens, such distortions may “give rise to highly questionable policy recommendations, expectations and programmes of external assistance”. • The perspectives from the business sector increasingly become the reference points and ways to analyse, understand and improve the leadership in societies. The third consequence may create a ‘monochrome, if not monolithic’ view of the business sector dominating the analysis of leadership. Some analysts argue that leaders in the Third Sector have to make more significant contributions to the organisations than those in the corporate sector. “The nature and quality of voluntary sector leadership is considered more likely to determine achievement than in other organisations” (Fowler, 2000: 5).
Development of second-line leaders Developing second-line leaders (preferably from within the association) is a crucial issue in management, but many experts observe that it is not happening in most cases. While developing second-line leaders is important for all organisations, it seems even more important for JSCA because: JSCA is a value driven association and there is need to maintain an optimum level of continuity of their vision, mission and values. This can be done effectively through developing professionals from within the association to take future leadership role. • JSCA is known as training grounds for social entrepreneurs with the potential to spread their values in the wider society. This can be done more effectively through creating leadership capacities within the association. • Creation of capable second-line leaders in JSCA will enable the founder leaders to get involved in more policy advocacy and long-term strategic work. • The aid agencies have attached high priority to ‘capacity building’ in the developing countries – both in public and voluntary sectors. Leadership development is a key concern to investigate the capacity limitations in the voluntary sector. Leaders: context and culture Here we focus on the evolving role of JSCA leaders and the way the environment in which they work impacts on this role. It draws on research from a variety of sources, and sees leadership in the particular cultures and contexts in which JSCA operates. What is clear from the study is that not only do individual leaders play a central role in shaping the destiny of association, but that their role and effectiveness is in part determined by the environment in which they work (Kelleher & McLaren, 2005). There are also worries about the lack of leadership talent and interest to be found within the context of the non-profit sector as a whole. This ‘leadership deficit’ will become a matter of urgency as the sector expands over the next twenty years. What is also apparent is that many of the jobs will be filled by individuals recruited from outside the sector who will have had limited experience of running
non-profits at a senior level. In the 1990s the International Forum on Capacity Building, which was an international coalition of NGOs concerned with building the organisational and managerial capacity of the sector as a whole, consistently voiced its concerns at the quality and availability of appropriate leadership. It argued strongly for increased investment to develop a new generation of NGO leaders (1998 and 2001). JSCA Experience Learning About Leadership Quest Mission: JSCA works in slums to address a number of issues, including livelihoods, capacity building, health, education, physical infrastructure improvement, access to resources and services, village development and natural resource management. JSCA also started a social enterprise, registered under the ministry of corporate affairs, Government of India. Imphal-based JSCA has myriad programmes to improve the lot of the urban poor. In some way, its initiatives can be likened to a complex web that touches every corner of their lives. Active partnership of slum dwellers vs. passive participations (welfare model) - Services would not be free. Free services tend to reduce incentive and self- esteem. Challenge: How to create opportunities through which residents become active change agents of development? Increasing their management and technical expertise Nurturing leadership. Enhancing their self-esteem and self-confidence. Leadership Programme JSCA strongly believes that behavioural change only really takes place when the learning experience is both intellectual and emotional. The programme creates time and space not only for busy leaders to reflect, but also to challenge themselves, in the belief that the more that leaders become aware of their strengths and weaknesses and can develop strategies to work with these, then the more effective they will be. To achieve this, they use a variety of learning methodologies including:
• Making small groups of three people discuss set questions or specific problems) • Refer to individual reflections and plans are written in personal journals • They using narrative stories to illustrate issues or theories • Group Reflections two participants discuss personal issues, reflections and plans • The daily sessions to help unwind and relieve stress as with many of the more respected leadership programmes they take a holistic approach to the individual, and so look at different elements of the personal state – the socio-emotional, the physical, the spiritual and the mental linkage between these. But fundamental to the success of this programme is that it provides hope, and helps individuals to identify the core purpose of their life. This is referred to as their quest. This process helps them generate a clearer sense of their own identity, which in turn enables them to balance external demands without compromising their core values Leadership development: a bigger challenge ahead Any commentary on the future role of leaders or new approaches to leadership development will first have to come to grips with the changing nature of society and the breakdown of traditional social structures and values, and the impact of globalisation and technological advances. Organisations also face dramatic changes, partly because they will have to work in a more collaborative manner with partners or through networks, and partly because of the changing nature of work and the expectations of their workforce. Staff loyalty cannot be taken for granted, and leaders will increasingly have to defend their role and status, as well as justify how they ‘won the right to lead’. Leaders also expect increased flexibility in work practices, greater investment in staff development, and enhanced job satisfaction. In this context leadership is a shared responsibility. It is one based on openness, empathy, and integrity. Leaders are expected to
have a wider knowledge base and an ability to work with multi-cultural teams or in different cultural contexts, as well as communicate or negotiate with a wide range of individuals or stakeholders. In this changing environment leadership is viewed as the key associational asset. Leaders will have to make sense of uncertainty and develop the skills and energy to manage unpredictable situations. Leaders will have to become increasingly adaptable and cope with the challenge of working in and across different cultures. They will also have to become more and more adept at working externally. The trend for association to work in collaborative partnerships or in new consortiums means that the leader will have to learn not just networking skills, but also the ability to negotiate and resolve conflicts with a variety of different players from different backgrounds and cultures. They will therefore have to develop new competencies as networkers, coalition builders and boundary spanners. In this regard there will be greater emphasis on the qualities of adaptability and resilience, as well as judgement and analysis (particularly environmental scanning) There is now enough awareness of the downside and dy-functionality of ‘strong’ leadership. Increasingly leaders will be judged by the way they incorporate ethics and integrity into their work, and operate in a sufficiently participative way. This pressure for less of a top-down leadership style and a more collegial or participative approach means that individual leaders will have to be seen to be team-players and coalition builders. They will have to have ‘earned the right to lead’, by having ‘walked the talk’ or ‘led by example’. As such those in leadership positions will not only have to be more directly involved with colleagues and so be able to delegate responsibilities, but also actively listen and accept feedback, displaying openness, empathy, integrity and self-awareness.
There is a need for more study to better understand and identify the attributes and competencies leaders should have to handle the demands they face in the future. This will also help identify the systems and processes that associations need to establish to ensure that the most suitable individuals are recruited to leadership positions and are equipped with the necessary attributes or competencies. This has implications for the way human resource strategies are implemented, the way that association recruit and retain key staff and how they will develop the skills and competencies needed by the next generation of leaders. It is also clear that leadership will not merely be measured on short term performance results, but also on longer-term impact and the ability to handle the moral, ethical and social responsibilities that organisations are expected to take on. There will also be increasing scrutiny of their pro- poor stance, and the degree to which their work genuinely has an impact on the lives of the most vulnerable and disadvantaged. There will be pressure for greater accountability, improved governance, and clearer strategic direction; in other words, calls for ‘more and better leadership’. Consequently association will need to invest more time in developing their leadership capabilities, while leaders themselves will have to invest in their own personal development and greater self-awareness. This implies that they need to engage in more personalized leadership development work, and in particular be open to personal coaching or mentoring. A crucial question will be what type of leader are we trying to develop? As has been reiterated throughout this paper not only is there a growing leadership deficit in the non-profit sector generally and a limited pool of leadership talent to draw on, but also little real understanding of what sort of leaders are needed in the future. One way to approach this is to use the typology of leadership set out earlier in this paper. The question of how to assess what type of leader is best suited to the specific requirements of association depends on, first, their ability to engage with the external world, and second, their skill at managing performance.
These two criteria are crucial to ensuring the long-term sustainability and growth of any association in the 21st Century. The ability to engage with the external world is about building inter-organisational alliances and developing innovative ways of working with existing partners or new NGO association consortia, as well as actively engaging in strategic networks. The ability to manage and encourage effective performance is as much about implementing change and transforming an organisation, as it is about managing staff, delegating responsibilities, or introducing new systems
GENERAL CONCLUSION This study tested a theoretical framework that was developed based on the transformational leadership research literature. The instrument used in this study met the acceptable standards of validity and reliability analyses. The psychological empowerment does act as a mediating role in the relationship between transformational leadership and organizational commitment. The results also supported and extended the transformational leadership research literatures, most of them are of Western and Eastern organizational settings. Therefore, current research and practices within organizational leadership models need to incorporate psychological empowerment as a crucial dimension to transformational leadership domain. This study further suggests that the ability of leaders to appropriately practice the idealized influence, idealized consideration, and intellectual stimulation in planning and implementing job functions will strongly enhance employees’ positive outcomes (e.g., competency, performance, satisfaction, commitment, trust, and positive moral values). Moreover, other variables should also be incorporated because this study only utilized one mediating variable, which is the role of psychological empowerment. Other factors such as trust, justice of procedures, leader-employee relationship, and communication can also be taken as variables in order to examine their mediating effect as well as the association between transformational leadership and organizational commitment (Shah, et al. 2011; Ismail, et al. 2011). Therefore, these positive outcomes may lead to maintained and supported organizational strategic vision and mission in an era of global competition.
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