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CHARISMATIC LEADERSHIP AND ORGANIZATIONAL CITIZENSHIP BEHAVIOR: THE MEDIATING ROLE OF
ETHICAL CLIMATE
CEMAL ZEHIR Yildiz Technical University
BÜŞRA MÜCELDILI Gebze Institute of Technology
ERKUT ALTINDAĞ Beykent University YASIN ŞEHITOĞLU Gazi University SONGÜL ZEHIR
Gebze Institute of Technology
We examined the influence of charismatic leadership on ethical climate and organizational citizenship behavior (OCB). Data were obtained from 600 employees in several industry sectors. The findings showed positive relationships among charismatic leadership, ethical climate, and OCB. Ethical climate was found to be a weak mediator in the relationship between charismatic leadership and OCB. However, ethical climate mediated the relationship between the OCB factor of civic virtue and charismatic leadership factors of sensitivity to the environment/strategic vision and articulation, sensitivity to members’ needs, and status quo. Recommendations are offered to managers and directions for future research discussed.
Keywords: ethical climate, organizational citizenship behavior, leadership style, charismatic leadership.
SOCIAL BEHAVIOR AND PERSONALITY, 2014, 42(8), 1365-1376 © Society for Personality Research http://dx.doi.org/10.2224/sbp.2014.42.8.1365
1365
Cemal Zehir, Department of Business Administration, Yildiz Technical University; Büşra Müceldili, Department of Business Administration, Gebze Institute of Technology; Erkut Altındağ, Faculty of Economic and Administrative Sciences, Beykent University; Yasin Şehitoğlu, Vocational School of Finance, Gazi University; Songül Zehir, Department of Business Administration, Gebze Institute of Technology. Correspondence concerning this article should be addressed to: Erkut Altındağ, Faculty of Economic and Administrative Sciences, Beykent University, Ayazağa Mah. Hadım Koruyolu Caddesi, Ayazağa, Istanbul, Turkey. Email: [email protected]
CHARISMATIC LEADERSHIP AND ETHICAL CLIMATE1366
The current economic era has come to be defined by the idea of a “new normal” (Euchner, 2011). In this era, organizations need to restructure, and need individuals who are willing to contribute to successful change and leaders who can successfully bring about change. In contemporary leadership theory, charismatic leaders are seen as outstanding agents of organizational change (Levay, 2010). According to Sosik, Juzbasich, and Chun (2011), charismatic leadership is defined as the ability to inspire enthusiasm and action in followers through personal attributes, behaviors, and exemplary qualities of the leader, especially in situations ripe for change. Conger and Kanungo (1998) stated that charismatic leaders are always seen as organizational reformers or entrepreneurs who recognize a need for change, and express it in a vision of a better future that they build for followers. For example, Jack Welch, a visionary charismatic leader, recognized General Electric’s need to change so as to deal with globalization and changing technological and market conditions (Shamir & Howell, 1999). Richard Branson, Carly Fiorina, and the late Steve Jobs all provided global businesses with a vision (Sosik et al., 2011). According to Schwepker (2001), there is a link between charismatic leadership and positive outcomes such as employee performance, job satisfaction, financial performance, group cohesion, and organizational citizenship behavior (OCB).
In this study, we examined the relationship between charismatic leadership and OCB along with the mediating effect of ethical climate in that relationship. Our purpose was to explore the charismatic leadership role in developing an ethical climate and instilling OCB.
Literature Review and Hypotheses
Charismatic Leadership and Ethical Climate Change-oriented leadership models, such as charismatic leadership, have
been influential in the study of organizational leadership for nearly 30 years (Groves & LaRocca, 2011). In Weber’s (1947, as cited in Yukl, 1999) definition of charismatic leadership commitment of followers to a leader who had extraordinary qualities is emphasized. This definition has been modified and extended by later scholars, for example, Stogdill (1974), who emphasized the leader’s personality and behavior, leadership stability and change, the emergence of the leadership role, and leadership and social power. Charismatic leadership is a term frequently associated with leaders who are regarded as exceptional, gifted, and even heroic (Galvin, Waldman, & Balthazard, 2010). Although trans- formational and charismatic leadership can be treated synonymously, in this study, we focused exclusively on charismatic leadership as defined by Conger and Kanungo (1994, p. 442) as follows: Charismatic leaders differ from other leaders by their ability to formulate and articulate an inspirational vision, and by
CHARISMATIC LEADERSHIP AND ETHICAL CLIMATE 1367
behaviors and actions that foster an impression that they and their mission are extraordinary.
Today’s organizations are likely to consist of climates ranging from very ethical to very unethical (Schwepker, 2001). Corporate scandals such as Enron, Tyco, and the subprime mortgage crisis have drawn attention to unethical behavior at work. Victor and Cullen (1988), pioneers of the concept of organizational ethical climate, define ethical climate as “the prevailing perceptions of typical organizational practices and procedures that have ethical content” (p. 101). Several researchers have emphasized the positive relationship between leadership and organizational ethical climate (Aronson, 2001; Dickson, Smith, Grojean, & Ehrhart, 2001; Ötken & Cenkci, 2012; Schwepker, 2001). Leaders can create a strong ethical climate by rewarding ethical behavior and preventing and punishing unethical behavior (Mulki, Jaramillo, & Locander, 2008). Howell and Avolio (1992) showed the need to distinguish between ethical and unethical charismatic leaders in the ethics equation. Therefore, we proposed the following hypothesis: Hypothesis 1: Charismatic leadership will be positively related to ethical climate.
Ethical Climate and Organizational Citizenship Behavior The term organizational citizenship behavior (OCB) was used many years
ago by Barnard (1938), who defined the concept as an employee’s willingness to cooperate in implementing decisions. Katz (1964) showed the importance of employee behavior in organizational effectiveness when employee behavior should go beyond the call of duty.
There are five dimensions of OCB as defined by Organ (1988): The first dimension of altruism describes an individual’s helping behavior that assists colleagues in completing an organizationally relevant task or problem. This behavior is intended to help a specific person directly in face-to-face situations, for example, by supporting colleagues and assisting newcomers. The dimension of conscientiousness refers to discretionary behavior that goes beyond the personality trait of being thorough, careful, or vigilant. It involves impersonal behavior such as compliance with norms that define a good worker (Babcock- Roberson & Strickland, 2010). The dimension of sportsmanship is the willingness of the employee to tolerate less than ideal circumstances without, for example, complaining about trivial matters. The dimension courtesy refers to “discretionary behavior on the part of an individual aimed at preventing work-related problems with others from occurring,” for example, consulting others before taking action. The dimension of civic virtue represents an employee’s willingness to attend voluntarily, and participate actively, in team meetings (Podsakoff, MacKenzie, Moorman, & Fetter, 1990; Podsakoff, MacKenzie, Paine, & Bachrach, 2000). If ethical values are internalized and supported in an organization, they will
CHARISMATIC LEADERSHIP AND ETHICAL CLIMATE1368
be demonstrated in employees’ OCB. Therefore, we proposed the following hypothesis: Hypothesis 2: There will be a positive relationship between ethical climate and organizational citizenship behavior.
Charismatic Leadership and Organizational Citizenship Behavior A strong relationship between leadership and OCB has been reported in the
literature (Babcock-Roberson & Strickland, 2010; Podsakoff et al., 2000), indicating that leaders play an important role in influencing OCB. Furthermore, several researchers have pointed out that different leadership styles are related to extrarole behavior or OCB. For example, Podsakoff et al. (1990) found that there was a positive relationship between transformational leadership and OCB, and Babcock-Roberson and Strickland reported finding a positive relationship between charismatic leadership and OCB.
In this study, we investigated the relationship between charismatic leadership and OCB. The influence of charismatic leadership on OCB could occur in one of two ways. It could be a direct influence, or an indirect influence via the mediating effect of ethical climate. Therefore, we proposed the following hypotheses: Hypothesis 3: Charismatic leadership will be positively related to organizational citizenship behavior. Hypothesis 4: Ethical climate will mediate the relationship between charismatic leadership and organizational citizenship behavior.
Charismatic leadership
Ethical climate Organizational
citizenship behavior
H3
H2H1
Figure 1. Research model.
Method
Participants and Procedure We collected data for the field research via face-to-face surveys. The
respondents were employees at hotels and in various-sized industries such as electronics and plastics manufacturing. Participants were randomly selected and we distributed survey forms in a hard copy format. We received 600 valid forms. Most participants were men (61%), and slightly over half (52%) were aged over 30 years, and had a university degree (52.5%). Length of employees’ business experience was evenly distributed from 1 to 5 years, and 44% of the participants
CHARISMATIC LEADERSHIP AND ETHICAL CLIMATE 1369
were middle managers. According to the criteria of the Republic of Turkey’s Small and Medium Enterprises Development Organization, approximately 33% of the companies where the participants worked were small, 14% were medium sized, and 53% were large.
Measures Ethical climate. Ethical climate was measured using Schwepker’s (2001)
seven-item scale. Items were rated on a 5-point Likert scale ranging from 1 = strongly disagree to 5 = strongly agree. Sample items are: “In my company there is a formal, written code of ethics” and “In my company, unethical behavior is not tolerated.” Reliability is good, at more than .70 (Schwepker, 2001).
Charismatic leadership. Charismatic leadership was measured using the Conger-Kanungo Charismatic Leadership Scale (1994), which comprises 25 items measuring six behavioral dimensions of charismatic leadership: sensitivity to the environment, sensitivity to members’ needs, strategic vision and articulation, personal risk, unconventional behavior, and status quo. Sample items are: “My leader provides inspiring strategic and organizational goals,” “My leader is an exciting public speaker” and “My leader shows sensitivity to the needs and feelings of other organization members.” Considering the original factors identified by Conger and Kanungo (1998), the items loaded into a differently shaped scale. All items load on four factors: strategic vision and articulation, unconventional behavior, sensitivity to members’ needs, and status quo. Strong evidence for the reliability of the scale has been reported.
Organizational citizenship behavior. We used the 17-item scale developed by Podsakoff et al. (2000) to measure five dimensions of OCB (Organ, 1988), namely, altruism, courtesy, conscientiousness, civic virtue, and sportsmanship. However, we excluded the sportsmanship dimension because we reasoned that employees do not demonstrate sportsmanship behavior, which can stem from personal characteristics. In addition, in this study, the altruism and courtesy dimensions overlapped as in Morrison’s (1994) study, in which the altruism and courtesy dimensions loaded on the same factor.
Data Analysis We performed varimax rotation and exploratory factor analysis using SPSS
software to evaluate the factor structure of the variables. In the factor analysis, items with a factor loading less than .50 were discarded. Each scale had satisfactory reliability, with a Cronbach’s alpha coefficient of more than .70. The means, standard deviations, and correlations for the study variables are shown in Table 1. As expected, all variables were correlated. An assessment of bivariate correlations indicated that the items used to measure charismatic leadership were positively related to the items associated with ethical climate and OCB.
CHARISMATIC LEADERSHIP AND ETHICAL CLIMATE1370
Table 1. Means, Standard Deviations, and Correlation Coefficients of the Study Variables
M SD 1 2 3 4 5 6 7 8
1. Env 3.9616 0.65347 (.92) 2. Unconven 3.5571 0.81678 .445** (.79) 3. Sensitivity 3.5039 0.73590 .540** .349** (.82) 4. Status quo 3.6233 0.90348 .224** .154** .430** (.72) 5. Ethical 3.5667 0.88177 .244** .174** .226** .153** (.82) 6. Altruism 4.1133 0.60705 .469** .236** .372** .220** .295** (.84) 7. Civic 3.9078 0.68606 .448** .273** .429** .306** .364** .604** (.78) 8. Consc 3.9837 0.72797 .304** .148** .269** .272** .249** .486** .541** (.78)
Note. ** Correlation is significant at p < .01 level. Cronbach’s alpha are in parentheses on the diagonal of the correlation matrix. Env = sensitivity to the environment/ strategic vision and articulation; Unconven = unconventional behavior; Sensitivity = sensitivity to members’ needs; Ethical = ethical climate; Altruism = altruism-courtesy; Civic = civic virtue; Consc = conscientiousness.
Results
To test the hypotheses we conducted regression analysis in three steps, which included several regression models. In Step 1, charismatic leadership and each of its dimensions were regressed on ethical climate. There was a similar set of regressions in Step 2, with the addition of OCB as an independent variable. The mediating effect was investigated through hierarchical regression in Step 3.
The regression analysis indicated that the factor of strategic vision and articulation explained the variance in ethical climate. Therefore, Hypothesis 1 was partially supported. Ethical climate was regressed on OCB to test Hypothesis 2. The results showed that ethical climate explained the variance in OCB. Therefore, Hypothesis 2 was supported. Charismatic leadership was regressed on OCB to test Hypothesis 3. The results of the regression analysis showed that two factors – sensitivity to the environment/strategic vision and articulation, and status quo – explained the variance in OCB dimensions. The results are shown in Table 2.
We conducted a regression analysis to test Hypothesis 4. According to Baron and Kenny (1986), a variable functions as a mediator when tests indicate a significant relationship between the independent and mediator variables, a significant relationship between the mediator and dependent variables, and when a significant relationship between the independent and dependent variables is no longer significant, or is significantly reduced, when the mediator variable is added to the model. In this study, ethical climate mediated the relationship between charismatic leadership and the OCB factor of civic virtue. Therefore, Hypothesis 4 was partially supported. However, according to Schneider, Ehrhart,
CHARISMATIC LEADERSHIP AND ETHICAL CLIMATE 1371
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CHARISMATIC LEADERSHIP AND ETHICAL CLIMATE1372
Mayer, Saltz, and Niles-Jolly (2005), Baron and Kenny’s criteria are not adequate for testing full mediation. Therefore, we conducted the Sobel test, which provides a significance test for the mediating effect (Baron & Kenny, 1986). The results indicated that ethical climate mediated the relationship between charismatic leadership and OCB (civic virtue; t = 3.56, p < .05) so that Hypothesis 4 was partially supported.
Table 3. Regression Analysis Results with Ethical Climate as a Mediating Variable
Dependent variable of civic virtue: factor 2 of organizational citizenship behavior
Model Adjusted R2 R2 change F Sig.
1 .273 .052 55.306 p < .001 2 .325 56.511 p < .001
Independent variables Charismatic leadership, model 1; Ethical climate, model 2
Discussion
Our purpose in this study was to provide empirical evidence for the mediating effect of ethical climate on the relationship between charismatic leadership and OCB. Results show that the dimension of charismatic leadership, comprising sensitivity to the environment and strategic vision and articulation, explained the variance in creating an ethical climate through the enactment and enforcing of a code of ethics. This finding reveals that when a leader motivates organizational members with regard to ethical behavior, the members are likely to follow ethical policies. Charismatic leadership is crucial for implementing an ethical climate (Dickson et al., 2001; Grojean, Resick, Dickson, & Smith, 2004; Neubert, Carlson, Kacmar, Roberts, & Chonko, 2009).
We found ethical climate to be significantly positively related to OCB. This finding is consistent with that of Leung (2008), who found a positive relationship between OCB and a principled ethical climate characterized by rule and law-and-code. Valentine, Godkin, Fleischman, Kidwell, and Page (2011) emphasized the important role of OCB, and specifically altruism, when managing ethical principles, codes, and procedures.
As expected, charismatic leadership was significantly positively related to OCB. When a leader shows sensitivity to the needs and feelings of organizational members and sets inspirational strategic and organizational goals, employees are likely to display citizenship behaviors. In addition, when charismatic leaders play a facilitating role for employees to establish positive and helpful relationships, employees will willingly help one other.
CHARISMATIC LEADERSHIP AND ETHICAL CLIMATE 1373
We found that ethical climate had a weak mediating effect in the relationship between charismatic leadership and OCB. However, ethical climate mediated the relationship between the charismatic leadership factors of sensitivity to the environment/strategic vision and articulation, sensitivity to members’ needs, and status quo, along with one OCB factor of civic virtue. This result can be attributed to our finding of a direct and strong effect of charismatic leadership on OCB, which is the most important finding in this study. Top level management should take into account the ability of charismatic leaders to create a loyal and efficient workforce.
Limitations and Directions for Future Research There are important limitations in this empirical study. First, we evaluated only
charismatic leadership. Future researchers could investigate different leadership styles such as servant, spiritual, and authentic. It could also be useful to consider the role of ethical climate and OCB in relation to different leadership styles. Second, we focused only on the links among charismatic leadership, ethical climate, and OCB. Future researchers could include individual outcomes, such as employee satisfaction, commitment, and creativity, or organizational outcomes, such as operational performance. Third, although Podsakoff et al. (2000) identified four major categories of antecedents of OCB, namely, individual or employee characteristics, task characteristics, organizational characteristics, and leadership behaviors, we focused only on leadership behaviors. Finally, these data apply only to a specific sample in Turkey. Future researchers could include other countries and focus on different types of organizations using strategic orientation and new management techniques to ensure superior performance.
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