The Role of Transformational Leadership and PsyCapin Shaping Organizational Citizenship Behavior: Exploring Job Satisfaction as a Mediator

Abstract

This paper focuses on the relationship between Transformational leadership, Psychological Capital, Job satisfaction and Organizational Citizenship Behavior in the context of the banking industry. Transformational leadership (TL) is considered a strong determinant of Organizational citizenship behavior (OCB) since the behaviors it promotes support the organization’s effectiveness in ways that are not covered by the contractual responsibilities of an employee. Consequently, the effects of Transformational leadership and PsyCap(PsyCap) on employees’ Organizational citizenship behavior have not been studied extensively, incorporating the banking industry perspective into the investigation. To fill this void, the present research aims to look into the effects of Transformational leadership and PsyCap on Organizational citizenship behavior, with Job Satisfaction (JS) as the mediator. Based on the quantitative, descriptive study and cross-sectional method of data analysis, the study makes use of 242 structured questionnaires distributed among banking professionals to test the research hypotheses. The collected data was analyzed and examined by using Structured Equation Modeling through the Partial Least Square method. To analyze the collected data SPSS version 26 and Smart PLS 4 were used. The results thus highlight positive. Job satisfaction significantly mediates the Psychological capital, Job satisfaction but not significant with Transformational leadership, and Job satisfaction. These results extend the leadership and employee behavior literature in stress conditions and have practical implications for improving organization performance and employees’ well-being through leadership training and HR practices promotion. This work fills a hole in the writing and offers viable bits of knowledge for upgrading representative prosperity and hierarchical viability.