Abstract
This study examines whether transformational leadership influences organizational culture that furthers NGOs’ effectiveness. It also examines whether transformational leadership at the top directly influences NGOs’ effectiveness. Further, it tests whether NGO effectiveness improves the programme outcomes in terms of health, income, education, and happiness of villagers. Data were collected from 312 NGOs in Jharkhand state (India). Transformational leadership, organizational culture, and NGO effectiveness were assessed from NGO personnel using standard instruments, and programme outcomes on health, income, education, and happiness were evaluated from villagers using wooden cubes. Findings reveal that transformational leadership builds organizational culture that furthers NGO effectiveness. Transformational leadership does not influence directly NGO effectiveness but it enhances NGO effectiveness promoting organizational culture. Furthermore, NGO effectiveness improves the outcomes of programmes undertaken by NGOs in terms of better health, income, education, and happiness of beneficiaries.
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