Transformational Leadership Style and Subordinates’ Counterproductive Work Behaviour: A Study on Public and Private Sector Banks in India

An organization’s success is not just attained through financial excellence, but also from its human resources that are ‘physically’ and ‘psychologically’ stable. To achieve this, the organization needs to sustain a harmonized work culture, which is a key aim for every company’s leader. Organizations require a team of committed, competent and positive minded employees who can consistently contribute to the growth of their company in this dynamic, scenario. However, a competitive and fast paced scenario results in management not giving due consideration to understanding their employees while assessing the latter’s performance. This results in undue pressure on employees to adapt, which, in turn, has a negative impact on employees’ wellbeing, attitude and excellence of work life. This eventually results in unethical and counterproductive work behaviour among employees. The concept of counterproductive work behaviour has existed at every level of the workplace. This is spreading through perceived negativity towards organizations. This implies the need for managers/supervisors to create a secure work environment to encourage positive behaviour from employees. This paper attempts to determine whether there is any relation between superiors’ transformational leadership style and subordinates’ counterproductive work behaviour in public and private sector banks. For this analytical study, data of 422 bank subordinates was collected by multi-stage sampling from three major cities of India. The analysis reveals that in private sector banks, transformational leadership style was found to be statistically significant, but held a negative relation with subordinates’ counterproductive work behaviour.
Keywords: Transformational leadership styles, supervisor, subordinates, banking sector, counterproductive work behaviours

Leadership promotes and outlines the company’s strategies, their implementation and success, by inspiring its followers to perform a task beyond anticipated firms’ goals.
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