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Abstract

ABSTRACT:Modern organizations face increasing competition due to globalization, technological change, politics and economics. In order to cope with these, public organizations, including organizations at the central and local government levels, must improve their efficiency and performance to reflect the presence of organization in other countries. Leaders, therefore, must act more quickly in encouraging and motivating followers to achieve goals in groups and organizations; doing organizational transformation by explaining their vision in the future; and effectively driving employees growth. This study aims to investigate whether transformational leadership is associated with psychological empowerment, affective commitment, and organizational citizenship behavior. By using partial least squares (PLS) based structural equation modeling (SEM) technique to analyze 244 employees working in Indonesian's pharmaceutical sector, the results show that transformational leadership is significantly associated with psychological empowerment, affective commitment, and organizational citizenship behavior as well as psychological empowerment is significantly associated with affective commitment and organizational citizenship behavior; and at the same time, affective commitment is not significantly associated with organizational citizenship behavior. The findings imply that management should take into consideration the transformational leadership style in terms of inspirational motivation, individual consideration, intellectual stimulation and idealized influence to encourage and improve OCB, psychological empowerment, and affective commitment of employees.