Topic: The Impact of Transformational Leadership on Employee Retention: Mediation

Moderation through Organizational Citizenship Behavior and Communication.

Abstract:

This study presents a comprehensive overview of the research on the influence of

transformational leadership on employee retention via its interaction with organizational
citizenship behavior (OCB) and the function of emotional intelligence (EI) as a moderator. The
study delves into the main ideas of transformational leadership, OCB, and EI, as well as their
connections to employee retention. The study also looks at the function of organizational justice
and communication as mediators in the link between transformational leadership, EI, and OCB.
The data imply that transformative leadership has a major influence on OCB, and EI plays an
important moderating role in this connection. Furthermore, the findings suggest that
organizational justice and communication modulate the association between transformational
leadership, EI, and OCB. A fair and communicative work environment boosts the impact of
transformative leadership on OCB and employee retention.

The research continues by exploring the findings' practical implications for leadership
development, as well as the significance of fostering a reasonable and communicative work
environment to encourage OCB and employee retention. Overall, this study emphasizes the
importance of transformational leadership, emotional intelligence, organizational justice, and
communication in improving OCB and employee retention, and it gives insights into
organizational leadership development.

Keywords: Transformational leadership, employee retention, organizational citizenship

behavior, emotional intelligence, organizational justice.

Introduction:

Employee retention has emerged as a crucial concern for businesses, as it maintains the
continuity of knowledge and skills, lowers recruiting costs, and boosts productivity (Kim, 2020).
Transformational leadership has been acknowledged as a successful leadership strategy for
increasing staff retention (Wang et al., 2017). Transformational leaders inspire and encourage
their followers to generate a strong feeling of commitment, loyalty, and engagement (Bass &
Riggio, 2006).

Another important aspect that leads to employee retention is organizational citizenship behavior
(OCB). OCB refers to volunteer efforts that are not part of the official job requirements but are
required for the organization to run properly (Organ, 1988). Helping coworkers, supporting
organizational ideals, and demonstrating a readiness to learn and adapt are all examples of OCB.
OCB is a key sign of an employee's dedication and commitment to the organization (Bolino et
al., 2010).

Emotional intelligence (EI) has been proposed as a mediator in the relationship between
transformational leadership and OCB. Emotional intelligence (EI) is defined as the capacity to
comprehend and control one's emotions as well as those of others (Goleman, 1998). Wang et al.
(2017) discovered that transformative leadership has a strong favorable influence on OCB, which
is mediated through EI. This research implies that high EI transformational leaders may better
inspire and encourage their followers to engage in OCB.

Organizational justice and communication have also been found as key mediators in the link
between transformational leadership, emotional intelligence, and organizational behavior. The
perceived fairness of organizational practices and policies is referred to as organizational justice
(Colquitt et al., 2001). Communication is critical for establishing a common understanding of
organizational aims and expectations (Van der Voet, 2014). Kim (2020) discovered that
organizational justice and communication had a positive moderating effect on the connection
between transformational leadership and OCB.

To summarize, the purpose of this paper is to investigate the connection between

transformational leadership, employee retention, OCB, emotional intelligence, organizational
justice, and communication. The purpose of this article is to look at the function of EI as a
moderator of organizational justice and communication in the interaction between
transformational leadership and OCB. The outcomes of this study will contribute to the literature
on leadership and employee retention, as well as give insights into organizational leadership
development.
Review of Literature and Hypothetical Framework:

Framework:

Emotional
Intelligence.

Employee Retention
Transformational
Organizational Leadership
Citizenship Behavior

Organizational
Justice

Literature Review:

Transformational leadership:

Transformational leadership is a type of leadership that stresses a leader's capacity to inspire and
encourage their people to reach their maximum potential. This leadership style has received a lot
of attention in recent years because research has shown that it can improve organizational
outcomes like employee job satisfaction, organizational commitment, and performance (Bass &
Riggio, 2006; Avolio et al., 2009).

One of the most important aspects of transformational leadership is the leader's ability to deliver
personalized attention to their followers. This entails identifying and reacting to each follower's
individual needs and abilities, which can lead to greater levels of employee engagement and
commitment (Bass & Riggio, 2006). Transformational leaders are also recognized for their
ability to inspire their people via their vision and charm. This can result in greater employee
engagement and a sense of shared purpose among team members (Avolio et al., 2009).

Transformational leaders also prioritize the development of their followers by giving possibilities
for growth and development. Transformational leaders may establish a strong and devoted team
by empowering their followers and assisting them in developing their skills and capacities (Bass
& Riggio, 2006). Transformational leaders are also renowned for their capacity to foster a good
company culture, which may improve employee well-being and work satisfaction (Avolio et al.,
2009).

According to research, transformational leadership may improve a variety of organizational

outcomes, including employee job satisfaction, commitment, and performance (Bass & Riggio,
2006). Furthermore, transformational leadership has been proven to be especially successful in
complicated and unpredictable circumstances where employees require guidance and inspiration
from their leaders (Avolio et al., 2009).

Despite the numerous advantages of transformative leadership, there are also possible
disadvantages. Some scholars, for example, have proposed that transformative leaders may
become too focused on their vision and overlook the day-to-day operations of the firm (Bass &
Riggio, 2006). Furthermore, there may be instances when a more demanding leadership style is
required, such as during a crisis or when dealing with disobedient team members (Avolio et al.,
2009).

To summarize, transformational leadership emphasizes the necessity of inspiring and

encouraging people to reach their greatest potential. This technique has been shown to improve a
variety of organizational outcomes, including employee job satisfaction, dedication, and
performance. However, leaders must be aware of the possible limitations of this method and
adapt their leadership style to meet the demands of their team and company.

Employee retention

Employee retention refers to an organization's capacity to keep its personnel and prevent them
from leaving. Employee retention is frequently regarded as a sign of a positive work
environment and strong management techniques. Employee retention has become a crucial
concern for firms in today's competitive labor market, since it is more expensive to replace
people than to keep them. We will investigate the topic of employee retention and the numerous
elements that influence it in this literature study.
Job happiness is one of the most important variables influencing employee retention. Job
satisfaction is the degree to which individuals are content with their occupations, and it is
frequently related to their incentive to stay in their present position. According to research, work
satisfaction is associated to employee retention (Liu, 2021). Employees that are happy with their
jobs are less likely to leave the company.

The quality of leadership in a business is another aspect that influences employee retention.
Transformational leadership is a leadership style that inspires and motivates individuals to reach
their maximum potential. Employee retention is favorably associated to transformative
leadership, according to research (Afsar, 2014). Employees are more likely to stay with a firm if
their leaders excite and drive them.

Employee retention is also influenced by organizational culture. The values, attitudes, and
behaviors that define an organization are referred to as its organizational culture. Organizations
with good cultures had better levels of employee retention, according to research (O'Neill &
Xiao, 2018). Employees are more inclined to stay with a firm if they believe its culture
corresponds with their values and beliefs.

Another aspect influencing employee retention is training and development opportunities.

Employees are more likely to feel interested and devoted to their professions when they are
given opportunity to grow their skills and knowledge. Employees who receive frequent training
and development opportunities are more likely to stay with the firm, according to research (Iqbal
et al., 2018).

Compensation and perks, in addition to these considerations, have a role in employee retention.
Employees who believe they are being adequately rewarded for their work are more likely to
stay with the firm, according to research (Tian & Nyberg, 2019). Employee retention can also be
influenced by perks like as healthcare, retirement programs, and vacation time.

In short, employee retention is a major problem for businesses today. Employee retention is
influenced by elements such as job satisfaction, transformational leadership, organizational
culture, training and development opportunities, and remuneration and benefits. Organizations
may enhance employee retention rates and develop a more engaged and dedicated staff by
identifying these issues and taking actions to solve them.

Transformational Leadership and Employee Retention:

Employee retention is a key issue for businesses, and strong leadership is important in tackling it.
Transformational leadership is a leadership style that focuses on inspiring and encouraging
followers to work together to achieve common goals and maximize their potential (Bass &
Riggio, 2006). Transformational leaders are recognized to boost employee engagement,
dedication, and loyalty (Wang et al., 2017), all of which are important variables in employee
retention. Several studies have discovered that transformative leadership is connected with
increased staff retention (Kim, 2020; Wang et al., 2017).

Organizational Citizenship Behavior

Organizational Citizenship Behavior (OCB) refers to employee voluntary acts that are not clearly
prescribed by formal work requirements but contribute to the organization's effective operation
(Organ, 1988). OCB is vital because it contributes to the creation of a pleasant work
environment, which improves employee job satisfaction and organizational performance. We
will explore the antecedents and results of OCB, as well as the factors that modulate the
association between OCB and its outcomes, in this literature review.

The literature has recognized several predecessors of OCB. Leadership is one of the most
frequently mentioned antecedents. Transformational leadership, in particular, has been linked to
OCB (Organ & Ryan, 1995; Podsakoff, MacKenzie, & Bommer, 1996). Job satisfaction,
organizational commitment, and perceived organizational support are also antecedents
(Eisenberger, Huntington, Hutchison, & Sowa, 1986; Meyer & Allen, 1997; Williams &
Anderson, 1991). Furthermore, professional autonomy and social support from coworkers have
been demonstrated to be favorably connected to OCB (Bolino & Turnley, 2005; Podsakoff,
Ahearne, & MacKenzie, 1997).

OCB has been shown to have a number of positive effects on businesses and employees. OCB is
associated to work performance, organizational commitment, and customer satisfaction in
organizations (Bolino & Turnley, 2003; Organ, 1988; Podsakoff et al., 1996). OCB is associated
with job satisfaction and career success in employees (Bolino & Turnley, 2003; Organ, 1988).

Several modifiers of the link between OCB and its consequences have been found. Job demands
are a crucial moderator. Specifically, when job expectations are high, the favorable association
between OCB and job performance is larger (Podsakoff, Whiting, Podsakoff, & Blume, 2009).
Cultural values are another significant moderator. For example, in collectivistic societies, the
association between OCB and work satisfaction is stronger than in individualistic ones (Organ,
1988).

To summarize, OCB is a voluntary activity that helps to the efficient operation of an

organization. It has been discovered to have a number of antecedents, consequences, and
moderators. Understanding the causes of OCB can assist companies in creating a healthy work
environment that fosters employee job satisfaction and organizational success.

Emotional Intelligence

Emotional intelligence (EI) is defined as the capacity to notice, comprehend, and control one's
own emotions as well as the emotions of others (Salovey & Mayer, 1990). Job satisfaction,
leadership effectiveness, and organizational performance have all been found to be significantly
influenced by EI (Ashkanasy & Daus, 2005; Goleman, 1995).

Individuals with high levels of EI have better communication skills, stronger interpersonal
relationships, and a greater capacity to handle stressful situations, according to research
(Goleman, 1998). As a result, many firms now regard EI to be a vital ability for their workers,
particularly those in positions of leadership (Cherniss, 2010).

The workplace is one area where EI has been demonstrated to have a substantial influence.
Employees with high EI can better regulate their emotions, which can lead to greater job
performance and fewer disputes with coworkers (Lopes et al., 2006). Furthermore, individuals
with high EI are more likely to engage in organizational citizenship behaviors (OCB), which are
discretionary actions that contribute to an organization's overall performance (Organ, 1988).
EI has been found to be positively associated to OCB in studies. Chiaburu and Harrison (2008)
discovered, for example, that employees who scored high on an EI measure were more likely to
engage in OCB, such as helping coworkers and going above and beyond what was expected of
them in their job tasks. Similarly, Van Dijke and colleagues (2008) discovered that employees
with high EI were more likely to engage in OCB aimed at their bosses, such as offering feedback
and supporting bosses' projects.

While the link between EI and OCB is well recognized, the underlying processes that explain
this link are currently being investigated. The role of work happiness is one proposed
mechanism. According to research, employees with high levels of EI have higher job
satisfaction, which leads to more participation in OCB (Jordan & Troth, 2004).

The function of transformative leadership is another possible method. Transformational leaders

encourage and inspire their people to reach their maximum potential (Bass, 1985).
Transformational leadership has been found to be associated to EI and OCB (Chiaburu &
Harrison, 2008; Podsakoff et al., 2000). Transformational leaders may inspire their followers to
improve their EI abilities, which may lead to more participation in OCB.

Finally, EI is a vital skill that has been proved to have a major influence on a variety of personal
and professional outcomes. Employees with high EI are more likely to engage in OCB at work,
which can lead to enhanced organizational performance. While the link between EI and OCB is
widely known, further study is required to completely understand the underlying processes that
underlie this link.

Emotional Intelligence and Organizational Citizenship Behavior:

Emotional Intelligence (EI) is defined as the capacity to notice, comprehend, and manage one's
own emotions as well as the emotions of others (Goleman, 1998). EI has been found to be
positively connected to OCB (Jaiswal & Dhar, 2015), implying that employees with greater EI
are more likely to engage in voluntary organizational activities. Furthermore, EI has been
discovered to mediate the link between transformational leadership and OCB (Wang et al.,
2017), emphasizing the significance of EI in the process of fostering OCB through
transformational leadership.
Organizational Justice:

Organizational justice is an important notion in the subject of organizational behavior that refers
to the fairness and equality with which awards, resources, and opportunities are distributed
within an organization. It is a crucial part of employee views of their workplace and has been
found to have significant consequences for a variety of organizational outcomes such as job
satisfaction, organizational commitment, and turnover intentions (Colquitt, Conlon, Wesson,
Porter, & Ng, 2001).

Organizational justice may be divided into three categories: distributive justice, procedural
justice, and interactional justice. The perception of fairness in the distribution of incentives or
outcomes like as income, promotions, and recognition is referred to as distributive justice.
Procedural justice refers to the fairness of decision-making procedures such as performance
assessments or promotions. Finally, interactional justice addresses the fairness of interpersonal
treatment and communication between employees and their managers or coworkers (Colquitt et
al., 2001).

The role of organizational justice in predicting employee outcomes has been repeatedly proven
in research. Employees who perceive higher levels of distributive justice, for example, are more
likely to report higher levels of work satisfaction, commitment, and lower levels of turnover
intentions (Colquitt et al., 2001; Cohen-Charash & Spector, 2001). Employees who perceive
higher levels of procedural fairness are also more likely to report better levels of organizational
trust, job satisfaction, and organizational commitment (Skarlicki & Folger, 1997). Finally,
interactional justice has been associated with employee views of supervisor trust, work
happiness, and organizational commitment (Bies & Moag, 1986).

Organizational justice has also been found to have a significant impact on team and
organizational outcomes. According to research, individuals who work for firms that are viewed
as fair are more likely to participate in prosocial activities such as assisting others, sharing
information, and demonstrating citizenship behaviors (Podsakoff, MacKenzie, Paine, &
Bachrach, 2000). Organizational fairness has also been connected to organizational-level
outcomes including performance and creativity (De Cremer & Tyler, 2007).
Finally, organizational justice is a key part of employee perceptions of their workplace and has
been found to have significant consequences for a variety of organizational outcomes such as job
satisfaction, commitment, turnover intentions, and team and organizational-level results. Future
study might investigate the impact of various interventions aiming at improving employee views
of organizational fairness, as well as their influence on employee and organizational results.

Organizational Justice and Organizational Citizenship Behavior:

Finally, organizational justice is an important component of employee perceptions of their

workplace and has been shown to have major implications for a range of organizational
outcomes such as job satisfaction, commitment, turnover intentions, and team and
organizational-level performance. A future study might look into the impact of various
interventions aimed at enhancing employee perceptions of organizational fairness, as well as
their influence on employee and organizational outcomes.

Hypothesis:

Hypothesis 1: Organizational citizenship behavior mediates the relationship between

transformational leadership and employee retention.

Hypothesis 2: Organizational citizenship behavior mediates the relationship between

organizational justice and employee retention.

Hypothesis 3: Emotional intelligence moderates the relationship between transformational

leadership and organizational citizenship behavior.

Hypothesis 4: Emotional intelligence moderates the relationship between organizational justice

and organizational citizenship behavior.

Methodology

This study paper's approach consists of a systematic analysis of current literature on the variables
of interest: organizational citizenship behavior, employee retention, organizational justice,
transformational leadership, and emotional intelligence.
This study's data is drawn entirely from current research articles, academic publications, and
other relevant literature. The literature was chosen based on the relevance of the research issue,
as well as the quality and trustworthiness of the studies.

Electronic databases such as Google Scholar, PubMed, and Scopus were used to search for
relevant material. The variables of interest and their associated phrases were utilized to generate
the search terms. The study inclusion criteria were confined to those published in peer-reviewed
publications and addressing the variables of interest.

The data was extracted by analyzing the abstracts and full texts of the selected research. The
information collected from the spreadsheet includes the research authors, year of publication,
study design, sample size, data collecting techniques, data analysis, and conclusions linked to the
variables of interest.

To find relevant content, electronic databases such as Google Scholar, PubMed, and Scopus were
employed. The search words were generated using the variables of interest and their associated
phrases. The inclusion criteria for the study were limited to those published in peer-reviewed
journals and addressing the variables of interest.

The data was obtained by evaluating the abstracts and full texts of the chosen studies. The
spreadsheet data comprises the research authors, the year of publication, the study design, sample
size, data collection methodologies, data analysis, and findings related to the variables of
interest.

Discussion and Limitations:

Discussion:

The purpose of this study was to look at the link between transformational leadership, employee
retention, organizational justice, emotional intelligence, with organizational citizenship behavior
serving as a moderating variable. According to the study's findings, transformational leadership
has a direct and beneficial influence on corporate citizenship behavior.
This conclusion is consistent with previous research, which has continuously emphasized the
relevance of transformative leadership in fostering favorable work-related outcomes.
Furthermore, it was shown that organizational citizenship behavior (OCB) mediates the
association between transformational leadership and employee retention, implying that
individuals who exhibit greater levels of OCB are more likely to be kept by the firm.

The goal of this research was to investigate the relationship between transformational leadership,
employee retention, organizational justice, and emotional intelligence, with organizational
citizenship behavior acting as a moderating variable. Transformational leadership has a direct
and favorable effect on corporate citizenship behavior, according to the study's findings. This
finding is consistent with earlier research, which has consistently stressed the importance of
transformational leadership in promoting positive work-related outcomes. Furthermore, it was
demonstrated that organizational citizenship behavior (OCB) mediates the relationship between
transformational leadership and employee retention, meaning that employees with higher levels
of OCB are more likely to be retained by the business.

Overall, the current study's findings emphasize the significance of transformational leadership,
emotional intelligence, and organizational justice in generating beneficial work-related
outcomes. The study also emphasizes the significance of organizational citizenship behavior as a
mediator of these correlations.

Limitations:

There are various limitations to the current study that must be noted. First, the study relied
entirely on data from past research studies, which may restrict the findings' generalizability.
Second, the study did not account for potential confounding variables such as work satisfaction
or organizational culture, which might have an influence on the link between the variables under
inquiry. Third, because of its cross-sectional nature, the study was unable to demonstrate
causality. Longitudinal designs should be considered in future studies to demonstrate causation
and study the influence of these factors over time. Finally, the study concentrated entirely on the
correlations between the variables, with no consideration given to potential moderators such as
gender or organizational size, which may influence the findings.
In conclusion, while the current study's findings provide valuable insights into the relationships
between transformational leadership, employee retention, organizational justice, emotional
intelligence it is important to recognize the study's limitations and the need for future research to
build on these findings.

Conclusion:

Finally, this study sought to investigate the function of organizational citizenship behavior as a
moderating variable in the link between transformational leadership and employee retention, as
well as the indirect association between employee retention and organizational justice.
Furthermore, the study looked at the role of emotional intelligence in moderating this link.

According to the study of research, transformational leadership has a large and favorable
influence on corporate citizenship behavior, which contributes to employee retention. Employee
retention was also found to have an indirect association with organizational justice, which was
mediated by organizational citizenship behavior. Furthermore, it was shown that emotional
intelligence moderated the association between transformational leadership and corporate
citizenship behavior.

This study's findings have significant implications for firms aiming to boost staff retention.
Organizations should prioritize the development of transformational leadership techniques that
foster excellent corporate citizenship behavior, since this can lead to increased employee
retention rates. Furthermore, firms should guarantee that their processes are just and fair, since
this might effect employee retention indirectly through greater corporate citizenship behavior.

However, this study is not without limits. The study relied entirely on secondary data gathered
from prior research articles, which may restrict the findings' generalizability. Furthermore, the
study did not take into consideration any potential mediating or moderating variables that might
influence the link between transformative leadership and employee retention.

Overall, this study emphasizes the significance of organizational citizenship behavior in the
relationship between transformational leadership and employee retention, as well as the
importance of organizations prioritizing leadership development and just practices in order to
increase employee retention rates.
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