AUTHENTIC LEADERSHIP, ORGANIZATIONAL IDENTIFICATION AND ETHICAL BEHAVIOR OF EMPLOYEES IN COMMERCIAL BANKS IN KENYA

  • Crispin A. Mbata University of Nairobi
  • Oluoch Mercy Florah University of Nairobi
  • Florence Muindi University of Nairobi

Abstract

The purpose of this study was to investigate the effect of organizational identification in the relationship between authentic leadership and ethical behavior of employees in commercial banks in Kenya. The study adopted a cross sectional survey research design. Primary data was collected a cross employees of the 46 commercial banks in Kenya. The study findings established that organizational identification has partial mediating effect in the relationship between authentic leadership and ethical behavior of employees in commercial banks in Kenya. The study contributes to knowledge in providing evidence on the influence of authentic leadership and organizational identification on ethical behavior of employees in commercial banks in Kenya. The study recommends that commercial banks in Kenya should put more emphasize and focus on authentic leadership and organizational identification to efficiently manage ethical behavior of employees in their organizations

Keywords: Authentic Leadership, Organizational Identification & Ethical Behavior

Author Biographies

Crispin A. Mbata, University of Nairobi

 PhD Candidate, Department of Business Administration, University of Nairobi-Kenya

Oluoch Mercy Florah, University of Nairobi

Department of Business Administration, University of Nairobi-Kenya

Florence Muindi , University of Nairobi

Department of Business Administration, University of Nairobi-Kenya

References

Abrahams, D & Hogg, M.A. (1988). Comments on the motivational status of self-esteem in social identity and inter-group discrimination. European journal of social psychology, 18,317-334.

Ambula, R. (2015). Learning Organization, Knowledge Management, Employee outcomes and Performance of Large Manufacturing Firms in Kenya. School of Business, University of Nairobi.

Ashforth, B. E., & Mael, F. (1989). Social identity theory and the organization. Academy of Management Review, 14, 20–39.

Ashforth, B. E., Harrison, S. H., & Corley, K. G. (2008). Identification in organizations: An examination of four fundamental questions. Journal of Management, 34, 325-374.

Ashforth, B. E., Rogers, K. M., & Corley, K. G. (2011). Identity in organizations: Exploring cross-level dynamics. Organization Science, 22(5), 1144-1156.

Avolio, B. J., & Reichard, R. J. (2008). The rise of authentic followership. In R. E. Riggio, I. Chaleff, & J. Lipman-Blumen (Eds.), The art of followership: how great followers create great leaders and organizations: 325–338. San Francisco: Jossey-Bass.

Avolio, B. J., Gardner, W. L., Walumbwa, F. O., Luthans, F., & May, D. R. (2004). Unlocking the mask: A look at the process by which authentic leaders’ impact follower attitudes and behaviors. Leadership Quarterly, 15: 801-823.

Banking Fraud Investigation Unit (2017). Unpublished crime and incident reports. Directorate of Crimination Investigations, National Police Service. Nairobi Kenya

Baron, R., & Kenny, D. (1986). The moderator–mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, 51, 1173–1182.

Conger, J. A., & Kanungo, R. N. (1998). Charismatic leadership in organizations. Thousand Oaks, CA7 Sage.

Cooper, D. R. & Schindler, P. S. (2006). Business research methods. New Delhi: McGraw Hill.

Covelli, B. J. & Mason, I., (2017). Linking Theory to Practice: Authentic Leadership. Academy of Strategic Management Journal, 16 (3)1-10.

Dukerich, J. M., Golden, B. R., & Shortell, S. M. (2002). Beauty is in the eye of the beholder: The impact of organizational identification, identity, and image on the cooperative behaviors of physicians. Administrative Science Quarterly, 47, 507-533.

Dutton, J. E., Dukerich, J. M., & Harquail, C. V. (1994). Organizational images and Member identification. Administrative Science Quarterly, 39, 239–263.

Eagly, A.H & Carli, L. (2007). The truth about how Women become Leaders. Harvard Business School Press, Boston.

Ellemers, N., De Gilder, D., & Haslam, S. A. (2004). Motivating individuals and groups at work: A social identity perspective on leadership and group performance. Academy of Management Review, 29, 459-478.

Fetinuic, V., & Luchian, I. (2014). Banking ethics: Main conceptions and problems. Annals of the University of Petroşani, Economics, 14(1), 91-102.

Gardner, W. L., Cogliser, C. C., Davis, K. M., & Dickens, M. P. (2011). Authentic leadership: A review of the literature and research agenda. The Leadership Quarterly, 22(6), 1120-1145.doi:10.1016/j.leaqua.2011.09.007

Gardner, W. L., Avolio, B. J., Luthans, F., May, D., & Walumbwa, F. O. (2005). “Can you see the real me?” a self-based model of authentic leader and follower development. The Leadership Quarterly, 16(3), 343-372. doi:10.1016/j.leaqua.2005.03.003

Gill, C., Gardner, W., Claeys, J., & Vangronsvelt, K. (2018). Using theory on authentic leadership to build a strong human resource management system. Human Resource Management Review.

Hogg, M. A., Terry, D. J., & White, K. M. (1995). A tale of two theories: A critical comparison of identity theory with social identity theory. Social Psychology Quarterly, 58,255–269.

Javaid, F.M., Luqman, K, Amir, H, Umair, T (2015). Authentic leadership affects employee’s attitudes (Affective Commitment) through the mediation role of Personal Identification and Organizational Identification. International Journal of Academic Research in Business and Social Sciences 5, (12) ISSN: 2222-6990

Jones, T.M. (1991). Ethical Decision Making by Individuals in Organizations: An Issue Contingent Model, Academy of Management Review, 16 (2): 366–395.

Kark,R., & Shamir, B. (2002). The dual effect of transformational leadership: priming relational and collective selves and further effects on followers. In B.J Avolio & F.J. Yammarino (Eds.) transformational and charismatic leadership: 67-91. Oxford, UK: Elsevier.

Kapeitn, M. (2011). Understanding unethical behavior by unraveling ethical culture. Human relations 64 (6) 843-869.

Kaptein, M. (2008). Development of a Measure of Unethical Behavior in the Workplace: A Stakeholder perspective, Journal of Management, 34: 978–1008.

Kaptein, M., & Wempe, J. (2002). Three General Theories of Ethics and the Integrative Role of Integrity Theory. Research gate.

Kidombo, H. J. (2007). Human resource strategic orientation, organizational commitment and firm performance in large private manufacturing firms in Kenya. School of Business, University of Nairobi.

Kour, M. (2021). Ethics and Ethical Practices in Banks: A review of Literature. International Journal of Business Ethics in Developing Economies 9 (2) 2020, 27-32 http://publishingindia.com/ijbede/

Kuo, T. (2011). How to improve organizational performance through learning and knowledge. International Journal of Manpower, 32, 581-603.

Kreiner, G. E., Hollensbe, E. C., & Sheep, M. L. (2006). Where is the “me” among the “we”? Identity work and the search for optimal balance. Academy of Management Journal, 49:1031–1057.

Leroy, H., Palanski, M.E., & Simons, T. (2012). Authentic leadership and behavioral integrity as drivers of follower commitment and performance. Journal of business ethics, 107(3), 225-264

Lee, E., Park, T., & Koo, B. (2015). Identifying organizational identification as a basis for attitudes and behaviors. A meta-analytic review. Psychological Bulletin, 141, 1049–1080.

Lord R. G. & Brown, D.J. (2001). Leadership value and subordinate self-concepts. The Leadership Quarterly, 12, 133-152.

Luthans, F., & Avolio, B. (2003). Authentic leadership: A positive development approach. In Walumbwa, F.O., Avolio, B.J., Gardner, W.L., Wensing, T. S, & Peterson, S.J. (2008). Authentic Leadership: Development and validation of a Theory-Based Measure. Journal of management, 34 (1) 89-126.

Lewis, P.V. (1985). Defining Business Ethics: Journal of Business Ethics, 4: 377–85.

Lopez, Garcia-Guiu, C., Alonso, M.F., Morales, M. M, & Moriano Leon, M., A., J. (2015)“Authentic Leadership, Group Cohesion and Group Identification in Security and Emergency Teams”, Psicotherna, 27(1), 59-64.

Luthans, F., & Avolio, B. (2003). Authentic leadership: A positive development approach.

Walumbwa, F.O., Avolio, B.J., Gardner, W.L., Wensing, T. S, & Peterson, S.J. (2008). Authentic Leadership: Development and validation of a Theory-Based Measure.

Mael, F. & Ashforth, B. (1992) Alumni and their alma maters: A partial test of the reformulated model of organizational identification. Journal of Organizational Behavior (13), 103-123.

Mathenge, D. G. (2013). The value system of commercial banking in Kenya: An ethical perspective. International Journal of Business and Social Science, 4(1), 153-163. Prentice-Hall.

Meyer, J. P., & Allen N.J. (1997). Commitment in the Work Place: Theory, Research and Applications. Thousand Oaks, CA: Sage.

Mugenda, O. M & Mugenda, A.G. (2003). Research Methods. Quantitative & Qualitative approaches. African Center for Technology Studies- Nairobi Kenya.

Muller, R., Turner, Andersen, E.S., Jingting, S., & Kralnes, O (2014). Ethics, Trust and Governance in the Temporary organizations. Project Management Journal 45(4), 39-54.

Northouse, P. G. (2010). Leadership: Theory and practice (5th ed.). Thousand Oaks, C. A. SAGE Publications.

O’Reilly, C. & Chatman, J. (1986). Organizational commitment and psychological Attachment: The effects of Compliance, Identification and Internalization on Prosocial Behavior. Journal of Applied Psychology, 71 (3), American Psychological Association.

Palanski, M. E., & Yammarino, F. J. (2009). Integrity and Leadership: A Multi-Level Conceptual Framework. Leadership Quarterly, 20, 405-420.
https://doi.org/10.1016/j.leaqua.2009.03.008

Saunders, M. Lewis, P. &Thornhill, A. (2007). Research methods for business students. India: Pearson Education.

Shamir, B., & Eilam, G. (2005). “What's your story?” A life-stories approach to authentic leadership development. The Leadership Quarterly, 16(3), 395–417.

Shamir, B., House, R. J., & Arthur, M. B. (1993). The motivational effects of charismatic leadership: A self-concept-based theory. Organization Science, 4, 577-594.

Shea, K.L. (2016). The Impact of Authentic Leadership on Ethical Behavior. Defense Acquisition University (DAU) Senior Service College Fellow Sterling Heights, MI

Six, F. E., and Huberts, L. W. J. C. (2008). Judging a public official’s integrity. In Huberts L. W. J. C., Maesschalck, J. and Jurkiewicz C. L. (Eds.), Ethics and integrity of governance, perspectives across frontiers (pp. 65-82). Cheltenham: Edward Elgar.

Sluss, D. M., & Ashforth, B. E. (2007). Relational identity and identification: Defining ourselves through work relationships. Academy of Management Review, 32: 9–32.

Tajfael, H (1978). Differentiation between social groups. London: Academic press.

Tajfel, H., & Turner, J. C. (1979). An integrative theory of intergroup conflict. In Austin W.& Worchel S. (Eds.), The social psychology of intergroup relations (pp. 33-47). Monterey, CA: Brooks/Cole.

Trevino, L., Brown, M., & Hartman, L. (2003). A qualitative investigation of perceived executive ethical leadership: Perceptions from inside and outside the executive suite. Human Relations, 56, 5–37.

Turner, J. C, Hogg, M. A., Oakes, P. J., Reicher, S. D., & Wetherell, M. S. (1987). Rediscovering the social group: A self-categorization theory. Oxford, England: Blackwel

Turner, J. C., & Oaks, P. J. (1986). The significance of the social identity concept for social psychology with reference to individualism, interactionism, and social influence. British Journal of Social Psychology, 25, 237–252.

Umphress, E. E., Bingham, J. B., & Mitchell, M. S. (2010). Unethical behavior in the name of the company: The moderating effect of organizational identification and positive reciprocity beliefs on unethical pro-organizational behavior. Journal of Applied Psychology, 95, 769–780.

Van Knippenberg, D. (2000). Work motivation and performance: A social identity perspective. Applied Psychology: An International Review, 49, 357–371.

Warren, B., Sampson, S. D., and McFee, E. (2011). Business schools: ethics, assurance of learning, and the future, Organization Management Journal: https://scholarship.shu.edu/omj/vol8/iss1/7

Walumbwa, F. O., Wang, P., Wang, H., Schaubroeck, J., & Avolio, B.J., (2010). Psychological processes linking authentic leadership to follower behaviors. Leadership quarterly21:901-14.

Walumbwa, F.O., Avolio, B.J., Gardner, W.L., Wensing, T.S, &Peterson, S.J. (2008). Authentic Leadership: Development and validation of a Theory-Based Measure. Journal of Management, 34, 89–126.

Wong, C., Laschinger, S. & Cummings, G. (2010). Authentic leadership and nurses’ voice behavior and perceptions of care quality. Journal of Nursing Management, 18(2), 889-900.

World Bank (2003). Bank Governance, The balance between official oversight and Market Discipline, Central Bank of Barbados, Luigi.

Wu, J. B., Tsui, A. S., & Kinicki, A. J. (2010). Consequences of differentiated leadership in groups. Academy of Management Journal, 53: 90–106.

Zagenczyk, T.J. & Powell, E.E. (2022). Social networks and citizenship behavior: the mediating effect of organizational identification. Human resource management, Wiley.

Zikmund, W. G., Babin, B.J., Carr, J. C. & Griffin, M. (2010). Business research methods. 8th Edition. Australia: South-Western, Cengage Learning.
Published
2023-04-13
How to Cite
Mbata, C. A., Oluoch, M. F., & Muindi, F. (2023). AUTHENTIC LEADERSHIP, ORGANIZATIONAL IDENTIFICATION AND ETHICAL BEHAVIOR OF EMPLOYEES IN COMMERCIAL BANKS IN KENYA. African Journal of Emerging Issues, 5(2), 36 - 52. Retrieved from https://ajoeijournals.org/sys/index.php/ajoei/article/view/379
Section
Articles