Case Study: Organizational Structure & Culture Assignment Instructions Overview In this Case Study, you will apply the Statesmanship model discussed in Module 1: Week 1 to a real, specific publi

Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at https://about.jstor.org/terms and Oxford University Press are collaborating with JSTOR to digitize, preserve and extend access to Journal of Public Administration Research and Theory: J-PART This content downloaded from 162.237.206.47 on Fri, 18 Nov 2022 00:27:12 UTC All use subject to https://about.jstor.org/terms JPART 20:75-89 Transformational Leadership in the Public Sector: Does Structure Matter? Bradley E. Wright University of North Carolina at Charlotte Sanjay K. Pandey University of Kansas ABSTRACT This study contributes to our understanding of leadership in public sector organizations by investigating the effect of organizational structure on the transformational leadership practices of municipal chief administrative officers. Using data from a national survey of senior managers in local government, the findings of this study suggest a number of possible explanations for why public sector organizations exhibit higher levels of transformational leadership than what scholars traditionally expect. Our findings suggest that the structure of these organizations may not be as bureaucratic as commonly believed and that some bureaucratic characteristics had little, if any, adverse affect on the prevalence or practice of transformational leadership behaviors. In particular, although organizational hierarchy and inadequate lateral/upward communication were associated with lower transformational leadership, no relationship was found between transformational leadership behaviors and two types of organizational red tape. Contrary to expectations in the mainstream leadership literature, however, the use of performance measurement by municipal organizations was associated with a significant increase in reported transformational leadership behaviors. Although the importance of leadership has been widely recognized in the public management literature (Fernandez 2005; Hennessey 1998; Moynihan and Ingraham 2004; Van Slyke and Alexander 2006; Van Wart 2005yf D W O H D V W R Q H U H Y L H Z R I W K L V O L W H U D W X U H K D V X U J H G W K H I L H O G W o adopt and empirically test more contemporary theoretical models from the mainstream leadership literature (Van Wart 2003yf ' H V S L W H W K H O L P L W H G D W W H Q W L R Q S X E O L F P D Q D J H P H Q t scholars have given such theories, one of the most popular mainstream leadership theories has been frequently used to make strong and often pessimistic claims regarding the poten tial value of leadership in public organizations. In particular, transformational leaders are expected to be both less common and less effective in public sector organizations than An earlier version of this article was presented at the 68th Annual Meeting of the Academy of Management (2008yf L n Anaheim, CA. We thank three anonymous reviewers for the journal for making valuable suggestions. Data analyzed in this article were collected under the auspices of the NASP-IV, a project supported in part by the Institute for Policy and Social Research and the Department of Public Administration at the University of Kansas. Naturally, this support does not necessarily imply an endorsement of analyses and opinions reported in the article. Address correspondence to the author at [email protected]. doi:10.1093/jopart/mup003 Advance Access publication on April 30, 2009 ? The Author 2009. Published by Oxford University Press on behalf of the Journal of Public Administration Research and Theory, Inc. All rights reserved. For permissions, please e-mail: [email protected] This content downloaded from 162.237.206.47 on Fri, 18 Nov 2022 00:27:12 UTC All use subject to https://about.jstor.org/terms 76 Journal of Public Administration Research and Theory private sector organizations because the former are thought to rely more on bureaucratic control mechanisms (Bass and Riggio 2006; Howell 1997; Pawar and Eastman 1997; Shamir and Howell 1999yf W K D W S U R Y L G H L Q V W L W X W L R Q D O V X E V W L W X W H V I R U O H D G H U V K L S / R Z H * D O H n Kroeck, and Sivasubramaniam 1996yf & R Q W U D U \ W R W K H V H H [ S H F W D W L R Q V K R Z H Y H U P H W a analyses have consistently found that transformational leadership behavior is at least as common and effective in public organizations (Dumdum, Lowe, and Avolio 2002; Lowe, Galen Kroeck, and Sivasubramaniam 1996yf . There are a number of potential explanations for this discrepancy between mainstream leadership theoretical expectations and empirical observation. Perhaps the most obvious explanation is that government organizations are generally not as bureaucratic as main stream leadership theorists assume. Several recent studies suggest that, on average, government organizations exhibit only moderate levels of bureaucratic control mechanisms such as centralization, formalization, and routinization (Boyne 2002; Pandey and Wright 2006; Wright 2004yf 7 K D W V D L G H P S L U L F D O U H V H D U F K L Q Y H V W L J D W L Q J S X E O L F D Q G S U L Y D W H V H F W R r differences suggests that public sector organizations are often more bureaucratic in terms of formalization in some areas, most notably in purchasing and human resource management (Boyne 2002; Pandey and Scott 2002; Rainey and Bozeman 2000yf ( Y H Q V R L W U H P D L Q s uncertain as to whether such differences adversely affect leadership practices. Thus, a sec ond explanation for the discrepancy between theory and observation may be that the reliance on bureaucratic control mechanisms does not adversely affect either the prevalence or effectiveness of transformational leadership. In fact, regardless of whether the common stereotype of bureaucratic government organizations is correct, it is important to test whether bureaucratic characteristics inhibit transformational leadership in the public sector because public organizations vary on the degree to which they use such mechanisms. Given the potential impact of these relation ships, surprisingly little research has investigated the organizational and contextual influ ences on the emergence and effectiveness of transformational leadership. This study will address this need by testing the degree to which the characteristics of public sector organ izations hinder the emergence of transformational leadership. LITERATURE REVIEW Transformational Leadership First conceptualized by a political scientist (Burns 1978yf W U D Q V I R U P D W L R Q D O O H D G H U V K L S K D s become one of the most prominent theories of organizational behavior. In contrast to lead ership based on individual gain and the exchange of rewards for effort, transformational leaders motivate behavior by changing their followers' attitudes and assumptions. To direct and inspire individual effort, these leaders transform their followers by raising their aware ness of the importance of organizational outcomes thereby activating their higher order needs and inducing them to transcend their own self-interest for the sake of the organiza tion. Although such leadership was originally expected to be distinct from, and more ef fective than, reward or transaction-based leadership, empirical findings have consistently suggested that successful leaders augment their use of beneficial transactional behaviors with more transformational ones (Bass and Riggio 2006yf . Leading by transforming followers and their commitment to the organizational mission requires a number of conditions to be met. First, leaders must inspirationally motivate employ ees by clearly articulating an appealing vision of the organization's mission and future. Creating This content downloaded from 162.237.206.47 on Fri, 18 Nov 2022 00:27:12 UTC All use subject to https://about.jstor.org/terms Wright and Pandey Transformational Leadership in the Public Sector 77 a vision, however, is not enough. Transformational leaders must also encourage and facilitate their followers to work toward that vision. Thus a second, but closely related, condition is that the leader becomes a source of idealized influence, functioning as a role model (modeling behaviors consistent with the stated visionyf D Q G E X L O G L Q J H P S O R \ H H F R Q I L G H Q F H D Q G S U L G H L Q W K e organization. Similarly, a third condition is that they must help followers achieve the mission by intellectually stimulating them to challenge old assumptions about organizational problems and practices. In using these three factors?inspirational motivation, idealized influence, and intellectual stimulation?transformational leaders essentially direct, inspire, and empower their employees.1 Research has not only validated the existence of trans formational leadership but also has consistently linked the practice of these transformational leadership behaviors with employee performance and satisfaction (Bass and Riggio 2006yf H Y H Q L Q J R Y H U Q P H Q W ' X P G X P / R Z H D Q G $ Y R O L R / R Z H * D O H Q . U R H F N D Q d Sivasubramaniam 1996; Trottier, Van Wart, and Wang 2008; Wofford, Lee Whittington, and Goodwin 2001yf D Q G Q R Q S U R I L W ( J U L D Q G + H U P D Q \f organizations. It should be noted that this emphasis on mission may make transformational leadership particularly useful in public and nonprofit organizations given the service and community oriented nature of their missions. Consistent with transformational leadership's emphasis on the motivating potential of organization mission, a key tenet of the literature on public employee motivation (Perry and Porter 1982; Perry and Wise 1990; Rainey and Steinbauer 1999; Weiss 1996; Wright 2007yf L V W K D W W K H P R U H H Q J D J L Q J D W W U D F W L Y H D Q G Z R U W K Z K L O H W K e mission is to people, the more the agency will be able to attract support from those people, to attract some of them to join the agency, and to motivate them to perform well in the agency" (Rainey and Steinbauer 1999, 16yf ( Y H Q Z L W K W K L V F R Q Y H U J H Q W H P S K D V L V R Q P L s sion, there is a growing recognition that more work is needed to build a better understanding of how organizational conditions may encourage or discourage such practices (Moynihan and Pandey 2007; Paarlberg and Perry 2007yf . Organizational Structure Influences on Transformational Leadership Although a considerable amount of empirical research has investigated the prevalence and con sequences of transformational leadership (Dumdum, Lowe, and Avolio 2002; Lowe, Galen Kroeck, and Sivasubramaniam 1996yf Y H U \ O L W W O H K D V I R F X V H G R Q L W V D Q W H F H G H Q W V , Q S D U W L F X O D U , very little is known about the organizational conditions that may facilitate or hinder the emer gence or effectiveness of transformational leadership behaviors. Nonetheless, scholars have used the underlying theory to suggest a number of potential relationships between the orga nizational structure (or contextyf D Q G W U D Q V I R U P D W L R Q D O O H D G H U V K L S % D V V D Q G 5 L J J L R ; Howell 1997;Pawar and Eastman 1997; Rainey and Watson 1996; Shamir, House, and Arthur 1993; Shamir and Howell 1999yf 2 Q H F R P P R Q W K H P H D P R Q J W K H V H W K H R U L H V L V W K D W W U D Q V I R r mational leadership requires employees (both leaders and followersyf W R K D Y H D F H U W D L Q G H J U H e of flexibility in how they define and perform their work. The increased control and associated feelings of responsibility in their work facilitates both the ability of employees to be intrin sically motivated by their work as well as the development of the confidence necessary to achieve it (Conger and Kanungo 1988; Thomas and Velthouse 1990yf . l Although the most common conceptualization of transformational leadership included diagnosing and evaluating the needs of each follower as a fourth dimension (individualized considerationyf Z H I R O O R Z W K H D S S U R D F K R I V R P H U H F H Q t work that has reclassified this aspect of leadership as more transactional than transformational (Avolio, Bass, and Jung 1999; Trottier, Van Wart, and Wang 2008yf . This content downloaded from 162.237.206.47 on Fri, 18 Nov 2022 00:27:12 UTC All use subject to https://about.jstor.org/terms 78 Journal of Public Administration Research and Theory If flexibility and discretion is necessary for transformational leadership, then it is not surprising that so many scholars suggest that the elaborate control systems associated with mechanistic or bureaucratic organizations should hinder both its emergence and effective ness (Bass and Riggio 2006; Howell 1997; Pawar and Eastman 1997; Rainey and Watson 1996; Shamir, House, and Arthur 1993; Shamir and Howell 1999yf % \ G H I L Q L W L R Q W K L V I R U m of organization is meant to emphasize leadership through rational-legal, as opposed to char ismatic, means (Weber 1948yf 7 K H G H V L U H I R U V W D E L O L W \ S U H G L F W D E L O L W \ D Q G H T X L W \ L Q E X U H D u cratic organizations results in a reliance on structural mechanisms to limit individual discretion and promote uniformity in how employees interpret and respond to work situa tions or tasks. Structural characteristics associated with such strong situations include hi erarchical distribution of authority, stringent formalization through rules and regulations, and a reliance on downward (and limited upward and/or lateralyf F R P P X Q L F D W L R Q + R Z H O l 1997; Shamir and Howell 1999yf 6 X F K V W U X F W X U D O F K D U D F W H U L V W L F V K L Q G H U E R W K W K H Q H H G D Q d potential for transformational leadership. First, they reduce the need for leadership by using organizational design features to provide sufficient cues to guide employee behavior (Shamir and Howell 1999yf 6 H F R Q G W K H \ D O V R U H G X F H W K H S R W H Q W L D O W R H [ H U F L V H O H D G H U V K L S E y restricting the leader's ability to act in novel ways or provide an appealing vision by reinterpreting organizational objectives in ways that are more congruent with employee values (Bass and Riggio 2006; Howell 1997; Shamir and Howell 1999yf & R Q V L V W H Q W Z L W h this expectation, high levels of centralization and formalization have been found to alienate employees from their work by inhibiting the expression of individual differences, motives, and attitudes (Aiken and Hage 1966; DeHart-Davis and Pandey 2005yf . Although the structural characteristics of bureaucratic organizations are commonly expected to impede transformational leadership, very few studies have empirically tested this assumption. Recent studies of firefighters in the United States and public sector employees in Australia have, however, found that formalization and centralization decreases the likelihood that organizational leaders will exhibit transformational leadership behavior (Rafferty and Griffin 2004; Sarros et al. 2002yf $ O W K R X J K W K H U H L V O L P L W H G V X S S R U t for the adverse effects of centralization and formalization on transformational leadership, the effects of other bureaucratic structural characteristics such as weak lateral/upward com munication are largely unanalyzed. In an attempt to better understand these relationships, we propose to test the following hypotheses: H2 The more hierarchical an organization's authority structure, the lower the reported practice of transformational leadership behaviors. H2 The weaker the lateral/upward communication in an organization, the lower the reported practice of transformational leadership behaviors. H3a b The greater organizational formalization (measured as [3 a] procurement red tape and [3b] human resource red tapeyf W K H O R Z H U W K H U H S R U W H G S U D F W L F H R f transformational leadership behaviors. In addition to these more traditional bureaucratic mechanisms, other characteristics associated with public sector organizations may also influence the emergence and ef fectiveness of transformational leadership. In particular, it has been recently suggested that the limited use of performance measurement and lack of managerial discretion needed to link rewards to performance are key issues that require greater attention when trying to understand leadership in public organizations (Van Slyke and Alexander 2006yf . This content downloaded from 162.237.206.47 on Fri, 18 Nov 2022 00:27:12 UTC All use subject to https://about.jstor.org/terms Wright and Pandey Transformational Leadership in the Public Sector 79 Public sector organizations are, for example, typically viewed as having ambiguous and hard-to-measure performance goals as well as weak relationships between extrinsic re wards and employee performance (Wright 2001yf $ O W K R X J K W K H V H H [ S H F W D W L R Q V K D Y H Q R t been sufficiently tested, existing research is mixed. Although sector-based differences in organizational goal complexity or ambiguity have not been consistently found (Boyne 2002; Rainey and Bozeman 2000yf D I H Z V W X G L H V K D Y H V K R Z Q W K D W S X E O L F V H F W R U R U J D Q L ] D W L R Q s have a weaker relationship between extrinsic rewards and performance (Porter and Lawler 1968; Rainey 1983yf 1 H Y H U W K H O H V V E R W K R I W K H V H F R Q G L W L R Q V D U H Q R W R Q O \ H [ S H F W H G W R Y D U y across public organizations but also support the use of transformational leadership behaviors. The use of performance measurement and rewards are often intertwined. If perfor mance is not easily measured, it is difficult to establish clear reward contingencies that allow managers to link extrinsic rewards with performance. The resulting lack of clear goal-reward contingencies can encourage leaders to rely more on person (rather than po sitionyf S R Z H U V Z K L F K V H U Y H D V W K H I R X Q G D W L R Q R I W U D Q V I R U P D W L R Q D O O H D G H U V K L S 7 K X V V H Y H U D l scholars have suggested that organizations are less conducive to transformational leader ship when they have clear and specific goals that allow objective or highly consensual ways of measuring performance (Howell 1997; Shamir and Howell 1999yf , Q V W H D G L W L V H [ S H F W H d that greater ambiguity in the criteria for evaluating the organization's performance can support transformational leadership by providing leaders with greater latitude to define organizational expectations and vision in ways that best inspire their employees (Shamir and Howell 1999yf $ G P L W W H G O \ W K H U H O D W L R Q V K L S E H W Z H H Q R U J D Q L ] D W L R Q D O S H U I R U P D Q F H P D n agement and leadership might depend on whether the organization views performance management as just a reporting requirement to fulfill or a learning opportunity to question existing practices and convince others of the legitimacy of certain outcomes (Moynihan 2005ayf ( Y H Q L I D Q R U J D Q L ] D W L R Q V O H D G H U V K L S W D N H V W K H I R U P H U Y L H Z W K H F R Q W L Q X H G H [ L s tence of financial and personnel control systems that emphasize compliance and error avoidance" effectively limits their discretion and undermines their ability to use perfor mance measures in this way (Moynihan 2006, 84yf & R Q V L V W H Q W Z L W K W K H V H H [ S H F W D W L R Q V D Q d in partial contradiction with Hypothesis 3b aboveyf Z H K \ S R W K H V L ] H : H4 The more an organization's structure impedes the establishment of extrinsic reward-performance contingencies (here measured as human resource red tapeyf , the higher the reported practice of transformational leadership behaviors. H5 The use of organizational performance measures will decrease the reported transformational leadership behaviors. METHODS AND ANALYSES Data Collection The data for this study were collected in Phase 4 of the National Administrative Studies Project (NASP-IVyf 1 $ 6 3 , 9 L V D P X O W L P H W K R G V W X G \ D N H \ S D U W R I Z K L F K L V D V X U Y H \ D d ministered to a nationwide sample. The theoretical population of interest for NASP-IV was comprised of senior managers (both general and functionalyf L Q 8 6 O R F D O J R Y H U Q P H Q t jurisdictions with populations over 50,000. The general managers included the city manager and assistant/deputy city managers. Functional managers included in the study headed key departments, namely Finance/Budgeting, Public Works, Personnel/HR, Economic Development, Parks and Recreation, Planning, and Community Development. This content downloaded from 162.237.206.47 on Fri, 18 Nov 2022 00:27:12 UTC All use subject to https://about.jstor.org/terms 80 Journal of Public Administration Research and Theory The sample design and construction for the NASP-IV study were aided by the Inter national City/County Management Association (ICMAyf , & 0 $ L V Z L G H O \ U H J D U G H G D V W K e authoritative source of information about U.S local government jurisdictions and profes sionals serving in these jurisdictions. Based on the study criteria, ICMA compiled a list with contact details of potential respondents (ICMA was not able to provide e-mail addresses because of its policy not to share e-mail addressesyf % H J L Q Q L Q J Z L W K W K H L Q L W L D O O L V W S U R Y L G H d by ICMA, the NASP-IV team used publicly available information to gather basic infor mation about each jurisdiction's chief administrative officer (tenure and genderyf . These efforts resulted in 3,316 individuals in the study sample. Each respondent in the study sample received an initial letter through U.S. mail which introduced the study and provided details on how to participate in the study. Each potential respondent was directed to the study Web site and provided a secure study participation code. After the initial letter via U.S. mail, multiple methods were used in follow-up efforts to contact the respondents?e-mail, fax, and phone calls. When the study concluded 1,538 of the 3,316 had responded, for a response rate of 46.4yb $ V R X U I R F X V Z D V R Q W K H O H D G H U V K L p behavior exhibited by the chief administrative officer, we did not want to rely on self-reports of transformational leadership by chief administrative officers themselves. Therefore, the responses of city managers were excluded which reduced the number of observations to the 1,322 responses from functional and deputy/assistant managers. Of these 1,322 respondents, 16.7yb Z H U H J H Q H U D O P D Q D J H U V G H S X W \ R U D V V L V W D Q W \f and the rest managed specific city departments and/or functions. This distribution of functional specialization of respondents closely matched the distribution of functional specializations in the sample. The mean age was 50 with an interquartile range of 9 (25th percentile being 46 and 75th percentile being 57yf $ V H [ S H F W H G D V L ] D E O H P D M R U L W \ Z H U H P D O H \byf Z K L W e (85.4yb \f, highly educated (more than 60yb Z L W K J U D G X D W H G H J U H H V \f, and well compensated (64yb Z L W K V D O D U L H V R Y H U \f. Because we want to test the effect of organizational structure and context on trans formational leadership, we aggregate responses by organization. At least one response was received from 489 of the 529 local governments in the sampling frame. In order to reduce potential bias associated with the perspective of any single respondent, the study sample was reduced to the 205 local governments for which at least three responses (excluding responses from the chief administrative officeryf Z H U H U H F H L Y H G D Q G D F K L H I D G P L Q L V W U D W L Y e officer was identifiable.2 Table 1 provides basic demographic information about the chief administrative officers (gender and position tenureyf D Q G O R F D O J R Y H U Q P H Q W Q X P E H U R I H m ployees and populationyf I R U E R W K W K H V W X G \ V D P S O H D Q G W K H V D P S O L Q J I U D P H 1 R V L J Q L I L F D Q t difference (p > .05yf Z D V I R X Q G E H W Z H H Q W K H V H W Z R J U R X S V V X J J H V W L Q J W K D W W K H V W X G \ V D P S O e may be representative of the overall sampling frame. Wherever possible, the study variables were measured using multiple item measures that have been tested and validated in earlier studies (see the Appendix for specific wording and sourcesyf , Q D Q H I I R U W W R P L Q L P L ] H V X U Y H \ O H Q J W K D Q G P D [ L P L ] H V X U Y H \ U H V S R Q V H W U D Q s formational leadership was measured using a small set of items selected specifically for this study. Items were selected from four socialized charismatic leadership subscales (vision, role modeling, inspirational communication, and intellectual stimulationyf G H Y H O R S H G E y House (1998yf W K D W G H S L F W W K H W K U H H W U D Q V I R U P D W L R Q D O G L P H Q V L R Q V L Q V S L U D W L R Q D O P R W L Y D W L R Q , 2 This latter criterion resulted in the exclusion of many cities with mayor-council form of government. This content downloaded from 162.237.206.47 on Fri, 18 Nov 2022 00:27:12 UTC All use subject to https://about.jstor.org/terms Wright and Pandey Transformational Leadership in the Public Sector 81 Table 1 Chief Administrative Officer and Organization Characteristics for Local Governments in the Target Population Study Sample Nonstudy Sample Chief Administrative Officer Gender Male (yb \f 87.3 88.7 Female (yb \f 12.7 11.3 Position tenure Mean 6.58 7.49 SD 6.44 6.72 Local governments Number of employees Mean 1,133 1,120 SD 1,510 3,245 Population (2000 censusyf Mean 143,568 150,060 SD_176,039_292,209 idealized influence, and intellectual stimulationyf S U H Y L R X V O \ G H V F U L E H G 2 Q H L W H P Z D V W D N H n from each of three subscales (Intellectual stimulation, role modeling, and inspirational communicationyf Z K H U H D V W Z R L W H P V Z H U H V H O H F W H G I U R P W K H Y L V L R Q V F D O H E H F D X V H R I W K e underlying importance transformational leadership places on organizational goals and vi sion. Although this five-item measure represents items from four different subscales (House 1998yf W K D W U H I O H F W W K H W K U H H G L P H Q V L R Q V R I W U D Q V I R U P D W L R Q D O O H D G H U V K L S D I D F W R U D Q D O \ V L V R f these items extracted only one factor that explained nearly 76yb R I W K H L U Y D U L D Q F H D Q G L s consistent with previous findings that suggest that the transformational dimensions may be best characterized as a single factor (Avolio, Bass, and Jung 1999yf . Consistent with previous studies analyzing subordinate reports of transformational leadership behaviors, the variables in this study were created by averaging responses from each organization (Bommer, Rubin, and Baldwin 2004; Judge and Bono 2000yf 7 R K H O p control for the effects of chief administrative officer characteristics on leadership behavior, the gender and tenure of the chief administrator were included in the model. In addition, we attempted to isolate the effects of hierarchy from that of organizational size by controlling the number of employees working for city government. RESULTS Table 2 provides the univariate and bivariate statistics of the study measures. All multiple items measures achieved an acceptable level of reliability (ranging from 0.78 to 0.92yf Z L W K W K H H x ception of the measures of lateral/upward communication and performance measurement. Es timates of internal reliability for these two measures were not analyzed and reported because they represent a formative (rather than reflectiveyf P H D V X U H Z K H U H H D F K V F D O H L W H P U H S U H V H Q W s a different type of communication or performance measurement and, therefore, can make a unique contribution to the construct's measurement (Law and Wong 1999; Law, Wong, 3 Although transformational and charismatic leadership are often discussed as separate theories in the literature, conceptual and empirical evidence suggests a considerable degree of overlap that exists between these theories and their measures (Avolio, Bass, and Jung 1999; Hunt 1999; Yukl 1999yf . This content downloaded from 162.237.206.47 on Fri, 18 Nov 2022 00:27:12 UTC All use subject to https://about.jstor.org/terms 82 o o I g O ? .05yf $ O V R X Q V X S S R U W H G Z D V + \ S R W K H V L V Z K L F K W H V W H G D Q D O W H U Q D W L Y H W K H R U H W L F D l This content downloaded from 162.237.206.47 on Fri, 18 Nov 2022 00:27:12 UTC All use subject to https://about.jstor.org/terms 84 Journal of Public Administration Research and Theory expectation for the relationship between managerial discretion in human resource decisions and their leadership; that the lack of extrinsic reward-performance contingencies would require leaders to rely more on transformational practices to motivate and direct their em ployees. Overall, however, this study could not support either relationship as the presence of human resource red tape neither decreased (Hypothesis 3byf Q R U L Q F U H D V H G + \ S R W K H V L V \f transformational leadership. Finally, in direct contradiction with Hypothesis 5, the use of organizational performance measurement was found to increase (not reduceyf W K H G H J U H H W o which municipal chief administrative officers were reported to exhibit transformational leadership behaviors (p < .05yf . One limitation of this study is its use of cross-sectional data to test claims of causality. As a consequence, the causality direction may be reversed. Transformational leadership may be the cause (rather than the productyf R I D Q R U J D Q L ] D W L R Q V O R Z H U X V H R I K L H U D U F K y or greater use of lateral/upward communication and performance measurement. In attempt to strengthen confidence in the causal direction tested here, the model was also estimated for only jurisdictions where the chief administrative officers had less than 2 years of tenure. Such new leaders are less likely to have sufficient time and resources to change or establish these characteristics of their organization. Although the resulting sample size was small enough to substantially reduce the statistical power of the tests (n = 42yf W K H U H V X O W V Z H U e similar to that found with the full sample. Transformational leadership behavior was still associated with greater use of lateral/upward communication and organizational perfor mance measures (p < .05yf D O W K R X J K Q R O R Q J H U D I I H F W H G E \ R U J D Q L ] D W L R Q D O K L H U D U F K \ 7 o gether, these two factors explained nearly one-quarter (adjacent R2 = .24yf R I W K H Y D U L D Q F H L n reported transformational leadership behaviors. Conclusion This study contributes to our understanding of public sector organizations and leadership by looking at the relationship between transformational leadership practices and organizational characteristics. In particular, this study not only supports previous findings regarding the prevalence of transformational leadership practice in public organization but also suggests a number of possible explanations for why public sector organizations exhibit higher levels of transformational leadership than the mainstream management literature seems to expect. First, although transformational leadership behaviors are expected to be hindered by the bureaucratic structure of public sector organizations, our study of local governments contributes to a growing set of empirical findings that suggest public organizations are not always highly bureaucratic (Pandey and Wright 2006; Wright 2004yf $ O W K R X J K F R Q V L G H r able variation exists in the degree to which public organizations exhibit strong situational characteristics, on average, such organizations were only found to be characterized by mod erate degrees of hierarchical distribution of authority, formalization or red tape, organiza tion performance measures, and reliance on downward (and limited upward or lateralyf communication (table 2yf $ O W K R X J K W K L V V W X G \ R Q O \ L Q F O X G H V O R F D O J R Y H U Q P H Q W R U J D Q L ] a tions, which may be less bureaucratic and more innovative by nature, previous studies have found that other types of public organizations often do not fit the common bureaucratic stereotype (Boyne 2002; Pandey and Wright 2006; Wright 2004yf ( Y H Q V R I X W X U H V W X G L H s should attempt to validate these findings in other types of government organizations. A second set of findings concern the relationships between these organizational characteristics and transformational leadership. Here the findings were more inconsistent. This content downloaded from 162.237.206.47 on Fri, 18 Nov 2022 00:27:12 UTC All use subject to https://about.jstor.org/terms Wright and Pandey Transformational Leadership in the Public Sector 85 Although some bureaucratic characteristics seem to reduce the practice of transformational leadership behaviors, others do not. In particular, although the greater reliance on hierarchical authority and weaker lateral/upward communication were both associated with a lower preva lence of transformational leadership behaviors, the presence of human resource or procurement red tape seemed to have no effect. Together, these findings partially support transformational leadership's need for flexibility while simultaneously suggesting that the type or level of flexibility required may be more within the purview of leaders of public sector organizations. For example, the findings that transformational leadership behaviors are not adversely affected by organizational rules and red tape may be fortunate as such procedural constraints are often established by authorities outside the agency in order to protect citizens and avoid inap propriate use of public resources. In contrast, although hierarchical decision making and communication were found to adversely affect transformational leadership, the genesis of these characteristics can often be found within the organization itself and, as a result, may be easier for the organization's leadership to change. A growing literature suggests not only why leaders should (Kim 2002; Pandey and Garnett 2006; Pandey and Wright 2006yf but also how they can (Garnett 1994; Lawler 1986; Moss and Sanchez 2004yf X V H D E U R D G U D Q J e of communication and empowerment practices within their organizations. Future research should continue to investigate these relationships and better establish their causal sequence using longitudinal and experimental designs. Nonetheless, these findings suggest that the transformational leadership behaviors within an organization may not be that affected by constraints imposed by external authorities. In addition, in direct contradiction with expectations, an organization's use of perfor mance measures was found to be associated with significant increases in a chief admin istrative officer's use of transformational leadership behaviors. Although inconsistent with the expectations of the mainstream leadership literature, this finding is consistent with rel evant expectations and findings regarding transformational leadership in the public sector (Rainey and Watson 1996yf 2 Q H S R V V L E O H H [ S O D Q D W L R Q I R U W K L V I L Q G L Q J L V W K D W S H U I R U P D Q F e measures may help leaders clearly articulate their vision of the organization's mission (Rainey and Watson 1996yf R U H Y H Q E X L O G H P S O R \ H H F R Q I L G H Q F H D Q G S U L G H L Q W K H R U J D Q L ] D W L R n by measuring the impact of their work (Wright and Pandey 2007yf & R Q V L V W H Q W Z L W K W K L s explanation, Yang and Pandey (2009yf I R X Q G W K D W P D Q D J L Q J I R U U H V X O W V 0 ) 5 \f activities can increase employee commitment not only by improving communication and organiza tional goal clarity but also by reducing (rather than increasingyf F H Q W U D O L ] D W L R Q D Q G U R X W L n ization. Although MFR is often characterized as a way for elected officials to assert additional oversight and policy control over agencies, in practice some organizations have been able to use MFR to reshape their agency's culture "by making it mission-based and emphasizing the central role that employees played in achieving this mission" (Moynihan 2005b, 234yf 7 K L V X V H D Q G L W V H P S K D V L V R Q F R P P X Q L F D W L R Q D Q G P L V V L R Q P R W L Y D W L R Q D U H F R n sistent with the fundamental tenets of transformational leadership. In addition, to maximize follower satisfaction and performance, leaders must utilize both transactional and trans formational practices as latter are only expected to augment (not replaceyf W K H H I I H F W L Y e use of contingent rewards (Bass and Riggio 2006yf 7 R W K H H [ W H Q W W K D W 0 ) 5 K H O S V G H I L Q H , measure, and monitor employee performance, then it also provides leaders with a stronger foundation for guiding behavior and performance through the use of organizational re wards. This content downloaded from 162.237.206.47 on Fri, 18 Nov 2022 00:27:12 UTC All use subject to https://about.jstor.org/terms Journal of Public Administration Research and Theory Taken as a whole, these findings challenge the strong and pessimistic a priori expectations fostered by mainstream (or genericyf P D Q D J H P H Q W O L W H U D W X U H D E R X W W K H S U R V S H F W V R I W U D Q V I R U P a tional leadership in the public sector. The study also adds to a growing consensus in public management scholarship that "management matters" and that public organizations and their leaders can overcome structural constraints (e.g., Andrews et al. 2009; Ingraham, Joyce, and Donahue 2003; Moynihan and Pandey 2005; Pandey, Coursey, and Moynihan 2007; Rainey and Steinbauer 1999yf , Q J U D K D P - R \ F H D Q G ' R Q D K X H \f argue that leadership can per form an integrating function and overcome structural constraints arising from specific man agement subsystems or " silo-like " subsystems that operate with little coordination. Andrews et al. (2009yf V K R Z W K D W F H Q W U D O L ] D W L R Q V H I I H F W R Q S H U I R U P D Q F H L V P H G L D W H G E \ W K H V W U D W H J L c orientation of the organization. Similarly, Pandey, Coursey, and Moynihan (2007yf K D Y e shown that bureaucratic red tape' s negative effect on organizational performance is mitigated by developmental culture. Our research findings for transformational leadership, taken to gether with other recent research, makes the case that structural constraints in the public sector do not necessarily stand in the way of superior performance and/or leadership. Appendix: Study Measures Transformational leadership3 (adapted from House 1998yf The Chief Administrative Officer/City Manager clearly articulates his/her vision of the future The Chief Administrative Officer/City Manager leads by setting a good example. The Chief Administrative Officer/City Manager challenges me to think about old problems in new ways. The Chief Administrative Officer/City Manager says things that make employees proud to be part of the organization. The Chief Administrative Officer/City Manager has a clear sense of where our organization should be in 5 years. Weak lateral/upward communication3 (Pandey and Garnett 2006yf Upward communication about problems that need attention is adequate. (Ryf Lateral communication about work-related problems is adequate. (Ryf Low-performance measurement use (adapted from Brudney, Ted, and Wright 1999yf Please indicate the extent (coded 1 [Not at all] through 6 [Fully]yf W R Z K L F K \ R X U R U J D Q L ] D W L R Q K D s implemented each of the following: Benchmarks for measuring program outcomes or results. (Ryf Systems for measuring customer satisfaction. (Ryf Obtaining an external review of organizational performance. (Ryf Hierarchical authority structure (Bozeman 2000yf Please assess the extent of hierarchical authority in your organization: (Please enter a number between 0 and 10, with 0 signifying few layers of authority and 10 signifying many layers of authority.yf Human resource red tape3 (adapted from Pandey and Scott 2002; Rainey 1983yf Personnel rules make it hard to remove poor performers from the organization. Personnel rules on promotion make it hard for a good employee to move up faster than a poor one. Pay structures and personnel rules make it hard to reward a good employee with higher pay here. Personnel rules make it hard to hire new employees. Procurement red tape3 (adapted from Pandey and Garnett 2006yf Rules and procedures governing purchasing/procurement in my organization makes it difficult for managers to purchase goods and services. Due to standard procedures, procurement is based more on the vendor's ability to comply with rules than on the quality of goods and services. Rules governing procurement make it hard to expedite purchase of goods and services for a critical _project._ Note: R, reverse worded. aResponses on a 5-point agree/disagree scale coded 1 (Strongly Disagreeyf W K U R X J K 6 W U R Q J O \ $ J U H H \f. This content downloaded from 162.237.206.47 on Fri, 18 Nov 2022 00:27:12 UTC All use subject to https://about.jstor.org/terms Wright and Pandey Transformational Leadership in the Public Sector 87 REFERENCES Aiken, Michael, and Jerald Hage. 1966. 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