Organizational Citizenship Behavior

Submitted by

Samikshya Nepal

Symbol No:

Submitted to

Faculty of Management

Padma Kanya Multiple Campus

Bagbazar, Kathmandu

April,2024

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Abstract

This paper delves into the concept of Organizational Citizenship Behavior (OCB), a crucial
element for enhancing organizational effectiveness. OCB encompasses voluntary, extra-role
behaviors by employees that are not explicitly rewarded but significantly contribute to the
organization's success. The report explores the various dimensions of OCB, including altruism,
conscientiousness, sportsmanship, courtesy, and civic virtue.

Key findings from the literature review highlight the importance of job satisfaction,
organizational justice, and transformational leadership as primary antecedents of OCB.
Empirical data demonstrate that high levels of OCB lead to improved team performance,
reduced turnover, and a positive organizational climate.

The analysis indicates that fostering OCB through recognition and reward systems, promoting
fairness and transparency, developing transformational leadership, and enriching job roles can
greatly enhance organizational outcomes. The report concludes that OCB is a vital component
of a thriving organization, providing actionable insights for leaders and managers to cultivate a
culture that encourages these behaviors.

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 Introduction
Background of Study

In the dynamic landscape of contemporary organizations, the concept of Organizational

Citizenship Behavior (OCB) has garnered significant attention from scholars and practitioners
alike. Organizational Citizenship Behavior refers to the voluntary, extra-role actions performed
by employees that are not explicitly recognized by the formal reward system but contribute
significantly to the overall functioning and performance of the organization. (Graham, 1991)
These behaviors encompass a range of activities, such as helping colleagues, being proactive in
problem-solving, and demonstrating a high level of commitment and loyalty to the organization.

The term Organizational Citizenship Behavior was first coined by Dennis Organ in the 1980s,
building on earlier work by Bateman and Organ (1983) that highlighted the importance of
discretionary employee behavior. OCB is rooted in the broader field of industrial and
organizational psychology and is closely associated with concepts such as job satisfaction,
organizational commitment, and employee engagement. (Qalati, 2022) Over the years, extensive
research has demonstrated that OCB is crucial for fostering a cooperative and productive work
environment, enhancing organizational effectiveness, and promoting a positive organizational
culture. (Graham, 1991)

The purpose of this report is to explore the multifaceted nature of Organizational Citizenship
Behavior, examining its antecedents, dimensions, and impact on organizational performance. By
understanding the drivers and outcomes of OCB, managers and leaders can develop strategies to
cultivate and encourage these behaviors among employees, ultimately leading to improved
organizational outcomes. (Bateman, 1983)

Statement of problem
Organizational Citizenship Behavior (OCB) is a critical aspect of organizational performance
and employee engagement. In the context of Nepal, the concept of OCB is relatively
underexplored, with limited academic research and practical understanding. Given Nepal's
unique socio-cultural and economic landscape, understanding how OCB manifests and its
implications for organizational success is essential. This report aims to address the gap by
investigating the nature, determinants, and outcomes of OCB within Nepali organizations.

Organizational Citizenship Behavior (OCB) refers to voluntary, extra-role actions performed by

employees that contribute to organizational effectiveness. Despite the critical role of OCB in
enhancing organizational performance, there is limited research focusing on its prevalence and
characteristics within the context of Nepal. This gap in the literature poses a significant challenge
for both scholars and practitioners aiming to understand how cultural, social, and economic
factors unique to Nepal influence OCB. This study seeks to address this gap by examining the

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specific factors that promote or hinder OCB in Nepali organizations, the impact of OCB on
organizational outcomes, and the potential strategies to foster such behaviors in the workplace.

Objectives

This report will cover several key aspects of Organizational Citizenship Behavior:

1. Definition and Dimensions: A detailed examination of the various dimensions of OCB,

including altruism, conscientiousness, sportsmanship, courtesy, and civic virtue.
(Moorman, 1991)
2. Antecedents: An exploration of the factors that influence the emergence of OCB, such as
individual personality traits, job satisfaction, organizational justice, and leadership styles.
(Bateman, 1983)
3. Impact on Organizational Performance: An analysis of how OCB contributes to
organizational effectiveness, including enhanced team performance, reduced turnover,
and improved overall organizational climate.
4. Strategies for Encouragement: Practical recommendations for managers and
organizations to foster and sustain OCB among employees.

Limitation of the paper

This paper has several limitations that should be acknowledged. Firstly, the research is
constrained by the limited availability of comprehensive data on OCB within Nepali
organizations, which may affect the depth of the analysis. Secondly, the cultural specificity of
the findings may limit the generalizability of the results to other contexts. Thirdly, the reliance
on self-reported data for measuring OCB may introduce biases, as respondents might overstate
their positive behaviors. Fourthly, the study’s cross-sectional design does not allow for the
examination of causal relationships over time. Finally, the focus on a specific subset of
organizations, potentially neglecting small and medium enterprises (SMEs) and non-profit
sectors, may provide an incomplete picture of OCB across different organizational contexts in
Nepal. This paper is limited by several factors, the rapidly changing business environment in
Nepal might make some findings quickly outdated.

Methodology

The insights presented in this report are derived from a comprehensive review of existing
literature on Organizational Citizenship Behavior, including empirical studies, theoretical
articles, and case studies. This approach ensures a robust understanding of the concept and its
practical implications for organizations. (Dyne, 1995)

By delving into the intricacies of Organizational Citizenship Behavior, this report aims to
provide a valuable resource for organizational leaders, HR professionals, and researchers
interested in enhancing workplace dynamics and achieving sustained organizational success.

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 Description and Analysis
Theoretical Review
Organizational Citizenship Behavior refers to voluntary actions by employees that are not part of
their formal job requirements but contribute to the overall effectiveness of the organization. The
concept, first introduced by Organ (1988), includes behaviors such as altruism,
conscientiousness, sportsmanship, courtesy, and civic virtue. The theoretical foundation of OCB
is grounded in social exchange theory, which suggests that employees engage in OCB as a form
of reciprocation for positive treatment by their organization. Additionally, the norm of
reciprocity, psychological contract, and perceived organizational support are key theoretical
constructs explaining why employees exhibit OCB.

1. Social Exchange Theory: This theory posits that employees engage in OCB as part of a
reciprocal relationship with their organization. When employees perceive fair treatment
and support from their organization, they are likely to reciprocate with positive behaviors
that benefit the organization.

2. Organizational Justice Theory: This theory highlights the importance of perceived

fairness in the workplace. Employees who perceive distributive, procedural, and
interactional justice are more likely to exhibit OCB. Fair treatment fosters a sense of
obligation and trust, encouraging employees to contribute positively beyond their formal
roles.

3. Role Theory: Role theory suggests that OCB can be understood in terms of role
expectations. Employees engage in OCB when they perceive it as part of their role within
the organization, influenced by social norms and expectations from colleagues and
supervisors.

4. Identity Theory: This theory asserts that employees who identify strongly with their
organization are more likely to engage in OCB. A strong organizational identity fosters a
sense of belonging and loyalty, motivating employees to go above and beyond their
formal job responsibilities.

Organizational Citizenship Behavior (OCB) is rooted in several theoretical frameworks that

provide a comprehensive understanding of why employees engage in behaviors that go beyond
their formal job requirements. In conclusion, the theoretical foundations of OCB encompass a
range of perspectives, including social exchange, reciprocity, psychological contracts, perceived
organizational support, job embeddedness, and role theory. These theories collectively explain
why employees engage in discretionary behaviors that enhance organizational performance and
foster a positive work environment. Understanding these theoretical underpinnings is crucial for
effectively promoting and sustaining OCB within organizations, particularly in the unique socio-
cultural context of Nepal.

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Empirical review
Research on Organizational Citizenship Behavior (OCB) has expanded significantly since the
concept was first introduced. (Moorman, 1991)Key findings from existing literature highlight the
critical role OCB plays in enhancing organizational effectiveness. Dennis Organ's foundational
work in the 1980s defined OCB and identified its dimensions, setting the stage for subsequent
studies. Numerous researchers have explored various aspects of OCB, including its antecedents,
impacts, and strategies for enhancement. (Podsakoff N. P., 2009)

1. Dimensions of OCB: Studies consistently identify five core dimensions: altruism,

conscientiousness, sportsmanship, courtesy, and civic virtue. These dimensions
collectively improve organizational efficiency and cohesion (Organ, 1988).
2. Antecedents of OCB: Research indicates that factors such as job satisfaction,
organizational justice, and transformational leadership significantly influence OCB. For
instance, Podsakoff that employees' perceptions of fairness and supportive leadership
styles are strong predictors of OCB. (Podsakoff P. M., Organizational Citizenship
Behavior: Its nature, antecedents, and consequences., 2006)
3. Impact on Organizational Performance: Empirical studies demonstrate that OCB
contributes to various positive organizational outcomes, including enhanced team
performance, reduced turnover, and improved overall climate. A meta-analysis by
Podsakoff confirmed that OCB positively correlates with both individual and
organizational performance metrics. (Podsakoff P. M., 1996)
4. Strategies for Encouraging OCB: Effective strategies include recognition and reward
systems, fostering fairness and transparency, leadership development, job enrichment,
and cultivating a positive organizational culture. Research by Bolino emphasizes the
importance of leadership in promoting an environment conducive to OCB. (Bolino, 2002)

For instance, Podsakoff et al. (2009) conducted a comprehensive meta-analysis that found OCB
positively correlated with various performance metrics, including productivity, efficiency, and
customer satisfaction. This study emphasized that organizations with high levels of OCB tend to
experience lower turnover rates, reduced absenteeism, and improved organizational
effectiveness. The research also highlighted the role of OCB in fostering a cooperative and
supportive work environment, which is crucial for achieving organizational goals.

Another notable study by Organ, Podsakoff, and MacKenzie (2006) identified several
antecedents of OCB, such as job satisfaction, organizational commitment, perceived fairness,
and leader behavior. Their findings suggested that transformational leadership, characterized by
inspirational motivation, intellectual stimulation, and individualized consideration, is particularly
effective in promoting OCB among employees. This indicates that leadership styles play a
crucial role in shaping employees' discretionary behaviors. Van Dyne and LePine (1998)
explored the relationship between job characteristics and OCB, finding that jobs with high levels
of autonomy, task significance, and skill variety are more likely to encourage employees to
engage in OCB. Their research demonstrated that job enrichment initiatives could be an effective
strategy for fostering OCB within organizations.

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In the context of developing countries, empirical studies have shed light on the role of socio-
cultural factors and economic conditions in shaping OCB. For example, Farh, Zhong, and Organ
(2004) conducted a study in China, revealing that collectivist cultural values significantly
influence the manifestation of OCB. In collectivist cultures, where group harmony and
interpersonal relationships are highly valued, employees are more inclined to exhibit behaviors
that benefit the group and organization.

However, empirical research specifically focusing on Nepal remains limited. Some studies
indicate that Nepali employees exhibit OCB influenced by their unique socio-cultural context.
For example, a study by Sharma and Bajracharya (2016) found that employees in Nepali
organizations demonstrate high levels of altruism and courtesy, driven by strong cultural norms
of mutual support and respect. This study highlighted that in the Nepali context, interpersonal
relationships and community values significantly impact OCB.

Adhikari (2019) explored the impact of organizational support and leadership practices on OCB
in Nepali firms. The study revealed that employees who perceive high levels of organizational
support and effective leadership are more likely to engage in OCB. This aligns with findings
from other contexts, suggesting that organizational support and leadership are universal
determinants of OCB, although their specific manifestations may vary across different cultural
settings.

In conclusion, empirical research on OCB has consistently shown its positive impact on
organizational outcomes and identified various antecedents, including job satisfaction,
organizational commitment, perceived fairness, and leadership styles. While there is limited
research specifically on OCB in Nepal, existing studies suggest that socio-cultural factors,
organizational support, and leadership practices play significant roles in shaping OCB among
Nepali employees. Further research is needed to explore the unique determinants and outcomes
of OCB in Nepal's diverse organizational landscape.

Evidence of Nepal
In Nepal, limited empirical studies have explored OCB. A few studies indicate that Nepali
employees exhibit OCB influenced by collectivist cultural values, where community and
interpersonal relationships play a crucial role. For example, a study by Sharma and Bajracharya
(2016) found that employees in Nepali organizations demonstrate high levels of altruism and
courtesy, driven by strong cultural norms of mutual support and respect. Another study by
Adhikari (2019) highlighted that organizational support and leadership practices significantly
impact the prevalence of OCB in Nepali firms. These findings suggest that while OCB is present
in Nepali organizations, its nature and determinants are influenced by the unique socio-cultural
context of Nepal.

1. Cultural Context: Nepal’s collectivist culture, characterized by strong social ties and
communal values, promotes behaviors that align with OCB. Employees in Nepali
organizations often view their workplace as an extended family, which fosters a sense of
loyalty and commitment, encouraging them to engage in OCB.

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 2. Leadership and OCB: Research in Nepal highlights the significant role of leadership
styles in promoting OCB. Transformational and ethical leadership styles are particularly
effective in motivating employees to go beyond their formal job responsibilities. Leaders
who demonstrate fairness, integrity, and a genuine concern for employee well-being
inspire similar behaviors among their subordinates.

3. Organizational Support: Perceived organizational support is a critical factor influencing

OCB in Nepali organizations. When employees feel valued and supported by their
organization, they are more likely to reciprocate with positive discretionary behaviors.
This includes providing assistance to colleagues, volunteering for extra tasks, and
showing initiative.

4. Challenges and Barriers: Despite the positive influences, there are challenges that
hinder the widespread adoption of OCB in Nepal. These include limited resources,
bureaucratic organizational structures, and a lack of formal recognition and rewards for
discretionary behaviors. Addressing these challenges requires a concerted effort from
organizational leaders to create an environment that supports and encourages OCB.

Leadership practices significantly impact the prevalence of OCB in Nepali firms.

Transformational leadership, characterized by inspirational motivation, intellectual stimulation,
and individualized consideration, is particularly effective in promoting OCB among employees.
Job satisfaction and organizational commitment are crucial antecedents of OCB. Employees who
are satisfied with their jobs and committed to their organization are more likely to go beyond
their formal job duties and engage in OCB. Despite the presence of OCB, several challenges and
barriers exist. These include limited resources, economic constraints, and varying organizational
practices across different regions and sectors in Nepal. Additionally, rapidly changing business
environments can impact the sustainability of OCB practices.

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 Findings and Discussion

Research indicates that OCB is prevalent in Nepali organizations, influenced significantly by the
country's unique socio-cultural context. Studies by Sharma and Bajracharya (2016) and Adhikari
(2019) highlight high levels of altruism and courtesy among Nepali employees, driven by strong
cultural norms of mutual support and respect. The collectivist cultural values in Nepal, where
community and interpersonal relationships are highly valued, play a critical role in shaping OCB.
Employees are more likely to engage in behaviors that benefit the group and organization,
reflecting a communal approach to work life. Perceived Organizational Support (POS) is a
significant determinant of OCB in Nepal. Adhikari (2019) found that employees who feel valued
and supported by their organization are more likely to exhibit discretionary behaviors that
contribute to organizational effectiveness.

The findings underscore the importance of considering the cultural context when examining
OCB. In Nepal, the collectivist culture significantly shapes employees' behaviors and their
willingness to engage in OCB. This aligns with findings from other collectivist societies, such as
China and Hong Kong, where group harmony and interpersonal relationships are prioritized.

The role of social exchange theory, norm of reciprocity, and psychological contract theory in
explaining OCB is evident in the Nepali context. Employees engage in OCB as a form of
reciprocation for positive treatment by their organization, reflecting the universal applicability of
these theoretical frameworks across different cultural settings.

For organizations in Nepal, fostering a supportive work environment and adopting

transformational leadership practices can significantly enhance OCB among employees.
Strategies such as providing organizational support, recognizing and rewarding discretionary
behaviors, and creating a culture of mutual respect and support are crucial for promoting OCB.
To overcome challenges and barriers to OCB, organizations in Nepal need to focus on resource
optimization, economic stability, and consistent organizational practices across different regions
and sectors. Implementing training and development programs to cultivate leadership skills and
enhance job satisfaction can also contribute to sustaining OCB practices.

Given the limited research on OCB in Nepal, there is a need for more empirical studies to
explore the unique determinants and outcomes of OCB in the country’s diverse organizational
landscape. Future research should also consider the impact of rapidly changing business
environments and technological advancements on OCB practices.

Policymakers and organizational leaders in Nepal should consider integrating OCB-promoting

practices into their strategic planning and human resource policies. This includes creating
supportive work environments, adopting inclusive leadership styles, and recognizing and
rewarding discretionary behaviors that contribute to organizational success.

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In conclusion, OCB in Nepal is influenced by cultural values, organizational support, leadership
practices, job satisfaction, and commitment. Despite challenges, promoting OCB through
supportive work environments and transformational leadership can enhance organizational
effectiveness. Further research is needed to explore the unique aspects of OCB in Nepal and
develop strategies to sustain these behaviors in the dynamic business environment.

The data reveals a strong positive correlation between OCB and key performance indicators such
as team productivity, cohesion, and innovation rates. Teams with higher levels of OCB exhibit
significantly better performance outcomes compared to those with lower levels of OCB. This
underscores the importance of fostering OCB within organizations to achieve enhanced
productivity and efficiency. (Tepper, 2003)

The table summarizing antecedents highlights that job satisfaction, organizational justice, and
transformational leadership are critical factors influencing OCB. High levels of job satisfaction
and perceived organizational justice create an environment where employees are more likely to
engage in discretionary behaviors. Similarly, transformational leadership plays a pivotal role in
inspiring employees to exceed their formal job requirements.

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 Conclusion
Organizational Citizenship Behavior is a critical factor in achieving and maintaining high
organizational performance. The dimensions of OCB—altruism, conscientiousness,
sportsmanship, courtesy, and civic virtue—collectively enhance workplace dynamics and
contribute to a supportive and productive organizational environment.

Research consistently shows that job satisfaction, organizational justice, and transformational
leadership are key drivers of OCB. These factors create an environment where employees are
motivated to go beyond their formal job responsibilities, resulting in numerous positive
outcomes such as higher team performance, increased innovation, reduced turnover, and a
positive organizational climate.

To capitalize on the benefits of OCB, organizations should implement strategies that recognize
and reward these behaviors, ensure fairness and transparency, develop leaders who inspire and
motivate, and design jobs that provide meaningful and satisfying work experiences. By doing so,
organizations can cultivate a culture of citizenship behavior that not only enhances individual
and team performance but also fosters long-term organizational success.

In conclusion, fostering Organizational Citizenship Behavior is essential for any organization

aiming to thrive in today's competitive environment. By understanding and leveraging the factors
that promote OCB, organizations can create a more engaged, cooperative, and high-performing
workforce.

By recognizing and promoting OCB, organizations can significantly boost team performance,
innovation, and overall morale. Managers should focus on creating a supportive environment that
encourages these behaviors. (Yoon, 2003) Investing in leadership development programs that
emphasize transformational leadership can create a culture that nurtures OCB. Leaders who
inspire, motivate, and treat employees with fairness can drive higher levels of discretionary
effort. (Somech, 2004) Ensuring fairness in organizational processes and enhancing job
satisfaction are crucial for encouraging OCB. Organizations should implement transparent
decision-making processes and create work environments that fulfill employees' intrinsic and
extrinsic needs. (Rotundo, 2002)

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