International Journal of Management, Accounting and Economics Vol. 3, No. 10, October, 2016 ISSN 2383-2126 (Online) © Authors, All Rights Reserved www.ijmae.com 609 Organizational Politics, Transformational Leadership and Neglect in Banking Sector Qaisar Iqbal 1 Branch Banking, MCB Bank Ltd, Attock, Pakistan Abstract This study examined the influence of perception of organizational politics on negligent behavior of employees in banking sector. The aim of this study was to determine the relationship between perception of organizational politics and negligent behavior and investigate interaction effect of transformational leadership. A questionnaire was designed to collect data from two hundred subjects who were employees of a large commercial bank posted in twin cities Rawalpindi and Islamabad.it was concluded that there is significant relationship between perception of organizational politics and negligent behavior of employees. Transformational leadership has been observed as moderating the association of perception of organizational politics and neglect. Based on the data analysis, it is recommended that employees should strive to understand and tackle strategically political activities in their organizations to improvise their satisfaction and avoid conflict. Keywords: Organizational Politics, General Political Behavior, Negligent Behavior, Transformational Leadership. Cite this article: Iqbal, Q. (2016). Organizational Politics, Transformational Leadership and Neglect in Banking Sector. International Journal of Management, Accounting and Economics, 3(10), 609-622. Introduction Politics in organizations is inevitable. Personal experiences, instincts and subjective evidences have made it clear about presence of political behavior in organizations. Being power relations and influence tactics, this political behavior has received growing attention in academic research. Researchers have primarily investigated impact of organizational politics over the organizational outcomes. There is general confidence 1 Corresponding author’s email qaisarkh86@gmail.com