Relationship Between Authentic Leadership, Leader-Member Exchange, And Psychological Capital On Employees’ Performance

Authentic Leadership and its Characteristics

Authentic leadership has gained an important focus and assistance in the research during the past few years. It has been from observed various sources that original leadership are related with leadership members exchange and increasing stages of psychological capital. In this aspect, the time has come to have a broad understanding about the influence of these factors on the performance of the personnel. However, this study in particular examines the on-going role of the staff’s positive emotional capital and increasing part of the leaders’ members’ exchange that may influence the association in between authentic leadership and the presentation of the employees. Based on these factors, the study investigates the mediated model of moderation with various employees working within the organisation in association with their immediate leaders.

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From various study in literature, it has been reported that a positive, original an ethical form of leadership is usually referred to as authentic leadership, which comes with a positive initiative towards the management of the organisation that also helps in accomplishing the organisational objectives despite the challenges. As stated by Wang et al. (2014), authentic form of leadership is characterised by the frontrunner’s capability and skills of self-efficacy, clearness in work and communicating work and clarity in attitude. In addition this, genuine form of front-runners tend to segment communications that are essential for building decision thus accommodating with other involvements along with the disposure of individual standards and feelings. These types of components of authentic leadership help the staffs to effectively analyse the capabilities and moral moral of the authentic leadership practices.

Until now, it is found that the growth of leadership is underlying the process of growth of positive leadership that is particularly enthusiastic to the increasing undercurrents of the front-runners and the characteristics of the subsequent staffs. In this aspect, it has been established that the authentic leadership has the capability of increasing the optimistic organisational attitude, provided with a wisdom of faith, feeling that influences the boldness of the employees, performance and performance as well (Banks et al. 2016). Presently some empirical studies have revealed the changing dynamics on the involvement of the leaders within the process. Therefore, research in this context unveiled that authentic leaders have the ability to influence and motivate efficient performance of the employees. However, a proper understanding of the intermediate employees are necessary as they have the ability to influence the authentic leadership and the performance of the staffs as well.

The Role of Leader-Member Exchange in Relation to Authentic Leadership

Considering the theory of complementary congruity, it can be stated that authentic form of leadership can effectively deliver and complement towards the needed competencies of the employees for performing in an effective way. On the contrary, Hoch et al. (2018) stated that psychological capital has now been widely recognised as the stereotype of the positive psychological components such as, hope, efficiency and positivity within the employee.

Therefore, based on the assumptions, it has been noted that difference in between the employer can explore the factors of LMS in a way of distributing the impact of authentic leadership on the intermediate staffs on the basis of two crucial reasons. First reason is that leadership is a debatable method of relations, which can be signified as the connection in between leaders and the employee evolving at different stages during the course of the process (Harms et al. 2017). Moreover, the environment and values of this connection have been seen to be important in the direction of the defiance of leadership that affects the responses of the employees. The second reason is that for accepting the conditional impact of emotional capital on the positive form of management and employee presentation, this method is the most pertinent for the balancing congruity. In this aspect, Bedi et al. (2016) states that the research which has been conducted earlier or in the past observed that from the ongoing statement and conversation in the linking in between influential members may lead to the positive emotional activities amongst the staffs. Therefore, this fluctuating change of emotional capital of the staffs within LMS may be justifiable for the changing impact on the authentic forma of leadership and worker presentation.

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From the hypothetical viewpoints, four main classification can be deduced on the characteristics of authentic management that are well adjusted on their operation, interior ethical insights, and interpersonal originality as well as self-effectiveness (Newman et al. 2017). In this regards, balanced form of operations signifies the analysis of all the needful information before reaching the conclusion. In contrast to this, internal ethical perception refers to the changing behaviour of the leaders including the internal ethical standards and values. This are usually different from the ethical pressures on the employees and the workload found in organisation. As stated by Wang et al. (2016), interpersonal clearness signifies the individual contact, like exposed distribution of material and articulating unique opinions with the staffs. Again. Self-consciousness refers to the fact that the leaders have the ability to recognise employee’s insight of management along with the capability to comprehend their own reasons, strong point as well as faintness among them. Therefore, it can be said that leaders who have increasing levels of self-consciousness can be helpful in improving the originality and efficiency using the skills self-consciousness and self-representation.

Psychological Capital and Positive Psychology Components

From the various sources of literary and by emphasising on the part of relational method, it can be said that the LMX has the ability to arbitrate the linking in between authentic leadership and the worker presentation. As stated by ?erne et al. (2014), particularly authentic leadership represents a communicate way to deal with the employees and it helps to establish connection with the leader and the staffs within the government. Therefore, this association has the capability to nourish upon optimistic communal argument. This exchange while dealing with the employees may be helpful for motivating the performance of the employees. As stated by David (2015), psychological capital is positive state of psychology within an individual. This can be characterised within an employee by the component of resilience, which is the capability to work towards obtaining success and by withstanding failure. Secondly, it is also marked by hope, which is the strength that supports in overcoming the uncertainty within the workplace. Third component is the optimism that is positive outlook that is needed for positive results. Finally, it is the component of self-efficacy, which is the capability to accomplish the objectives when the organisation faced with challenges.

However, Hwang and Lee (2015) stated that within various workplaces positive relationship in between the employees could have the capability to influence the development and organisation of member conversation with the staffs. Moreover, it can affect the factors of self-efficacy, balance in operations, internal ethical perception and relational transparency can be helpful in determining the value of dignity, trust and admiration of the positive leaders. These characteristic signifies the most essential elements of the high level of members exchange bonding. Firstly by removing the modification and different viewpoint of the staff’s reliable front-runners that inclines to demonstrate admiration and faith for the supporters. Therefore, it is evident from the infrastructure of the organisation that successful working atmosphere such as worker gratification that are associated with appropriate form of authentic leadership. As stated by Schnackenberg and Tomlinson (2016) research in this context, found that successful organisation is based on authentic leadership that is the reason behind the growing productivity of the organisation. On the contrary, authentic leadership within the organisation has helped in the increased contribution towards the employment capital while developing the competitive advantage of the organisation in a sustainable way.

Therefore, it can be seen that there is high relation in between expressive intellect and mental wealth of the employee that may result in high expectation on the worker presentation. In this regards, it is evident that character of the front-runners employees within the organisation is one of the most noteworthy work in term of increasing effect on the organisational performance. Therefore, managers of the organisation has a direct influence on the emotional wealth of the employee thereby increasing the expressive intellect of the employees. Research in this context highlights that nearly 70% of the managers have variation in affecting the employment involvement percentage (Friend et al. 2016). Therefore, it is evident that there is a strong link in between consistent managerial communication provided with increasing levels of communication tool utilised within organisation. The problem that comes in to place is that poor management may affect the productivity of the employees as well as the emotional feeling of the employee. For example, culture of blaming and resentment within the organisation, which is toxic in formation that may break down the ethics and productivity thereby, reducing the enthusiasm of the workforce and could influence the emotional capital of the employee.

The Impact of Emotional Capital on Performance

Psychological factors of emotion can be inclusive of excitatory and inhibitory responses that may take place through the system of human working. It is the sympathetic part of individual nervous unit, which drives the heart to focus on the emotional being. Therefore, Abbas and Raja (2015) states that it makes the individual more ready to struggle and contradict with the situation. However, owing to long period of stress of being ignored and disrespected, employees may feel pain, due to semantic issues that are usually affected by the emotional reasons. These emotions can as well be handled through the effective practices of interpersonal communication with the staffs. Therefore, in order to resolve the conflicts-taking place within the diversified workplace, inclusive of various cultures and various white collars that employees usually work as a professional employee within the workplace. In this type of workplace, authentic leadership and management is essential.

Apart from these, there may be several examples when one specific worker may not be capable to interact with the other member due to difference in culture. On the contrary, Liu et al. (2015) argued that there might also be instances of conflicts taking place from increased and continuous ignorance of the employee within the workplace-taking place as a result of difference in culture and ethnicity. However, this kind of situation may occur within the workplace when different types of employees are working with each other. Therefore, it is evident from the examples that there are several significant relationship in between leadership member exchange and increasing performance results particularly in terms of individual difference of the staffs (Luthans and Youssef-Morgan 2017). Emphasising on these, crucial component it can be suggested that high level of leadership exchange is necessary for the leaders for providing psychological support to the employees, since they are more reliant on the alternative forms of support and resources. In this aspect, staffs with increasing levels of psychological capital may have access to the growing benefits of LMX relation with the authentic leaders. In contrast to this, Dinh et al. (2014) states that staffs with short levels of emotional wealth and relationship with the LMX may vary in certain cases.

Bestowing to psychological capital refers to the high percentage of psychological component that may be helpful in contributing towards the individual asset of motivation while obtaining objectives of the workplace. As stated by Hwang and Lee (2015) it has been observed that there is unpremeditated impact of emotional capital on the presentation of the employees. Authentic management has been also seen to have optimistic impact on the employee through cumulative hope and rising determination in accomplishing the goal provided with the increasing sense of self-efficient and resilience within the organisation.

Factors Affecting Emotional Capital and Authentic Leadership

Conclusion

Therefore, the education positively contributed towards the essentiality of two important and interlinked evolving issues that are identified within the organisation’s request. These main components are usually related with the challenges faced by the administrative front-runners while practicing authentic leadership. These challenges are also faced by the intermediate staffs owing to growing reasonable burdens and changing morals that calls for an immediate sympathetic of authentic management practices. Therefore, it can be concluded from the reading that optimistic emotional capital is more pertinent for the existing factory condition.

The result from the reading recommends that authentic form of management has a growing effect on the presentation of the employee, government. Therefore, results indicates that organisation may wish appoint increased number of authentic leaders. The findings of the study, efficiently ensures the observation by emphasising the growing advantage on the improved performance that can be accomplished by the staffs.

Reference list

Abbas, M. and Raja, U., 2015. Impact of psychological capital on innovative performance and job stress. Canadian Journal of Administrative Sciences/Revue Canadienne des Sciences de l’Administration, 32(2), pp.128-138.

Banks, G.C., McCauley, K.D., Gardner, W.L. and Guler, C.E., 2016. A meta-analytic review of authentic and transformational leadership: A test for redundancy. The Leadership Quarterly, 27(4), pp.634-652.

Bedi, A., Alpaslan, C.M. and Green, S., 2016. A meta-analytic review of ethical leadership outcomes and moderators. Journal of Business Ethics, 139(3), pp.517-536.

?erne, M., Dimovski, V., Mari?, M., Penger, S. and Škerlavaj, M., 2014. Congruence of leader self-perceptions and follower perceptions of authentic leadership: Understanding what authentic leadership is and how it enhances employees’ job satisfaction. Australian journal of management, 39(3), pp.453-471.

David, E., 2015. Purple-collar labor: transgender workers and queer value at global call centers in the Philippines. Gender & society, 29(2), pp.169-194.

Dinh, J.E., Lord, R.G., Gardner, W.L., Meuser, J.D., Liden, R.C. and Hu, J., 2014. Leadership theory and research in the new millennium: Current theoretical trends and changing perspectives. The Leadership Quarterly, 25(1), pp.36-62.

Friend, S.B., Johnson, J.S., Luthans, F. and Sohi, R.S., 2016. Positive psychology in sales: Integrating psychological capital. Journal of Marketing Theory and Practice, 24(3), pp.306-327.

Harms, P.D., Credé, M., Tynan, M., Leon, M. and Jeung, W., 2017. Leadership and stress: A meta-analytic review. The leadership quarterly, 28(1), pp.178-194.

Hoch, J.E., Bommer, W.H., Dulebohn, J.H. and Wu, D., 2018. Do ethical, authentic, and servant leadership explain variance above and beyond transformational leadership? A meta-analysis. Journal of Management, 44(2), pp.501-529.

Hwang, Y.K. and Lee, C.S., 2015. Structural relationship between authentic leadership, organizational communication, organizational effectiveness, and psychological capital of office workers. Indian Journal of Science and Technology, 8(S7), pp.292-298.

Liu, H., Cutcher, L. and Grant, D., 2015. Doing authenticity: The gendered construction of authentic leadership. Gender, Work & Organization, 22(3), pp.237-255.

Luthans, F. and Youssef-Morgan, C.M., 2017. Psychological capital: An evidence-based positive approach. Annual Review of Organizational Psychology and Organizational Behavior, 4, pp.339-366.

Newman, A., Schwarz, G., Cooper, B. and Sendjaya, S., 2017. How servant leadership influences organizational citizenship behavior: The roles of LMX, empowerment, and proactive personality. Journal of Business Ethics, 145(1), pp.49-62.

Schnackenberg, A.K. and Tomlinson, E.C., 2016. Organizational transparency: A new perspective on managing trust in organization-stakeholder relationships. Journal of Management, 42(7), pp.1784-1810.

Wang, D., Gan, C. and Wu, C., 2016. LMX and employee voice: A moderated mediation model of psychological empowerment and role clarity. Personnel Review, 45(3), pp.605-615.

Wang, H., Sui, Y., Luthans, F., Wang, D. and Wu, Y., 2014. Impact of authentic leadership on performance: Role of followers’ positive psychological capital and relational processes. Journal of Organizational Behavior, 35(1), pp.5-21.

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