Relationship between authentic and psychological capital

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The positive Leader

Contents
Introduction................................................................................................................................2
Discussion on authentic leadership............................................................................................2
Discussion on Leader-member exchange...................................................................................3
Psychological capital..................................................................................................................3
Relationship between authentic and psychological capital........................................................4
Relationship between LMX and Psychological capital.............................................................4
Building the psychological capital of different types of employees..........................................4
Summary of the discussion........................................................................................................6
References..................................................................................................................................7

Introduction
Leadership is such strategy that is used by a person to influence the other members in
achieving the objective. It is also used to direct the company on the right way. Each leader is
therefore required to exercise the authentic leadership for becoming capable of influencing
the positive psychological capital of the employee’s. Once leaders start practising the
authentic leadership, they tend to enhance the trust that is prevailing in the organisation. It
also helps the employees to provide their contribution for achieving success in the
organisation. It is found that authentic leaders are not born but they are made by the
willingness and desire of a person to become effective leader. Leader having positive
psychological capital tends to develop the non-ending process of self-study, training,
experience, and education (Story, et al., 2013, The qualities in authentic leader include the
creativity, trustworthy, as well as confident. At the same time, they are also required to be
innovative and effective communicator with the other people. These characteristics are
significantly required to the organisation, leader, as well as employees. For leaders, these
qualities helps in understanding the other people and able to execute or implement the
decision (Bank et., 2016). For every organisation, it is required to adopt innovative
technologies that assist the organisation in achieving the goals in effective manner. Qualified
workers also enable the organisation to compete with competitors in effective manner. In the
paper, discussion has been carried on the authentic leadership, psychological capital, LMX
and their relationship.
Discussion on authentic leadership
Authentic leadership is said to be the leader’s behaviour arrangement that give emphasis on
encouraging the moral climate and psychological capabilities for enhancing the internal
ethical aspect, self awareness, rational transparency of the leaders at the time of working with
employees and proper information processing. In the words of Day et al., 2014, authentic
leadership is said to be the positive strategy of the organisation leadership that further assist
the leaders in facing the recent challenges. The different features of authentic leadership
include the behaviour clarity, self awareness and openness. It is found that most of the
authentic leaders effectively share the information that is required in decision-making,
discloses their values, personal motives, sentiments, as well as accept the input from other