This paper undertakes a literature review of the concept of leadership and analyzes its relationship with the constructs of employee performance and psychological capital. It also discusses the LMX theory of leadership and its significance in the context of the organization.
Contribute Materials
Your contribution can guide someone’s learning journey. Share your
documents today.
Running head: LEADERSHIP AND EMPLOYEE PERFORMANCE Leadership and Employee Performance Name of the Student: Name of the University: Author’s Note:
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
1LEADERSHIP AND EMPLOYEE PERFORMANCE Table of Contents Introduction................................................................................................................................2 Leadership and its significance..................................................................................................2 Leadership and the organizations I work for..............................................................................4 Psychological Capital and Leadership.......................................................................................5 Psychological Capital and Leadership in the context of the organization I work for................6 Recommendations......................................................................................................................7 Literature Gap............................................................................................................................8 Conclusion..................................................................................................................................8 References..................................................................................................................................9
2LEADERSHIP AND EMPLOYEE PERFORMANCE Introduction As opined byChen et al. (2014),the business prospects of a business enterprise depend to a great extent on the kind of leadership style the concerned organization uses within its framework for the management of diverse affairs of its organizations.Hoch et al. (2018)have stated that the process of leadership has undergone a substantial amount of change in the recent times because of the changes in the needs of the organizations and also the kind of work that they are required to perform. In this regard, it needs to be said that some of the most commonly used leadership styles in the earlier times were the Great Man Theory, Trait Theory, Autocratic Theory and others (Anitha 2014). Wang et al. (2014)have argued that a common aspect among all the earlier theories of leadership is the fact that leaders are not created but born and the success or the failure of a business enterprise depend solely on the abilities of a leader. However, in the recent times it is seen that transformational leadership theory, authentic leadership, leader-member exchange (LMX) and others have gained prominence (Chughtai, Byrne and Flood 2015). As stated by Gardner et al. (2011),the common factor among all these theories is the fact that they believe in the fact that leaders can be created through effective training and also the followers play an equally important role within an organization as does the leaders. This paper will undertake a literature review of the concept of leadership and will also try to analyze its relationship with the constructs of employee performance and psychological capital. Leadership and its significance According toLeroy et al. (2015),the machinery of leadership is the process through which the leaders influence the behavior of the subordinates or the followers who are associated with them.Breevaart et al. (2016)are of the viewpoint that in this regard the act of
3LEADERSHIP AND EMPLOYEE PERFORMANCE motivating the followers is one of the major job roles of the leaders which enables them to help the followers to achieve the targets or the goals that has been outlined for them. This is important since it is directly correlated with the performance of the employees which is the fulcrum point of the contemporary organizations. In addition to this, the contemporary leaders are also required to perform a wide range of other job roles so as to enable the followers who are associated with them to achieve the targets that has been given to them in the most effective manner (Gu, Tang and Jiang 2015). For example, the contemporary leaders within the framework of the different organizations are required to understand the key competencies as well as the capabilities of the followers who are associated with them and delegate tasks on them on the basis of this fact (Iqbal, Anwar and Haider 2015). More importantly, they are also required to design the jobs that the followers are required to perform in such a manner that the followers would be able to perform them as per the expectation of the organization that they are working for. As argued byLuthans, Youssef and Avolio (2015),the contemporary leaders because of the changing nature of the business world are required to perform the job roles of not only the leaders but at the same time that of the managers as well. In this regard, it needs to be said that the contemporary leaders within the framework of different organizations can be seen as the stewards of the organizations.Bouckenooghe, Zafar and Raja (2015)are of the viewpoint that the primary intention behind the plethora of job roles as well as responsibilities that the contemporary leaders are required to perform is to enhance the performance level of the employees. The net result of this is the fact that the effectiveness as well as the efficiency of an organization depends to a great extent on the kind of leadership style the concerned organization has adopted and also the efficiency with which the concerned leader is being able to perform their job roles.
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
4LEADERSHIP AND EMPLOYEE PERFORMANCE Baron, Franklin and Hmieleski (2016)have stated that the prominence that the notion of positive leadership has gained within the spectrum of the contemporary business world is being reflected in the plethora of theories related to leadership that has gained prominence in the recent times. One of the most important theories in this regard is the authentic theory of leader through the use of which the positive leaders are required to use the notions of ethics as well as morality within the job roles that they perform in an organization (Paterson, Luthans and Jeung 2014). In addition to this, the leaders using this style of leadership are also required to establish ethical relationships with the different followers who are associated with them. Another important theory of leadership which has gained a substantial degree of importancewithinthecannonofcontemporarybusinessworldistheleader-member exchange (LMX) theory. It is pertinent to note that for the effective use of this theory the leaders are required to use the perspective of the followers who are associated with them for the important decisions that they make (Newman et al. 2014). Chen et al. (2014)are of the viewpoint that this is important since the followers who are associated with the leaders, since the traditional times have been relegated to the background and this style of leadership offer equal amount of prominence to the followers as well. This is important since it not only offers a certain amount of say to the followers in the important matters of the organization but at the same time enhances their job satisfaction level as well. As opined byWang et al. (2014),a high level of job satisfaction not only increases the performance level of the employees, their well-being, the amount of work stress that they feel but at the same time reduces the attrition rate of the organization as well. Leadership and the organizations I work for I work for the organization ABC Advertisement Private Limited which belongs to the entertainment industry and offer advertisement related services to the organizations. The
5LEADERSHIP AND EMPLOYEE PERFORMANCE management team of the organization realizing the connection which exists between the leadership which is being followed within an organization and the performance of the employees are currently using the LMX theory of leadership. The leaders of the organization taking the help of this model of leadership take into effective consideration the perspective of the employees for making the important decisions of the organization. The use of this theory offers various benefits to the organization, firstly, by using the concept of shared liability the organization has been able to foster a sense of responsibility within the employees and this has affected the performance of the employees in a positive manner (Chughtai, Byrne and Flood 2015). Secondly, the effective utilization of this process has at the same time enabled the enterprise to enhance the job satisfaction level of the individuals which in turn has enhanced the performance of the employees and thereby reduced the attrition rate of the organization(Anitha2014).Thirdly,theeffectiveuseofthisframeworkenablesthe organization to not motivate the employees in an effective manner but at the same time reduce the work-stress that they face and thereby enhance their wellness level (Leroy et al. 2015). In addition to these, it is seen that the organization under discussion here through the effective use of this framework has been able to not only enhance the employee engagement level between the different employees but also between the employees and the organization. Thus, it can be said that the effective use of this leadership framework has helped the concerned organization to enhance the performance level of the employees in an effective manner. Psychological Capital and Leadership As opined byBreevaart et al. (2016),the construct of psychological capital refers to the psychology, behavior, feedbacks, constructive criticism, attributes and others which affect the performance level of the employees of an organization in a positive manner. More
6LEADERSHIP AND EMPLOYEE PERFORMANCE importantly,Newman et al. 92014),argue that a positive attitude on the part of the leaders of an organization in important in this regard since it not only helps in the creation of a positive environmentwithin the organizationbut also helpsin theeffectiveutilizationof the psychological capital of the organization as well. Furthermore, it is also seen that the organizations are required to identify the psychological capitals that they have, take measures for the effective development of them and also their implementation. Moreover, this is directly related to the psychology of the individuals and thus the organizations through the use of an effective leadership style are required to affect the psychology of the employees in a positive manner (Baron, Franklin and Hmieleski 2016). This is important since psychological research works have shown that the individuals with positive psychology are likely to complete tasks in a better manner and vice versa. This is perhaps one of the major reasons why the contemporary leaders take extra initiatives for the effective development of the psychological capital of their organization since it is directly related to the performance of the employees. Psychological Capital and Leadership in the context of the organization I work for ABC Advertisement Private Limited and the leaders who are associated with it take the help of various methods like analysis, development and implementation for the effective utilization of the notion of psychological capital within the framework of their organization. More importantly, it is seen that there are different kinds of employees with diverse psychological capital within the framework of the organization and thus it becomes all the moreimportanttoutilizethesedifferentpsychologicalcapitalsoastoenhancethe performance of the organization in an effective manner (Gu, Tang and Jiang 2015). For example, it is seen that the psychological capital of the administrative employees who are working in the organization are dominance, a high level of confidence, self-efficiency and
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
7LEADERSHIP AND EMPLOYEE PERFORMANCE others. On the other hand, the psychological capitals of the professionals who are a part of the concerned organization are hope, resilience, efficiency, optimism and others. Furthermore, the psychological capital of the blue-collar employees of the organization are hard-work, resilience, optimism and others whereas the same in the context of white-collar employees are achievement, a high level of individualism, success and others. In addition to this, the entity of psychological capital of the employees also varies in the organization on the basis of the kind of work that they are required to perform. For example, it is seen that there are some employees whose responsibility is develop witty content for the customers thus they are required to have to the psychological capital of wit, comic timing, intelligence and others. The LMX style of leadership that the organization also contributes in a significant manner to effective development of these different kinds of psychological capital that the organization have and this in turn helps in the enhancement of the performance level of the workers in a positive manner (Paterson, Luthans and Jeung 2014). Recommendations There are various measures that the organization can take the help of for the improvement of the performance level of the employees- It is true that the organization is currently using the LMX theory of leadership however only the senior employees of the organization are included in the discussion that lead to the making of decision. Thus, the organization needs to take into account the perspective of all the employees of the organization before making any decision. Enhancing the engagement level between the employees and also between the employees and the organization would not only help the organization to improve the performance level of the employees but also to enhance their satisfaction. This is important since this will reduce the attrition rate of the organization.
8LEADERSHIP AND EMPLOYEE PERFORMANCE Literature Gap It is true that a lot of research has been conducted on the topic of leadership since the traditional times however at the same time it needs to be said that very few research works have tried to use the notion of psychological capital and the manner in which this could be used by the leaders. This is important since in the recent times it is seen that the performance of the employees depend to a great extent on the style of leadership which is being followed by the leaders and also the manner in which their psychological capital is being used by the organizations that they work for. Thus, it can be said that this literature review will serve as a framework which can be used for further research. Conclusion To conclude, effective use of the construct of leadership offers wide ranging benefits to the organizations and this is perhaps one of the major reasons for the extensive usage of this construct. One of the major benefits of the effective usage of the construct of leadership is the fact that this helps in the improvement of the performance of the workers. In addition to this, it also helps the organizations and the leaders to enhance the job satisfaction level of the workers and thus reduce the attrition rate of the organization. Furthermore, the use of positive leadership helps the organizations to reduce the work stress faced by the employees and thereby contribute in an effective manner towards their wellness. All these factors contribute in a substantial manner to enhance the performance of the employees and this has made the concept of leadership an indispensible one within the framework of contemporary business world.
9LEADERSHIP AND EMPLOYEE PERFORMANCE References Anitha, J., 2014. Determinants of employee engagement and their impact on employee performance.Internationaljournal of productivityand performance management,63(3), p.308. Baron, R.A., Franklin, R.J. and Hmieleski, K.M., 2016. Why entrepreneurs often experience low,nothigh,levelsofstress:Thejointeffectsofselectionandpsychological capital.Journal of management,42(3), pp.742-768. Bouckenooghe, D., Zafar, A. and Raja, U., 2015. How ethical leadership shapes employees’ job performance: The mediating roles of goal congruence and psychological capital.Journal of Business Ethics,129(2), pp.251-264. Breevaart, K., Bakker, A.B., Demerouti, E. and Derks, D., 2016. Who takes the lead? A multi‐source diary study on leadership, work engagement, and job performance.Journal of Organizational Behavior,37(3), pp.309-325. Chen, X.P., Eberly, M.B., Chiang, T.J., Farh, J.L. and Cheng, B.S., 2014. Affective trust in Chineseleaders:Linkingpaternalisticleadershiptoemployeeperformance.Journalof management,40(3), pp.796-819. Chughtai, A., Byrne, M. and Flood, B., 2015. Linking ethical leadership to employee well- being: The role of trust in supervisor.Journal of Business Ethics,128(3), pp.653-663. Gardner, W.L., Cogliser, C.C., Davis, K.M. and Dickens, M.P., 2011. Authentic leadership: A review of the literature and research agenda.The Leadership Quarterly,22(6), pp.1120- 1145.
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
10LEADERSHIP AND EMPLOYEE PERFORMANCE Gu, Q., Tang, T.L.P. and Jiang, W., 2015. Does moral leadership enhance employee creativity? Employee identification with leader and leader–member exchange (LMX) in the Chinese context.Journal of Business Ethics,126(3), pp.513-529. Hartnell, C.A., Kinicki, A.J., Lambert, L.S., Fugate, M. and Doyle Corner, P., 2016. Do similarities or differences between CEO leadership and organizational culture have a more positive effect on firm performance? A test of competing predictions.Journal of Applied Psychology,101(6), p.846. 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. Iqbal,N.,Anwar,S.andHaider,N.,2015.Effectofleadershipstyleonemployee performance.Arabian Journal of Business and Management Review,5(5), pp.1-6. Leroy, H., Anseel, F., Gardner, W.L. and Sels, L., 2015. Authentic leadership, authentic followership,basicneedsatisfaction,andworkroleperformance:Across-level study.Journal of Management,41(6), pp.1677-1697. Luthans, F., Youssef, C.M. and Avolio, B.J., 2015.Psychological capital and beyond. Oxford University Press, USA. Newman, A., Ucbasaran, D., Zhu, F.E.I. and Hirst, G., 2014. Psychological capital: A review and synthesis.Journal of Organizational Behavior,35(S1), pp.S120-S138. Paterson, T.A., Luthans, F. and Jeung, W., 2014. Thriving at work: Impact of psychological capital and supervisor support.Journal of Organizational Behavior,35(3), pp.434-446.
11LEADERSHIP AND EMPLOYEE PERFORMANCE Wang, H., Sui, Y., Luthans, F., Wang, D. and Wu, Y., 2014. Impact of authentic leadership onperformance:Roleoffollowers'positivepsychologicalcapitalandrelational processes.Journal of Organizational Behavior,35(1), pp.5-21.