MGT301- Leadership Report 2022

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LEADERSHIP

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MGT301- Leadership
In this report, the theoretic and empirical relationship of authentic leadership (AL), leader-
member exchange (LMX) and employee psychological (PsyCap) has been discussed so as to
present an inclusive and balanced outlook. In simple words, it identifies and marks on the
role that employee positive psychological resources (PsyCap) play in creating authentic
leadership higher or less effective. This viewpoint showcases the significance of knowing and
considering AL via the theoretical mirror of complementary amity. With regards to this, it is
also recognised that how AL improves the performance of employees through LMX
associations and interactions, which further influence over employee PsyCap. Hence, the AL
effectiveness could be assessed with integrating the LMX relational process and employee
psychological resource (PsyCap). The study and research also conducted to presents the
benefits of identifying roles of employee positive psychological aspects and relational
processes in the success of authentic leadership practice.
According to Bhat and Bharel (2018), organisational performances and individual well-being
can be attained at a greater level with high engagement of employees and therefore, it is
significant to assess constructs like PsyCap that may cause a positive impact towards
workplace engagement. In addition, corporations also required to help workers in managing
the dynamic environment both externally and internally and therefore, progressively the
positive role and building their strength are being utilized with this objective. Hollenbeck and
Jamieson (2015) also stated that an organisation flourish and prosper also with an employee
psychological capital rather than only what the individual knows (human capital) and who
they recognise (social capital) that forms value within enterprise. In addition, corporations
today also try to gain an understanding of the experiences of work engagement as they
confronting challenges to sustain competitiveness. To attain this by raising more efforts, the

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businesses target to attain peak performance in the organisation where employee engagement
is not only improved necessary organisational benefits, however, also has positive results
from the outlook in the perspective of employee psychological welfare.
Nyberg and Sveningsson (2014) stated authentic leadership as a positive side and practice of
leadership as it draws from both context i.e. effective developed enterprises and positive
psychological capabilities. Hence, it helps the leaders to have greater awareness and positive
behaviour while practising leadership roles. Authentic leaders also have internalised ethical
outlooks, social transparency, self-regulation and balanced processing. Increasing attention
has presented to the Authentic Leadership as here the leaders always cope with dynamic and
changing work environment via developing a key difference in corporate entities by assisting
employee to identify meaningfulness and linkage of their professions. In more explicit ways,
AL can be said to be a leadership pattern which motivates both positive and negative
employees and therefore, Anderson and Sun (2017) called it as a significant among other
styles of leadership like ethical, charismatic and transformation. It is also emphasised that one
of the key differentiating factors of AI is self-awareness and it is also behind building of AL
considering some main theoretical evidence based on individual constructs factors such as
relational transparency, internalized moral perspective and balanced processing.
There is also a development of positive interactions between followers and leaders as per the
theory of authentic leadership (Puls, Ludden and Freemyer, 2014). A notional contextual
framework also proposed by Wang et al (2014) that connects the followers’ behaviour and
attitude to authentic leadership. Authentic leaders have a certain level of influence power that
helps them to create an impact over their follower's behaviour and attitude with developing a
sense of social and individual identification while establishing strong principles and moral
values. The base of positive corporate behaviour is also related to the construction of hope,
optimism, resilience and efficacy as fulfilling the inclusion standards. Dollwet and Reichard

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(2014) also stated grouping of these positive constructs as “psychological capital” which has
identified to intercede the association between a top organisational climate and performance
and the relation between authentic leadership and performance of the whole team as well as
corporate citizenship conduct. PsyCap can also be developed and exploit alongside the social
and human capital, how its capabilities are psychological intent in contradiction of fixed
behaviours and hence, can be built and improve through ways like social encouragement, role
modelling and performance realization. With using such ways of development, leaders can
take a positive step towards building of PsyCap of their workers.
Leader-member exchange (LMX) is also a practice of transferring the AL impact on
performance of followers for two reasons. At first, Fairhurst and Connaughton (2014)
contend leadership as a relational process and there is an emergence of some sort of different
relationship amid follower and leader during this procedure. Considering the leader
behaviour, the attribute and nature of this relationship are also very much fundamental
influencing follower responses. Next, for effectively determine the PsyCap impact of
contingency on the Authentic Leadership and follower performance relation, it is necessary to
assess the process greatly significant to that matching congruity mechanism. Though, it is
needed to identify whether there is any sort of benefit considering followers with varied
levels of PsyCap from their interchange association with the leader. Hence, there can be a
different impact of AL on the performance of following in context with dynamic of changing
levels of follower PsyCap in the Leader-member exchange. In addition, organisational
effectiveness or desirable outcome has been affected by the positive effects of PsyCap capital
which is strongly correlated to employee’s performance, behaviour and work-associated
attitudes.
According to Ganegoda and Bordia (2019), employee who showcases higher repeated levels
of positive emotions inclined to be more united socially in the corporation and hence,