Relationship between authentic leadership, Leader-Member Exchange and employee’s Psychological Capital

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Table of content
Relationship between authentic leadership, Leader-Member Exchange and employee’s
Psychological Capital 2
Building Psychological Capital for different employee types 3
Impact of emotions on employee performance 5
References 7

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Relationship between authentic leadership, Leader-Member Exchange and employee’s
Psychological Capital
It has been observed that authentic leadership is one of the all units of positive organisational
behaviour. It is very vital in order to increase the psychological capital of the employees as well
as improving the existing psychological climate in the organisation. Authentic leadership can be
defined as a leadership behaviour pattern that focuses as well as promotes appositive ethical
climate as well as development of positive psychological capacities. This helps in fostering
Greater sense of self awareness and provides the organisation within internalized perspectives
on morals. Authentic leadership helps in a balanced processing of the information as well as
relational transparency on behalf of the leaders who are working with a group of followers in
order to Foster self development of the following as well as the leader (Cho et al. 2017).
Authentic leadership hence has been confirmed to enhance the performance of group member,
responsible for affecting the behaviour as a citizen. Organisational trust level as well as
psychological capital also gets incremented with authentic leadership. The psychological capital
has been correlated with transformational type of leadership as a less authentic leadership and
hence it is a evidence of a positive correlation existing between the two concepts or theories.
Discussions have been made for establishing the correlation between psychological capital and
authentic leadership. It is therefore necessary to define the terminology psychological capital.
Psychological capital can be defined as positive psychological state of an individual which is
characterised by self efficacy while working a challenge along with making positive attributions
pertaining to present and future success by adhering to the goals and be also flexible enough to
redirect the approach towards the goals.
The resilience among the individuals to succeed in tough situation marks the very presence of
the ability to bounce back and gain control over any situation. The positive organisational
behaviour is a positive construct of optimism, efficacy, hope and resilience. The meta analysis
of psychological capital has revealed that high level of psychological capital is likely to
energized and motivate the employees to give effort leading to Greater performance over a
period of time which helps in employee satisfaction, commitment and workplace psychological
well being. As in case of human as well as social capital the psychological capital can be
developed and utilised in an organisation. It can be considered as psychological States, which
as opposed to the fixed traits are open to modification and development by use of modelling
tools, social persuasion, self development programmes and performance checklists which a
leader can use to develop the psychological capital (Černe et al. 2016).