Positive Leader: Impact of Authentic Leadership, LMX and PsyCap on Employee Performance

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Positive Leader
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Positive Leader 1
The objective of this essay is to enlighten the reader regarding the details about a positive leader
in the business environment. The essay focuses on the meaning of a leader and their relationship
with leader member exchange and psychological capital as well. Every company present at
marketplace need to have a leader who is efficient enough to manage the functions of the
business otherwise the business will not grow. The paper highlights that how psychological
capital built different type of employees in a worldwide view. It also evaluates how emotions of
leader impact on the performance of the employees working with them. More details about the
essay are mentioned below:
Leadership refers to the activity of leading a group of people and making them do certain tasks in
the environment. A leader is a person with leads the organization and get things done for the
business. The leadership act helps in increasing efficiency of the employees by making them
focus on certain crucial objectives of the business. The leadership activity works by developing a
clear vision statement for the business, through the vision statement the leaders gets to provide
an idea of the activities to their team member in the business environment. Further after
establishing the vision, the leader aims to coordinate the actions of the team members in such a
way that conflicts does not arise at workplace and the work gets done easily. A leader is a person
who takes step up in the crisis and helps the organization overcome it (Popli, and Rizvi 2016).
Leadership involves the process of developing a vision and focusing on it so as to attain an
effective relationship with the employees. A leader possesses several characteristics that make
them different from other team members at workplace. Optimism refers to the process of having
a positive attitude towards every scenario of life. A leader make of this quality to be positive and
make other people positive in critical situations. Optimism helps the leader to find out that there
is scope of improvement and work upon that. Secondly, self-awareness characteristic helps the
leader to proactively take measures to prevent the business from attractive any risk in the
business environment. This characteristic secures the employees and organization from trapping
in issues. A leader needs to be authoritative and opinionative in the business environment
(Huang, and Paterson 2017). This characteristic helps them to effectively take decision on behalf
of the organization and for the better of the organization.
Further, it should be noted that authentic leadership refers to the modern as well as inclusive
approach that helps the leaders to use their qualities in nurturing genuine relationships with the

Positive Leader 2
team members and then providing importance to the work of employees as well. An authentic
leader is a person who is extremely supportive and motivating for the employees. This type of
leader believes in forming real connective the people he works. Talking about the characteristics
of an authentic leader, it should be noted that an authentic leader is supportive, self-aware, open
minded and truthful. This type of leader is supportive as they encourage the employees to be
open minded and innovative as well. An authentic leader aims to develop the employees
individually as well as in groups. This type of leader stands with the employees so as to provide
them a better decision (Bouckenooghe, Zafar, and Raja 2015). These types of leaders are self-
aware as they focuses on the strengths and weaknesses of the employees and make increase their
productivity as well. This type of leaders focuses on the long term result for the business.
Thirdly, they are open minded as they are always open for new ideas and innovation on the part
of employees of the business. These leaders are truthful as they do not believe in hiding
something from the employees just so as to make things done in the business (Harwiki 2016).
The Leader-Member Exchange Theory (LMX) or Vertical Dyad Linkage Theory refers to the
theory that develops a relationship-based approach to leadership in the business environment that
focuses on the two-way relationship between the leaders and the followers. This theory suggests
that a leader in the market develop an exchange with every subordinate. Every relationship with
the subordinate is different that is based on the leader member exchange. In this relationship,
both the parties share their responsibility, decision and trust on each other. The leader share
resources to the subordinate and subordinate provide their performance to the leader in response
(Asrar-ul-Haq, and Kuchinke 2016). This framework works on the basis of trust and respect
between leader and member that helps them to build up an emotional relationship with each
other and work more effectively. This type of theory promote better working environment for all
the people in the company resulting in which effectiveness in the organization is also increased.
This theory basically explain how leaders and managers in the business develop a strong
relationship with the employees of the company and make them work in the company. The
theory explains three types of relationships between the leader and the subordinate that are role
taking, role making and routinization. The role taking occurs when the member enters in the
group and the leader takes time to analyse the behaviour and characteristics traits present within
them. Role making occurs when the member starts to work in the organization (De Clerq,
Bouckenooghe, and Raja 2019). At this stage, the leader sorts the employees in two teams that