The Influence of Positive Emotional Capital and Leader-Member Exchange on Authentic Leadership and Employee Performance

This study examines the relationship between positive emotional capital, leader-member exchange, authentic leadership, and employee performance. It explores the mediated model of moderation with employees and their immediate leaders. The study highlights the importance of authentic leadership and its impact on employee performance.

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Introduction
Authentic leadership has gained an important focus and assistance in the research
during the past few years. It has been from observed various sources that original leadership
are related with leadership members exchange and increasing stages of psychological capital.
In this aspect, the time has come to have a broad understanding about the influence of these
factors on the performance of the personnel. However, this study in particular examines the
on-going role of the staff’s positive emotional capital and increasing part of the leaders’
members’ exchange that may influence the association in between authentic leadership and
the presentation of the employees. Based on these factors, the study investigates the mediated
model of moderation with various employees working within the organisation in association
with their immediate leaders.
The relationship between genuine leadership, leader’s member exchange and
From various study in literature, it has been reported that a positive, original an ethical
form of leadership is usually referred to as authentic leadership, which comes with a positive
initiative towards the management of the organisation that also helps in accomplishing the
organisational objectives despite the challenges. As stated by Wang et al. (2014), authentic
form of leadership is characterised by the frontrunner’s capability and skills of self-efficacy,
clearness in work and communicating work and clarity in attitude. In addition this, genuine
form of front-runners tend to segment communications that are essential for building decision
thus accommodating with other involvements along with the disposure of individual
standards and feelings. These types of components of authentic leadership help the staffs to
effectively analyse the capabilities and moral moral of the authentic leadership practices.
Until now, it is found that the growth of leadership is underlying the process of
growth of positive leadership that is particularly enthusiastic to the increasing undercurrents

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of the front-runners and the characteristics of the subsequent staffs. In this aspect, it has been
established that the authentic leadership has the capability of increasing the optimistic
organisational attitude, provided with a wisdom of faith, feeling that influences the boldness
of the employees, performance and performance as well (Banks et al. 2016). Presently some
empirical studies have revealed the changing dynamics on the involvement of the leaders
within the process. Therefore, research in this context unveiled that authentic leaders have the
ability to influence and motivate efficient performance of the employees. However, a proper
understanding of the intermediate employees are necessary as they have the ability to
influence the authentic leadership and the performance of the staffs as well.
Considering the theory of complementary congruity, it can be stated that authentic
form of leadership can effectively deliver and complement towards the needed competencies
of the employees for performing in an effective way. On the contrary, Hoch et al. (2018)
stated that psychological capital has now been widely recognised as the stereotype of the
positive psychological components such as, hope, efficiency and positivity within the
employee.
Therefore, based on the assumptions, it has been noted that difference in between the
employer can explore the factors of LMS in a way of distributing the impact of authentic
leadership on the intermediate staffs on the basis of two crucial reasons. First reason is that
leadership is a debatable method of relations, which can be signified as the connection in
between leaders and the employee evolving at different stages during the course of the
process (Harms et al. 2017). Moreover, the environment and values of this connection have
been seen to be important in the direction of the defiance of leadership that affects the
responses of the employees. The second reason is that for accepting the conditional impact of
emotional capital on the positive form of management and employee presentation, this
method is the most pertinent for the balancing congruity. In this aspect, Bedi et al. (2016)

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states that the research which has been conducted earlier or in the past observed that from the
ongoing statement and conversation in the linking in between influential members may lead
to the positive emotional activities amongst the staffs. Therefore, this fluctuating change of
emotional capital of the staffs within LMS may be justifiable for the changing impact on the
authentic forma of leadership and worker presentation.
From the hypothetical viewpoints, four main classification can be deduced on the
characteristics of authentic management that are well adjusted on their operation, interior
ethical insights, and interpersonal originality as well as self-effectiveness (Newman et al.
2017). In this regards, balanced form of operations signifies the analysis of all the needful
information before reaching the conclusion. In contrast to this, internal ethical perception
refers to the changing behaviour of the leaders including the internal ethical standards and
values. This are usually different from the ethical pressures on the employees and the
workload found in organisation. As stated by Wang et al. (2016), interpersonal clearness
signifies the individual contact, like exposed distribution of material and articulating unique
opinions with the staffs. Again. Self-consciousness refers to the fact that the leaders have the
ability to recognise employee’s insight of management along with the capability to
comprehend their own reasons, strong point as well as faintness among them. Therefore, it
can be said that leaders who have increasing levels of self-consciousness can be helpful in
improving the originality and efficiency using the skills self-consciousness and self-
representation.
Psychological capital of various workers
From the various sources of literary and by emphasising on the part of relational
method, it can be said that the LMX has the ability to arbitrate the linking in between
authentic leadership and the worker presentation. As stated by Černe et al. (2014),

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particularly authentic leadership represents a communicate way to deal with the employees
and it helps to establish connection with the leader and the staffs within the government.
Therefore, this association has the capability to nourish upon optimistic communal argument.
This exchange while dealing with the employees may be helpful for motivating the
performance of the employees. As stated by David (2015), psychological capital is positive
state of psychology within an individual. This can be characterised within an employee by the
component of resilience, which is the capability to work towards obtaining success and by
withstanding failure. Secondly, it is also marked by hope, which is the strength that supports
in overcoming the uncertainty within the workplace. Third component is the optimism that is
positive outlook that is needed for positive results. Finally, it is the component of self-
efficacy, which is the capability to accomplish the objectives when the organisation faced
with challenges.
However, Hwang and Lee (2015) stated that within various workplaces positive
relationship in between the employees could have the capability to influence the development
and organisation of member conversation with the staffs. Moreover, it can affect the factors
of self-efficacy, balance in operations, internal ethical perception and relational transparency
can be helpful in determining the value of dignity, trust and admiration of the positive
leaders. These characteristic signifies the most essential elements of the high level of
members exchange bonding. Firstly by removing the modification and different viewpoint of
the staff’s reliable front-runners that inclines to demonstrate admiration and faith for the
supporters. Therefore, it is evident from the infrastructure of the organisation that successful
working atmosphere such as worker gratification that are associated with appropriate form of
authentic leadership. As stated by Schnackenberg and Tomlinson (2016) research in this
context, found that successful organisation is based on authentic leadership that is the reason
behind the growing productivity of the organisation. On the contrary, authentic leadership

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within the organisation has helped in the increased contribution towards the employment
capital while developing the competitive advantage of the organisation in a sustainable way.
Therefore, it can be seen that there is high relation in between expressive intellect and
mental wealth of the employee that may result in high expectation on the worker
presentation. In this regards, it is evident that character of the front-runners employees within
the organisation is one of the most noteworthy work in term of increasing effect on the
organisational performance. Therefore, managers of the organisation has a direct influence on
the emotional wealth of the employee thereby increasing the expressive intellect of the
employees. Research in this context highlights that nearly 70% of the managers have
variation in affecting the employment involvement percentage (Friend et al. 2016).
Therefore, it is evident that there is a strong link in between consistent managerial
communication provided with increasing levels of communication tool utilised within
organisation. The problem that comes in to place is that poor management may affect the
productivity of the employees as well as the emotional feeling of the employee. For example,
culture of blaming and resentment within the organisation, which is toxic in formation that
may break down the ethics and productivity thereby, reducing the enthusiasm of the
workforce and could influence the emotional capital of the employee.
Influence of emotions on employee performance
Psychological factors of emotion can be inclusive of excitatory and inhibitory
responses that may take place through the system of human working. It is the sympathetic
part of individual nervous unit, which drives the heart to focus on the emotional being.
Therefore, Abbas and Raja (2015) states that it makes the individual more ready to struggle
and contradict with the situation. However, owing to long period of stress of being ignored
and disrespected, employees may feel pain, due to semantic issues that are usually affected by

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the emotional reasons. These emotions can as well be handled through the effective practices
of interpersonal communication with the staffs. Therefore, in order to resolve the conflicts-
taking place within the diversified workplace, inclusive of various cultures and various white
collars that employees usually work as a professional employee within the workplace. In this
type of workplace, authentic leadership and management is essential.
Apart from these, there may be several examples when one specific worker may not
be capable to interact with the other member due to difference in culture. On the contrary, Liu
et al. (2015) argued that there might also be instances of conflicts taking place from increased
and continuous ignorance of the employee within the workplace-taking place as a result of
difference in culture and ethnicity. However, this kind of situation may occur within the
workplace when different types of employees are working with each other. Therefore, it is
evident from the examples that there are several significant relationship in between leadership
member exchange and increasing performance results particularly in terms of individual
difference of the staffs (Luthans and Youssef-Morgan 2017). Emphasising on these, crucial
component it can be suggested that high level of leadership exchange is necessary for the
leaders for providing psychological support to the employees, since they are more reliant on
the alternative forms of support and resources. In this aspect, staffs with increasing levels of
psychological capital may have access to the growing benefits of LMX relation with the
authentic leaders. In contrast to this, Dinh et al. (2014) states that staffs with short levels of
emotional wealth and relationship with the LMX may vary in certain cases.
Bestowing to psychological capital refers to the high percentage of psychological
component that may be helpful in contributing towards the individual asset of motivation
while obtaining objectives of the workplace. As stated by Hwang and Lee (2015) it has been
observed that there is unpremeditated impact of emotional capital on the presentation of the
employees. Authentic management has been also seen to have optimistic impact on the

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employee through cumulative hope and rising determination in accomplishing the goal
provided with the increasing sense of self-efficient and resilience within the organisation.
Conclusion
Therefore, the education positively contributed towards the essentiality of two
important and interlinked evolving issues that are identified within the organisation’s request.
These main components are usually related with the challenges faced by the administrative
front-runners while practicing authentic leadership. These challenges are also faced by the
intermediate staffs owing to growing reasonable burdens and changing morals that calls for
an immediate sympathetic of authentic management practices. Therefore, it can be concluded
from the reading that optimistic emotional capital is more pertinent for the existing factory
condition.
The result from the reading recommends that authentic form of management has a
growing effect on the presentation of the employee, government. Therefore, results indicates
that organisation may wish appoint increased number of authentic leaders. The findings of the
study, efficiently ensures the observation by emphasising the growing advantage on the
improved performance that can be accomplished by the staffs.

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