Positive Leadership: Authenticity, LMX, and Psychological Capital

Positive leader
1 2 / 2 / 2 0 1 8

Contents
Introduction......................................................................................................................................2
Literature review..............................................................................................................................3
Authentic leadership....................................................................................................................3
Leader-Member Exchange (LMX)..............................................................................................4
Employees’ Psychological Capital..............................................................................................5
Building psychological capital for different types of employees....................................................6
Impact of emotions on performance of employees..........................................................................7
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

Introduction
The aim of the report is to understand the relationship between the authentic leadership, effective
Leader-Member Exchange (LMX) and employees’ Psychological Capital (PsyCap). Further, the
literature review has been conducted which include the opinion of the different authors that helps
in understanding the ways to form the Psychological Capital of the different employees. These
employees include professionals versus administrative employees, emotional labour and many
others. In the end, it includes the description of the emotions that can create an impact on the
performance of the personnel.

Literature review
This section includes the review of the literature which includes the different opinion of the
authors on the leadership that leads to the positive at the workplace. This review of literature will
help in understanding the kind of the process that is made by the leaders who use their leadership
skills along with their knowledge. This has been found that in the present era every leader of the
company is in practice of becoming the effective authentic leader so that they can become more
capable of attracting the psychological capital in a positive manner. Once the leader gets involved
in the authentic leadership then they will be able to amplify the trust that can help to overcome in
the company where the faith of the personnel increase in organization. In addition to this, this
system of positive leadership offers their contributions that remain effective in accomplishing the
objectives related to the company. The author exhibits that leader become the effective leader
when they have the readiness to achieve the same. A leader with optimistic psychology capital
can bring the improvement slowly by a never-ending process that majorly involves proper
training, education and self-study.
Authentic leadership
According to Leroy, Anseel, Gardner and Sels, 2015, authentic leadership is an approach of the
leadership that focuses on forming the leader legitimacy in the company with the honest
relationship with the personnel which leads to the ethical foundation. Further, the authentic
leadership contributes to developing the fundamental of the positive behaviour of the company
which is difficult to be done with the help of the PsyCap (Psychological Capital) and to create
the psychological climate. This leadership is linked with the prototype of leader behaviour that is
essential to form positive climate and optimistic dimensions of psychological. The authentic