Positive Leadership Assesment Analysis

Student Name
INSTITUTIONAL AFFILIATION(S)
POSITIVE LEADERSHIP

Introduction
The relationship between authentic leadership (AL), leader-member exchange (LMX)
and employee's psychological capital (PsyCap) in today's organization can have a critical
impact on organizational performance. The objective behind this paper is to determine the
relationship between the three identified organizational behavior variables, and their
influence on employee’s emotion, and their ultimate intention to perform well. This literature
review paper will comprehend the relationship between Al, LMX and PsyCap from academic
lenses and as mentioned in the current literature. This paper will define the key terms and
review the literature on how PsyCap can be built in different employees besides finding why
do emotions impact employees' performance. A positive relationship can be seen in between
AL, LMX and PsyCap from the findings made by scientific researchers and management of
organizations which evidence that such relationship must be developed and implemented in
organization's strategies which aim at building psychological climate and capital.
Relationship between AL, LMX and PsyCap
AL is regarded as positive leader's behavioral pattern which promotes and draws upon
both positive ethical climate as well as psychological capital to enhance internalized moral
capabilities, greater self-awareness, relational transparency and balanced processing of
organizational data. LMX perceives ways through which leaders and subordinates develop a
self-directed and mutually beneficial relationship. Whereas PsyCap is an individual's positive
psychological state developed after gaining confidence to put required efforts to succeed in
challenging roles. According to Wherry (2012), present literature states that authentic leaders'
moral abilities make them look at issues from various angles which makes them address
employees' diverse needs (p.5). The author points out that authentic leaders are among
positive leaders who have the modern sense of how to perform as a role model by carrying
responsibility and acting more ethically and morally. It can be said that such leaders send a
robust message to their subordinates influencing what they know, what they intend to and
how to behave ultimately. Therefore, it can be said that AL's are more morally centered, self-
aware, fair and transparent while balancing decision making.
The theory, LMX posits that positive leadership is derived from dynamic leaders-
follower relationship and the benefits behind it includes enhanced employee performance, job
satisfaction, low-stress levels and increased wellbeing. Returning to AL, it is reasonable that
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the identified authenticity reflects a strong characteristic of a compassionate leader, however,
at the same time they can balance fairness with firmness. AL is regarded by followers as one
who displays a realistic and honest approach and is genuine to give credits and hence remains
potentially influential ( Cassar & Buttigieg, 2013, pp. 174-175). Such a benevolent and
influential relationship elicit a level of positive emotional state in employees as mentioned in
PsyCap. The implicit relationship between leader and employee generates a state of employee
wellbeing who shows comfort in the psychologically safe and comfortable environment due
to the presence of AL. It can also be said that AL radiates authentic relations with employees
and in LMX and PsyCap perspectives, it is reasonable to argue that the quality of relationship
received by employees further determines the results of the relationship such as employee’s
wellbeing and superior work performance.
Employees with greater PsyCap experiences low stress levels due to various reasons.
Higher PsyCap levels in employees, according to Avey, Wernsing, and Luthans, (2008)
results in optimism and hope in them which further triggers employees’ emotions as a
byproduct of increased probabilities and positive appraisals due to goal accomplishments and
success (p. 16-18). Similarly, Zamahani, Ghorbani, and Rezaei, (2011) posits that the
authenticity of leaders and positive PsyCap attain employees trust besides encouraging them
to perform in an enhanced way to facilitate organizational goals (p.666). AL provides a
supportive environment through which employees are influenced to perform unconditionally
and with positive emotions. This further builds a PsyCap in them through self-determination
development, thereby making people share a common vision and mission to serve
stakeholders. Drawing upon AL and leadership behavior pattern, promoting PsyCap and
ethical climate further nurtures employee's self-development capabilities by removing
tensions and conflicts between organizational responsibilities and personal values.
Building PsyCap in employees
The complex interaction between different forms of employees and their surroundings
emphasizes on cognitive process role which may though appear as a hidden factor but impact
potential stressful events which necessitate building PsyCap in employees. Avey, Luthans,
and Jensen, (2009) argues that human stresses are governed by beliefs concerning coping
efficacy. Optimism and efficacy in PsyCap further reflect on both flexible and realistic
variables and the behavioral pattern in employees which can be attributed to permanent,
positive and pervasive events. The findings made by the author implies today's leaders to
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