Answer To: Assessment 2: Essay Due: 2 nd December, 11pm AEST Length: 2000 words Conditions: Individual...
Akansha answered on Nov 27 2020
Literature Review 1
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Authentic Leadership, Leader-Member Exchange and Psychological Capital
Introduction
Leadership can have a significant impact on the employee in the workplace. There has been significant research that suggests that impact of the right kind of leader can change the organization (Delcourt, et al., 2016). It can increase productivity, increase job satisfaction and even increase job involvement within the organization (Conway, et al., 2016). The following review of Literature focuses on three main topics. The first one is the relationship between authentic leadership, Leader-Member Exchange (LMX) and employees’ Psychological Capital. The second part looks at how to build psychological capital of various employees. The third part looks at some of the possible reasons that emotions can significantly impact the performance of the employees.
Literature Review
According to Gill and Caza, (2018), authentic leadership is the style of leadership that focusses on building trust between the leader and the employees through honesty and truth (Gill and Caza, 2018). Most authentic relationships that are built are those that value the individual employees and are built on an ethical foundation as well. They promote openness and truthful concepts of the self. Leader- Member exchange can be seen as the exchange between leaders and their subordinates, and how these relationships and exchanges can impact the behaviour of the subordinate in the workplace. This includes their responsibility, their performance, the access that they have to resources and the decisions that they make (Gill and Caza, 2018). A positive leader-member exchange has been linked to increase in the performance in the workplace, and can have a high impact on the relationship that the employee has with their workplace environment. If the employee has a good leader-member exchange with their supervisors, then it could significantly increase their chances of success in the organization, and it could also motivate them to stay in the organization for a longer duration of time as well. Psychological capital consists of 4 main pillars, which are Hope, Optimism, Resilience and Efficacy. It can help in increasing the motivation of the employee.
There is a positive relationship between authentic leadership and leader-member exchange, as well as authentic relationship and Psychological capital. According to Wang et al., (2014), authentic leadership has been proven to increase the leader-member exchange and improve the consequences of it as well (Wang, et al., 2014). Authentic leadership is about honesty and having trust in the employees. By being honest to the employees, research has found that it can increase the leader-member exchange in the organization as well. Since the exchange is largely dependent on how the leader and the employee believe each other, and are able to communicate with each other, an authentic leadership can greatly improve the exchange. Authentic leadership can also have a positive impact on psychological capital. Employees can increase the psychological capital by having positive emotions. These positive emotions can be generated through appreciation and value (Wang, et al., 2014). When an employee feels that they are being valued in the organization, and what they say is being taken into consideration, it helps in building positive emotions, which helps in increasing the psychological capital of the employee as well. This generally happens during an authentic leadership. As mentioned earlier, an authentic leader appreciates and values their employees, which is why it has been found to have a positive relationship, and can increase psychological capital as well (Wang, et al., 2014).
There is also significant research that has been done regarding the relationship between leader-member exchange and psychological capital (Abbas, et al., 2014). According to Liao, et al., (2017), leader-member exchange has been found to increase psychological capital. Psychological capital is built around the positive emotions that the employee has in the workplace, and this makes the employee feel happy and valued in the organization. A good bond and leader-member exchange can improve the positive emotions in the workplace. If the employee feels that they are respected by the leader, then their relationship with the leader, and by default, the organization will also improve to a large extent (Liao, et al., 2017). Thus, it is important to note that this relation works the other way as well. Liao, et al., (2017), argue that in most cases, if the employee has immense psychological capital, chances of them having a good bond with their leader, and a good...