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Leader-Member Exchange (LMX) and Psychological Capital (PsyCap)
Table of Contents
1.0 Introduction    3
2.0 Concept of Authentic Leadership    4
3.0 Concept of LMX and Employees’ Psycap    4
4.0 Relationship between Authentic Leadership, LMX and PsyCap    5
5.0 PsyCap of Employees: An Influencing Factor for Productivity    6
6.0 Recommendation    8
7.0 Conclusion    9
References    10
1.0 Introduction
The motivation of the employees may be considered to be one of the most success-critical aspects of the studies of human resource in the corporate context as the given factor significantly affects the performance of the business in the long-term from the viewpoint of sustainability of the organization. The analysis of different motivational factors that may have a considerable impact on the employees;’ performance may be assessed from the context of the long-term vision of the corporate houses (Avey, 2014). On the other hand, the concept of leadership is another crucial element of HRM (human resource management) framework and it is construed that a sound and efficient leadership will contribute towards the attainment of business objectives of enhanced performance through a higher level of motivation in a most efficient manner (Chen et al, 2019). The instant report delves into the analysis of the relationship between the different motivational factor of employees from the context of specific types of leadership.
At the very outset of the study, the researcher provides a brief introduction to the topic followed by the concise discussion on the conceptual framework of authentic leadership, Leader-Member Exchange (LMX) and also the Psychological Capital (PsyCap). In the subsequent sections of the paper, the researcher aims to establish a mutual relationship between these three components in the backdrop of overall corporate sustainability. In addition, the recommendations have also been provided on the basis of the findings and finally, the researcher wraps up the discussion by way of concluding note.
2.0 Concept of Authentic Leadership
The concept of leadership is varied and may encompass various facets of leadership traits and attributes. Authentic leadership may denote the environment that may enforce a sense of positivity within the organization and promote the transparency and ethical value among the employees. In other words, the ethical framework is the backbone of the concept of authentic leadership. Authentic leaders, therefore, aim to inculcate the ethical practices within the workplace and any unethical practices may be strictly dealt with. Fostering ethics and morality is the prime motivation for authentic leadership (Avey, 2014).
3.0 Concept of LMX and Employees’ Psycap
The concept of Leader-Member Exchange (LMX) is relatively new to the HRM regime and is based on the assumption that both the leaders and his or her followers have some sets of expectations towards each other the successful fulfilment of which strengthens the mutual dependence and overall efficiency of the team or the organization. It may be observed that the leaders want obeying and compliance whereas the employees may seek to get financial benefits and amenities. Such mutual dependence ultimately contributes the joint contribution towards the common goal and thereby forms the basis of LMX concept.
On the other hand, Psychological Capital (PsyCap) may refer to the followers or employees’ level of emotions and feelings or intelligence that may be tuned to the directions of the leaders or the management. It, therefore, has been observed that a resilient and energetic employee may have a higher level of PsyCap than that of a depressed and less organized employee. In this context, it is important to note that the ethical consideration is critical in the PstyCap framework as well and an ethical employee is supposed to possess more PsyCap than that of an employee promoting unethical practices within the firm (Luthans, Vogelgesang, and Lester, 2006).
4.0 Relationship between Authentic Leadership, LMX and PsyCap
The discussion here shows that the concept of authentic leadership, LMX and PsyCap may have a common thread of motivation through which all may be linked together. for the purpose of literature review on...