Ethical leadership and employee performance

Leadership is a process in which individuals having influential personality have influence over followers. These individuals motivate the employees towards doing their job and achieving the organizational goals (Northouse, 2007). An ethical leader considers the values, morals and humble character in their work, alongside which, the ethical leader take care of employee’s social needs and rights.There are many studies that evaluated the role of leaders, which result in high employee performance. A research work concluded that an ethical leadership can play a mediating role between the culture and work (Toor & Ofori ; 2009). These factors stated that leadership playsan important role in the employees’ work outcomes and job satisfaction. Satisfied employees are more likely to perform well in the company as compared to dissatisfied employees.

The importance of ethical leadership for employees’ performance is well documented. It has been found that people who are treated with respect, have the confidence to challenge the authority and show initiative that are more likely to perform at the highest level. It is also proven that ethical leaders are more willing to help their employees in becoming more effective and successful(Sitkin, 2005). Moreover, the positive influence of ethical leadership on employees’ performance can be attributed to the positive impact of the leader’s actions(Ciulla, 2020).A recent meta-analysis of leadership styles and ethical practices indicate that the organizations with ethical leaders have better employees’ performance. This is because, the employees who are treated with trust are more likely to change and respond positively to leadership. In other words, an ethical leader will be more likely to foster a positive work environment and help the employees feel good about their jobs. The benefits of ethical leadership are clear: it can build trust and increase the likelihood of employees’ commitment and positive response. Furthermore, ethical leaders can ensure a peaceful work environment and they organize their behavior in small communities(Pamfilie, 2012).

An ethical leader will also create a better work environment for his or her employees. As a result, employees will be more motivated to work for them and perform better. They will be more likely to accept changes when they are handled by an ethical leader who has a positive attitude. While this may not be a good thing for the workplace; ethical leadership can lead towards greater productivity and satisfaction. Therefore, it is important to adopt a more transparent approach to leadership.

Hypotheses 1: Ethical Leadership is positively Influence Employee Performance

Ethical leadership and perceived organizational support

Perceived Organizational Support explains the perception of employees about the firm values, CSR activities, contributions and wellbeing of all stakeholders. POS has been found to own necessary significance, well-being and workers’ performance, according to (Eisenberger et al 1986). According to (Loi et al 2015)social theory also supports the perceived organizational support, which is treated as a mediator between the ethical leadership and the employees’ role. Ethical leadership increases the sense of perceived organizational support among employees and it depicts the organizational support and care for employees. The sense of perceived organizational support increases the organizational commitment (Shoss et al 2013). Along with that, the ethical leadership influencesthe willingness of employees to stay working for the organization (Liu &Ding 2012). Workers in the organizationconsider manager as the focal person whose behavior is vital for the employees. The manager’s behavior influences theemployee’s behavior (Eisenberger & Stinglhamber, 2011).

The impact of ethical leadership on employees’ performance can be measured through several ways. Firstly, the employees perceive a higher level of trust from their leaders. Secondly, they feel that their bosses have high standards of ethics. Thirdly, employees are more satisfied with their jobs when they know their leaders are honest. These three aspects have a direct impact on employees’ performance. Lastly, an ethical leader shows a higher level of commitment to the company.

The impact of perceived organizational support on employees’ performance is significant, and the authors cite many studies to prove their findings. They find that high levels of perceived support are associated with higher commitment and creativity. Other factors also play an important role. Job conditions, training, and recognition are among the important factors that affect the employees’ engagement. However, it is unclear exactly how perceivable organizational supports and influences the employees’ performance.In addition to fairness and supervisor support; there are other factors which also influence the employees’ perception of organizational support. These factors include their perception of how their contributions are valued and whether they receive the rewards they deserve or not. Ultimately, perceptions of organizational support are also related to the perceived social status of the organization’s leaders. It can be hard to quantify the exact impact of these factors, but the managers can adopt procedures to increase employees’ satisfaction.

Hypotheses 2:Ethical Leadership will be positively influence POS

Perceived organizational behavior and employee behavior

POS is explained as the degree to which the employees’ perceive how much the organization cares for their employees’ wellbeing and their social needs. A study stated that perceived organizational behavior is considered as the organizational involvement with employees because this influences the employees’ performance,i.e. employees’ rewards, monetary rewards, and favorable employees’ performance(Eisenberger and Rhoades, 2002). Studies stated that perceived organizational support positively influences the employees’ performance, the sample was 314 employees from different organizations (Gouldner, 1960).  Another study stated that supervisors’ support positively influences the employee’s performance and it tends to have a negative influence over the employees’ turnover and absenteeism (Eisenberger et al., 1986 1990).

Hypotheses 3:” POS is positively influence Employee Performance”

POS, ethical leadership and employee performance

In this study we will take POS as the mediating role between ethical leadership and employees’ performance. A study stated that perceived organizational support is considered as an important factor that contributes to theemployees’ turnover (Hui, Wong, & Tjosvold, 2007). There are several studies which also concluded that employees who feel valued and respected by organization, tend to perform well and their motivation gets also higher (Al-Sakarnah & Alhawary, 2009; Chen & Eldridge, 2011; Pepe, 2010). Another study also stated that perceived organizational support positively influences the employees’ performance (Chew and Wong;2008). One study also used Perceived organizational support as a mediating variable between leader member, and LMX reduced withdrawal behavior and turnover rate as well (Aryee & Zhen Xiong, 2006).

The impact of POS on employees’ performance has been studied by researchers for several decades. In recent years, Chen et al. (2010) and Cullen et al. (2014) found that POS was a significant predictor of employees’ engagement, while the effect of resilience was marginal. Likewise, the effect of distributive justice on OCB was found to be negative. For example, CSR was a powerful predictor of OCB in an organization.

The impact of perceived organizational support on employees’ performance, has been a long-standing debate. Most recent studies have found that the positive effect of CSR on employee performance was associated with higher levels of OCB. The negative effect was the opposite. Both measures were found to be negatively related to perception of CSR. Further, the employees’ perceptions of the POS were associated with lower levels of engagement. The positive relationship between POS and CSR was observed between the CSR and work engagement.

In order to increase the level of perceived organizational support the managers should make sure that they follow two procedures. According to Rhoades and Wiesenberger, a negative perception of the organization’s social support can affect the employees’ perception of their jobs. This results in a low-quality workforce. It is important for the managers to implement policies and procedures that will promote positive organizational support and promote a more positive work environment……………………

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