Evaluating the Moral Components of Authentic Leadership on Employees’ Productivity. A Literature Review ()
1. Introduction
1.1. Background
The concept of authentic leadership has gained popularity in recent years, but it has roots in several different fields of study, including psychology, leadership, and organizational behavior. One of the key contributors to the development of the concept of authentic leadership was a leadership scholar, Bill George, who wrote about the importance of authenticity in leadership in his book “True North: Discover Your Authentic Leadership”. George (2003) argued that authentic leaders are self-aware and able to lead with their values, and he described several key characteristics of authentic leaders, including a strong sense of purpose, the ability to build relationships, and a commitment to ethical behavior ( George & Sims, 2007 ). According to the findings by Ribeiro et al. (2020) authentic leadership has a positive impact on affective commitment and creativity.
In addition to the works done by Bill George, here are other researchers and scholars who have also made their contributions towards the development of the concept of authentic leadership, they include Fred Luthans, Bernard Bass, and Bruce Avolio. Together, these researchers have helped to define and refine the concept of authentic leadership, and they have conducted research on the relationship between authentic leadership and various outcomes, such as employee engagement, organizational performance, and well-being ( Luthans et al., 2010 ; Avolio et al., 2004 ; Walumbwa et al., 2008 ).
Organizations and society in general are yearning for leaders who have the highest integrity and are committed to building enduring legacies. Leaders who have a deep sense of purpose and are true to their core values. Leaders who have the courage to build their companies to meet the needs of all their stakeholders, and who recognize the importance of their service to society ( George, 2003 ). Authentic Leaders! Yukl and Gardener III (2020) , define Authentic Leadership as “a pattern of leader behavior that draws upon and promotes both positive psychological capacities and a positive ethical climate, to foster greater self-awareness, an internalized moral perspective, balanced processing of information, and relational transparency on the part of leaders working with followers, fostering positive self-development”. Authentic leadership is a leadership style characterized by honesty, transparency, and a strong alignment between the leader’s values and actions. Walumbwa et al. (2008) explain that authentic leadership is a leadership style characterized by honesty, transparency, and a strong alignment between the leader’s values and actions.
Horn and Moore (2021) have proposed a contrasting viewpoint to the popular notion of “fake it until you make it” ( Luca & Zervas, 2016 ; Ivana, 2017 ; Dankar & Ibrahim, 2021 ) in their book titled “Make It, Don’t Fake It: Leading with Authenticity for Real Business Success”. According to Horn and Moore (2021) , instead of pretending to be something you’re not, leaders should focus on developing their skills and competencies genuinely. They argue that being authentic and true to oneself is essential for achieving long-term success in business. In today’s society, which is faced with a plethora of challenges and a lack of spiritual connectedness, it is crucial to have leaders who embody purpose, values, and integrity and act as responsible stewards of their predecessors’ legacies ( George, 2003 ; Horn & Moore, 2021 ). Therefore, authenticity has emerged as a potential solution, replacing the outdated approach of “fake it until you make it.”
This study adopts a focused approach in examining the impact of the moral components of authentic leadership on employee productivity. By identifying the specific moral components that enhance employee productivity, this research aims to provide practical insights for leaders to create a positive work environment that fosters employee engagement and motivation. Additionally, this study could offer implications for organizations on how to select and develop leaders who possess these moral components, as well as create a culture that supports and encourages these behaviors. For instance, previous studies have shown that leaders with strong moral values such as integrity, responsibility, and empathy, have a positive effect on employee motivation and engagement ( Crawford et al., 2020 ). Furthermore, these leaders tend to promote a fair and just work environment that leads to more engaged and productive employees ( Kurian & Nafukho, 2022 ). In addition, Al-Jaradat, Khasawneh, Abu-Alruz and Bataineh (2020) found that authentic leaders foster a more positive and inclusive work environment, which in turn leads to more engaged and productive employees. Overall, investigating the “relationship between authentic leadership and employee productivity” is crucial, as it can inform the development of more effective leadership practices and enhance organizational performance.
1.2. Problem Statement
Despite the increasing recognition of the importance of authentic leadership for organizational success, there is a lack of empirical evidence on the specific moral components of authentic leadership that may influence employee productivity. The purpose of this study is to evaluate the relationship between the moral components of authentic leadership (such as honesty, integrity, empathy, and responsibility) and employee productivity in order to better understand how leaders can create a positive work environment and foster employee engagement and motivation.
1.3. The Distinctions of Authentic Leadership
Leadership, as noted by Nohria and Khurana (2010) , encompasses not only the technical aspects of “how to do” but also the personal qualities of “how to be.” While mastering the technical skills of leadership may require a significant in-vestment of time, it is the leader’s character and personal qualities that ultimately define their effectiveness ( Nohria & Khurana, 2010 ). This is because leadership habits are contagious ( Sy et al., 2005 ), and followers tend to emulate their leader’s qualities and character. A skilled leader must, therefore, demonstrate consistency between their words and actions, and make decisions that align with their values ( Celestine, 2021 ) in order to maintain the trust and respect of their followers.
Authentic leadership is associated with individuals who are seen as credible and aware of how they think and behave ( Kotzé & Nel, 2017a ). Authentic leadership consists of “four distinct but related substantive components: self-awareness, relational transparency, balanced processing, and an internalized moral perspective” ( Avolio et al., 2004 ; Gardner et al., 2005 ; Gardner et al., 2011 ; Ilies, Morgeson, & Nahrgang, 2005 ; Luthans & Avolio, 2003 ; Walumbwa et al., 2008 ; Dowden, 2022 ). This includes being aware of one’s strengths and weaknesses, and how they may impact their leadership style. Goleman, Kaplan, David and Eurich (2018) explain that self-awareness is the ability of an individual to understand their own thoughts, emotions, and behaviors, including their strengths and weaknesses. It enables leaders to manage their emotions and make decisions that align with their values and goals ( Goleman et al., 2018 ). According to Brewer and Devnew (2022) , self-aware leaders are better equipped to manage their emotions and make decisions that align with their values and goals. They further argued that developing responsible, self-aware management can be achieved through authentic leadership development programs. Relational transparency refers to the degree to which leaders are open and honest with their followers ( Rego, Cunha & Giustiniano, 2022 ). It is the extent to which the leader is able to clearly and effectively communicate their intentions, values, and decision-making processes to their team members, presenting one’s authentic self to others ( Elhamed & Hessuin, 2022 ). In other words, it is the level of accessibility, honesty, and openness that a leader has with their followers. This can help to build trust and credibility with followers, which in turn can lead to increased employee engagement and productivity ( Mason, 2019 ). Similarly, Obuba (2022) notes that authentic leadership is positively related to improved organizational outcomes. Balanced processing according to Kernis (2003) is the ability of a leader to be open to process both positive and negative self-relevant information with minimal influence of ego-defensive mechanisms. This is when a leader considers multiple perspectives and weighs the pros and cons of different options before making a decision. Balanced processing, therefore, leads to better decision-making and a more inclusive work environment ( Gardner et al., 2005 ). Internalized moral perspective is a form of self-regulation guided by internal moral standards and values ( Petan & Bocarnea, 2016 ). Internalized moral perspective is the degree to which leaders have a strong sense of purpose and are guided by their values and principles. Leaders who possess this quality tend to prioritize the well-being of their followers and strive to create a positive and inclusive work environment ( Walumbwa et al., 2008 ).
All these four components, self-awareness, relational transparency, balanced processing, and an internalized moral perspective, are interrelated, and when leaders possess all of them, it can lead to a more positive and inclusive work environment, increased employee engagement, and better organizational performance. As Headley (2021) suggests, authentic leaders tend to be more transparent, self-aware, and morally guided, which in turn allows them to foster a culture of trust and collaboration.
According to a literature review by Ilies, Morgeson, and Nahrgang (2005) , authentic leaders possess self-awareness, self-regulation, transparency, high levels of integrity and moral character, and a clear sense of purpose and values. They are able to inspire and engage followers through their genuine and sincere behavior. The review also suggests that authentic leadership has a positive impact on employee well-being, job satisfaction, and performance, as well as organizational outcomes such as innovation and customer satisfaction ( Ilies et al., 2005 ).
Northouse (2016) explains that authentic leaders demonstrate five basic characteristics: “they understand their purpose, they have strong values about the right thing to do, they establish trusting relationships with others, they demonstrate self-discipline and act on their values, and they are passionate about their mission (i.e., act from their heart)”. Authentic leaders know and live their values and they win people’s trust by being who they are, not pretending to be someone else or living up to others’ expectations.
According to several studies, authentic leaders have been found to be more effective, with higher levels of engagement and motivation among their followers ( Walumbwa, Hartnell, & Oke, 2010 ; Luthans et al., 2006, 2005 ). Authentic leadership is associated with higher levels of well-being: research has shown that people who work for authentic leaders tend to have higher levels of well-being and are more satisfied with their jobs ( Walumbwa et al., 2008 ; Luthans et al., 2010 ; Wong & Law, 2002 ). Authentic leadership is linked to improved organizational outcomes. Organizations with authentic leaders tend to have better outcomes, such as higher levels of innovation, customer satisfaction, and financial performance ( Avolio et al., 2004 ; Walumbwa et al., 2008 ; Luthans et al., 2010 ).
According to research, it is possible to develop authentic leadership, even though some individuals may possess natural authenticity. Training and practice can help in cultivating authentic leadership ( Avolio et al., 2004 ; Luthans et al., 2010 ; Luthans et al., 2005 ). To be considered an authentic leader, it is crucial to demonstrate character and conduct consistently, both publicly and privately, as stated by Oginde (2020) .
This research helps to understand how leaders can create a positive work environment and foster employee engagement and motivation. By identifying the specific moral components that contribute to increased employee productivity, this study can provide practical insights for leaders on how to create a positive work environment and foster employee engagement and motivation. Additionally, the study also provides implications for organizations on how to select and develop leaders who possess these moral components, and how to create a culture that supports and encourages these behaviors. For example, authentic leaders have a positive effect on employee’s motivation and engagement, and they tend to foster a more just and fair work environment, which in turn leads to more engaged and productive employees ( Crawford et al., 2020 ; Kurian & Nafukho, 2022 ).
Overall, Authentic Leadership is a unique leadership style that emphasizes self-awareness, relational transparency, balanced processing, and an internalized moral perspective. This leadership style has been shown to be positively associated with increased employee engagement, higher levels of effectiveness, and improved organizational outcomes. What sets Authentic Leadership apart from other leadership styles is its emphasis on personal values and ethics, which allows leaders to prioritize the well-being of their followers and create a positive and inclusive work environment. Therefore, organizations that want to improve their performance and foster a culture of ethical leadership should strive to cultivate Authentic Leadership among their leaders. As noted by Crawford et al. (2020) and Kurian and Nafukho (2022) , authentic leadership development programs can be effective in developing this style of leadership among organizational leaders.
2. Authentic Leadership and Followership
2.1. Authentic Leader and the Followers’ Interconnections
The interconnection of an authentic leader with the followers is one that is based on trust ( Kurian & Nafukho, 2022 ). Authentic leaders put legitimacy, ethics, and positive psychological capacities first ( Towler, 2019 ). Authentic leaders according to Kurian and Nafukho (2022) tend to be more trusted by their followers because they are open and honest, and they lead with their values. This trust can create a stronger bond between the leader and the followers. Authentic leaders can build follower trust via their supportive behavior and the transparent nature of their relationships ( Norman et al., 2010 ).
Authentic leaders tend to be more open and transparent in their communication, which can foster a sense of openness and honesty among their followers ( Walumbwa et al., 2008 ). They are able to inspire and motivate their followers by being genuine and authentic. This can lead to higher levels of engagement and commitment among the followers. According to Gardner and Schermerhorn (2003) , authentic leaders have a tendency to establish an encouraging and affirmative work atmosphere that stimulates cooperation and teamwork, thereby fostering better collaboration and more favorable relationships among their followers.
An authentic leader is an influencer, who intentionally encourages the followers to be more open by developing trust based on mutual respect ( George & Sims, 2007 ). Ford and Harding (2011) , posit that AL presumes that the relationship between leader and follower is vital to improving organizational functioning, and it explores ways of ‘improving’ the means through which the leader influences the follower. Followers learn a lot more from who we are and how we behave than from what we say ( Lussier & Achua, 2016 ). It is also important to create a climate in which employees are encouraged to behave authentically and congruently. This means that they should be comfortable expressing feelings as well as thoughts and ideas ( Lussier & Achua, 2016 ).
An authentic leader treats followers with humility ( Kurian & Nafukho, 2022 ). Humility, according to Worthington Jr. and Allison (2018) demands that we see ourselves accurately, present ourselves modestly, and orient ourselves toward helping others. These distinctions of Authentic Leadership are the core values that motivate authentic leaders to do what is right and fair for their followers.
In conclusion, the interconnection between authentic leader and their followers is built on trust, openness, and transparency. Authentic leaders create a positive, supportive work environment that encourages cooperation and teamwork. They also tend to be more approachable, empathetic, and respectful toward their followers. This fosters a sense of trust and respect among followers and can lead to better collaboration and more positive relationships. Ultimately, organizations that promote authentic leadership can create a more engaged, motivated, and productive workforce.
2.2. Authenticity in Employees’ Engagement
Authentic leaders are genuine, self-aware, and transparent in their actions and communication. They prioritize the needs and well-being of their followers, and they exhibit ethical and moral behavior ( Walumbwa et al., 2010 ).
Effective engagement of employees is something that is crucial for any organization and therefore must be taken seriously. Something appalling is that most companies still see employee engagement as initiatives limited to salary increases, ping-pong tables in the recreation room, free cakes and doughnuts, holidays, etc., but very few think of connecting with their employees emotionally ( Vidili, 2021 ). Emotional connection is critical, Ryba (2021) avers that employee engagement is the strength of the mental and emotional connection employees feel toward the work they do, their teams, and their organization. Emotional connection comes out strong when an employee observes authenticity in the ways/he is treated.
On the flip side, without employee engagement, according to research employees are less likely to work hard, feel motivated, or meet expectations for their role, and they cause 60% more errors and defects in work performance ( Seppälä & Cameron, 2015 ). Research by Gallup (2022) , in such a situation, 73% of actively disengaged employees is on the lookout for new jobs or opportunities. Authenticity creates an atmosphere of trust, which is what can promote a dedicated and meaningful working relationship. Osborne and Hammoud (2017) note that dedicated and meaningful work enables employees to realize how valuable they are within the organization and makes them engaged. Leaders who are authentic influence the engagement of employees ( Nicholas & Erakovich, 2013 ).
Employee engagement matters so much not just to both the employee as well as the organization. The research by Gallup (2022) on the world’s most successful organizations, revealed that a culture of high development driven by an effective employee engagement strategy is the most productive environment for both businesses and employees. Kompaso and Sridevi (2010) studies demonstrate that feeling valued by management, two-way communication between management and employees, management’s interest in employees’ well-being, and giving more opportunities for employees to grow are the top drivers of employee engagement.
Strategies that an organization can apply to employee engagement include, first providing opportunities for growth and development: employees are more likely to be engaged when they feel that they are learning and growing in their jobs ( Love, 2021 ). Organizations can provide employees with training, development, and advancement opportunities to help them stay engaged ( Gagne, Tannenbaum & Salas, 2014 ). The second is to foster a positive work environment: A positive work environment that is inclusive, supportive, and respectful can help to keep employees engaged ( Ahmed et al., 2021 ). Thirdly is to foster a sense of purpose: employees are more likely to be engaged when they feel that their work has meaning and purpose. Organizations can help employees to connect their work to a larger purpose or mission to help them stay engaged ( McNair et al., 2022 ).
The fourth one is to foster a sense of belonging: employees are more likely to be engaged when they feel that they are part of a community or team. Organizations can create opportunities for employees to interact with each other and build relationships to help them feel a sense of belonging ( Shahrani, Hassan, & Adaikalam, 2021 ). Fifthly, is to foster a sense of autonomy: employees are more likely to be engaged when they feel that they have some control over their work. Organizations can give employees some autonomy and discretion in their work to help them stay engaged ( Jong & Ford, 2021 ). In addition, and according to Kompaso and Sridevi (2010) managers should always enhance two-way communication with the employees
According to Gardner, Karam, Alvesson & Einola (2021) , the concept of authentic leadership, while semantically appealing, does not offer a solid foundation for serious knowledge work ( Alvesson & Einola, 2019: p. 385 ). In a knowledge business, a firm’s strategy must be closely linked to its talents ( Lawler III & Boudreau, 2015 ). The leader therefore should develop a strategy towards realizing this and in so doing, employees are more likely to identify with the organization as one they are proud to work for ( Armstrong & Taylor, 2022 ). Employees are the face of the company and therefore their interactions with customers build up the much-needed competitive advantage. Authentic leadership increases work engagement among employees and their job performance ( Laguna et al., 2019 ).
Leaders benefit a great deal from being perceived as authentic, but that requires a great deal of practice, attention, and focus: it requires being consistent in one’s actions and words and maintaining your professional persona across settings—keeping your personal self-private.
The integration of spirituality with work is difficult if not impossible in organizations that encourage or require employees to act in ways that are inconsistent with their values. This is because employees may feel that their personal values and beliefs are being compromised, leading to a disconnect between their work and their sense of self. This can lead to decreased job satisfaction, motivation, and productivity. This concept is supported by research by Catlett and Campbell (2021) in their study on Advance Care Planning and End of Life Care Literacy Initiatives in African American Faith Communities, where they found that individuals who felt that their spiritual beliefs were not being respected in the workplace had lower levels of job satisfaction and engagement. Consistency between personal values and work objectives is important to leaders as well as to followers ( Yukl, 2013 ). It needs a high level of discipline. To be disciplined requires deliberate action and sacrifices. For a leader to achieve greater degrees of self-discipline, one must have a clear vision of what they hope to accomplish. And since you are the helm of guiding the people, your vision requires consensus. Meeting the varied needs of the people you serve is a continuing struggle. Leaders are pulled in many different directions yet must keep a clear vision of where they and their organizations are headed ( George, 2003 ).
Authentic leadership and what researchers have found out so far. Effective leaders do not dwell too much upon the risks or obstacles, but instead emphasize what can be accomplished with a concerted, shared effort ( Yukl, 2013 ). According to Schein (2004) culture is an abstraction, yet the forces that are created in social and organizational situations that derive from culture are powerful. If we don’t understand the operation of these forces, we become victims to them. Being authentic in an organizational culture means being true to one’s values and beliefs and acting in accordance with those values in the workplace. It involves being genuine, transparent, and honest in one’s actions and communication. In an organizational culture that values authenticity, employees are encouraged to be themselves and to bring their whole selves to work. This can foster a sense of openness, trust, and respect among employees, which can in turn lead to increased collaboration and productivity.
Authentic leaders can help to create an authentic organizational culture by modeling authenticity themselves, and by encouraging and supporting employees to be authentic in their own actions and communication. An authentic organizational culture can be a positive and supportive work environment that promotes employee well-being and personal growth. Zhang, Li, Chen, and Wu (2020) conducted a study to examine the relationship between authentic leadership and employee well-being. The findings suggest that authentic leadership may have a positive impact on employee well-being and that this relationship may be mediated by psychological capital and moderated by work-family conflict.
Authenticity or being authentic in your style of leadership has positive impacts on employee personal growth. There is evidence to suggest that authenticity, or being genuine and true to oneself, can have a positive impact on employee personal growth. For example, research has shown that employees who work for authentic leaders tend to have higher levels of self-awareness, self-esteem, and self-development ( Walumbwa et al., 2008 ). These personal characteristics are important for personal growth, as they can help employees to better understand and develop themselves, and to set and pursue meaningful goals.
Authentic leaders may also facilitate employee personal growth by creating a positive and supportive work environment that encourages learning, development, and personal growth ( Gardner & Schermerhorn, 2003 ; Love, 2021 ). By providing opportunities for learning and development, and by supporting employees in their efforts to grow and develop, authentic leaders can help employees to reach their full potential and achieve their personal goals.
In conclusion, authenticity in employee engagement is a crucial factor in promoting a positive workplace environment and increasing employee satisfaction. Authentic leadership plays a significant role in fostering this engagement by demonstrating authenticity and transparency in their actions and communication. Employees who view authenticity in their leaders are more likely to feel valued, supported, and committed to their work. As such, it is important for organizations to prioritize the development of authentic leaders who practice authenticity in their interactions with employees, leading to a more engaged and productive workforce.
2.3. The Moral Components of Authentic Leadership
Authentic leadership is based on a strong foundation of ethics and morality, and it involves leading with honesty, integrity, responsibility, and respect. Needless suffering is always a result of our unwillingness to honestly engage in difficult and challenging leadership tasks ( Scazzero, 2015 ) something that an authentic leader understands so well.
Authentic leaders are honest and transparent in their actions and communication. They are genuine, they are sincere, and they do not try to deceive or mislead others ( Gardner & Schermerhorn, 2003 ). Research done across several countries and within a span of several years, most followers identified honesty as the topmost leadership characteristic in leadership that they admire most ( Kouzes & Posner, 2017 ). The other component is integrity. Lack of integrity in leadership can have significant consequences for followers, performance, and organizational culture. It is important for leaders to demonstrate integrity in their actions and communication. When it comes to integrity, Luthans and Avolio (2003) explain that authentic leaders act in accordance with their values and beliefs, and they demonstrate consistency between their words and actions. They are trustworthy and reliable, and they do not compromise their values for personal gain. This is a responsibility that every leader must demonstrate. Responsibility is an essential characteristic of good leadership. Leaders who take responsibility for their actions and decisions are more likely to be trusted and respected by their followers. Authentic leaders take responsibility for their actions and decisions, and they are accountable for their behavior. They are willing to admit their mistakes and learn from them ( Gardner & Schermerhorn, 2003 ; Avolio & Gardner, 2005 ).
It is generally agreed upon that a leader should respect their employees. Respect is an important component of effective leadership, as it helps to create a positive and inclusive work environment and promotes trust and collaboration among employees. Authentic leaders recognize the worth and dignity of all individuals, and they treat their followers with respect and consideration. They recognize the contributions and potential of their followers, and they value their diversity and unique perspectives ( Luthans & Avolio, 2003 ).
A crucial role in leadership, especially at a time of a crisis, is to interpret confusing events and build consensus around strategies for dealing with threats and opportunities. Sometimes success requires a strategy or project that is bold and innovative ( Yukl, 2013 ). This bold move must always be done within some confines of ethical behaviors and an Authentic leader should exhibit ethical behavior and be guided by a strong moral compass. They act in a way that is fair and just, and they respect the rights and dignity of others ( Avolio & Gardner, 2005 ). One must do what one believes in, because “if you do what you don’t believe, it will corrupt your soul” ( Julian, 2002 ). Doing the right thing may at times cause trouble for you but the ultimate satisfaction that you did what your conscious pushed you to do is the pillar of authenticity. Such actions are usually not easy, you can’t say it, think about it, plot it, or plan it. However, people will always see the true spirit of service when it comes from your heart. That’s being an authentic leader.
Success comes at a price. Taking a bold move is not without bruises. If you want something beautiful, you may have to step out and take a risk and be willing to take a chance on something you believe is in line with your faith and the spiritual discipline that goes along with it. It is for leaders at all stages of their lives, from those at the top of organizations to students preparing to become leaders to lifelong leaders looking for new opportunities. You are never too young, or too old, to take on leadership challenges and to lead. Just be authentic! Scholars like Northouse (2016) opine that authentic leadership needs to be considered more tentatively because it is likely to change as new research about the theory is published. Being an authentic leader is when you are true to yourself. You know what your strengths are, and you equally know what your weaknesses are. An authentic leader should therefore not allow these to be an impediment in their leadership but rather lay them bare to their followers.
Just as compass points toward a magnetic pole, your True North pulls you toward the purpose of your leadership. When you follow your internal compass, your leadership will be authentic, and people will naturally want to associate with you. Although others may guide or influence you, your truth is derived from your life story, and only you can determine what it should be ( George, & Sims, 2007 ).
Overall, authentic leadership is more than just a set of behaviors or skills, it is a moral concept that emphasizes the importance of being true to oneself while also prioritizing the well-being of others. The moral components of authentic leadership, which include honesty, integrity, and ethical decision-making, are critical for creating a culture of trust and respect within an organization. Leaders who embody these traits not only inspire their followers but also foster a sense of community and shared purpose. As such, organizations should strive to cultivate and promote authentic leaders who prioritize moral values in their leadership style, as this can lead to a more positive and effective workplace culture
3. The Conceptual Framework
3.1. Overview of the Proposed Conceptual Framework
The conceptual framework proposed in this study is grounded on the reviewed literature to assist organizations in attaining their intended results. The framework highlights that for a leader’s authentic leadership style to result in increased employee productivity, as measured by meeting stakeholders’ needs, service to society, and personal growth, it is crucial for the leader and employee to have a positive relationship that is mediated by factors such as trust, communication, motivation, and a supportive work environment. However, the success of this framework also depends on external factors such as demographics, economic and political factors, technology, and organizational culture that act as moderating variables.
Authentic leaders strive to align their actions with their values and beliefs ( Gardner & Schermerhorn, 2003 ; Avolio & Gardner, 2005 ). This conceptual framework emphasizes the critical role of authentic leadership, work environment, and relationships in shaping employee productivity, as well as the importance of fostering employees’ personal growth.
3.2. Authentic Leadership in Employees’ Productivity
To have highly productive employees, it is important for leaders to demonstrate honesty, transparency, and genuineness, which are characteristic traits of authentic leadership ( Walumbwa, Christensen, & Hailey, 2011 ). Research has also indicated that authentic leaders are self-aware and lead in a way that aligns with their personal and professional goals ( Avolio et al., 2004 ). Therefore, replicating these attributes in employees should be the norm ( Gagne, Tannenbaum, & Salas, 2014 ; Luthans et al., 2007 ).
Available evidence suggests that employees who work for authentic leaders tend to be more motivated, engaged, and satisfied with their jobs ( Gagne et al., 2014 ). When employees are motivated and engaged, they are more likely to be productive and contribute to the success of the organization ( Harter, Schmidt, &
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Figure 1. The conceptual framework of Authentic Leadership on employees’ productivity. (Figure 1 is a schematic diagram of the proposed conceptual framework).
Hayes, 2002 ). Authentic leaders may also foster a sense of trust and respect among their followers, which can lead to better communication and collaboration ( Gagne et al., 2014 ).
Authentic leaders may also encourage employee development and personal
growth ( Walumbwa, Christensen, & Hailey, 2011 ), which can lead to increased satisfaction and productivity ( Avolio et al., 2004 ). By providing opportunities for learning and growth, authentic leaders can help employees to develop new skills and to take on new challenges, which can lead to increased confidence and a sense of purpose ( Luthans et al., 2007 ).
Leaders who treat employees with dignity and value, plant a deep sense of commitment in them. Schroeder et al. (2019) explain that values inspire, motivate and engage people to discharge obligations or duties. Being a mentor to others can also provide an opportunity to model and pass on your values to others ( Braham, Waller, & English, 2022 ). In addition, some critical practices that authentic leaders apply in their organizations include self-awareness. Authentic leaders are self-aware and able to accurately understand their own strengths, weaknesses, values, and emotions ( Luthans & Avolio, 2003 ). According to Goleman (2018) , self-awareness helps leaders to understand their own emotions and how they may be affecting their thoughts and behaviors. This can help leaders to manage their emotions more effectively and make better decisions. It has also been argued by Luthans and Avolio (2003) that self-awareness allows leaders to understand the impact of their actions on others. This is what helps a leader to be more considerate and empathetic towards their followers and create a more positive work environment.
Authentic leaders are genuine and transparent in their actions and communication, and they are authentic in their interactions with others ( Gardner & Schermerhorn, 2003 ). This has got to be ethically correct. Authentic leaders exhibit ethical behavior and are guided by a strong moral compass ( Avolio & Gardner, 2005 ). Having a strong moral compass can help authentic leaders to make difficult decisions, communicate effectively with their followers, and to build trust and respect. It is an important aspect of authentic leadership, and it helps to establish the leader’s credibility and integrity. At the same time authentic leaders possess high levels of emotional intelligence, and they are able to effectively manage their own emotions and those of others ( Luthans & Avolio, 2003 ). This is something that is very essential in decision-making. Authentic leaders tend to make more effective decisions, as they are more likely to consider the needs and opinions of others and to take a long-term view of the consequences of their decisions. Avolio and Gardner (2005) found that Authentic Leaders are more likely to engage in ethical decision-making because they are more likely to consider the impact of their decisions on all stakeholders.
The mood of a leader is very key to the performance of a group according to the findings by Sy et al. (2005) . When a leader is in a foul mood, it emotionally affects the employees as well. Authentic leaders have been found to have a positive impact on the mood of their followers and the overall group climate because they are emotionally sensitive to their followers. Research has shown that authentic leaders create a positive work environment through their honesty, transparency, and ability to connect with their followers on a personal level ( Gardner & Schermerhorn, 2003 ). This positive work environment can foster a sense of trust and belonging among followers, leading to increased motivation, engagement, and job satisfaction ( Mumford et al., 2000 ). In contrast, leaders who are inauthentic or lack integrity may create a negative or toxic work environment, which can lead to negative moods and decreased morale among followers ( Avolio et al., 2004 ).
A leader must cast a clear vision for the organization and in turn for the employees (followers) in general. It is important to clearly and concisely articulate the vision so that employees understand what is expected of them and how they can contribute to achieving the vision ( Luthans & Avolio, 2003 ). Authentic leaders according to Gardner and Schermerhorn (2003 ), are able to articulate a clear and inspiring vision for the future, and they are able to motivate and engage their followers to work towards this vision. They are also able to make sound and ethical decisions, even in times of uncertainty or ambiguity ( Avolio & Gardner, 2005 ).
A measure of employee productivity should not only be focusing on the organization but rather on the individual employee’s growth, their personal growth. Authentic leaders are committed to the development and growth of their followers, and they provide support and opportunities for learning and development ( Gardner & Schermerhorn, 2003 ).
Overall, Authentic Leadership in employees’ productivity is a crucial aspect that organizations must invest in for their betterment. Authentic leaders who demonstrate honesty, transparency, and genuineness can positively impact employee productivity by inspiring trust, communication, motivation, and a supportive work environment. However, it is important to note that the leader/employee relationship mediates this impact and that various moderating factors, such as demographics, economic and political factors, technology, and organizational culture, can affect the relationship and consequently the productivity of employees. Therefore, organizations should strive to create a conducive work environment that encourages authentic leadership, fosters positive leader/employee relationships, and takes into account the moderating factors to achieve the desired outcomes of increased employee productivity and overall success.
3.3. Evaluating Employees’ Productivity
A leader should choose an appropriate measure of productivity, and these should be based on the specific goals and needs of the organization. Azevedo and Nnadozie (2019) list the following as some of the factors, output per unit of time, output per unit of input, and quality of output. Tracking the amount of time employees spend on activities that directly contribute to the organization’s goals and objectives. And then there is also absenteeism as a measure of productivity. Azevedo and Nnadoziealso list employee turnover as well. This measure involves tracking the number of employees who leave the organization ( Azevedo & Nnadozie, 2019 ). Calderon-Mafud and Pando-Moreno (2018) suggest that leaders who are authentic may be better able to create a positive and inclusive work environment that leads to employees feeling more engaged and invested in the organization.
In order to be effectively productive, employees need motivation. Employees are more productive when they are motivated to do their best work. According to Ali and Anwar (2021) when employees are motivated, they tend to be more satisfied with their job, and their performance improves. Employees who are more motivated tend to be more productive and engaged in their work. Motivated employees tend to be more productive and engaged in their work and they are more likely to stay with the organization, which can lead to improved organizational performance, better customer satisfaction, and higher financial performance ( Kalogiannidis, 2021 ).
Motivation can be influenced by factors such as the level of challenge in the work, the opportunity for advancement, the alignment of personal values with organizational values, and the presence of supportive and empowering leadership ( Jong & Ford, 2021 ). Motivation is an important aspect of organizational behavior that can greatly influence an employee’s engagement and performance. According to Robbins, Judge, Millett and Boyle (2021) factors that can influence motivation in the workplace include goal setting and achievement, recognition and rewards, autonomy and empowerment, support and resources, organizational culture, work-life balance, job design, social support and feedback. One important aspect of motivation is goal setting and achievement. When employees have clear and challenging goals, they tend to be more motivated to work toward achieving them. According to Vu (2020) , clear and challenging goals help employees to focus their efforts, increase their engagement, and improve their performance. Furthermore, when employees are involved in the goal-setting process, they tend to be more committed to achieving the goals set for them. Recognition and rewards also play a key role in motivation, as employees are more motivated when they receive recognition and rewards for their good work. Autonomy and empowerment also contribute to motivation, as when employees are given autonomy and empowerment, they tend to feel more in control of their work and are more motivated as a result ( Robbins et al., 2021 ).
Support and resources are also important factors in motivation, as employees are more motivated when they have the necessary support and resources to perform their job well ( Robbins et al., 2021 ). The culture of an organization can greatly influence employee motivation, as a positive culture that encourages and supports employee engagement and well-being can lead to higher motivation levels ( Robbins et al., 2021 ). Work-life balance, job design, social support, and feedback are also factors that can affect employee motivation, as when employees have a good work-life balance, are engaged and fulfilled in their work, have the support of their colleagues and supervisors and receive regular, constructive feedback, they tend to be more motivated to improve their performance ( Robbins et al., 2021 ). Other researchers have also found similar results. For example, in their study on the impact of employee motivation on organizational performance, Kalogiannidis (2021) found that when employees are provided with the necessary support and resources, they tend to be more motivated and engaged in their work. Similarly, Ali and Anwar (2021) found that when employees have the support of their colleagues and supervisors, they tend to be more motivated to perform their job well. Additionally, in their study on the effects of excellent principals’ authentic leadership on schools’ collaborative culture in Malaysia, Gurusamy, Abdullah, & Abd Rahman (2022) found that when leaders provide the necessary support and resources, employees tend to be more motivated and engaged in their work.
Engaging employees in a way they authentically feel and sense the genuineness of the leader will arguably translate to better productivity. Engaged employees are more likely to be productive, as they are focused, motivated, and invested in their work. Engagement can be influenced by factors such as the quality of the work environment, the opportunity for growth and development, and the alignment of personal values with organizational values ( Harter, Schmidt & Hayes, 2002 ). The other aspect is to have the right skills and abilities. Employees who have the necessary skills and abilities for their jobs are more likely to be productive. Organizations can invest in training and development to help employees improve their skills and abilities ( Gagne et al., 2014 ). But these should be based on the workloads because employees are more productive when they have a reasonable workload that allows them to focus and make progress on their tasks. Overload or underload can lead to decreased productivity ( Midha, Wilson & Sharples, 2022 ).
Human resource management practitioners will warn leaders that the physical and mental health of employees is paramount! Employees who are physically and mentally healthy are more likely to be productive. Organizations can support employee well-being through initiatives such as wellness programs and work-life balance policies ( Massey, 2020 ).
In conclusion, in the proposed framework, evaluating the moral components of authentic leadership on employees’ productivity is important as it can provide insights on how leaders can create a positive work environment and foster employee engagement and motivation. By identifying the specific moral components that contribute to increased employee productivity, this study can provide practical guidance for leaders and organizations on how to select and develop leaders who possess these moral components, and how to create a culture that supports and encourages these behaviors. Additionally, it can also provide a deeper understanding of the various factors that influence employee motivation, such as goal setting and achievement, recognition and rewards, autonomy and empowerment, support and resources, organizational culture, work-life balance, job design, social support, and feedback. By understanding these factors, leaders and organizations can take steps to create a more motivated and engaged workforce, resulting in improved performance and productivity.
3.4. Authentic Leader/Employee Relationship as a Mediating Variable
The proposed conceptual framework suggests that to achieve desired outcomes of employees' productivity measured in terms of, meeting stakeholders' needs, service to society, and personal growth, a leader must adhere to the principles of authentic leadership. This will be evident in the leader’s way of building trust, effective communication, motivating employees to do their work, and creating a supportive work environment. These in turn will cause employees to enjoy their work as they will realize a sense of meaning and purpose in themselves ( Luthans & Avolio, 2003 ).
Authentic leaders are able to create a positive and engaging work environment that fosters employee engagement. Built on trust and engaged employees are more likely to be productive and committed to the organization ( Walumbwa & Schaubroeck, 2009 ).
Trust is important because it allows employees to feel safe and supported in their work, which can help them to be more productive ( Gronn, 2002 ). Lisjak, Bonezzi, Kim & Rucker (2015) explain that this involves seeking products or activities that signal success in the specific domain of threat. Authentic leaders can help their employees (followers) who engage in such negative habits in an effort to offset a perceived discrepancy in their life experience by first establishing a trusting and open relationship with the follower. This can involve the leader being open and transparent about their own values and goals and engaging in active listening and empathy to understand the follower’s perspective.
Once a trusting relationship has been established, the authentic leader can then work with the follower to identify the root causes of their negative habits and develop strategies to address them. This may involve setting clear goals and expectations, providing resources or support to help the follower overcome challenges, and helping the follower to develop new coping mechanisms or skills. Authentic leaders are able to understand and connect with the needs and perspectives of their followers, which can help to increase productivity. Empathy allows leaders to better understand the challenges and needs of their followers, which can help to create a more supportive and effective work environment and they can demonstrate empathy by modeling empathy and compassion in their own behavior and interactions with others ( Gardner & Schermerhorn, 2003 ).
The other aspect is effective communication. Effective communication is a key trait of authentic leaders, which is achieved through regular engagement with employees. This allows leaders to articulate their plans in a clear and concise manner. Additionally, authentic leaders are viewed positively by their employees when they display vulnerability, as it fosters a sense of trust and collaboration ( Gardner et al., 2021 ).
In addition, Authentic leadership is a leadership style characterized by honesty, transparency, and genuineness ( Walumbwa, Christensen, & Hailey, 2011 ). Authentic leaders know how, who and when to motivate employees ( Ali & Anwar, 2021 ; Kalogiannidis, 2021 ). According to Ali and Anwar (2021) , motivated employees will generally work harder, arrive on time, and focus on their daily duties. However, overdoing it can create conflict and tension in the workplace ( Kalogiannidis, 2021 ). To counter this, a leader can create a supportive work environment, set realistic goals and expectations, recognize and reward achievements, and provide opportunities for growth and development ( Walumbwa et al., 2011 ).
In conclusion, the leader/employee relationship plays a crucial role in mediating the impact of authentic leadership on employee productivity. When leaders establish genuine and trust-based relationships with their employees, it leads to increased motivation, engagement, and job satisfaction among employees.
3.5. Authentic Leader and the Moderating Effect of the Environment
There is evidence to suggest that the environment in which an organization operates can play a significant role in moderating the relationship between authentic leadership and employee productivity ( Zhang et al., 2020 ). Demographic factors, economic and political factors, technology, and organizational culture are all examples of environmental factors that may impact this relationship ( Ilies et al., 2005 ). For example, demographic factors such as the age, gender, education level, and diversity of an organization’s workforce may impact the effectiveness of authentic leadership in promoting productivity ( Zhang et al., 2020 ).
Age may affect employee productivity in a number of ways. For example, older employees, who may possess more experience and knowledge, could potentially have higher levels of productivity ( North, 2019 ; Sgarbossa et al., 2020 ). However, the impact of age on productivity is not always straightforward and may also depend on factors such as the physical demands of the job and the ability to adapt to changing technology ( Sgarbossa et al., 2020 ). In addition, older employees tend to have higher levels of job satisfaction and are less likely to leave their jobs, which can contribute to higher levels of productivity ( North, 2019 ). They have more tenure and experience in their current roles, and they may be more likely to stay with the organization for a longer period of time ( Yu et al., 2022 ). On the other hand, younger employees may have more energy and be more open to new ideas and approaches, which could also lead to higher levels of productivity, and in addition, they tend to have a different approach to work, with a focus on work-life balance, flexibility, and continuous learning and development ( Williamson et al., 2021 ). However, they may be more likely to seek out new job opportunities due to their desire for new experiences and different challenges ( Feldman & Beehr, 2018 ; Kim, 2018 ) leaving the organization to build up a new workforce afresh. This may adversely affect productivity.
Economic and political factors, such as economic conditions and government policies, may also influence the relationship between authentic leadership and employee productivity ( Ilies et al., 2005 ). Additionally, the adoption and integration of technology within an organization may play a role in moderating this relationship ( Kotzé & Nel, 2017a ). Finally, the culture of an organization, including its values, beliefs, and norms, may also impact the relationship between authentic leadership and employee productivity ( Zhang et al., 2020 ).
It is, therefore, important for leaders to consider the impact of these environmental factors on the relationship between authentic leadership and employee productivity. By understanding and addressing the unique challenges and opportunities presented by the environment, leaders can more effectively promote employee productivity and meet the needs of stakeholders, including employees, customers, and the broader community ( Ilies et al., 2005 ). Additionally, by promoting personal growth and development among employees, authentic leaders can enhance employee productivity and contribute to the overall success of the organization ( Kotzé & Nel, 2017a ).
The environment under which the organization operates is critical in determining the way the leader and employee relations so as to get the planned results. Howieson and Hodges (2014) posit that political, economic, technological, and social changes are driving profound transformation of organizational models. The environment in which an organization operates can act as a moderator of the relationship between authentic leadership and employee productivity, and it can influence the strength or direction of this relationship.
A supportive and positive work environment may strengthen the relationship between authentic leadership and employee productivity, as employees may be more motivated and engaged in such an environment ( Gardner & Schermerhorn, 2003 ) on the other hand a negative or toxic work environment may weaken the “relationship between authentic leadership and employee productivity”, as employees may be demotivated or disengaged in such an environment ( Harter et al., 2002 ).
An environment can influence organizational culture. The culture of an organization can influence how authentic leadership is perceived and practiced. In cultures that value transparency, honesty, and ethical behavior, authentic leadership may be more likely to be embraced and supported ( Den Hartog & Belschak, 2012 ).
Lastly is the organizational context, the specific demands and expectations of an organization can also influence how authentic leadership is perceived and practiced. For example, in organizations with high levels of risk or uncertainty, authentic leaders who are able to navigate these challenges and create stability may be more effective ( Walumbwa et al., 2008 ).
The environment in which an organization operates plays a significant role in moderating the relationship between authentic leadership and employee productivity.
4. Main Contributions, Conclusions, and Recommendations
The main contributions of this research are the examination of the specific moral components of authentic leadership and their impact on employee productivity. By identifying the specific moral components that contributed to increased employee productivity, this study provided practical insights for leaders on how to create a positive work environment and foster employee engagement and motivation. Additionally, the study also provided implications for organizations on how to select and develop leaders who possess these moral components, and how to create a culture that supports and encourages these behaviors. These findings can provide a foundation for future research in the field of authentic leadership and its relationship with employee productivity.
In conclusion, there is evidence to suggest that the relationship between authentic leadership and employee productivity as a response to stakeholders’ needs, service to society, and personal growth, may be mediated by the relationship between the leader and employees, and moderated by the environment in which the leadership is enacted. The moral components of authentic leadership, such as honesty, integrity, and empathy, can have a positive impact on employee productivity. Research has shown that employees who work for authentic leaders tend to be more motivated, engaged, and satisfied with their jobs, and they are more likely to contribute to the success of the organization ( Gardner & Schermerhorn, 2003 ). Kotzé and Nel (2017b) also found that authentic leadership is positively related to employee well-being and that this relationship was mediated by work engagement. It was also found that the environment is a moderating factor that influences the relationship between the moral components of authentic leadership and employee productivity.
However, the relationship between authentic leadership and employee productivity may be moderated by factors such as the culture and context of the organization, as well as the expectations and needs of external stakeholders ( Mumford et al., 2000 ). Further research is needed to explore these moderating factors in greater depth and to examine how they may influence the relationship between authentic leadership and employee productivity.
Additionally, research could examine the long-term effects of authentic leadership on employee productivity and other organizational outcomes ( Harter et al., 2002 ). There is also a need for research on the potential for authentic leadership to be developed and cultivated through training and practice ( Walumbwa et al., 2008 ). This would provide valuable insights into the potential for organizations to foster authentic leadership and the impact it may have on employee productivity and other outcomes.