EFFECTS OF ETHICAL LEADERSHIP ON EMPLOYEE WELL-BEING: THE MEDIATING ROLE OF PSYCHOLOGICAL EMPOWERMENT
Shania Dwi Rantika(1), andi ina yustina(2*)
(1) President University
(2) President University
(*) Corresponding Author
Abstract
Leaders who promote ethical behavior are believed to affect their employees’ well-being. This study was conducted to examine psychological empowerment as the intervening variable that connects ethical leadership to employees’ well-being, work engagement, and emotional exhaustion. By using a mail survey, we distributed questionnaires to 219 auditors from 11 public accounting firms in Jakarta. All the hypotheses in this study were supported. Ethical leadership has a positive effect on psychological empowerment. Thus, psychological empowerment positively relates to work engagement and negatively relates to emotional exhaustion. The result demonstrated that psychological empowerment partially mediates the effect of ethical leadership on work engagement and fully mediates the effect on ethical leadership and emotional exhaustion. The findings reveal that ethical leadership stimulates the psychological empowerment of the employee, thus, it enhances work engagement and also minimizes emotional exhaustion.
Keywords
Full Text:
PDFReferences
Albrecht, S. L., and M. Andreetta,2011. “The Influence of Empowering Leadership, Empowerment, and Engagement on Affective Commitment and Turnover Intentions in Community Health Service Workers.” Leadership in Health Service, 24 (3), 228-237.
Bandura, A, 1977. Social Learning Theory. Englewood Cliffs, NJ: Prentice-Hall.
Bandura, A, 1986. Social foundations of thought and action. Englewood Cliffs, NJ: Prentice-Hall.
Baron, R. M., and D. A. Kenny,1986. “The Moderator-Mediator Variable Distinction in Social Psychological Research: Conceptual, Strategic, and Statistical Considerations.” Journal of Personality and Social Psychology, 51(6), 1173-1182.
Bedi, A., C. M. Alpaslan, and S. Green, 2016. “A Meta-Analytic Review of Ethical Leadership Outcomes and Moderators.” Journal of Business Ethics, 139 (3), 517 - 536.
Bhatnagar, J,2012. “Management of Innovation: Role of Psychological Empowerment, Work Engagement and Turnover Intention in The Indian Context.” The InternationalJournal of Human Resource Management, 23 (5), 928 - 951.
Blau, P. M, 1964. Exchange and power in social life. New York: Wiley.
Britt, T. W., A. B. Adler, and P. T. Bartone, 2001. “Deriving Benefits from Stressful Events: The Role of Engagement in Meaningful Work and Hardiness.” Journal of Occupational Health Psychology, 6 (1), 53 - 63.
Brown, M. E., and L. K. Treviño, 2006. “Ethical leadership: AReview and Future Directions.” Leadership Quarterly,17 (6), 595 - 616.
Brown, M. E., L. K. Treviño, and D. Harrison, 2005. “Ethical leadership: A Social Learning Perspective for Construct Development and Testing.” Organizational Behavior and Human Decision Processes, 97 (2),117-134.
Cavus, M. F., and Y. Demir, 2010. “The Impacts of Structural and Psychological Empowerment on Burnout: A Research on Staff Nurses in Turkish State Hospitals.” Canadian Social Science, 6 (4), 63-72.
Chughtai, A., M. Byrne, and B. Flood, 2015. “Linking Ethical Leadership to Employee Well-Being: The Role of Trust In Supervisors.” Journal of Business Ethics, 128 (3), 653-663.
Cole, M., J. Bernerth, F. Walter, and D. Holt, 2010. “Organizational Justice and Individuals’ Withdrawal: Unlocking the Influence of Emotional Exhaustion.” Journal of Management Studies, 47 (3), 367-390.
Conger, J. A., and R. N. Kanungo, 1988. “The Empowerment Process: Integrating Theory and Practice.” Academy of Management Review, 13 (3), 471-482.
De Villiers, J., and M. Stander, 2011. “Psychological Empowerment, Work Engagement and Turnover Intention: The Role of Leader Relations and Role Clarity in A Financial Institution.” Journal of Psychology in Africa, 21 (3), 405 - 412.
Dewettinck, K., and M. Van Ameijde, 2011. “Linking Leadership Empowerment Behavior to Employee Attitudes and Behavioral Intentions.” Personnel Review, 40 (3),284-305.
Fornell, C., and D. Larcker, 1981. “Evaluating Structural Equation Models with Unobservable Variables and Measurement Error.” Journal of Marketing Research, 18 (1), 39-50.
Gilbreath, B., and P. Benson, 2004. “The Contribution of Supervisor Behaviour to Employee Psychological Well-Being.” Work & Stress,18(3), 255 - 266.
Hair, J., T. Hult, C. Ringle, and M.Sartstedt, 2013. A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). Los Angeles: Sage.
Hair, J., W. Black, B. Babin, and R. Anderson, 2010. Multivariate Data Analysis: A Global Perspective. New Jersey: Pearson.
Halbesleben, J. R., and M. R. Buckley, 2004. “Burnout in Organizational Life.” Journal of Management, 30 (6), 859 - 879.
Harris, K., and K. Kacmar, 2006. “Too Much of A Good Thing: The Curvilinear Effect of Leader-Member Exchange on Stress.” The Journal of Social Psychology, 146(1), 65 - 84.
Hatcher, S., and H. K. Laschinger, 1996. “Staff Nurses' Perceptions of Job Empowerment and Level of Burnout: A Test of Kanter's Theory of Structural Power in Organizations.” Canadian Journal of Nursing Administration, 9 (2), 74-94.
Kalshoven, K., and C. T. Boon, 2012. “Ethical Leadership, Employee Well-Being, and Helping: The Moderating Role of Human Resource Management.” Journal of Personnel Psychology, 11 (1), 60-68.
Keller, T., and F. Dansereau, 1995. “Leadership And Empowerment: A Social Exchange Perspective.” Human Relations,48 (2), 127-145.
Kim, W., J. Kolb, and T. Kim, 2012. “The Relationship between Work Engagement and Performance: A Review of Empirical Literature and A Proposed Research Agenda.” Human Resource Development Review,12(3), 248 - 276.
Lee, R. T., and B. E. Ashforth, 1990. “On the Meaning of Maslach's Three Dimensions of Burnout.” Journal of Applied Psychology,75 (6), 743-747.
Liu, J., O. Siu, and K. Shi, 2010. “Transformational Leadership and Employee Well-Being: The Mediating Role of Trust in The Leader and Self-Efficacy.” Applied Psychology,59(3), 454-479.
Mardani, S., and N. Mardani, 2014. “The Impact of Psychological Empowerment on Job Burnout in Hospital Staff.” International Journal of Hospital Research, 3(2), 69-78.
Maslach, C., and M. Leiter, 2008. “Early Predictors of Job Burnout and Engagement.” Journal of Applied Psychology, 93 (3), 498 - 512.
Maslach, C., W. Schaufeli, and M. Leiter,2001. “Job Burnout.” Annual Review of Psychology, 52 (1), 397 - 422.
Matta, F. K., B. A. Scott, J. Koopman, and D. E. Conlon, 2015. “Does Seeing “Eye To Eye” Affect Work Engagement and Organizational Citizenship Behavior? A Role Theory Perspective on LMX Agreement.” Academy of Management Journal, 58 (6), 1686 - 1708.
May, D. R., R. L. Gilson, and L. M. Harter, 2004. “The Psychological Conditions of Meaningfulness, Safety, and the Engagement of Human Spirit at Work.” Journal of Occupational and Organizational Psychology, 77 (1), 11-37.
Monahan, K, 2012. “A Review of the Literature Concerning Ethical Leadership in Organizations.” Emerging Leadership Journeys, 5 (1), 56-66.
Olivier, A. L., and S. Rothmann, 2007. “Antecedents of Work Engagement in A Multinational Oil Company.” SA Journal of Industrial Psychology, 33(3), 49 - 56.
Pearce, C. L., and H. P. Sims,2002. “Vertical Versus Shared Leadership as Predictors of the Effectiveness of Change of Management Teams: An Examination of Aversive, Directive, Transactional, Transformational, and Empowering Leader Behaviors.” Group Dynamics: Theory, Research, and Practice, 6 (2), 172-197.
Podsakoff, P. M., S. B. MacKenzie, J. Lee, and N. P. Podsakoff, 2003. “Common Method Biases in Behavioral Research: A Critical Review of the Literature and Recommended Remedies.” Journal of Applied Psychology, 88 (5), 879 - 903.
Quinn, R., and G. Spreitzer, 1997. “The Road to Empowerment: Seven Questions Every Leader Should Consider.” Organizational Dynamics, 26(2), 37 - 48.
Rich, B., J. Lepine, and E. Crawford, 2010. “Job Engagement: Antecedents and Effects on Job Performance.” Academy of Management Journal, 53 (3), 617-635.
Ryan, R., and E. Deci, 2001. “On Happiness and Human Potentials: A Review of Research on Hedonic and Eudaimonic Well-Being.” Annual Review of Psychology, 52 (1), 141 - 166.
Sarstedt, M., Ringle, C., Smith, D., & Reams, R. H, 2014. “Partial Least Squares Structural Equation Modeling (PLS-SEM): A Useful Tool for Family Business Researchers.” Journal of Family Business Strategy, 5 (1), 105 -115.
Schaufeli, W. B., A. B. Bakker, and M. Salanova, 2006. “The Measurement of Work Engagement With A Short Questionnaire: A Cross-National Study.” Educational and Psychological Measurement, 66 (4),701 - 716.
Schaufeli, W. B., M. P. Leiter, C. Maslach, and S. E. Jackson,1996. “Maslach Burnout Inventory-General Survey (MBI-GS).” In C. Maslach, S. E. Jackson, & M. P. Leiter (Eds.), Maslach Burnout Inventory manual (3rd ed), 19-25.
Schaufeli, W. B., M. Salanova, V. González-Romá, and A. B. Bakker, 2002. “The Measurement of Engagement and Burnout and A Confirmative Analytic Approach.” Journal of Happiness Studies, 3 (1), 71 - 92.
Schaufeli, W., and A. B. Bakker, 2004. “Job Demands, Job Resources and Their Relationship With Burnout and Engagement: A Multi-Sample Study.” Journal of Organizational Behavior,25 (3),293-315.
Schutte, N., S. Toppinen, R. Kalimo, and W. Schaufeli, 2000. “The Factorial Validity of The Maslach Burnout Inventory-General Survey (MBI-GS) Across Occupational Groups and Nations.” Journal of Occupational and Organizational Psychology, 73 (1), 53-66.
Settoon, R. P., N. Bennett, and R. C. Liden, 1996. “Social Exchange in Organizations: Perceived Organizational Support, Leader-Member Exchange, and Employee Reciprocity.” Journal of Applied Psychology,81 (3), 219-227.
Sholihin, M., andD. Ratmono, 2013. Analisis SEM-PLS dengan WarpPLS 3.0 untuk Hubungan Nonlinier dalam Penelitian Sosial dan Bisnis. Yogyakarta: ANDI.
Spreitzer, G. M., 1995. “Psychological Empowerment In The Workplace: Dimensions, Measurement, And Validation.” Academy of Management Journal,38 (5),1442-1465.
Spreitzer, G. M, and A. K. Mishra, 2002. “To Stay or To Go: Voluntary Survivor Turnover Following an Organizational Downsizing.” Journal of Organizational Behavior, 23 (6),707-729.
Spreitzer, G., M. Kizilos, and S. Nason, 1997. “A Dimensional Analysis of The Relationship between Psychological Empowerment and Effectiveness, Satisfaction and Strain.” Journal of Management, 23 (5), 679-704.
Stander, M. W, and S. Rothmann, 2010. “Psychological Empowerment, Job Insecurity and Employee Engagement.” SA Journal of Industrial Psychology,36 (1), 1-8.
Steger, M. F., H. Littman-Ovadia, M. Miller, L. Menger, and S. Rothmann, 2013. “Engaging in Work Even When It Is Meaningless: Positive Affective Disposition and Meaningful Work Interact in Relation to Work-Engagement.” Journal of Career Assessment, 21 (2), 348 - 361.
Thomas, K. W., and B. A. Velthouse, 1990. “Cognitive Elements of Empowerment: An “Interpretive” Model of Intrinsic Task Motivation.” The Academy of Management Review, 15 (4),666-681.
Tourigny, L., V. V. Baba, J. Han, and X. Wang, 2013. “Emotional Exhaustion and Job Performance: The Mediating Role of Organizational Commitment.” The International Journal of Human Resource Management, 24 (3), 514 - 532.
Trevinõ, L. K., M. Brown, and L. P. Hartman, 2003. “A Qualitative Investigation of Perceived Executive Ethical Leadership: Perceptions from Inside and Outside the Executive Suite.” Human Relations, 56(1),5-37.
Treviño, L. K., L. P. Hartman, and M. Brown, 2000. “Moral Person and Moral Manager: How Executives Develop A Reputation for Ethical Leadership.” California Management Review, 42 (4),128 - 142.
Tuckey, M. R., A. B. Bakker, and M. F. Dollard, 2012. “Empowering Leaders Optimize Working Conditions for Engagement: A Multilevel Study.” Journal of Occupational Health Psychology, 17 (1), 15 - 27.
Wright, T. A., and R. Cropanzano, 1998. “Emotional Exhaustion as A Predictor of Job Performance and Voluntary Turnover.” Journal of Applied Psychology, 83 (3),486 - 493.
Wu, L., F. H. Yim, H. K. Kwan, and X. Zhang, 2012. “Coping With Workplace Ostracism: The Roles of Ingratiation and Political Skill in Employee Psychological Distress.” Journal of Management Studies,49 (1), 178-199.
Yang, C, 2014. “Does Ethical Leadership Lead to Happy Workers? A Study on The Impact of Ethical Leadership, Subjective Bell-Being, and Life Happiness in the Chinese Culture.”Journal of Business Ethics, 123 (3), 513 - 525.
Zhu, W, 2008. “The Effect of Ethical Leadership on Follower Moral Identity: The Mediating Role of Psychological Empowerment.” Leadership Review, 8, 62-73.
Zhu, W., D. R. May, and B. J. Avolio, 2004. “The Impact of Ethical Leadership Behavior on Employee Outcomes: The Roles of Psychological Empowerment and Authenticity.” Journal of Leadership and Organizational Studies,11 (1), 16-26.
DOI: https://doi.org/10.22146/jieb.22333
Article Metrics
Abstract views : 12829 | views : 8494Refbacks
- There are currently no refbacks.
Copyright (c) 2017 Journal of Indonesian Economy and Business
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Journal of Indonesian Economy and Business |
The Journal of Indonesian Economy and Business (print ISSN 2085-8272; online ISSN 2338-5847) is published by the Faculty of Economics and Business Universitas Gadjah Mada, Indonesia. The content of this website is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License |
© 2019 Journal of Indonesian Economy and Business | Visitor Statistics |