THE INFLUENCE OF ETHICAL LEADERSHIP OVER EMPLOYEE PERFORMANCE: PERCEIVED ORGANIZATIONAL SUPPORT AS MEDIATING VARIABLES Harvard Case Solution & Analysis

THE INFLUENCE OF ETHICAL LEADERSHIP OVER EMPLOYEE PERFORMANCE: PERCEIVED ORGANIZATIONAL SUPPORT AS MEDIATING VARIABLES Case Study Help

Introduction

Throughout the 20th century; a lot of researches were conducted on the bad behaviors in the organization (Griffin & Lopez, 2005). An important reason behind such an increasing interest of researchers on this issue of destructive behavior was due to its negative consequences on strategic and individual outcomes. Leadership in an organization is a vital component of management that helps in the achievement of organizational goals, developing organizational commitment and wellbeing of employees, but bad behavior by the leadership of an organization are known to have serious consequences (Duffy, Ganster, & Pagon, 2002).

Ethical leadership is defined as the actions and behavior based on values and set of interpersonal actions Moreover it is very important for the organizations to increase their profit image and productivity (Brown, Treviño, & Harrison, 2005, p. 120). Leadership role is a key role that has enough control over the organizations, so their behavior directly influence the employees’ performance Whereas, Employee performance is referred to the dedication which the employees show towards their job.

According to the research; ethical leadership positive lyinfluences the employees’ performance, and the research also depicts a direct relation between both the variables (Van Scotter et al. 2000).A theory discusses the key reasons behind the efficiency of ethical leadership because ethical leadership enhances self-efficacy, positive employee behavior and organizational citizenship behavior, which ultimately affect the employees’ performance.

Few studies suggested organizational identification used as mediator to check the relationship between the ethical leadership and performance(WBCSD, 2001).Lastly, organizational support is the factor which defines the perception of employeeson how the organizations treat them and how much value the organizations give to employees and their social needs. In this research, we will mainly work on ethical leadership and employees’ performance through mediating the role of perceived organizational support.

Currently turnover rate in the organizations is increasing and the management is looking for ways that can help them in reducing theirturnover rates. It is very clear that mostly employees leave organization due to their boss and organizational mismanagement, so these factors show how ethical leadership is an important element. Satisfied employees perform well in organization and ultimately help the company in achieving its business goals. After reviewing the literature, we found a gap in ethical leadership, as there is less work done by getting a mediating variable so, in this study, I would further analyze the ethical leadership by mediating a perceived organizational support.

Research objectives

1. To confirm “how ethical leadership affects the employee performance”
2. To confirm that “how ethical leadership affects the perceived organizational support.”
3. To confirm that “how Perceived organization support affects the Employees’ Performance.”
4. To confirm “POS will mediate the relationship between ethical leadership and employee performance.”

Research question

1. How EL affects the employee performance?
2. How EL affects the perceived organizational support?
3. How Perceived organization support affects the Employee Performance?
4. Does POS mediate the relationship between EL and EP?

Research significance

Due to an increasing turnover rate and business issues in the organization; employees’ satisfaction is decreasing and leaders are key characters in the organization, as their behavior influence the organizational culture and employees’ behavior. This research will help the managers in understanding how their leaders’behavior influence the employees’ performance and how it can help in reducing the turnover in the organization. It will also help the managers in planning.

Limitation

This research is only limited to XYZ industry and XYZ country. We have taken POS s mediator, while other people can also take CSR and other variables to check their mediating role in the organization. Along with that, scholars can take any other industry and country on which the same study can be applied.

Literature Review

Employee Performance (DV)

Employees’ performance is described as the employees’ behavior and productivity in the organization. Whereas, the study suggests that the ethical leadership has a positive influence on performance (Resick et al., 2011). EL positively influences the intrinsic motivation and employees’ involvement in the organization (Brown et al., 2005). A study was conducted, which stated that the leaders in the organization have influence over task significance and task autonomy, along with that, these factors tend to affect the employees’ willingness to put extra efforts to complete the tasks(Piccolo, et al.; 2010).

Another study also concluded that there is a positive relationship between EL and employees’performance. A leader’s behavior is vital to his or her quality, and it additionally depicts a purposeful influence on employees (Brown et al. 2005). In this study, we will evaluate the relationship of ethical leadership and employees’job performance behaviors, that square measures the comprehensive of each task performance. Task performance refers to “the expected behaviors that is directly concerned to producing goods or services, or activities that gives indirect support for the organization’s core technical processes” (Van Scotter et al. 2000).

Ethical leadership (IV)

Ethical leadership is described as “the demonstration of normatively suitable conduct via personal actions and interpersonal relationships, and the promotion of such conduct to followers through two-way communication, reinforcement, and decision-making” (Brown, Treviño, & Harrison, 2005, p. 120). A study was conducted on ethical leadership, whichstated that ethical leadership is a key factor that encourages theemployees’ behavior and their attitude. This study has alsosupported other researchers and linked the ethical leadership with negative and deviated behaviors (e.g., Avey et al., 2010, Brown et al., 2005, Mayer et al., 2009).

There are several studies that tested the reasons of why ethical leadership is related to performance, and it also evaluated the mechanism of how it is related to performance. Another study analyzed the effects of task importance autonomy and also defines the relationship between the ethical leadership and task performance. (Piccolo, Greenbaum, Den Hartog, and Folger; 2010). Study found that ethicalleadership has positive influence on task significance, whichultimately results in high performance in the company.

According to the social exchange theory; ethical leadership will increase the employees’ commitment to the company. It will also make employees feel better about their jobs and their bosses. As a result, it will enhance the morale of the organization and the employees will have a higher sense of trust on their manager(Sfantou, 2017). The results of the study showed that the higher the level of morale; the better is the overall employees’ performance. There are many benefits of ethical leadership, and it is crucial to promote it in your organization.An ethical leader will develop trust among employees.

It will also increase employees’ productivity. Moreover, ethical leaders will also increase the employees’ engagement. The study demonstrates that the impact of ethical leadership on employee performance is highly beneficial for employees(Ciulla, 2020). An ethical workplace will help in increasing the productivity and reducing the turnover. A healthy workplace will not only create a better environment, but also promotes a highly engaged workforce. Further, the employees would feel more motivated and loyal to their employers(Sfantou, 2017).....................

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