Relationship between authentic leadership, Leader-Member Exchange (LMX) and employees’ psychological capital (PsyCap)
Authentic leadership in its most raw form means genuine, which is not either a replica, neither an imitation nor copy of any leader, it is the leadership in its purest form. It is the art of being true to ourselves by holding all the strengths and principles and values in the job. The Leader-member exchange is the theory that explains the relationship-based approach to leadership that focusses on the two-way communication between the leaders and its followers. Trust and respect are the main basic factors of the leader-member exchange. This can lead the relationships between the leader and the follower to go beyond the scope of employment. Whereas the employee’s psychological capital is the state of development for the employee where he has positive psychological state of development. This is determined by having high levels of HERO i.e. Hope, Efficacy, resilience and optimism.
The Psychological capital can be built with the help of HERO in different types of employees, it is believed that all these resources are used in meeting the challenges of our daily life.
The HERO resources are explained as under:
• Hope: it is the belief in the ability of the employee to continue his focus towards the goals of the company and finding the correct path to reach them.
• Efficacy: it is the confidence that one can put the efforts in the goals to affect the outcomes positively.
• Resilience: It is the ability of the employee to react back in the time of failure, this is an important point of consideration.
• Optimism: it is the positive view related to the achievement of the success and potential to do the best in the industry.
This helps in building the foundation of motivation in a different type of employees. The White-collar employees generally have a mixed feeling about the psychological capital some who are satisfied with what they are doing have high psychological capital and those who are unsatisfied generally have low psychological capital. In the case of Blue-collar employees, it has been seen that they are happy and they generally have high psychological capital than the rest of the employees differentiated on the basis of the collars. The Pink-collar employees of the company are highly demotivated because the researchers have found that they always wanted to do less and earn more, this makes their psychological capital go down to a huge extent.
Emotions of the leaders play a significant role in the employees’ performance, this is due to the fact, that the employees understand that their leader emotionally supports them and takes decision by keeping all the things in mind. this can affect the performance of the employee in both the negative and positive way. If the employee considers the emotional support of the leader in a good way and use it in the required places the performance of the employee enhances and in case the employee treats the understanding and emotional support of the leader in a wrong way, then it can be decided that the employee’s performance will be decreased and the employee will take the support of the leader for granted.
Analysis of leadership and/or employee performance
The leadership at the workplace is Democratic leadership style, the work in the company is allotted by the leader and he is the one who takes people together in the decision-making process of the company. The leadership in my organization is effective the people of the company are happy with the leader as he possesses all the qualities of a good leader. He has good communication skills, he has empathy in his nature, the work provided to the subordinates are made clear and they are also guided in the direction of what needs to be done to achieve the goals of the company. The performance of the employees is good at the individual level but in the company, the actual feedback is never provided to the employees which always create confusion, if they are moving in the right direction or not, the company pays handsome salaries to the employees which are best in the industry.
The leadership followed in my company is the best example of positive leadership, as the people in the company are motivating and they always help their co-workers in achievement of the goals of the company, the HR of the company is good and manages everything well, the directors and the CEO of the company have adequate knowledge of emotional quotient in them. The psychological capital of the employees is high as they remain motivated towards their personal development, this is the factor that makes the objectives of the company achievable and huge figures realistic to achieve in the company.
All the white-collar employees of the company are efficient and have high psychological capital due to the type of the work they are engaged in and this also fosters the personal growth as an individual, the Blue-collar employees of the company are motivated with what they are getting but the problem noticed in the company is that the Blue category has limited work to do and they tend to sit idle in the company, which results in wastage of resources of the company. The Pink-collar employees are low in Psychological capital as they believe that they are doing a lot for what they have been paid for, and a feeling of exploitation has been fixed in their minds, this results in less effectiveness of the work.
There are is a list of suggestions that the company should consider ensuring better practice in the company.
The company should focus on making strict HR policies, and ensure every employee in the company is following the same.
The company should also plan to make effective policies for the redressal of the grievances of the White, Blue- and Pink-collar employees.
The company should also introduce the software that can track the activity time of the employees, this may, in the beginning, will demotivate the employees but in the long run company will be able to perform better in the industry and will be able to earn more profits.
The Blue-collar employees should be provided with sufficient work for the day to ensure judicious employment of the resources in the company.
The company must also start conducting one on one meetings with the employees of the company that should aim at providing feedback to the employees and taking honest feedback for the management to implement the changes suggested by the employees if feasible for the company.