Effect of positive leadership and psycap on employee performance
Introduction 1
Literature Review 1
Conclusion 6
Reference List 7
Introduction
Leadership has managed to draw a significant attention from academic and commercial sectors in the pretext of organizational management. This essay aims to focus on prominent leadership models and their impact on the performance of the employees in Woolworths. In order to accomplish the aim, the study will review select literary pieces of academic origin to analyze various prospects related to the aforementioned issue. The review emphasizes various parameters that catalyse the efficacy of leadership in different issues pertaining to employees. This may involve engagement, commitment, turnover as well as wellbeing. These determiners are compared at workplaces with Psychological Capital and positive leadership literature. During the implementation of this review, the several segregations of employees (administrative, emotional, blue versus white collar. Lastly, the review deduces approaches that can install effective management approaches in Woolworths. The review is prone to suggest that leaders must have the ability to motivate their team members.
Literature Review
Followers of specified leadership approaches determine elevated motivation in the employees. As opined by Rego et al. (2017, p.0149206317733510), organizational commitment in manufacturing and service sectors is evaluated by the potential of deliverables completed by the staffs. This practice can be positively linked to the job performances of employees. Leadership approaches can be segregated as per organizational culture in a workplace. In the present scenario, Woolworths utilizes transformational leadership to induce positive interaction with employee acceptance. The study of Owens et al. (2017, p.0149206316688941) sheds light on the significance of a positive relationship to induce goal clarity, productivity and creative thinking. The researchers have suggested the use of transformational leadership can confront organizational challenges relative to change and employee non-cooperation. Luthans, Luthans and Palmer (2016, p. 1099) concur in their study transformational leadership approach can create a positive impact on task performance through sustainable motivation and commitment. Thus, transformational leadership can be termed as one of the most significant approaches of leadership in a retail sector that is largely driven by employees.
Theme 1: Deduction of the relationship between employee performance and transformational leadership in the retail sector
In order to successfully deduce the relationship between employee performance and transformational leadership approach, it is essential to gauge the subservient parameters of both the concepts. Bouckenooghe, Zafar and Raja (2015, p. 254) suggest in their study the need for organizational training and development plans can be assessed by a bivariate relationship between leaders and their team members. The managers can rate the performance of the employees based on the quality of deliverables. Similarly, organizational behaviour of the followers can be marked through leadership behaviours of managers in Woolworths. The exchanges between the leader and the staff can impose considerable stress on organizational citizenship and task performance. Owens et al. (2017, p.0149206316688941) found this result to be synonymous with their leader-member relationship assay that mediates transformational leadership to be a major determiner of employee performance. Strategies pertaining to leadership that can increase the exchange between leader and members can invoke larger and providential productivity in a company.
Apart from transformational leadership, there are two subsidiary forms that can be inoculated in the organisational culture of a retail company. The meta-analysis of Rego et al. (2017, p.0149206317733510) evaluates laissez-faire and transactional leadership to show the highest validity in terms of productivity. However, Wang et al. (2014, p. 20) argue to have contributed to the result by providing contingence-reward leadership to have a similar effect. A blend of transformational and contingency rewards can increase the rate of success. Contingency reward is held valid for the performance of leaders. Bouckenooghe, Zafar and Raja (2015, p. 258) calculate the validity contrasts to be insignificant for group performance and follower motivation. The major areas that are influenced by these approaches are job satisfaction, staff motivation, increase in individual and group performance, and efficiency of leaders. Woolworth can use this blend to enable its employees to outperform their prevalent selves through focus-based strategies. Hence, leadership can be developed as a trend-based strategy that caters to the changing needs of an organisation and employees to obtain best results.
Theme 2: the Systematic appraisal of positive psychology and its effect on optimal human resource functioning
Positive psychology involves a systematic assay of optimal functioning of human resource to respond to systematic organisational bias. The principle of Psychological capital is to aid employees in an organisation to maintain their work-life balance in a sustainable manner. The study of Luthans, Luthans and Palmer (2016, p. 1110) reveal the implementation of positive psychology into industrial sectors. Constructs of positive psychology in empirical and commercial research met the criteria of Maslow’s Hierarchy of Needs. The basic needs of employees have to be fulfilled to instil in them the secondary emotions of hope, motivation, optimism and resilience. This conceptualisation of psychological Capital is used in the study of Roche, Haar and Luthans (2014, p. 476) to empirically determine a core framework that can build effective relationship among stakeholders. Hope can create a positive motivation that can impart a feeling of belonging or determination. This can give rise to the emergence of pathways to self-dependence. This can be defined through employee confidence and their capacity to achieve specific goals in the situation.
n comparison to hope and productivity, resilience and optimism cater to the leadership perspective more than that it does to individual goal enhancement. This has been argued in the study of Wang et al. (2014), that the approach of an optimistic leader is variable from the resilient leader in terms of the pathways utilised by them to fulfil their aims. An optimistic leader has a more pragmatic approach towards organisational activities, and prefers innovation and calculated risks to enhance the productivity of a team. A resilient leader follows a more systematic methodology to reach a definite goal with appropriate time and risk management strategies. Megeirhi et al. (2018, p. 929) have stated in their study that optimism and resilience can be considered as broadly contrasting concepts. However, a justified blend of these approaches can render optimum success to Woolworths. The interaction of these representative structures of Woolworths can be further defined by the application of Psycap to influence motivational agendas.
Theme 3: Positive correlation between PsyCap and desired employee aptitudes
PsyCap is responsible for creating positive correlation among desired aptitudes of employees in and their levels of performance. The meta-analysis of Luthans and Youssef-Morgan (2017, p. 341) suggest the presence of considerably positive interaction between PsyCap and employee aptitudes, such as commitment, satisfaction, and self-supervision. This has also revealed an inverse proportion with the undesirable aptitude of cynicism, anxiety, stress, and turnover intentions. Hence, it can be stated that PsyCap is responsible for mediation between employee performance and supportive workplace climate in Woolworths. This is agreed by Rebelo et al. (2018, p. 367) through their findings that show a supportive climate can cater to the necessity of progressive PsyCap to attain sustainable organisational growth. The supportive workplace3 climate in Woolworths is created through the support of hierarchical supervisors and talent enhancing factors for an employee to achieve better results in their jobs. Elevation in PsyCap can motivate staffs to support change and intensify progressive participation.
Woolworths show certain similarities in the conceptualisation of PsyCap and positive leadership. Organisational changes in this company have met with distinct non-cooperation in the past decade. After the advent of technological revolution in the World Wide Web, the company has shifted its approach to a cloud-based platform. This can be considered with an appropriate environment that intensifies due to gaps between management and lower-tier staffs. Cloud system databases have provided an innovative approach to the customer relationship. The employees cater to a responsibility to behave and adjust accordingly as per new organisational policies. These changes have been motivated by the help of PsyCap and positive leadership approach. As opined by Rebelo et al. (2018, p. 367), innovations are usually dictated through management, and with lesser resources. This change can bring out various aspects of employee participation in the organisational activities to analyse and learn new skills. The contrast in the theoretical paradigms and practical implementation of PsyCap provides instances of gaps in Woolworths.
Theme 4: PsyCap agendas that are yet to be incorporated in the chosen workplace
Emotions are still lacking in the mannerism of organizational culture. However Luthans and Youssef-Morgan (2017, p.`356) argue that the cutthroat competition in prevalent times does not allow much room for emotional fulfilment of staffs. Utilization of personal factors can facilitate organizational transformation to bring definition to changes that an organization undergoes for mutual benefits. This can cause more positive behavioural and psychological consequences in comparison to the utilization of conventional approaches. Role of progressive emotions can aid workers to cope with organizational change through the broadening of viewpoints and encourage essential vitality and decision-making through progressive interaction. Hence, it can be considered that PsyCap renders positive emotions that influence employee behaviour and attitudes in Woolworths. This, in turn, motivates increment in their performance levels (Roche, Haar and Luthans 2014, p. 476). The longitudinal, as well as experimental research, indicates the state of PsyCap and its development to induce improved performances in Woolworths. PsyCap necessitates extension beyond the professional life to personal domains like health and associations.
Development of PsyCap has a collaborative effect on different employee categories. Recent research of Pitichat et al. (2018, p. 56) determines measures of relational and health PsyCap creates signification influence on administrative employees. This effect is far more considerate to respective appraisals of employees who are involved in emotional labour. The study of Wang et al. (2014, p. 8), involves a comparative study of blue collar and white collar staff in prominent retail organisations. The generalisation of cohorts has aided in the formation of desired outcomes such as inter-professional growth and work-life balance. According to Luthans, Luthans and Palmer (2016, p. 1117), time spent for a familial association and personal health can induce associative cases that can cater to BMI and cholesterol levels in cases of health and wellness. This is further supported by the works of Luthans and Youssef-Morgan (2017, p 345), who reveal that combination of health and wellness with employee motivational schemes can help to retain high productivity levels of the staff and give rise to a state of overall well-being.
Consideration of different ethnicities is a major factor that drives the incorporation of positive leadership in an organisation. Human Resource department of Woolworths caters to organizational diversity by creating workforces that are imbibed with different communities, religion and ethnicities. This aids in the formation of associative bonding due to diverse cultures and their progressive blend of workplace literature. The study of Pitichat et al. (2018, p. 61) imparts a significant theory building approach that considers PsyCap to be broadly considered throughout global platforms and as an integral part of positive leadership. Analyses of leadership styles have thereby shed light on the staff performance of Woolworths. Considerations in forms of engagement have been seen to reduce the rates of turnover over the decade, thereby giving rise to the levels of commitment. The overall well-being of staff in the workplace can be motivated by the incorporation of Psychological Capital and positive leadership. The similarities have been coined in basic providence of health and familial bonding times given to employees (Luthans and Youssef-Morgan 2017, p. 345). Significant differences relative to emotional apathy can give rise to issues information of interpersonal trust during projects. The considerations are different for different categories of employees. The professional employee show comparative less significance to PsyCap approaches in comparison to administrative staff. Overall, utilisation of positive transformation leadership can help Woolworth to obtain sustainable progress and a competitive advantage in the long run.
Conclusion
Based on the information studied above, it can be concluded that among all leadership styles, transformational leadership has the most prominent association to employee performance. This association is visualised through influenced outcomes in productivity, satisfaction, dependability and effort. This review has provided additional knowledge for proficient comprehension of preferred leadership styles in different professional tiers. The significance of this review is that this can adjust the organisational behaviours in a practical approach to increase the overall performance of the company. This, in turn, can cater to increased productivity of staffs in the organisation through appropriate guidance and development. The present review has been conducted with the help of secondary data. The improvement that can be brought in this study is in the form of primary data addition. This can enrich the study with empirical data and confirm the inferences drawn through strategic appraisal. In addition to this, cross-cultural studies in business ethics can also cater to the workplace.
Reference List
Bouckenooghe, D., Zafar, A. and Raja, U., 2015. How ethical leadership shapes employees’ job performance: The mediating roles of goal congruence and psychological capital. Journal of Business Ethics, vol. 129, no. 2, pp.251-264.
Luthans, K.W., Luthans, B.C. and Palmer, N.F., 2016. A positive approach to management education: The relationship between academic PsyCap and student engagement. Journal of Management Development, vol. 35, no. 9, pp.1098-1118.
Luthans, F. and Youssef-Morgan, C.M., 2017. Psychological capital: An evidence-based positive approach. Annual Review of Organizational Psychology and Organizational Behavior, vol. 4, no. 1, pp.339-366.
Megeirhi, H.A., Kilic, H., Avci, T., Afsar, B. and Abubakar, A.M., 2018. Does team psychological capital moderate the relationship between authentic leadership and negative outcomes: an investigation in the hospitality industry. Economic Research-Ekonomska Istraživanja, vol. 31, no. 1, pp.927-945.
Owens, B., Rego, A., Yam, K.C., Bluhm, D., Cunha, M.P.E., Silard, A., Gonçalves, L., Martins, M., Simpson, A.V. and Liu, W., 2017. Leader humility and team performance: exploring the mediating mechanisms of team psycap and task allocation effectiveness. Journal of Management, vol. 1, no. 1, p.0149206316688941.
Pitichat, T., Reichard, R.J., Kea-Edwards, A., Middleton, E. and Norman, S.M., 2018. Psychological capital for leader development. Journal of Leadership & Organizational Studies, vol. 25, no. 1, pp.47-62.
Rebelo, T., Dimas, I.D., Lourenço, P.R. and Palácio, Â., 2018. Generating team PsyCap through transformational leadership: A route to team learning and performance. Team Performance Management: An International Journal, vol. 24, no. 8, pp.363-379.
Rego, A., Yam, K.C., Owens, B.P., Story, J.S., Pina e Cunha, M., Bluhm, D. and Lopes, M.P., 2017. Conveyed leader psycap predicting leader effectiveness through positive energizing. Journal of Management, vol. 1, no. 1, p.0149206317733510.
Roche, M., Haar, J.M. and Luthans, F., 2014. The role of mindfulness and psychological capital on the well-being of leaders. Journal of occupational health psychology, vol. 19, no. 4, p.476.
Wang, H., Sui, Y., Luthans, F., Wang, D. and Wu, Y., 2014. Impact of authentic leadership on performance: Role of followers’ positive psychological capital and relational processes. Journal of Organizational Behavior, vol. 35, no. 1, pp.5-21.