The effect of authentic leadership and psychological capital on work engagement amongst employees in leadership positions at Standard Lesotho Bank
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Date
2015
Authors
Sekoere, Ithabeleng Miriam
Journal Title
Journal ISSN
Volume Title
Publisher
University of the Free State
Abstract
Organisations today are struggling with the challenges in their efforts to remain competitive.
They need to enhance the talents and engagement of all their employees if they are to achieve
peak performance, as engaged employees yield direct economic benefits to the organisation. The
concept of work engagement plays an important role in this endeavor. The assumption of this
study was that certain variables influence work engagement and it is therefore important to gain
an understanding of these antecedents of work engagement. More specifically, the current study
sought to answer the following question: does authentic leadership and psychological capital
(self-efficacy, hope, optimism, resilience) have an effect on work engagement amongst
employees in the banking sector in Lesotho? The primary aim of the study was to determine the
effect of authentic leadership and psychological capital on work engagement amongst employees
in the banking sector in Lesotho. The secondary aim was to determine whether differences exist
in work engagement with regard to age amongst employees in the banking sector in Lesotho. A
discussion of the relationship between the variables was discussed in the study. Both survey and
statistical modeling methodologies were employed to guide the investigation.
In order to conduct the survey research, questionnaires were used as the method of data
gathering. In total, 299 questionnaires were returned by employees and consisted of four
sections that had to be completed. The measuring instruments included the Utrecht Work
Engagement Scale (UWES), the Authentic Leadership Questionnaire (ALQ) and the
Psychological Capital Questionnaire (PsyCap) (self and other rater).
The goodness-of-fit statistics associated with each of the four constructs was determined and the
results indicated that all the constructs are valid and reliable measures for this study. The current
study found that Relational Transparency (β = 0.736) was the strongest predictor of employees’
levels of engagement. Authentic leaders are able to enhance the engagement of employees by
strengthening their identification with the leader and organisation. By actively involving and
developing employees, authentic leaders increase employees work engagement and also by
promoting more rapid and accurate transfer of information is most likely expected to facilitate
more effective employee performance and engagement. A significant positive correlation existed between PsyCap (other rater) and work engagement (r = 0.718). One of the elements of the
PCQOR is efficacy/confidence. In addition, efficacy/confidence of the leader was the second
best predictor of employees’ levels of engagement (β = 0.248). Self-efficacious employees are
able to meet their work goals, and to be persistent in the face of difficulties. As a result,
engagement occurs through the facilitation of goal attainment. Manager’s self-efficacy may be
related to employee engagement because as the manager’s employees become more engaged in
their work, the manager gains confidence and belief in her/his abilities to create and build an
engaged team or group successfully. A team led by an efficacious manager, results in desired
unit/organisational outcomes. Employees’ levels of hope were the third best predictor of their
levels of work engagement (β = 0.099). A significant positive correlation also existed between
PCQSR and work engagement (r = 0.520). Employees high in hope are said to be more engaged
in their work since they have more goal orientated strategies and are more motivated to goal
achievement. In turn, these employees perform well in service delivery and complaint-handling
processes. The fourth and final predictor of employees’ levels of work engagement was their
managers’ levels of optimism. (β = 0.139). A significant positive correlation was also found
between PCQOR and work engagement (r = 0.718). Optimistic managers always strive for
positive outcomes and are likely to believe in their potential and that of their subordinates
regardless of previous failures. These qualities help them to be energetic, maintain their
perseverance in the face of demands, and most importantly enable engagement. Managers who
possess high levels of optimism maintain a positive perspective and do not make disasters out of
setbacks.
In addition, employees from the age group 55 years and older scored higher on engagement than
the younger employees (younger than 35 years). The 55 years and older we found to be more
engaged than the other three groups. Older employees are more content with their employer and
particular working conditions which makes them to be more engaged. They have a clear vision
of their place within the organisation and possible resultant career paths and they are
characterised by the highest overall engagement levels which assumes not only a high
contribution rate but also high attraction to their job and employer. In conclusion, further work is needed on differentiating authentic leadership from existing
theories of leadership such as transformational, charismatic, inspirational and servant leadership.
Further research also needs to be explored on how some other leadership theories might be
connected to authentic leadership. Future research should also try to compare multiple measures
of psychological capital to determine appropriate psychometric validity. Further theory
development may also be gained by analysing psychological capital as an antecedent to authentic
leadership rather than just an outcome or mediator. Interventions of work engagement should try
to focus on both individuals and the organisation at large. Furthermore, it is worth focusing on
the mechanisms through which work engagement leads to favorable outcomes by getting insight
in the processes that it initiates or is involved in. this can help not only to achieve better
performance but also to increase chances for better career development.
Description
Dissertation (M.Com. (Industrial Psychology))--University of the Free State, 2015
Keywords
Employees motivation, Employees -- Attitude, Work -- Psychological aspects, Banks and banking -- Employees, Banks and banking -- Lesotho, Bank management -- Lesotho, Leadership