Cross-Level Investigation of Unit-Level Leadership Climate & Processes on Empowerment & Performance

Abstract

We advance and test a multi-level model of individual psychological empowerment and performance using a sample of 1611 employees from 219 departments from the healthcare industry. Our model positioned individual psychological empowerment as a key mediating mechanism linking individual- and unit-level influences on individual performance. Our results indicated that psychological empowerment was enhanced by both individual (i.e., team orientation and organizational tenure), and unit-level (i.e., unit processes) antecedents. Additionally, unit processes fully mediated the cross-level effects of leadership climate on individual psychological empowerment and performance. Finally, although unit processes failed to moderate the team orientation – psychological empowerment relationship as anticipated; it did moderate the relationship between psychological empowerment and individual performance. Specifically, the relationship between individual psychological empowerment and performance became stronger to the extent that individuals were members of units with superior processes. Managerial implications of these results and suggestions for future research are discussed.