Effects of moral reasoning and management level on ratings of charismatic leadership, in-role and extra-role performance of managers: A multi-source examination

Abstract

This study investigated whether upper and lower-echelon managers' moral reasoning (n=377) was associated with the levels of charismatic leadership, in-role and extra-role performance they displayed as perceived by their subordinates (n=1731), superiors, and self. Managers completed the Defining Issues Test (Rest, 1990) to assess their moral reasoning capacity. Self-ratings of managers' charismatic leadership, in-role and extra-role performance were collected two weeks later. Subordinate- and superior-ratings of these constructs were collected one month later. Analysis of covariance indicated that managers possessing the highest (i.e., postconventional) level of moral reasoning outperformed managers at the lower preconventional and conventional levels, but displayed lower levels of self-rated charismatic leadership. Upper-echelon managers displayed higher levels of charismatic leadership and extra-role performance than lower-echelon managers. Within and between analysis (WABA) indicated that upper-echelon managers at conventional and postconventional levels of moral reasoning agreed with their subordinates and superiors that their charismatic leadership ratings exceed those in lower management, but are lower than those of leaders who possess preconventional moral reasoning.