ETHICAL LEADERSHIP ENHANCE POSITIVE WORK OUTCOME: A MEDIATION MODEL

Abstract

Purpose of the study: The current study was conducted to find out the relationship amongst the Ethical leadership and job outcome’s (job satisfaction and job performance), and to have in-depth into how the relationship between ethical leadership and the job outcomes is mediated by the psychological empowerment.
 Methodology: The study has been conducted in the public sector hospitals of district Peshawar. Data was collected from 267 nurses working in public sector hospitals. Data was collected through a structured questionnaire, and convenience sampling was used as a sampling technique. In order to test the hypothesis, the regression-mediation analyses were considered.
 Main Findings: The result revealed that ethical leadership has a positive impact on job satisfaction and the job performance. Similarly, the psychological empowerment also had a positive relationship with job satisfaction and job performance. Findings of the study also show partial mediation of Psychological empowerment in the relationship of ethical leadership and job satisfaction. Moreover, psychological empowerment fully mediates the relationship between ethical leadership and job performance.
 Applications of this study: On practical grounds, our study provides guidelines for managing human resources in organizations. Employees need a good platform where they are provided with opportunities to build an interactive relationship with the supervisors which results in the progressive output for both individuals, and the performance of organizations.
 Novelty/Originality of this study: Unfortunately, less importance has been given to the relationship of ethical leadership with job outcomes like performance. Few studies have explained that how and why ethical leadership is related to employee job performance. This study presents that ethical leadership affects employees by modelling and motivating them to avoid those unethical and harmful behaviours for their performance.