How CEOs’ inclusive leadership fuels employees’ well-being: a three-level model

Abstract

Drawing on social learning theory and social information processing theory, we propose that department managers’ inclusive leadership, and department-level inclusive climate serially mediate the effect of CEOs’ inclusive leadership on employees’ well-being. We also posit that organizational structure not only moderates the relationship between CEOs’ inclusive leadership and department managers’ inclusive leadership, but also plays a role in the relationship between department managers’ inclusive leadership and department-level inclusive climate. By analyzing paired data of 106 CEOs, 204 department managers, and 975 employees, we found that department managers’ inclusive leadership mediated the relationship between CEOs’ inclusive leadership and employees’ well-being, but the serial mediation role of department managers’ inclusive leadership and department-level inclusive climate in the effect of CEOs’ inclusive leadership on employees’ well-being was not supported. Organizational structure moderated the relationship between CEOs’ inclusive leadership and department managers’ inclusive leadership. Specifically, when organizations have organic structures rather than mechanistic structures, the relationship between CEOs’ inclusive leadership and department managers’ inclusive leadership is stronger. However, the moderating role of organizational structure in the relationship between department managers’ inclusive leadership and inclusive department climate was not supported.