Impact of Servant Leadership on Job Performance with Mediating Role of Trust and Moderating Role of Power Distance: A Case of Hospitals in Pakistan

Abstract

Job performance is essential for growth, especially in the service sector like hospitals. Apart from other factors, the leadership style affects job performance and other organizational-related outcomes. The literature documents that hospital employees’ job performance has declined. Thus, we have focused on nurses and other healthcare staff, excluding doctors in the healthcare industry. The study’s sample size was 582. The study supports all five hypotheses. We found that “servant leadership and trust positively affect job performance.” Servant leadership positively affects trust. The study also documents that “trust mediates servant leadership and job performance.” At the same time, our results also suggest that “power distance” moderates servant leadership and trust relationship. Based on the direct and indirect effects of servant leadership and job performance, we suggest organizations hire servant leaders. The organizations mustalso regularly conduct counseling sessions for their leaders to focus on the employee’s development and wellbeing. Such attitudes positively enhance job performance and increase employees’ trust. Consequently, employees reciprocate by developing loyalty with the organizations and the leaders.