Abstract

The objective of this research is to investigate the complex relationships that exist between psychological safety, employee motivation, and flourishing in organizational settings. Specifically, the study will concentrate on developing creative work environments and analyzing the roles played by transformational and transactional leadership styles. The understanding of psychological safety as a fundamental component of an atmosphere where taking interpersonal risks is encouraged and enables staff members to freely interact, make suggestions, and work together without fear of consequences is at the heart of the inquiry. Based on positive psychology frameworks and self-determination theory, the study clarifies the several motivating factors—like relatedness, competence, and autonomy—that lead to employee thriving. It seeks to understand how these motivational elements, along with psychological safety, foster an atmosphere that is favorable to creativity and invention. The study explores the complex interrelationships between transactional and transformational leadership philosophies and how each influences psychological safety and encourages workers to come up with new ideas. The primary goal of the inquiry is to clarify how these leadership philosophies affect the individual and group creativity of employees. Through an analysis of the complex relationships between psychological safety, employee motivation, and leadership styles, the thesis seeks to provide practitioners and organizational leaders with practical advice. It is crucial to comprehend how these elements combine to influence creative work practices and inventive behaviors in today's dynamic and competitive environment, where innovation is essential to long-term success. Keywords: Innovative work behavior, Employee creativity, Transformational leadership style and Transactional leadership style.

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