THE INFLUENCE OF ETHICAL LEADERSHIP THROUGH DECISION MAKING AND REINFORCEMENT TOWARDS EMPLOYEE OUTCOMES

Umi Hamidaton Mohd Soffian Lee,Razaleigh Muhamat Kawangit,Zaleha Yazid

doi:10.47263/jasem.3(2)04

Abstract

Today, in the early days of industrial revolution, ethical leadership has become an important organization strategy and aim for achieving the organizational objective and success. The purpose of this research is to explore into the influence of ethical leadership through decision making and reinforcement practice by leader on employees’ outcomes such as organizational commitment and moral behavior. A cross sectional technique was employed to collect the primary data from 139 employees from the corporate telecommunication sector in Peninsular Malaysia who experienced the implementation and practice of ethical leadership. This study adopts the partial Least Square Structural Equation Modeling (PLS-SEM) for the purpose of data analysis. The outcomes display that decision making acts as an important predictor to moral behavior and organizational commitment. Additionally, reinforcement acts as an important predictor for moral behavior and yet, acts as an important predictor to organizational commitment.

Highlights

Nowadays, ethical issues have become increasingly important due to the revelation of numerous corporate scandals such as World Com, Enron and Tyco which involve the form of unethical practices by the leader (Muhammad Yasir & Amran Rasli 2018)
The results show the value mean for all constructs ranging from 4.0759 to 4.3118, which indicates that the majority of the respondents perceived that the levels of decision making, reinforcement, moral behavior and organization commitment range from high (4) to the highest level (5)
This study confirms and concludes that effective decision making is an important determinant for moral behavior and organizational commitment

Summary

Introduction

Ethical issues have become increasingly important due to the revelation of numerous corporate scandals such as World Com, Enron and Tyco which involve the form of unethical practices by the leader (Muhammad Yasir & Amran Rasli 2018). Such concerns are highly related to the effectiveness of a leader and may affect employee outcomes such as lower turnover intention, greater commitment, job satisfaction and widely noted influence on employees’ ethical behavior (Elçi et al 2015 Sim & Kroeck 1994; Ma et al, 2012). The statistics on commercial crimes as reported by Royal Malaysia

Objectives

Methods

Results

Discussion

Conclusion