Transformational Leadership and Emotional Exhaustion: A Conservation of Resources Perspective

Abstract

In this study, we draw upon conservation of resources theory to suggest that transformational leaders’ capacity to encourage extra effort might both energize and exhaust followers depending on their ability to replenish energy reserves. Specifically, we argue that the indirect relationship between transformational leadership and emotional exhaustion via extra effort varies depending on followers’ levels of psychological detachment from work during nonwork time. We tested the hypothesized conditional indirect effect model using three-wave data from 214 employees working in various industries. The results showed that transformational leadership was positively related to extra effort. Furthermore, we found that psychological detachment moderated the relationship between extra effort and emotional exhaustion such that extra effort was negatively related to exhaustion with high psychological detachment and positively related to exhaustion with low psychological detachment. The indirect relationship between transformational leadership and exhaustion via extra effort was negative with high psychological detachment and positive with low psychological detachment. The findings of this study indicate the importance of recognizing that the beneficial effects of transformational leadership in reducing emotional exhaustion may not hold for all followers but are dependent on followers’ levels of psychological detachment. Returning to one of the original premises of the transformational leadership model that transformational leaders bring about extra effort is helpful in further understanding the dark side of transformational leadership for employee well-being.