Open access peer-reviewed chapter
Abstract
One of the most important roles in leadership is to support and encourage team members by empowering them and providing them with the opportunity to take greater ownership of their work outcomes. By supporting a culture of innovation, authentic leaders inspire and support individuals, encouraging them to improve performance and develop the confidence to exhibit creativity, demonstrate innovation, and show greater agility when faced with challenges. This enables them to work more independently, helping their organization to better achieve its objectives and increase competitiveness. Authentic leadership enhances an organization’s effectiveness by encouraging its employees to approach their tasks with a more optimistic attitude and with creativity. Through the use of emotional sensitivity organizational leaders can tailor their interactions with their employees to elicit their best performance. By drawing on each employee’s strengths, erudite leaders can create effective individuals that will enhance performance and foster a positive organizational culture. Authentic leadership also encourages employees to participate in decision-making. This empowers them and offers them a feeling of ownership of their tasks and responsibility for the outcomes. Encouraging such a culture promotes the organization as an employer of choice, further supporting its efforts to gain and maintain competitive advantage.
Keywords
- authentic leadership
- employees’ performance
- creativity
- participative decision-making
- outcomes
1. Introduction
Authentic leadership is a style of leadership that has attracted a significant amount of attention, by both scholars [1, 2] and practitioners [3]. It is characterized by an affirmative psychological attitude that promotes a positive organizational culture with a view to developing increased self-awareness, the objective evaluation of information, the application of supportive moral principles, and transparency on the part of the leader. This then enhances self-development not only for the leader, but also their followers [2]. Academic opinion is that it enhances organizational performance by encouraging positive approaches and behaviors by employees [4]. Authentic leadership enhances an organization’s performance by providing employees with the support and motivation to take greater ownership of their work and its outcomes, which benefits the organization as a whole. It also allows employees to participate in discussions regarding their tasks and make decisions that affect their work.
Leaders can reap the benefits of practicing authentic leadership through the enhanced motivation of their employees that it brings. By supporting their employees in this way the employees will, in turn, support their manager and their organization by taking greater ownership of the outcomes derived from their efforts, resulting in mutual benefit.
As the world business environment continues to gather pace, organizational leaders need to adapt in order to benefit from management methodologies that help them to gain and maintain competitive advantage. The purpose of this chapter is to assist managers to better understand the concept of authentic leadership so that they can utilize its practical aspects for the mutual benefit of themselves, their employees, and their organization. The aim is to shed light on the importance of authentic leadership with regard to employee motivation by involving employees in decision-making. This chapter discusses the robust relationship between authentic leaders and followers that could lead to increased employee commitment and job performance. It also seeks to determine the relationship between authentic leaders and their followers and how it supports and encourages employee creativity at both the individual and the team level.
2. Theoretical framework
Uhl-Bien et al. [5] traced the historical study of leadership from its beginnings, where leaders were the focus and followers were considered merely the resources used to achieve the leader’s desired goals, through to the concept of a dyadic relationship, where leadership and followership engaged in a symbiotic relationship directed toward the mutual attainment of the organization’s goals and objectives. In this, the hierarchical view of the leadership-followership model has developed into more of a social view.
Authenticity has been described as an individual’s taking ownership of their experiences, thoughts, feelings, opinions, principles, or longings [6]. This involves an individual possessing a large measure of self-awareness and taking actions commensurate with their beliefs [7]. Erickson [8] advises that authenticity is not either fully present or fully absent in a person but, rather, is on a continuum. Whitehead [9] defined authentic leadership as involving self-awareness, humility, a desire for continuous improvement, an awareness of others’ welfare, the ability to create an organizational culture of trust by emphasizing and maintaining strong ethics and morals, and a commitment to the organization’s success. Shamir and Eilam [10] based their definition of authentic leadership on the association between leaders’ self-concepts and their ensuing actions and behaviors, describing how the leader’s organizational role is a part of their concept of self and how, as role models, their actions and behaviors are consistent with this. This, they argue, generates authenticity on the part of their followers, given that the followers are motivated to follow their leaders out of a desire to form genuine working relationships. Zhang et al. [11] and Javed et al. [12] note that the effectiveness of an authentic leader varies between employees, with factors such as employees’ political skills and openness to experience affecting how strongly they adopt the behaviors demonstrated by their authentic leader.
Authentic leaders possess transparency in relation to their intentions, linking their actions and behaviors to their values [7]. In rapidly changing business environments, organizations need authentic leaders to engender followers’ confidence in the direction they take the organization. Such situations are the basis of leadership of the highest quality [13, 14]. A review of the body of literature by Kernis and Goldman [15] and Kernis [16] found that authenticity involves four aspects relating to both an individual’s thoughts and behaviors, these being based on an awareness of themselves and having belief in their emotions, motives and values, objectivity in evaluating their personal qualities, both positive and negative, taking actions based on their values rather than being influenced by others, and the ability and willingness to be both open and genuine in interpersonal relationships.
Given that authentic leadership may be viewed as a function of the dyadic mutual exchange process, research into followership needs to investigate the type of influence that leaders and followers have on each other in their combined pursuit of organizational objectives for their mutual benefit.
3. Method
This chapter is based on a review of the literature concerning authentic leadership and its relationship with employee creativity and participative decision-making. These important associations have not received the attention they deserve, given their importance in developing robust working relationships and, through these, enhanced competitive advantage. This research critically reviews the literature to improve our understanding of authentic leadership based on the theoretical focus of follower participation in decision-making. The focus of this chapter is on creating a clear understanding of how authentic leaders can build a strong relationship with followers. This chapter is centered on theory and its practical application, and although it may be based on existing research, it covers a topic that is only now beginning to receive the attention it deserves. Participative decision-making has enjoyed only limited coverage in the literature to the present time [17, 18], yet it is deserving of increased attention. This chapter aims to examine how the existing theoretical frameworks can be combined with more recent work on authentic leadership to arrive at a better understanding of authentic leadership and how it affects leaders’ dynamic relationships with their followers. This stands as one of the most important challenges that leaders face.
4. Discussion
4.1 Leader self-awareness
An authentic leader is one who leverages their own positive characteristics, such as a strong awareness of self and a robust sense of ethical behavior in order to nurture a positive working environment in which employee trust and positive working relationships are developed and employee creativity and innovation are encouraged and rewarded [19]. A leader’s self-awareness develops over time as they gain an increased understanding of their strengths and weaknesses and talents, as well as their personal beliefs, values, and desires [1].
Authentic leadership entails a manager possessing well-developed emotional intelligence. With this, leaders can work on building not only their own positive characteristics by recognizing their strengths and weaknesses, but also those of their followers. In so doing, they can develop empathy with their followers and utilize this to develop better and stronger working relationships by enhancing their followers’ positive characteristics as well as their own and harnessing them for mutual benefit.
Self-awareness is akin to self-evaluation, in that a better awareness of self is more likely to result in a more accurate self-assessment. How individuals assess their leadership is related to this. Discrepancies between an individual’s assessment of themselves and assessments of them by others can indicate a lack of self-awareness regarding their leadership [20]. An individual’s awareness of their own leadership may well enhance both their workplace effectiveness and the satisfaction they derive from this [20]. Of course, a leader’s self-awareness needs to be truly objective if it is to be an accurate reflection of their capabilities. This is a difficult undertaking for any individual given that the natural human trait is often to view events in a favorable light.
4.2 Follower development
Authentic leadership affects outcomes such as employees’ job performance and also their organizational commitment and their demonstration of citizenship behaviors [21, 22]. It develops over time as the leaders become increasingly aware of their values, beliefs, desires, and role within the organization [23]. Followers also develop a greater transparency and a stronger awareness of their values and beliefs within the organizational context as a result of their leader’s influence, thereby cultivating their own values, beliefs, and desires. This, then, creates a symbiotic relationship where both leaders and followers can develop. This is not necessarily intentional on the part of the leader, but may occur simply in the act of their being a role model [1].
By building on their awareness of self and of others, authentic leaders increase their ability to evaluate not only their employees’ current capabilities, but also their potential capacity for increased responsibility [24]. This, of course, presupposes that followers are resources that exist in a vacuum and need developing by the leader. Followers already have their own views, perceptions, and predispositions. In order for followers to be developed by their leader, they must be willing for this to occur. Good leaders may well be able to develop positive working relationships with most followers, but should recognize that not all followers can be bent to the will of the leader in the way the leader would always prefer.
4.3 Authentic leadership and creativity
By emphasizing the positive aspects of working relationships rather than the negative [21, 25], authentic leaders encourage trust among their followers. This then increases the followers’ sense of safety and encourages them to contribute their creative ideas [26]. Followers of authentic leaders obtain increased motivation through their leaders’ support [27], thus encouraging creativity [28]. This is achieved by the authentic leaders having a heightened self-awareness, particularly in relation to their strengths and weaknesses, emotions, values, and beliefs. These leaders candidly share these with their followers transparently, engendering trust. In this way, authentic leaders develop trust and encourage creative thinking among their followers by creating a supportive organizational environment that allows reasonable risk-taking. As well as this, these leaders carefully consider all the information available to them, while maintaining a moral standpoint, before deciding on any courses of action.
Authentic leaders encourage constructive exchanges between stakeholders [3] and enhance positive attitudes and emotions among their followers. This encourages their followers to consider creative alternatives [29]. This promotes an organizational culture where employees feel sufficiently safe to seek out alternatives, present and implement creative ideas, and develop their potential [30]. In this context, authentic leaders do not necessarily develop their followers’ attitudes directly as their followers will already have their own attitudes but, rather, indirectly in that they, as custodians of the organization’s culture, create the conditions and the supportive environment in which followers can feel safe to propose their creative ideas.
4.4 Team leaders’ authenticity and team innovation
Innovation is the implementation of creative ideas within a specific context [31] and represents a change to the organization’s traditional method of operating. This usually creates resistance to the proposed change and possible conflict, often requiring continuous effort in order to successfully implement the change. This highlights the difference between the leadership needed to encourage employee creativity and that required to support innovation, with each requiring different incentives [32].
Authentic leaders offer empowerment to their followers by instilling in them a common sense of purpose and values and providing encouragement and opportunity to undertake leadership roles in the pursuit of organizational objectives [33]. Authentic leaders do this on an ongoing basis through their presence as a role model, thus providing the conditions in which authentic followership can develop. It is this that sets authentic leadership apart from other styles of leadership. Also, by being transparent, authentic leaders can support their followers by showing their faith and trust in them [32].
As a result of the organizational environment created by the authentic leader, followers will have a greater propensity to perceive their leaders as role models. The leaders, being imbued with increased self-confidence, are themselves encouraged to support the implementation of creative new ideas [34] or generate new ideas themselves. This can, in turn, motivate the followers to devise and implement new ideas [35] as well as becoming role models themselves.
Authentic leaders, indeed, possessing increased levels of self-awareness will have the responsibility to nurture their team members’ creative ideas and support their implementation. As leaders, they will use their knowledge of the broader issues and their experience to guide their team members’ suggestions into reality by supporting their efforts, rather than taking them over and personally implementing them. This will provide the team members with a greater sense of ownership, not just of the work task itself, but the creative solution to the task’s problems and its implementation.
4.5 Affective commitment
Affective commitment relates to the personal and emotional attachment an employee experiences. Those with a high level of affective commitment are less likely to separate from the organization [36] as they believe in the organization’s values and goals [37]. Behaviors demonstrated by authentic leaders represent the values that support transparent working relationships. A greater employee perception of leader authenticity is likely to result in an increased emotional connection between employees and authentic leaders [16, 23] leading to an increase in the quality of exchanges between them, thus increasing employees’ affective commitment [38]. Based on the author’s observation and their experience as an authentic leader, when individuals and teams have a better informal and formal working relationship with their leader, they feel more supported, are more committed to that relationship, their job, and their organization, and are more engaged. This then results in enhanced cohesiveness and a stronger leader-member exchange as well as encouraging employees to demonstrate increased creativity, resulting in mutual benefits for both the leader and the followers.
4.6 Affective commitment and creativity
As creativity involves a process of developing solutions to problems and issues [39], it may assist in increasing employees’ commitment to their organization [40] and, as such, may support creative behaviors. Therefore, there is an association between employees’ affective commitment and creative behaviors [41, 42]. Employees who are happier in their work display increased creativity [43] and, through this, an affective attachment to their place of employment [44]. Positive emotions enhance cognition and support creative thought [45] so there is a correlation between happiness, affective attachment, and creative thinking [46]. Following this, there is also a correlation between positive affective attachment and workplace creativity as it enhances the chances of employees making associations between seemingly unrelated pieces of information, possibly leading to creative solutions to problems [47].
Employees’ affective commitment has been found to be a predictor of creativity [40]. There is also a relationship between employee autonomy, perseverance, achievement, and dedication [48]. These factors create ties between employees and their organizations and define how the creativity exhibited by an employee is influenced by the culture of their workplace [40]. As a result, employees having a strong affective commitment to their workplace are more likely to develop creative solutions and apply them in an effort to enhance their organization’s efficiency [49].
4.7 Authentic leadership, employee creativity and performance
Creativity relates to the production of new and useful ideas or solutions to problems [50, 51, 52], while performance is concerned with employees’ productivity in relation to desired workplace outcomes [53]. Creativity is therefore a predictor for effective workplace performance [54, 55].
Many studies have found that the workplace culture influences a number of employee-related factors, including job satisfaction, job performance, work stress, and organizational commitment [56, 57, 58]. An investigation of the literature by Da Costa et al. [59] found that intrinsic motivations, such as interest in the task, job satisfaction, the amount of pleasure derived by undertaking the task, and the challenges presented by the task are greater motivators than extrinsic motivations, such as pressure or rewards and compensation. The positive and supportive environments that authentic leaders create, therefore, lay the foundation for a variety of positive employee behaviors, many of which contribute to many of the others. By contrast, workplace cultures based on sanctions such as pressure can stifle the positivity resulting from supportive environments.
4.8 Authentic leadership is positively related to psychological empowerment
Empowerment, or autonomy, is a psychological concept [22, 60] and is considered to contain four aspects [61]. The first of these is the meaning or value of any work an employee undertakes in the light of their personal values [61]. The second is competence, or self-efficacy, which relates to an employee’s belief in their capacity to successfully achieve a required outcome [62]. The third is self-determination, being an employee’s perception of their freedom to instigate or alter an action [63]. The fourth is impact, or the amount to which the employee’s actions affect their organization’s productivity [64]. In combination, these factors encourage proactive behaviors and confidence on the part of the employee [60].
Workplace empowerment is also a function of the relationship between an employee and their manager [65]. The concept of empowerment differs between cultures. In individualistic cultures, empowerment is considered to be a function of the job itself, while in collectivist cultures, it relates more to the amount of trust a manager has in their subordinate [66, 67]. As a function of social exchange, employees gain a sense of empowerment when their supervisor has a working relationship with them. This is particularly so where large amounts of information are present requiring transparency in the sharing and processing of that information [68]. This enhances the development of trust between the supervisor and the subordinate and contributes to the enhancement of the employee’s performance [2, 69, 70]. Authentic leaders are able to balance the flow of information while allowing the employee to develop a greater sense of ownership of the work. This develops an increased sense of empowerment on the part of the employee [22, 27].
Empowerment can be considered as having two varieties within the workplace environment, these being structural and psychological. The structural variety relates to the hierarchy within the workplace and the workplace environment [71], while the psychological variety relates purely to the motivation to undertake tasks [60]. Psychological empowerment practiced by authentic leaders has been found to motivate employees [72, 73] by facilitating employee autonomy and provides them with the feeling that they have influence over their tasks [74]. The concept of empowerment in cultures other than those in the west, particularly in the south-east Asian region, is the power distance between the leader and the employee and the degree of trust the leader has in the employee [75]. These theoretical aspects determine employee behaviors. This is of particular importance in organizations where the amount of information is high and where decisions need to be made quickly [76].
Based on the existing body of knowledge in this field, empowerment influenced by authentic leaders is positively related to creativity [55, 77]. This is founded on the principle that authentic leaders cultivate and sustain working relationships with their followers as a result of their personal characteristics [78]. Employees working in organizational cultures oriented toward interpersonal relationships therefore have the perception of empowerment and respond with creative thoughts that may lead to innovative solutions [76].
4.9 Authentic leadership and organizational culture
Based on the adage that the standard you walk past is the standard you accept an organization’s authenticity was defined by Novicevic et al. [79] as a manifestation of the authenticity of the organization’s leadership. This then creates an authentic organizational culture. The culture of a workplace directly results from the values and beliefs of its leaders. As such the role leaders play in creating and maintaining the workplace culture is vital [80]. Authentic leaders are effectively the role models for their organization. By making decisions and undertaking behaviors in accordance with their values and beliefs, authentic leaders encourage similar behaviors among their followers [81]. Authentic leadership is therefore vital in developing an inclusive workplace culture [82] that develops and maintains an atmosphere of inclusion that encourages creativity. Authentic leaders engage in inclusive behaviors, which involve the use of participative decision-making, encouraging free and open communication from employees, and valuing opinions from a diverse variety of perspectives [81]. Employees will soon detect any incongruence from leaders who make decisions and undertake behaviors that are not aligned with their values and beliefs, undermining the leader’s position.
Authentic leaders enhance an organization’s culture in several ways. By demonstrating transparency, they create a culture of commitment to the organization, encourage the sharing of knowledge, and increase employee satisfaction, engagement, performance, and productivity [83], as well as increasing employees’ feelings of inspiration and passion for their work [84]. By being transparent with their employees, authentic leaders promote an organizational culture that supports employee psychological safety [4], respect, and trust and, through this, encourages creativity [85]. Authentic leaders, therefore, as custodians of their organizational culture, are responsible for nurturing the positive workplace environment that results in their employees feeling sufficient confidence to propose ideas, safe in the knowledge that not only will their leaders support their efforts, but also the other employees, as all workers should share in the positivity created by the leader, having taken on some of the authenticity the leader displays as a role model.
4.10 Authentic leadership and followers’ participative decision-making
While there has been much written about authentic leadership and its effect on employee motivation and employee requests for feedback from their leaders [86], less has been written about the effect of authentic leadership and its impact on participative decision-making. The organizational culture created by an authentic leader through their transparency also encourages participative decision-making by providing a safe environment in which employees feel trust and confidence that their creative ideas will be noted and considered. By encouraging employees to participate in the decision-making process, authentic leaders inspire employees at all levels to be a part of the organization’s decision-making process.
Authentic leaders can also act as mentors for their employees, providing them with the guidance they need to approach their work and the decisions relating to it, increasing their self-reliance. This builds confidence among employees and helps the organization to innovate, benefitting the employees, their leaders, and the organization as a whole. By taking this path, the organization will be more likely to identify creative solutions to unsolved problems. An added benefit of this is that employees can share some of the responsibilities for managing the completion of tasks, reducing the authentic leader’s workload, and providing them with greater time to manage other aspects of their role. Taking part in making workplace decisions helps employees to feel self-actualized, which increases their motivation and, through this, their performance [87]. Employees will also experience feelings of empowerment and affective commitment, thus strengthening the organization’s retention of corporate knowledge. The creation of such an environment increases the organization’s reputation as an employer of choice and increases its competitive advantage.
5. Conclusions
5.1 Theoretical contribution
To the present time, much of the research in this field has focused on the effectiveness of empowering leadership in improving employee efficiency [55]. There has been relatively little investigation into determining the relationship between authentic leaders and their followers and how this relationship supports and encourages employee participation in decision-making and leads to creativity at both the individual and the team levels.
This chapter has focused on understanding and applying the theory of authentic leadership in order to make use of the practical features it contains as a way for leaders to utilize it for their own benefit as well as for the benefit of their followers and the wider organization. Of necessity, theory regarding authentic leadership will adapt as new research refines it by retaining its fundamentals, while incorporating new concepts. While authentic leadership has been researched [9] and found to be a characteristic of the exchange between leaders and followers, investigation of followership should examine the nature of the mutual influence between leaders and followers as all parties involved in the process seek to gain shared benefit from the pursuit of their organization’s goals.
While there has been a significant amount written about the effects of authentic leadership on employee motivation and employee requests for feedback from their leaders [86], there has been less attention paid to how authentic leadership affects participative decision-making. The culture an authentic leader’s transparency creates in their organization promotes participative decision-making by generating an environment where employees can feel confident that their creative ideas will receive appropriate consideration. This chapter provides an opportunity for researchers to gain a stronger understanding of how the relationships between leaders and followers develop and continue through employee involvement in making decisions and challenges researchers to investigate how the effectiveness of leaders can better be facilitated. Additionally, this study helps authentic leaders to become increasingly aware of how important it for their leadership to promote a culture based on participative decision-making, such that it increases both employees’ performance and organizational commitment, as well as utilizing this awareness to develop and improve training in authentic leadership.
5.2 Practical contribution
Authentic leaders should build an innovative culture in their organization. They should support and inspire their employees to enhance their performance and gain the confidence to demonstrate creativity and agility when confronted with challenges. Doing so will facilitate their ability to do their work with greater independence and help their organization to realize its objectives. Authentic leaders exemplify mutual exchanges between themselves and their followers. Therefore, research relating to followership should examine how leaders and followers influence each other as they work in combination to achieve their organization’s goals and, in so doing, achieve mutually beneficial outcomes. Authentic leaders involving their followers in the decision-making process promote an organizational environment that encourages the investigation of creative ideas and innovation in resolving workplace problems, leading to a culture of learning and organizational commitment.
This chapter increases leaders’ knowledge of authentic leadership and the effects it has on participative decision-making. The environment an authentic leader creates in their organization as a result of their transparency promotes participative decision-making by building an organizational culture where employees can have sufficient confidence that their creative ideas will gain a fair hearing that they are motivated to suggest them. This chapter assists authentic leaders to increase their awareness of how authentic leadership encourages a creative organizational culture, which then enhances employees’ performance as well as their organizational commitment. This awareness can then form the basis of enhancements to leadership training so that both leaders and their organization can benefit. Employees working with an authentic leader who has created a culture that supports them are more likely to not only develop a positive attitude toward their workplace, but also experience elevated levels of job satisfaction and organizational commitment [88].
5.3 Conclusion
In summary, authentic leadership develops the cohesiveness of working relationships, improves both employee and organizational performance, and enhances the likelihood of improved outcomes by increasing employees’ affective commitment, thereby motivating them to approach their work more positively and display creative behaviors that support their organization. It also plays an important role in encouraging employees to become more involved in the decision-making process. This gives them a sense of empowerment and ownership of their work and strengthens retention of the organization’s knowledge. Authentic leaders can improve their organization’s culture by creating an environment of commitment by motivating followers to share their knowledge, experience, and creative ideas, all of which can contribute to improved organizational performance. Authentic leaders can benefit by encouraging their employees to participate in decision-making as a way to enhance their organizational commitment to the extent that their creativity is maintained. Developing an environment such as this enhances the organization’s reputation as an employer of choice, which helps to increase its competitive advantage.
Notes/thanks/other declarations
I would like to thank Joseph Crawford for the opportunity he has given me to contribute this chapter of his book.
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