Capstone Project
Capstone Project
ON
AUTHENTIC LEADERSHIP ORGANISATIONAL TRUST
STRESS
UNDER SUPERVISION OF
Dr. Akashdeep Joshi
SUBMITTED TO: -
Dr. Akashdeep Joshi
Team Members:
Declaration:
We declare that this Assignment is our work. We have not copied it from any other student’s
work or from any other source except where due acknowledgement is made explicitly in the
text, nor has any part been written for me by any other person.
Evaluator’s comments
STRESS
Stress is a state of tension that affects both your body and mind. Any event or thought
that causes a person to feel irritated, furious, or anxious can trigger it. The body's
response to an action, a challenge, or a demand is stress. In other words, stress can
sometimes be good, such when it makes it easier to avoid danger or achieve a deadline.
Stress, in this sense, can be defined as our response to pressure or threat. It typically
occurs when we are in a precarious position that we don't feel we have any control over.
• Having numerous obligations that you are finding difficult to handle or control.
• For instance, Part of Group, if your family is going through a trying moment, like a
death in the family or financial issues.
Sometimes it is also believed that a modest amount of stress can boost our energy and
help us feel more powerful. However, stress can also become an issue if it persists for
a long period or is extremely intense. Stress occasionally has an impact on a person's
physical and mental well-being.
ORGANISATIONAL TRUST
. And they almost certainly won’t put in max effort while they’re there.
The more you can do to boost confidence in all aspects of the employee experience, the
more tightly knit your organization will be.
LEADERSHIP
Most facets of society, including business, politics, local communities, and nonprofit
groups, demand leaders.
While many people are born with certain leadership qualities, most people must learn
most, if not all, of the qualities that make someone a good leader.
Similar to this, leadership experts hold that there are various types of leadership
styles, some leaders possess a dominating single style, while other leaders use various
styles depending on the situation or the followers they are leading. And it's pretty
certain that they won't give it their all when they're there.
Your organisation will be more cohesive the more you can do to increase employee
confidence in all facets of the employee experience.
LITERATURE REVIEW
LEADERSHIP
Supervisor trust would influence organisational trust, according to the study's trust
transfer theory (Yeon-Kook Jeong, Yong-Ki Lee, & Sally Kim, 2017). According to
their argument, trust is transferred from the supervisor (a more well-known source) to
the latter because employees (subordinates) know their supervisor better than they do
the organisation (a lesser-known target).
The trust transfer theory is supported by the finding that supervisory trust has a
significant influence on organisational trust. According to their research, employee
perceptions of the organisation are significantly influenced by interpersonal
interactions. In other words, employees draw conclusions about the organisation
based on their interactions with the boss.
Regarding the laissez-faire leadership style, the leader does not regularly
communicate with or solicit feedback from the team members, nor does he or she
personally supervise them. In particular, it gives the group members complete liberty
and self-rule to decide how to complete the assignment (Eagly, Johannesen-Schmidt
& Van Engen, 2003; MacBeath, 2005; Rad &Yarmohammadian, 2006).
However, the leader is readily ready to provide direction whenever the group
members need it (Eagly, Johannesen-Schmidt & Van Engen, 2003) a transformational
style of leadership.
Burns proposed the transformational leadership theory in 1978, and it has since
garnered a lot of study interest, according to Gumusluoglu and Ilsev (2009). Four
components make up transformational leadership: charismatic role modelling,
individualised care, inspirational drive, and intellectual stimulation (Gumusluoglu &
Ilsev, 2009:462). First, leaders who are charismatic emphasise having a single,
common mission and incite respect, veneration, and allegiance. Second, leaders who
take individual variations, wants, abilities, and preferences into account build their
own relationships with followers.
Thirdly, inspirational motivation occurs when a leader effectively conveys the future
vision, exemplifies how objectives may be met, and ignites followers' passion for
achieving objectives. Last but not least, leaders broaden followers' perspectives,
improve their welfare, and inspire them to be highly innovative through intellectual
stimulation. The transactional leadership style may supplement the transformational
leadership style's effectiveness. The transactional leadership style is discussed in the
following subsection.
Transactional Leadership Style
The charismatic leadership style has its roots in an extreme or bold personality trait that
is more or less of celestial origin (Burke et al., 2006; Avolio, Walumbwa & Weber,
2009). One of the leadership philosophies advanced by Max Weber in 1947 was this
one. It is predicated on the idea that charisma and grace attract large followings, self-
belief is a fundamental need of leaders, and members adhere to those leaders they hold
in high regard rather than any other kind of authority (Chen & Silverthorne, 2005; Lee,
2005; Hannah et al., 2008). In church organisations, the charismatic leadership style is
highly prevalent.
The transformational theory is the source of the democratic leadership style, often
referred to as participative leadership style (Burke et al., 2006; Rad &
Yarmohammadian, 2006; Vigoda-Gadot, 2007). This leadership approach puts an
emphasis on visionary leadership, change, and improving both human and
organisational outcomes. Members have the opportunity to develop their leadership
abilities, take part in leadership, and make decisions (Vigoda-Gadot, 2007). It can be
argued that this leadership approach is more effective than autocratic leadership
(MacBeath, 2005). Employees believe their views, recommendations, and ideas are
taken into account. Despite the fact that members have a certain amount of autonomy,
the laissez-faire leadership style works best in environments where employees are
highly trained, passionate, and content with their work.
Visionary Leadership
Luhrmann and Eberl (2007); Yukl (2006)), and it is significant to emphasise that
transformational actions and traits are exhibited by visionary leaders. However,
visionary leaders also exhibit traits that are "necessary for followers themselves to have
the knowledge, skills, and abilities" (p. 129) to accomplish organisational goals, claim
Sashkin and Sashkin (2002). These traits include confidence, pro-social power
behaviours, and organisational capabilities. Visionary leaders create their own unique
vision before combining it with their colleagues' visions. What motivates others to take
action is the vision's communication. People typically don't act because the vision hasn't
been clearly expressed; instead, they spend their time trying to figure out which way to
go, which exhausts them and makes them unresponsive (Heath and Heath,2010).
Situational Leadership
Servant leadership
Servant leaders operate invisibly behind the scenes and positively receive criticism. The
qualities of a servant leader are patience, kindness, gentleness, empathy, and
persuasion. A servant leader does not become defensive when challenged (Sendjaya et
al., 2008). (Covey, 2006). Altruism, humility, trust, vision, empowerment, service, and
agape love are among the various elements of servant leadership, according to Carroll
and Patterson (2014). A servant leader upholds the organization's goals and methods by
taking a moral position for them. This contributes to creating a culture that embraces
and upholds core principles (Sendjaya et al., 2008).
Participative leadership
ORGANISATIONAL TRUST
Supervisor trust would influence organisational trust, according to the study's trust
transfer theory (Yeon-Kook Jeong, Yong-Ki Lee, & Sally Kim, 2017). According to
their argument, trust is transferred from the supervisor (a more well-known source) to
the latter because employees (subordinates) know their supervisor better than they do
the organisation (a lesser-known target). The trust transfer theory is supported by the
finding that supervisory trust has a significant influence on organisational trust.
According to their research, employee perceptions of the organisation are significantly
influenced by interpersonal interactions. In other words, employees draw conclusions
about the organisation based on their interactions with the boss.
Deep but narrow competencies result from individual specialisation and organisational
focus on core competencies. Consequently, complementing knowledge, tools, and
abilities are required. Sthle (1998, 85 and 86) emphasises how individuals in a system55
are interdependent on one another by pointing out that although actors are always a part
of social systems, they can only become actualized through relationships with other
people. Social actors must be able to connect with one another in order to acquire and
transfer knowledge, and in order to do that, they must develop trust. Additionally,
according to Luhmann (1995, 112), each system evaluates the relationship of trust
before beginning to process meaning. According to Arrow (1974), we draw the
conclusion that the capacity to establish trust is a crucial (even though insufficient)
precondition of interactions in a social system (network).
Because only people can establish trust and determine if someone is trustworthy,
personal and organisational trust are inextricably linked. However, objects of trust can
be both people and organisations. Building trust is built on both interpersonal and
organisational trust. Giddens' Theory of Structuration serves as the foundation for a
model of structure and action (1984). According to the three-dimensional
conceptualization of trust, the model is structured (competence, goodwill and
behavior). T rust construction is an iterative and cyclical process, where the issues
(bases, sources, or objects for trust) are examined iteratively and at both static and
dynamic state. The concepts utilised as bases for trust in this tentative model are picked
from pertinent literature and reflection. For instance, managerial philosophy might be
viewed as having a moral or constructive goal when it is learned via a company
presentation. However, it manifests itself, for instance, in a contractual dispute.
Organizational trust highlights how crucial both individuals and groups are to a
company's operations. Researchers put out a variety of definitions and dimensions from
various angles to examine how organisational trust develops. Organizational trust was
categorised by Anderson et al. (2012) into five dimensions. (1) Individual
psychological states were considered to include organisational trust. (2) Perceived
experiences were used to describe organisational trust. (3) The term "organisational
trust" was used to describe the confidence and expectation that one party has in the
assets of another. (4) The decision to aggressively take risks was motivated by
organisational trust. (5) As conditions evolve, organisational trust will too.
Organizational trust in schools is split into two categories by Cerne et al. (2014): (1)
individual trust, which may be influenced by an individual's developmental
experiences, personality type, and cultural background; and (2) institutional trust. (3)
Competence trust, which refers to organisational members' ability to perform
appropriate behaviours expected by the organisation, and (4) Institutional trust, which
emphasises the general trust of organisational members (such as staff, directors, and
principals in schools) in the organisation (Narang Leenu & Lakhwinder, 2011).
Interpersonal trust, which includes trust in coworkers, bosses, and the entire
organisation, is understood to exist between [Link]-based trust and
affect-based trust are the major factors in interpersonal trust. The dimensions and
definitions are described as below (Aburoub et al., 2011).
The two main components of interpersonal trust are cognition-based trust and affect-
based trust. Below is a description of the dimensions and definitions (Aburoub et al.,
2011).
STRESS
As was already established, a stressful work atmosphere will negatively impact and
harm an employee's mental and physical health. Work-family disputes also have an
impact on raising employees' stress levels, according to Anderson (2002). When an
employee realises that the demands of a circumstance are greater than they can handle
and when those situations persist for an extended amount of time, stressful situations
might arise. (Selye, 2006). The fact that various people would react differently to the
same scenario is one of the distinctive aspects of stress. Some people will adjust or
respond poorly. However, other folks won't be able to cape in the same circumstance.
According to Naturale (2007), stress is a situation where one person responds to or faces
a new opportunity differently. According to Steve (2011), stress is the result of an
employee's reaction to demands, pressures, and professional requirements at work that
don't match their knowledge levels. This presents a challenge and a threat to the
employee's capabilities, which in turn would lead to a struggle for survival in terms of
having a job. Any employment can be deemed healthy if it is likely to be acceptable in
light of the employee's skills, resources, and degree of control over the position. Thus,
it can receive support from those who are important to them.
The impacts of stress on business performance are evident, and they have been
recognised from an individual perspective. Every time studies on the impacts of stress
have been conducted, the focus has been on the performance of the individual. The most
extensively researched pattern of the relationship between stress and performance,
according to Newstroom (2007), is an inverted U relationship. That means that a
moderate amount of stress encourages the body to function. It implies that excessively
low or high stress have a negative impact on performance. The inverted U pattern,
according to Robbins (2003), may also be used to explain how the body responds to
stress over time and as it varies in intensity. "Many researchers[9,10] agree that stress
has negative impacts on people and subsequently has an impact on how well companies
work.
Both nurses and health care administrators have always been concerned about role
stress. However, Western cultures have been the focus of the majority of research on
role stress in nurses. There hasn't been much study done in this area of Asian cultures,
particularly Japan. It is unknown what impact job pressures, coping methods, and
demographic factors have in the physical and mental health of Japanese hospital nurses
because the position of the hospital nurse in Japan differs greatly from the role of the
hospital nurse in Western cultures and other Asian cultures. Therefore, this study chose
to examine, in Japanese hospital nurses: The relationships between different workplace
stressors, coping mechanisms, demographic traits, and physical and mental health are
discussed in sections A and B, respectively. Also discussed is which workplace
stressors, coping mechanisms, and demographic traits were the best predictors of both
physical and mental health. 310 nurses who completed four questions provided the data.
Significant correlations between the variables were discovered in large numbers. The
best predictors of physical health were found to be workload and the number of
occupants in the home. The chance of leaving the current nursing post, a lack of support
at work, and escape-avoidance coping were the best indicators of mental health.
Viljoen and Rothmann looked into the connection between "workplace stress, illness,
and organisational commitment" (2009). They discovered that stress at work has a
significant impact on employee health and engagement. Physical and mental illness
were caused in part by stress regarding job security. Five stresses, including work-life
balance, overload, control, job elements, and pay, were found to be predictive of low
employee commitment to the company.
Hypothesis
Examining the traits of the leader, particularly those connected to his or her leadership
style, is one way to comprehend why followers trust the leader. Ability, compassion,
and honesty were recognised by Mayeret al. (1995) as three characteristics of the leader
that are essential for the growth of trust among the followers. By practising the four
facets of authenticity—self-awareness, relational transparency, internalisation of moral
ideas, and balanced processing—authentic leaders can develop their goodness and
integrity. We anticipate that each of the four factors will favourably affect supervisor
trust. We predict that self-awareness and supervisor trust are positively correlated.
When a leader lacks self-awareness and is unsure of his or her own values and beliefs,
it is difficult to trust them.
Building supervisor trust is thought to start with self awareness. Relational openness is
anticipated to improve supervisor confidence. Relational transparency is concerned
with how transparent a leader is when interacting with their followers. A transparent
leader conveys his or her actual views and opinions rather than disguising or masking
them. He or she also shares information with the team rather than keeping it a secret.
Such a leader will be seen by the workforce as authentic, truthful, and communicative,
all of which are essential for building trust (Russell & Stone, 2002). A leader with
internalised moral norms is expected to have an impact on the supervisor's level of
confidence. A leader who has an internalised moral perspective makes decisions about
his behaviour based on those standards rather than on outside influences or pressures.
This implies that the leader upholds consistency between his or her views and actions,
sending the message to the team that they may trust the leader's statements and
commitments to foretell his or her behaviour. Finally, it is anticipated that balanced
processing will enhance supervisor confidence. When making decisions, a leader uses
balanced processing, which involves taking into account all pertinent information and
alternative possibilities. A leader that bases their decisions on a process of balancing
will make an effort to avoid bias and prejudice and rely on objectivity.
Such a leader will be seen by the workforce as fair and impartial, which will help them
to have faith in the leader.
We forecast that organisational trust is positively impacted by supervisor trust. To
bolster our thesis, we use the trust transfer theory. According to the theory of trust
transfer, trust can be transferred from one person or group to another with whom the
source of the trust has little to no direct experience (Strub & Priest, 1976). There must
be a connection between the two entities for trust transfer to take place (Campbell,
1958). The trust transfer theory has been used to explain the phenomenon in studies on
celebrity endorsement (Smith, 2004) and destination marketing (Lee, Kim, Lee, & Kim,
2014c).
Because of the business's fast-paced and time-sensitive (e.g., to make the deadline)
character, travel agents frequently work under pressure. They frequently burn out as a
result of the enormous volume of interactions they must have with clients and
coworkers, which increases pressure and stress (Gil, Flaschner, & Shachar, 2006;
Hyphantis & Mavreas, 2005). Burnout is characterised as a prolonged state of physical,
emotional, or mental weariness brought on by stress at work (Freudinberger, 1981).
Based on earlier study (Maslach, Schaufeli, & Leiter, 2001), we look at three aspects
of burnout: diminished personal accomplishment, emotional weariness, and
depersonalization. Reduced personal accomplishment is the term used to describe how
little progress employees feel they have made.
Employees are less productive, feel helpless, and have poorer morale because they
believe they are inefficient and incompetent (Maslach, 2003). E
Emotionally exhausted employees become easily frustrated and agitated and lose selfrespect
and passion for the job (Maslach et al., 2001). Depersonalization means employees become
insensitive, negative, and unemotional toward other people. Employees who experience
depersonalization tend to avoid interaction with others and become callous to others, which
could negatively influence job performance in the service sector. Some previous studies suggest
that employee burnout occurs when there is a lack of trust (Bhanugopan & Fish, 2006; Elloy,
Terpening, & Kohls, 2001; Kalbers & Fogarty, 2005). Therefore, we hypothesize that two types
of trust will mitigate employee burnout.
According to numerous research (Dirks & Ferrin, 2002; Lee, Kim, & Kim, 2014b;
Podsakoff, MacKenzie, & Bommer, 1996; Yang, Mossholder, & Peng, 2009), trust
promotes a variety of good outcomes including job satisfaction, commitment, job
performance, and loyalty. According to Lee et al. (2014c), in the context of tourism,
personnel who are involved in trustworthy connections perform better than those who
are not. Additionally, as demonstrated by Yang et al. (2009), employee job performance
is favourably correlated with supervisor trust. These conclusions make sense.
Employees can focus on their work more effectively, be more productive, and be more
innovative when they feel secure and confident in their supervisor (Engle & Lord, 1997;
Gerstner & Day, 1997; Liden, Wayne, & Stilwell, 1993; Thomas & Lankau, 2009).
Employees who are not in trustworthy connections, on the other hand, would feel
uneasy and uneasy, making it difficult for them to concentrate on their work. While
numerous studies (Avolio et al., 2004; Joseph & Winston, 2005; Spence et al., 2001;
Tan & Tan, 2000; Wong et al., 2006, 2010) have focused on the benefits of trust, only
a small number of studies (Harvey et al., 2003; Laschinger & Finegan, 2005;
Laschinger et al., 2001) have investigated whether trust could lessen unfavourable
effect. Employees who trust their supervisors report less burnout, according to Harvey
et al. (2003). Similar findings by Laschinger et al. (2001) and Laschinger and Finegan
(2005) show that frequent employee burnout is associated with a lack of trust. These
earlier research emphasise the critical part that trust plays in reducing unfavourable
employee outcomes.
Due to the nature of the industry, which is fast-paced and time-sensitive (e.g., to make
the deadline), travel agents frequently work under pressure. According to Harvey et al.,
employees who have trust in their managers experience less burnout (2003). Similar
research by Laschinger et al. (2001) and Laschinger and Finegan (2005) demonstrates
the link between regular employee burnout and a lack of faith in management. These
prior studies emphasise how crucial trust is in lowering undesirable employee
outcomes.
Travel agents commonly work under pressure due to the industry's fast-paced and time-
sensitive nature (e.g., to meet the deadline). Reduced personal accomplishment is the
term used to describe how little progress employees feel they have made.
Employees are less productive, feel helpless, and have poorer morale because they
believe they are inefficient and incompetent (Maslach, 2003). Employees who work in
environments where there is a lot of interpersonal interaction are said to be emotionally
exhausted. Employees that are emotionally worn out are more prone to frustration and
agitation, lose self-respect, and lack enthusiasm for their work (Maslach et al., 2001).
Questionnaire
References:
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