Study: Clear stance, clear direction | Page 10

10 | QUOTES FROM STUDY INTERVIEWS AUTHENTIC LEADERSHIP AS A MORAL COMPASS The authors of another experimental study (Cianci, Hannah, Roberts & Tsakumis, 2014) show that authentic leadership influences employees’ responses to temptations of an unethical nature. In the study, employees with authentic line managers made fewer unethical decisions when exposed to temptation. Employees with neutral or less authentic line managers tended to give into such temptations more often. In other words, authentic leadership can serve as a moral compass. It encourages ethically RESPONSIBLE behaviour in the company – and can thus play a role in avoiding irregularities or even scandals. Aside from the positive effects of authentic behaviour within the organisation, the case can be made that it serves an even more important purpose for external stakeholders, given the heightened public awareness of improper conduct and rule-breaking by companies. An article in the Journal of Business Ethics in September 2015 (Liu, Liao & Wei) points in the same direction. In this study, which was carried out in China, the authors reported a positive correlation between authentic leadership and internal whistleblowing. Specifically, employees of authentic managers are more prepared to draw attention to irregularities because their managers have given them a feeling of psychological safety. The reverse is the case with the current scandals and crises of credibility plaguing companies, for example in Germany. The underlying causes in each case are usually the same: we find rigid hierarchical structures primarily in large organisations, coupled with a culture of fear that does not allow for errors. OPENNESS ENHANCES PERFORMANCE Authentic leadership can accomplish more than just prevent scandals from happening. A manager’s authenticity also has a positive effect on the PERFORMANCE OF HIS/HER TEAM, as another study, from the UK and Greece, reveals (Lyubovnika, Legood, Turner & Mamakouka, 2015). According to the study, teams led by authentic managers are more inclined to self-reflection: the fact that such teams think and talk about the status quo and about strengths and weaknesses more often, more intensively and more openly has a positive effect on team performance. In addition, numerous studies (including Rahimnia & Sharifirad, 2014) emphasise that authentic leadership promotes the well-being, health and motivation of employees. That has a positive impact on levels of commitment – and, according to the Gallup Index, a regular survey of workplace quality in Germany, that is a factor with a very positive effect on the corporate bottom line. AUTHENTICITY: SOCIAL ROMANTICISM OR VALUE CREATION? Anyone who as ever been a manager knows that maintaining an authentic stance can be a challenge. The incentives and constraints that lead managers to behave in a strategic, political or opportunistic manner often appear to be unavoidable. But, for the individual, it is worth putting up resistance to these supposed constraints; and for companies, it makes sense not simply to demand authenticity, but to support and promote it in structural and cultural terms as well. It transpires that authenticity can enhance VALUE CREATION – in the shape of more open and better-performing teams, greater resistance to rule-breaking and higher levels of employee commitment. ||