Impact of Authentic Leadership on

Employee Performance, Employee

Engagement; mediating role of
Psychological Ownership
Uzair Shaikh
CMS-18127
MS Management Sciences
 Abstract:
• In this study, I have examined the relationship between authentic
leadership and employee engagement on employee performance.
Furthermore the mediating effect of psychological ownership in
the dimensions of self-efficacy, belongingness, self-identity and
accountability will be studied in the relationship of these variables
with employee performance. The empirical findings of data,
collected through questionnaires from sample of 100 employees
and supervisors working in public sector universities of Islamabad
showed significant relationship between authentic leadership,
employee engagement practices and employee performance.
Results also supported the mediation of psychological ownership
in relationship of these variables. Managerial implications and
future research directions are discussed.

• Key words: Authentic leadership, employee engagement,

employee performance, psychological ownership.
 Background

• Pakistan Total Population: 182 million

• Literacy Rate: 60 %
• Only 3 million students are pursuing higher
studies
• Unemployment Rate: 7 million = 8.3 %
– Source: Economic Survey of Pakistan 2015.
There is a dire need to study different aspects of
controlling unemployment. I have focused on
leadership style and there impact on job
performance
 Chapter 1
Introduction
• Authentic Leadership: (Bass, 1985)
– self-aware and genuine
– mission driven and focused on results
– lead with their heart
– focus on the long-term
• Employee Engagement: is the extent to which employees feel
passionate about their jobs, are committed to the
organization, and put discretionary effort into their work.
(Frank, Finnegan, Taylor, & Talentkeepers, 2004)
• Employee Performance: The job related activities expected of
a worker and how well those activities were executed.
• Psychological Ownership: the possessive feeling that some
object is ‘MINE’ or ‘OURS. It is also the sense of responsibility.
(Avey et al., 2009)
Statement of the Research Problem
• In this study I have tried to find antecedents and
consequences of authentic leadership on employee
engagement and performance with mediating role of
psychological ownership.
Purpose of the Study
• Purpose of my study is to fill the research gap in the Pakistani
context. For this purpose the sample size will be selected
from employees working in the universities of Islamabad.
Research Objectives
• the relationship between authentic leadership and employee
performance.
• The relationship between employee engagement and
employee performance.
• The mediation of psychological ownership between authentic
leadership and employee performance.
• The mediation of psychological ownership in the relationship
of employee engagement and employee performance
 Research Questions

• How employee engagement is related with

employee performance?
• How authentic leadership style affect employee
performance?
• How psychological ownership mediates the
relationship between authentic leadership style
and employee performance?
Significance of the Study
• This study will affect the areas where employees are not
developed psychologically. It also effect in the areas where
employees feel lack of belongingness to their organization.
Development of psychology of employees on the basis of
self-identity, belongingness, self-efficacy and responsible
attitude all lead to positive outcomes.
Scope of the Study
• I am going to test these variables in the context of people
working in the public sector universities of Islamabad. It will
give idea and define scope for future researchers.
Psychological ownership will be tested in the dimensions of
self-identity, belongingness, and self-efficacy. Future
searchers can measure the impact of authentic leadership
on employee engagement and employee performance with
mediating role of empowerment.
Limitation
• Due to short time constraints and no financial
aid it is not possible for me to test these
variables on a large scale.
 Chapter 2 – Literature Review
• Theoretical Framework
 Chapter 3 Research Methodology
• Nature of Study:
– Exploratory
– Descriptive
– Explanatory/Causal: Statistical research: My study was explanatory
• Research Design
– Longitudinal
– Cross Sectional: I have selected cross sectional research design
• Measurement Techniques
– Behavioral Observation
– Obtrusive and Unobtrusive Measurement
– Surveys and Interviews
– Telephone Survey
– Mall Intercept Survey
– Open- vs. Closed-Ended Questionnaire: I have used closed ended questionnaire
 Hypothesis
• H1: Authentic leadership is positively related to
employee performance.
• H2: Employee engagement is positively related to
employee performance.
• H3: Psychological ownership mediates the
relationship between authentic leadership and
employee performance
• H4: Psychological ownership mediates the
relationship between employee engagement and
employee performance.
 Instruments and Scales
• Authentic Leadership: 8 items questionnaire
(Walumbwa et al., 2008)
• Employee Engagement: 12 items questionnaire
(Gallup 1998).
• Employee Performance: 5 items scale (Reio &
Callahan, 2004)
• Psychological Ownership: 5 items scale (Avey et
al., 2009)
 Population and Sampling
• Target Population: Employees working in the
public sector universities of Islamabad.
– Total 174 Universities in Pakistan
– 19 Universities in Islamabad
• 11 Public Sector
• 5 Private
• 3 owned by Pak Army
• Sampling Techniques
– Random: Used in my study
– Systematic
– Stratified
• Sample Size: Questionnaire were distributed
among 130 employees including
managers/supervisor and staff. 110 employees
responded to the questionnaire. Total 100
questionnaires were found suitable for
analysis. It includes 20 females and 80 male
respondents. Original English Questionnaire
was used. Respondent was assured of
anonymous and confidential on the free will
of respondent.
 Data Collection Tools
• Quantitative Data Collection Tools
– Census
– Sample Survey
– Questionnaires: I have used questionnaire
– Administrative data
• Qualitative Data Collection tools
– Interviews
– Focus groups
– Observation
– Case study
– Questionnaires
• Limitations of Methodology
• Due to short time and no financial aid it was
not possible for me to test the model on a
large scale. Therefore I have studied the
model on small scale.
 Chapter 4 Data Analysis
Research Research Question Hypothesis Data Collection tools Data Analysis
Objectives Accepted Techniques
The relationship How authentic Authentic Authentic Leadership  Descriptive
between authentic leadership is leadership is Statistics &
(Walumbwa et al., 2008)
leadership and related with positively related Correlation
employee employee to employee  Hierarchical /
performance performance? performance Mediation
Regression
Analysis
The relationship How employee Employee Employee Engagement  Descriptive
between engagement affect engagement is Gallup (1998), “Employee Statistics &
employee employee positively related engagement business Correlation
engagement and performance? to employee success”, available at:
• Hierarchical /
www.bcpublicservica.ca
employee performance
Mediation
performance
Regression
Analysis
Research Research Hypothesis Data Collection Data Analysis
Objectives Question Accepted tools Techniques
The mediation of How psychological Psychological Psychological  Descriptive
psychological ownership mediates ownership mediates Ownership Statistics &
ownership the relationship the relationship Correlation
between between authentic between authentic  Hierarchical /
(Avey et al., 2009)
authentic leadership style and leadership and Mediation
leadership and employee employee Regression
employee performance? performance Analysis
performance
The mediation of How psychological Psychological Employee  Descriptive
psychological ownership mediates ownership mediates Performance Statistics &
ownership in the the relationship the relationship Correlation
(Reio & Callahan,
relationship of between employee between authentic  Hierarchical /
2004)
employee engagement and leadership and Mediation
engagement and employee employee Regression
employee performance? performance Analysis
performance
 Table # 1: Descriptive Statistics &
Correlation
Std.
Variable Mean 1 2 3 4 5 6 7 8
Deviation
1.Gender 1.37 .483 1
2.Age 1.91 1.038 .026 1

3.Education 3.08 .961 .027 .057 1

4.Experience 1.55 .700 .003 .089 .409** 1

5.Authentic Leadership 3.9275 .71488 .157* .140* .085 .029 1

6.Employee Performance 3.9950 .63179 .109 .094 .100 .064 .786** 1

7.Psychological Ownership 3.9783 .69462 .119 .088 .043 -.082 .585** .616** 1

8.Employee Engagement 3.9570 .68813 .135 .201** .006 .026 .810** .690** .700** 1
 Hierarchical / Mediation Regression Analysis
Predictors PO (Mediator) EP (DV)
Β R2 ∆R2 Β R2 ∆R2
Main Effect: (AL,EE)
Step I:
Control Variables
0.36 0.029
(For PO, and EP)
Step II:
AL (IV1) 0.563*** 0.355*** 0.319*** 0.697*** .620*** 0.591***
EE (IV2) 0.717*** 0.511*** 0.475 0.640*** 0.488*** 0.458***
Mediation : PO (Med)
Step 1:
Control Variables (For EP,
0.029
only)
Step II:
PO (Mediator) 0.561*** 0.396*** 0.367
Step III:
AL( IV Value) 0.569*** 0.660*** 0.264***
 Summary of Findings
Ser Hypothesis Status
1. Authentic is positively related to employee Accepted
performance
2. Employee engagement is positively related to Accepted
employee performance
3. Psychological ownership will mediate the Accepted
relationship when authentic leadership has strong
relationship with employee performance:
4. Psychological Ownership will mediate the Accepted
relationship when employee engagement has
 Chapter Summary
• Authentic leaderships is positively related with
employee performance.
• Employee Engagement is positively related with
employee performance.
• Psychological ownership positively mediates
between authentic leadership and employee
performance.
• Psychological ownership positively mediates
between authentic leadership and employee
performance.
 Chapter 5 Conclusion and Recommendations

• Important Findings: Empirical findings of our study

showed strong relationship between authentic
leadership, employee engagement and employee
performance with mediating role of psychological
ownership.
• Contribution to the body of knowledge: The primary
aim of the researcher in this study is to relook at the
concept of leadership from a new perspective and see
how psychological ownership mediates between
authentic leadership, employee engagement and
employee performance.
 Conclusions
• Authentic leadership is positively effect on
employee performance.
• Employee Engagement significantly effect on
employee performance.
• Psychological ownership positively mediates
between authentic leadership and employee
performance.
• Psychological ownership positively mediates
between employee engagement and employee
performance.
Recommendations and Suggestions
• Researchers: This study will help researchers for
further research in the field of authentic
leadership, employee engagement, employee
performance, and psychological ownership.
Future researchers are advised to study this
model with different variables to further enhance
the body of knowledge
• Managers: This study will help managers to
increase the performance of the employees by
integrating authentic leaders, employee
engagement and psychological ownership.
THANK YOU