The Impact of Authentic Leadership on Psychological Empowerment of the Employees in the Slovenian Local Self-Government Institutions
Main aim of our research was to empirically test how the supervisor’s authentic leadership relates to the four independent constructs representing followers’ psychological empowerment in Slovenian local self-government institutions. We tested four hypotheses in one structural model by using structural equation modelling (SEM). The quantitative data for our analysis was collected through a survey on 169 employees of Slovenian municipalities. Findings show that the supervisor’s authentic leadership is positively related to the dimensions constructing followers’ psychological empowerment; especially when it comes to self-determination and impact, less when it comes to meaning and at least when it comes to competence.
Amenumey, E. K., & Lockwood, A. (2008) Psychological climate and psychological empowerment: an exploration in a luxury UK hotel group, Tourism and Hospitality Research, 8(4), pp. 265–281, https://doi.org/10.1057/thr.2008.34.
Avolio, B. J., & Gardner, W. L. (2005) Authentic leadership development: Getting to the root of positive forms of leadership, The Leadership Quarterly, 16(3), pp. 315–338, https://doi.org/10.1016/j.leaqua.2005.03.001.
Avolio, B. J., & Locke, E. E. (2002) Contrasting different philosophies of leader motivation: Altruism versus egoism, The Leadership Quarterly, 13(2), pp. 169–191, https://doi.org/10.1016/S1048-9843(02)00094-2.
Avolio, B. J., Zhu, W., Koh, W., & Bhatia, P. (2004) Transformational leadership and organizational commitment: Mediating role of psychological empowerment and moderating role of structural distance, Journal of Organizational Behavior, 25(8), pp. 951–968, https://doi.org/10.1002/job.283.
Bandura, A. (1977) Self-efficacy: toward a unifying theory of behavioral change, Psychological review, 84(2), pp. 191–215, https://doi.org/10.1037/0033-295X.84.2.191.
Barron, F., & Harrington, D. M. (1981) Creativity, intelligence, and personality, Annual review of psychology, 32(1), pp. 439–476, https://doi.org/10.1146/annurev.ps.32.020181.002255.
Bearden, W. O., Subhash, S., & Teel, J. E. (1982) Sample Size Effects on Chi Square and Other Statistics Used in Evaluating Causal Models, Journal of Marketing Research, 19, pp. 425–430, https://doi.org/10.2307/3151716.
Bouckaert G. (2015) Reforming Public Governance: Some Lessons Learned, In: Nemec, J. & De Vries, M. S. (2015) Implementation of New Public Management Tools, IASIA/IIAS (Bruxelles: Bruylant, Groupe Larcier s.a.).
Boudrias, J. S., Morin, A. J., & Lajoie, D. (2014) Directionality of the associations between psychological empowerment and behavioural involvement: A longitudinal autoregressive cross-lagged analysis, Journal of Occupational and Organizational Psychology, 87(3), 437–463, https://doi.org/10.1111/joop.12056.
Chan, A. Y. L. H., Hannah, S. T., & Gardner, W. L. (2005) Veritable authentic leadership: Emergence, functioning, and impacts, In: Gardner, W. L., Avolio, B. J. & Walumbwa, O. (eds.) Authentic leadership theory and practice: Origins, effects and development (Oxford: Elsevier), pp. 3–41.
Conger, J. A., & Kanungo, R. N. (1988) The empowerment process: Integrating theory and practice, Academy of management review, 13(3), pp. 471–482, https://doi.org/10.5465/AMR.1988.4306983.
Conger, J. A., Kanungo, R. N., & Menon, S. T. (2000) Charismatic leadership and follower effects, Journal of organizational behavior, 21(7), pp. 747–767, https://doi.org/10.1002/1099-1379(200011).
Cooper, C. D., Scandura, T. A., & Schriesheim, C. A. (2005) Looking forward but learning from our past: Potential challenges to developing authentic leadership theory and authentic leaders, The Leadership Quarterly, 16(3), pp. 475–493, https://doi.org/10.1016/j.leaqua.2005.03.008.
Copus, C., & Steyvers, K. (2017) Local Leadership and Local- self Government: avoiding the Abyss. Lex localis – Journal of Local Self-Government, 15(1), 1–18.
Csikszentmihalyi, M., & Seligman, M. E. (2000) Positive psychology: An introduction, American Psychologist, 55(1), 5–14, https://doi.org/10.1037/0003-066X.55.1.5.
Dale, K., & Fox, M. L. (2008) Leadership style and organizational commitment: Mediating effect of role stress, Journal of Managerial Issues, 20(1), pp. 109–130.
Diamantopoulos, A., & Siguaw, J. A. (2000) Introducing LISREL (London: SAGE Publications).
Duignan, P. A., & Bhindi, N. (1997) Authenticity in leadership: An emerging perspective, Journal of Educational Administration, 35(3), pp. 195–209, https://doi.org/10.1108/09578239710170119.
Edalatian Shahriari, J., Maleki, J., Koolivand, P., & Meyvand, M. (2013) The study of the relationship between organizational structure and psychological empowerment among the staffs in Ministry of Economic Affairs and Finance, European Online Journal of Natural and Social Sciences, 2(3), pp. 330–338.
Emuwa, A. (2013) Authentic leadership: Commitment to supervisor, follower empowerment, and procedural justice climate, Emerging Leadership Journeys, 6(1), pp. 45–65.
Ergeneli, A., Ari, G. S., & Metin, S. (2007) Psychological empowerment and its relationship to trust in immediate managers, Journal of Business Research, 60, pp. 41–49, https://doi.org/10.1016/j.jbusres.2006.09.012.
Faulkner, J., & Laschinger, H. (2008) The effects of structural and psychological empowerment on perceived respect in acute care nurses, Journal of nursing management, 16(2), pp. 214–221, https://doi.org/10.1111/j.1365-2834.2007.00781.x.
Gardner, W. L., Avolio, B. J., Luthans, F., May, D. R., & Walumbwa, F. (2005) “Can you see the real me?” A self-based model of authentic leader and follower development, The Leadership Quarterly, 16(3), pp. 343–372, https://doi.org/10.1016/j.leaqua.2005.03.003.
George, B. (2003) Authentic leadership: Rediscovering the secrets to creating lasting value (Hoboken: John Wiley & Sons).
George, B. (2007) Authentic Leaders: They inspire and empower you, Leadership Excellence, 24(9), pp. 16–17.
Goodale, J. C., Koerner, M., & Roney, J. (1997) Analyzing the impact of service provider empowerment on perceptions of service quality inside an organization, Journal of Quality Management, 2(2), pp. 191–215, https://doi.org/10.1016/S1084-8568(97)90003-1.
Hackman, J. R., & Oldham, G. R. (1975) Development of the job diagnostic survey, Journal of Applied psychology, 60(2), pp. 159–170, https://doi.org/10.1037/h0076546.
Hooper, D., Coughlan, J., & Mullen, M. R. (2008) Structural Equation Modelling: Guidelines for Determining Model Fit, The Electronic Journal of Business Research Methods, 6(1), pp. 53–60.
Hu, L. T., & Bentler, P. M. (1999) Cutoff Criteria for Fit Indexes in Covariance Structure Analysis: Conventional Criteria Versus New Alternatives, Structural Equation Modeling, 6(1), pp. 1–55, https://doi.org/10.1080/10705519909540118.
Iacobucci, D. (2010) Structural equations modeling: Fit indices, sample size, and advanced topics, Journal of Consumer Psychology, 20, pp. 90–98, https://doi.org/10.1016/j.jcps.2009.09.003.
Ilies, R., Morgeson, F. P., & Nahrgang, J. D. (2005) Authentic leadership and eudemonic well-being: Understanding leader–follower outcomes, The Leadership Quarterly, 16(3), pp. 373–394, https://doi.org/10.1016/j.leaqua.2005.03.002.
Jordan, G., Miglič, G., & Marič, M. (2016) Comparison of Organizational climate in the regional unit of the National Institute of Public Health before and after reorganization, International Public Administration Review, 14(4), pp. 71–96, https://doi.org/10.17573/ipar.2016.4.04.
Jöreskog, K., & Sörbom, D. (1993) LISREL 8: Structural Equation Modeling with the SIMPLIS Command Language (Chicago, IL: Scientific Software International Inc.).
Jose, G., & Mampilly, S. R. (2014) Psychological empowerment as a predictor of employee engagement: An empirical attestation, Global Business Review, 15(1), pp. 93–104, doi:10.1177/0972150913515589.
Kark, R., Shamir, B., & Chen, G. (2003) The two faces of transformational leadership: Empowerment and dependency, Journal of Applied Psychology, 88, pp. 246–255, https://doi.org/10.1037/0021-9010.88.2.246.
Kenny, D. A. (2014) Measuring Model Fit, available at: http://davidakenny.net/cm/fit.htm (June 9, 2014).
Kliuchnikov, A. (2011) Leader’s authenticity influence on followers’ organizational commitment, Emerging Leadership Journeys, 4(1), pp. 70–90.
Klun, M. & Setnikar Cankar, S. (2013). Better regulation and public procurement in Slovenian municipalities, Transylvanian review of administrative sciences, 38 E, pp. 96-105.
Krause, D. E. (2004) Influence-based leadership as a determinant of the inclination to innovate and of innovation-related behaviors: An empirical investigation, The Leadership Quarterly, 15(1), pp. 79–102, https://doi.org/10.1016/j.leaqua.2003.12.006.
Kukovič, S. & Haček, M. (2016) Attitudes of Slovenian citizens towards the European Union since the accession, In: Turska-Kawa, A., & Haček, M. (eds.). Democratisation processes in Poland and Slovenia: comparative study (Maribor: Institute for Local Self-Government and Public Procurement), pp. 131–141, https://doi.org/10.4335/978-961-6842-73-0.9.
Kukovič, S., Haček, M., & Bukovnik, A. (2016) The Issue of Local Autonomy in the Slovenian Local Government System, Lex localis – Journal of Local Self-Government, 14(3), 303–320, https://doi.org/10.4335/14.3.303-320(2016).
Ladkin, D., & Taylor, S. S. (2010) Enacting the ‘true self’: Towards a theory of embodied authentic leadership, The Leadership Quarterly, 21(1), pp. 64–74, https://doi.org/10.1016/j.leaqua.2009.10.005.
Laschinger, H. K. S., Wong, C. A., & Grau, A. L. (2013) Authentic leadership, empowerment and burnout: a comparison in new graduates and experienced nurses, Journal of nursing management, 21(3), 541–552, https://doi.org/10.1111/j.1365-2834.2012.01375.x.
Leach, D. J., Wall, T. D., & Jackson, P. R. (2003) The Effects of Empowerment on Job Knowledge: An Empirical Test Involving Operators of Complex Technology, Journal of Occupational Psychology, 76, pp. 27–52, https://doi.org/10.1348/096317903321208871.
Lee, J., & Wei, F. (2011) The mediating effect of psychological empowerment on the relationship between participative goal setting and team outcomes–a study in China, The International Journal of Human Resource Management, 22(2), pp. 279–295, https://doi.org/10.1080/09585192.2011.540152.
Liden, R. C., Wayne, S. J., & Sparrowe, R. T. (2000) An examination of the mediating role of psychological empowerment on the relations between the job, interpersonal relationships and work outcomes, Journal of Applied Psychology, 85, pp. 407–416, https://doi.org/10.1037/0021-9010.85.3.407.
Likar, B., Cankar, F., & Zupan, B. (2015) Educational model for promoting creativity and innovation in primary schools, Systems research and behavioral science, 32(2), pp. 205–213, https://doi.org/10.1002/sres.2261.
Marič, M., Dimovski, V., Djurica, M., Černe, M., & Đurica, N. (2013) Developing the supervisors’ authentic leadership measure, Technics Technologies Education Management, 8(1), pp. 229–237.
Martin, C. A., & Bush, A. J. (2006) Psychological climate, empowerment, leadership style, and customer-oriented selling: An analysis of the sales manager-salesperson dyad, Journal of the Academy of Marketing Science, 34, pp. 419–438, https://doi.org/10.1177/0092070306286205.
Mathieu, J. E., Gilson, L. L., & Ruddy, T. M. (2006) Empowerment and Team Effectiveness: An Empirical Test of an Integrated Model, Journal of Applied Psychology, 91, pp. 97–108, https://doi.org/10.1037/0021-9010.91.1.97.
Mazol, A. (2015) Local self-governance in the Republic of Belarus, Beroc Policy Paper Series, PP(22), pp. 1–31.
Menon, S. (2001) Employee empowerment: An integrative psychological approach, Applied Psychology, 50(1), pp. 153–180, https://doi.org/10.1111/1464-0597.00052.
Mishra, A. K., & Spreitzer, G. M. (1998) Explaining how survivors respond to downsizing: The roles of trust, empowerment, justice, and work redesign, Academy of management Review, 23(3), pp. 567–588, https://doi.org/10.5465/AMR.1998.926627.
Moorhead, G., & Griffin, R. W. (2010) Organizational Behavior: Managing People and Organizations (9th ed.) (South-Western: Cengage Learning).
Moss, S. (2009) Fit indices for structural equation modeling, available at: http://www.psych-it.com.au/Psychlopedia/article.asp?id=277 (June 9, 2014).
Nemec, J. & De Vries, M. (2015) The Risks of Introducing NPM Tools in Transition Countries. In: Nemec, J. & De Vries, M. S. (2015) Implementation of New Public Management Tools, IASIA/IIAS (Bruxelles: Bruylant, Groupe Larcier s.a.).
Novicevic, M. M., Harvey, M. G., Ronald, M. & Brown-Radford, J. A. (2006) Authentic leadership: A historical perspective, Journal of Leadership & Organizational Studies, 13(1), pp. 64–76, https://doi.org/10.1177/10717919070130010901.
Özaralli, N. (2003) Effects of transformational leadership on empowerment and team effectiveness, Leadership & Organization Development Journal, 24(6), pp. 335–344, https://doi.org/10.1108/01437730310494301.
Patterson, F. (1999) Innovation potential predictor (Oxford: Oxford Psychologists Press).
Prajogo, D. I., & McDermott, C. M. (2005) The relationship between total quality management practices and organizational culture, International Journal of Operations and Production Management, 25(11), pp. 1101–1122, https://doi.org/10.1108/01443570510626916.
Prebilič, V., & Haček, M. (2012) Some Recent Problems of Slovenian Local Self-Government, In: Bačlija, I. (ed.) Local Democracy IV: Recent problems of Slovenian local self-government (Maribor: Institute for Local Self-Government and Public Procurement Maribor).
Rakar, I., Tičar, B., & Klun, M. (2015) Inter - municipal cooperation: challenges in Europe and in Slovenia, Transilvanian Review of Administrative Sciences, 45 E, 185–200.
Quinn, R. E., & Spreitzer, G. M. (1997) The road to empowerment: Seven questions every leader should consider, Organizational Dynamics, 26(2), pp. 37–49.
Quiñones, M., Van den Broeck, A., & De Witte, H. (2013) Do job resources affect work engagement via psychological empowerment? Amediation analysis, Revista de Psicología del Trabajo y de las Organizaciones, 29(3), pp. 127–134, https://doi.org/10.5093/tr2013a18.
Schwartz, B., & Sharpe, K. E. (2006) Practical wisdom: Aristotle meets positive psychology, Journal of Happiness Studies, 7(3), pp. 377–395, https://doi.org/10.1007/s10902-005-3651-y.
Seibert, S. E., Silver, S. R., & Randolph, W. A. (2004) Taking empowerment to the next level: A multiple-level model of empowerment, performance, and satisfaction, Academy of management Journal, 47(3), pp. 332–349, https://doi.org/10.2307/20159585.
Seibert, S. E., Wang, G., & Courtright, S. H. (2011) Antecedents and consequences of psychological and team empowerment in organizations: a meta-analytic review, Journal of Applied Psychology, 96(5), pp. 981-1003, https://doi.org/10.1037/a0022676.
Setnikar Cankar, S., Cankar, F., Deutsch, T. & Petkovšek, V. (2015). The impact of social and economic factors on the academic performance of youth in Slovenia, Lex localis - Journal of Local Self - Government, 13(3), pp. 661- 679, https://doi.org/10.4335/13.2.661-679(2015).
Setnikar, Cankar, S. & Petkovšek, V. (2013). Private and public sector innovation and the importance of cross-sector collaboration, The journal of applied business research, 29(6), pp. 1597-1605.
Shamir, B., & Eilam, G. (2005) “What's your story?” A life-stories approach to authentic leadership development, The Leadership Quarterly, 16(3), pp. 395–417, https://doi.org/10.1016/j.leaqua.2005.03.005.
Shapira-Lishchinsky, O., & Tsemach, S. (2014) Psychological empowerment as a mediator between teachers’ perceptions of authentic leadership and their withdrawal and citizenship behaviors, Educational Administration Quarterly, 50(4), pp. 675–712, https://doi.org/10.1177/0013161X13513898.
Sharma, S., Mukherjee, S., Kumar, A., & Dillon, W. R. (2005) A simulation study to investigate the use of cutoff values for assessing model fit in covariance structure models, Journal of Business Research, 58, pp. 935–943, https://doi.org/10.1016/j.jbusres.2003.10.007.
Sigler, T. H., & Pearson, C. M. (2000) Creating an empowering culture: Examining the relationship between organizational culture and perceptions of empowerment, Journal of Quality Management, 5, pp. 27–52, https://doi.org/10.1016/S1084-8568(00)00011-0.
Sparrowe, R. T. (2005) Authentic leadership and the narrative self, The Leadership Quarterly, 16(3), pp. 419–439, https://doi.org/10.1016/j.leaqua.2005.03.004.
Spreitzer, G. (2008) Taking Stock: a review of more than twenty years of research on empowerment at work, In: Barling, J. & Cooper, C. L. (ed.) Handbook of organizational behavior (Thousand Oaks, CA: Sage), pp. 54–73.
Spreitzer, G. M. (1995a) An empirical test of a comprehensive model of intrapersonal empowerment in the workplace, American journal of community psychology, 23(5), pp. 601–629, https://doi.org/10.1007/BF02506984.
Spreitzer, G. M. (1995b) Psychological empowerment in the workplace: Dimensions, measurement, and validation, Academy of management Journal, 38(5), pp. 1442–1465, https://doi.org/10.2307/256865.
Spreitzer, G. M. (1996) Social structural characteristics of psychological empowerment, Academy of management journal, 39(2), pp. 483–504, https://doi.org/10.2307/256789.
Stander, M. W., & Rothmann, S. (2010) Psychological empowerment, job insecurity and employee engagement, South African Journal of Industrial Psychology, 36(1), pp. 1–8.
SURS (2015) Spremembe območij statističnih regij (Ljubljana, Statistični urad Republike Slovenije).
Taylor, J. (2013) Goal setting in the Australian public service: Effects on psychological empowerment and organizational citizenship behaviour, Public Administration Review, 73(3), pp. 453–464, https://doi.org/10.1111/puar.12040.
Thomas, K. W., & Velthouse, B. A. (1990) Cognitive elements of empowerment: An “interpretive” model of intrinsic task motivation, Academy of management review, 15(4), pp. 666–681, https://doi.org/10.5465/AMR.1990.4310926.
Uner, S., & Turan, S. (2010) The construct validity and reliability of the Turkish version of Spreitzer's psychological empowerment scale, BMC public health, 10(1), pp. 1–8.
Walumbwa, F. O., Avolio, B. J., Gardner, W. L., Wernsing, T. S., & Peterson, S. J. (2008) Authentic leadership: Development and validation of a theory-based measure, Journal of management, 34(1), pp. 89–126, https://doi.org/10.1177/0149206307308913.
Walumbwa, F. O., Wang, P., Wang, H., Schaubroeck, J., & Avolio, B. J. (2010) Psychological processes linking authentic leadership to follower behaviours, The Leadership Quarterly, 21(5), 901–914, https://doi.org/10.1016/j.leaqua.2010.07.015.
Wang, Y. (2015) Examining organizational citizenship behavior of Japanese employees: A multidimensional analysis of the relationship to organizational commitment, International Journal of Human Resource Management, 26(4), pp. 425–444, https://doi.org/10.1080/09585192.2011.560882.
Williams, L. J., & O'Boyle, E. Jr. (2011) The Myth of Global Fit Indices and Alternatives for Assessing Latent Variable Relations, Organizational Research Methods, 14(2), pp. 350–369, https://doi.org/10.1177/1094428110391472.
Wong, C. A., & Laschinger, H. K. (2013) Authentic leadership, performance, and job satisfaction: the mediating role of empowerment, Journal of advanced nursing, 69(4), pp. 947–959, https://doi.org/10.1111/j.1365-2648.2012.06089.x.
Zhang, A. Y., Song, L. J., Tsui, A. S., & Fu, P. P. (2014) Employee responses to employment‐relationship practices: The role of psychological empowerment and traditionality, Journal of Organizational Behavior, 35(6), pp. 809–830, https://doi.org/10.1002/job.1929.
Zhang, X., & Bartol, K. M. (2010) Linking empowering leadership and employee creativity: The influence of psychological empowerment, intrinsic motivation, and creative process engagement, Academy of management journal, 53(1), pp. 107–128, https://doi.org/10.5465/AMJ.2010.48037118.
It is a condition that the authors assign copyright or license the publication rights in their articles, including abstracts, to Institute for Local Self-Government Maribor. This enables us to ensure full copyright protection and to disseminate the article, and of course Journal, to the widest possible readership in print and electronic formats as appropriate. Authors retain many rights under the Institutes' right policies, which can be found at journal.lex-localis.press. Authors are themselves responsible for obtaining permission to reproduce copyright material from other sources.