The Effects of Ethical Leadership on Employee's Performance: Mediating Role of Organisational Citizenship Behaviour, Counterproductive Work Behaviour, Voice Behaviour and Innovation on Creativity

Liau, Janice Sze Yun (2024) The Effects of Ethical Leadership on Employee's Performance: Mediating Role of Organisational Citizenship Behaviour, Counterproductive Work Behaviour, Voice Behaviour and Innovation on Creativity. Masters thesis, Tunku Abdul Rahman University of Management and Technology.

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Abstract

Employee’s performance is crucial toward an organisation because it help to achieve expectations with new realities and challenges by providing them with training and courses. This study explores the multifaceted concept of employee’s performance and its enhancement within organisations, focusing on the significant role of ethical leadership. Employee’s performance, defined variably by different researchers, encompasses the achievement of business objectives and the qualitative and quantitative assessment of efforts. Key drivers for performance enhancement include a smarter economy, evolving market needs, globalisation and innovation. Elements such as organisational activities, policies, practices, knowledge management strategies and employee engagement initiatives are critical in promoting high levels of performance. The integration of internet technologies and a supportive work environment further influence performance positively. Ethical leadership, characterized by building trust, fairness and empowering behaviour, is identified as a crucial factor in influencing employee’s performance. Research indicates that ethical leadership fosters ethical behaviour, reduces counterproductive actions and improves overall performance outcomes. This study aims to understand how various factors, particularly ethical leadership, affect employee’s performance in contemporary organisational settings. This research investigate the effects of ethical leadership on employee’s performance through the mediating role of organisational citizenship behaviour, counterproductive work behaviour, voice behaviour and innovation on creativity. Besides that, this research has proposed the conceptual framework that employed the supported by the Job Demand Resources Theory, Social Exchange Theory and Social Learning Theory. To implement the research objectives, a total of 167 samples were collected through online self-administered questionnaire survey and the data is analysed by using Statistical Package for Social Sciences (SPSS). Based on the statistic outcomes generated, there are 8 out of 13 hypotheses are supported. Hypotheses H1, H2, H3, H7, H8, H9, H11 and H12 were supported and H4, H5, H6, H10 and H13 were not supported. With the results generated in this research, this research contributes theoretical implications and managerial implications by proving the effects of ethical leadership on employee’s performance through the mediating role of organisational citizenship behaviour, counterproductive work behaviour, voice behaviour and innovation on creativity. In the end of the research, some limitations of this research and recommendation suggested are concluded for future studies to further explore