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Organizational leadership: How much does it matter?

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  • Getinet Astatike Haile

Abstract

I study the influence of leadership on organizational performance and worker wellbeing using data from the 2004 and 2011 Workplace Employment Relations Survey (WERS). Our most conservative estimates from fixed effects regressions on a panel of organizations reveal that virtuous leadership is significantly and positively linked to an upbeat assessment of organizational performance, and an increase in worker wellbeing. Specifically, the estimates reveal that an increase in leadership quality by one standard deviation increases organizational performance and worker job satisfaction by 0.27 and 0.73 standard deviations, respectively, while it leads to a fall in worker job anxiety by 0.13 standard deviations. The results support the hypothesis that good leadership is vital for the success of business, including worker wellbeing, which organizational policymakers ought to heed. There is a dearth of empirical evidence on organizational leadership as an institution and its influence on organizational outcomes, which this article aims to address.

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  • Getinet Astatike Haile, 2023. "Organizational leadership: How much does it matter?," British Journal of Industrial Relations, London School of Economics, vol. 61(3), pages 653-673, September.
    • Handle: RePEc:bla:brjirl:v:61:y:2023:i:3:p:653-673
    DOI: 10.1111/bjir.12711
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    1. Haile, Getinet Astatike, 2023. "Precarious employment and workplace health outcomes in Britain," Social Science & Medicine, Elsevier, vol. 320(C).

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    More about this item

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • J5 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • M5 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics

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