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Employee Performance and Mental Well-Being: The Mitigating Effects of Transformational Leadership during Crisis

Author

Listed:
  • Kristina Czura
  • Florian Englmaier
  • Hoa Ho
  • Lisa Spantig

Abstract

The positive role of transformational leadership on productivity and mental well-being has long been established. Transformational leadership behavior may be particularly suited to navigate times of crisis which are characterized by high levels of complexity and uncertainty. We exploit quasi-random assignment of employees to managers and study the role of frontline managers’ leadership styles on employees’ performance, work style, and mental well-being in times of crisis. Using longitudinal administrative data and panel survey data from before and during the Covid-19 pandemic, we find that frontline managers who were perceived as having a more transformational leadership style before the onset of the pandemic, led employees to better performance and mental well-being during the pandemic.

Suggested Citation

  • Kristina Czura & Florian Englmaier & Hoa Ho & Lisa Spantig, 2023. "Employee Performance and Mental Well-Being: The Mitigating Effects of Transformational Leadership during Crisis," CESifo Working Paper Series 10433, CESifo.
    • Handle: RePEc:ces:ceswps:_10433
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    References listed on IDEAS

    as
    1. Oriana Bandiera & Andrea Prat & Stephen Hansen & Raffaella Sadun, 2020. "CEO Behavior and Firm Performance," Journal of Political Economy, University of Chicago Press, vol. 128(4), pages 1325-1369.
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    More about this item

    Keywords

    leadership; frontline managers; labor-management relations; organizational behavior; crisis;
    All these keywords.

    JEL classification:

    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence

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