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

Author

Listed:
  • Kristina Czura

    (University of Groningen)

  • Florian Englmaier

    (LMU Munich)

  • Hoa Ho

    (LMU Munich)

  • Lisa Spantig

    (RWTH Aachen)

Abstract

The positive role of transformational leadership on productivity and mental wellbeing 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, lead 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," Rationality and Competition Discussion Paper Series 412, CRC TRR 190 Rationality and Competition.
    • Handle: RePEc:rco:dpaper:412
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    References listed on IDEAS

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    Cited by:

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    2. Apostolos Davillas & Andrew M Jones, 2021. "The first wave of the COVID‐19 pandemic and its impact on socioeconomic inequality in psychological distress in the UK," Health Economics, John Wiley & Sons, Ltd., vol. 30(7), pages 1668-1683, July.

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    Keywords

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    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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