Impact of Ethical Leadership on Employee Performance in the Public Sector: Does Leader-Member Exchange Matter?

Abstract

This study assessed the impact of ethical leadership on employee performance in the public sector using leader-member exchange as a mediator. Data for this quantitative study was gathered using a structured questionnaire administered to Nigerian federal public officials in some selected ministries. A conceptual model was drawn and put to the test using the PLS-SEM. Based on the results, all hypotheses were significant at p < 0.001. More importantly, ethical leadership positively and significantly impacts leader-member exchange and employee productivity. More so, leader-member exchange mediates the relationship between ethical leadership and employee performance. This study’s findings improve on earlier studies on ethical leadership and leader-member exchange relationships. Also, it suggests the importance of leaders’ moral behaviour and their relationship with subordinates in the workplace, by imbibing workplace ethics. This study has added to the continuing discussion on ethical leadership and its implications in the public sector in a developing nation like Nigeria.

Morality an Offshoot of Philosophy and Psychology: A Theoretical Exploration

“…Ethics otherwise considered as Morals generally concerns the types of values and morals people or communities and societies consider necessary or apt and deals with the righteousness and motives of people, communities, and society as whole individuals and their motives (Brown et al, 2005;Northouse, 2016); Oladimeji et al, 2022). Moral or Ethical leadership is that which emphasizes respect for moral principles and values and the self-esteem and human rights of others.…”

“…Moral or Ethical leadership is that which emphasizes respect for moral principles and values and the self-esteem and human rights of others. Moral or Ethical Leadership therefore encompasses ideas such as faith, trustworthiness, consideration, charisma, and equity (Brown et al, 2005;Oladimeji et al, 2022). Villirilli (2021) noted that the tenets of moral leadership demand that businesses conduct their affairs by a set of values and principles that are considered by the generality of the people as a sound foundation for the common good.…”

Ethical Leadership and Employee’s Performance in Lagos State Government-Office of the Auditor General

“…While studies on leadership and its effects in many contexts and settings have been conducted, studies on the moral dimensions of leadership, especially in developing nations and Nigeria in particular, are still lacking (Ogunfowora, 2014). Service delivery is driven by the people who work in an organization, especially in the public sector, where the bureaucracy was established to uphold the rule of law, provide openness, advance democracy, and guarantee citizen happiness (Oladimeji & Abdulkareem, 2022). Intellectual capital and human potential are more important in today's global economy.…”

“…Typically, a leader's demeanor should either inspire or deter workers from carrying out their responsibilities. But motivating workers in the face of unscrupulous behaviors by superiors and government authorities, low pay, and deplorable working conditions is a persistent issue for many firms, especially in developing nations like Nigeria (Oladimeji & Abdulkareem, 2022). There is a widening chasm between first-and third-world countries as a result of the modern emphasis on efficiency and production, which has permeated every sphere of modern life (Hamid, Mehdi & Pejman, 2016).…”

“…According to Judge and Piccolo (2004), the reason most leaders overlook ethics is because they don't think their positions require it. There have been a number of studies on the topic of ethical leadership (Khokhar & Zia-ur-Rehman, 2017;Hamid, et al, 2016;Hussam etal., 2019;Sabir et al, 2012;Oladimeji & Abdulkareem, 2022); Agha et al, 2017;Obicci, 2015;Muhammad etal., 2016) with most to organization performance. However, just few have been related to the public sector.…”