Transformational Leadership and Employees’ Psychological Wellbeing: A Longitudinal Study

Abstract

Managers play a key role in realizing a humane organization of work. Transformational leadership aims to identify and examine leadership behaviors that strengthen employees’ awareness of the importance and values of task outcomes by articulating a vision for the future, providing a realistic action plan, and giving individualized support. Previous studies have revealed associations between transformational leadership and the psychological wellbeing of employees in different settings, while others did not find such associations. As research based on longitudinal data remains rare, this study builds on longitudinal data from two employee surveys conducted in 2015 and 2018 in a medium-sized German company. In this study, transformational leadershipt0 and gender had a significant impact on transformational leadershipt1, while psychological wellbeing∆, social capital∆, and age did not. Psychological wellbeingt0 and social capital∆ had a significant impact on psychological wellbeingt1, but transformational leadership∆, age, and gender did not. Therefore, it is worthwhile for companies to invest in social capital and focus on gender aspects at work. As underlying mechanisms regarding employees’ psychological wellbeing may differ between companies, it is worthwhile for each organization to conduct mental risk assessments to identify “red flags” and implement suitable measures.

The Relationship Between Leadership Style and Employee Psychological Well-Being at a Palm Oil Estate in Tawau, Sabah

“…However, in a longitudinal study, Lindert, Zeike, Choi, and Pfaff (2022) found that transformational leadership did not influence psychological well-being among employees in a German company over time. Instead of the transformational leadership style, they concluded that the social environment of the company plays a greater role in employees' psychological well-being (Lindert et al, 2022). Also, they found that male employees are more likely to be affected by transformational leadership compared to female colleagues (Lindert et al, 2022).…”

“…It was also suggested that methods including idealized influence, self-efficacy encouragement among employees, and positive relationships among employees greatly enhanced employee well-being (Kim & Cruz, 2022). However, in a longitudinal study, Lindert, Zeike, Choi, and Pfaff (2022) found that transformational leadership did not influence psychological well-being among employees in a German company over time. Instead of the transformational leadership style, they concluded that the social environment of the company plays a greater role in employees' psychological well-being (Lindert et al, 2022).…”

“…Instead of the transformational leadership style, they concluded that the social environment of the company plays a greater role in employees' psychological well-being (Lindert et al, 2022). Also, they found that male employees are more likely to be affected by transformational leadership compared to female colleagues (Lindert et al, 2022). In addition, Berger, Czakert, Leuteritz, and Levia (2019) proposed several factors of job-demand resources in relation to leadership style and employees' well-being.…”

Workplace Without Walls: An Investigation Into Remote Working and Employee Well-Being at Maybank, Malaysia

“…Instead, a supportive environment for innovation mediated transformational leadership's shortterm and long-term effects on well-being. A more recent study by (Lindert et al, 2022) in a medium-sized German company disclosed that transformational leadership did not significantly impact employees' well-being.…”

“…However, it is crucial to recognize that some studies have provided a contrary viewpoint. For instance, research by (Tafvelin et al, 2011;Lindert et al, 2022) found no direct correlation between transformational leadership and well-being. In the case of (Tafvelin et al, 2011), the positive impacts on well-being were attributed to a favorable climate for innovation rather than the leadership style itself.…”