Role of Authentic Leadership in Post COVID 19 Era: A Study Examining Moderating Role of Procedural Justice and Emotional Demands

Abstract

Organizational survival, growth, and sustainability depend on employees' positive attitudes and behavior toward the organizations and jobs. Factors such as authentic leadership style and procedural justice can affect procedural justice and emotional exhaustion. There are many studies on authentic leadership, but a few have examined the moderating effect of procedural justice and emotional demand. Thus we have developed and empirically tested a conceptual framework that, besides direct, mediating, and moderating relationships, also has a mediating-moderating relationship. COVID 19 has adversely effected the banking industry of Pakistan. To assess the influence of authentic leadership on employees’ wellbeing, we collected the data post COVID 19. We have focused on the banking sector of Karachi, as it is highly competitive with a high turnover intention.  Pre-recruited enumerators distributed 450 non-randomly and received 415 questionnaires with a response rate of 92%, appropriate for a study of this magnitude post COVID 19 period.  The study found that authentic leadership passively affects employee empowerment, reduces emotional exhaustion, and positively affects procedural justice.  The results do not support the association between procedural justice and emotional exhaustion. At the same time, we found the procedural justice moderates authentic leadership and employee empowerment. The study also validated the moderating role of emotional exhaustion. But we could not find support on the mediating role of perceived justice on authentic leadership and emotional exhaustion.