A STUDY ON THE IMPACT OF PSYCHOLOGICAL CAPITAL ON PERCEIVED AUTHENTIC LEADERSHIP: ABC COMPANY IN APPAREL INDUSTRY IN SRI LANKA

Abstract

Organizations often try to foster authentic leadership in their employees to achieve stability and reduce costly turnover. The present study empirically evaluated as why there is a low level of perceived authentic leadership with the effect of four dimensions of psychological capital as self-efficacy, hope, resilience and optimism of the executive grade employees of ABC Company in apparel industry in Sri Lanka. The study was carried out with the entire 66 executive level employees without going for a sample. Data were collected through a standard and validated questionnaire survey. Perceived Authentic Leadership was measured by using the Authentic Leadership Questionnaire (ALQ) and the psychological capital was measured by using Psychological Capital Questionnaire (PCQ). Data were analyzed by using the multiple linear regression in backward elimination method. Whereas self- efficacy, hope and resiliency had a positive and significant impact on perceived authentic leadership, optimism had no any significant impact on perceived authentic leadership among the executive grade employees of ABC Company in apparel industry in Sri Lanka. This study contributes new knowledge to the apparel industry by suggesting the appropriateness of three dimensions of psychological capital in enhancing authentic leadership. PsyCap can provide enormous benefits for leaders to explore their potential as a fundamental asset in authentic leadership. The contemporary businesses should be duty-bound to conduct an employee awareness program explaining significance of the psychological capital especially on the way of leading people authentically.