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Chapter 3
SOCIAL BEHAVIOR AND PERSONALITY, 2013, 41(4), 613-624 © Society for Personality Research http://dx.doi.org/10.2224/sbp.2013.41.4.613

THE EFFECT OF AUTHENTIC LEADERSHIP ON EMPLOYEE TRUST AND EMPLOYEE ENGAGEMENT
DAN-SHANG WANG AND CHIA-CHUN HSIEH National Changhua University of Education
In this study we examined the effect of authentic leadership on employee engagement through employee trust. We collected data from 386 employees in the top 1,000 manufacturing companies and the top 500 service companies in Taiwan. Hierarchical multiple regression was employed to test the hypotheses. The results showed that both supervisors’ consistency between words and actions as well as their moral perceptions are positively related to employee engagement, while only supervisors’ consistency between words and actions is positively related to employee trust. Moreover, employee trust was shown to be positively related to employee engagement. Finally, employee trust was found to have a partial mediating effect between authentic leadership and employee engagement. Keywords: authentic leadership, employee trust, employee engagement, moral perceptions, Taiwan.

Today’s global environment continuously undergoes rapid changes, enterprises experience ethical meltdowns, and organizations face a multitude of challenging and turbulent problems. It is therefore increasingly evident that enterprises need a new kind of business leader in this, the 21st century (George, Sims, McLean, & Mayer, 2007). Specifically, organizations need leaders who lead with purpose, have strong values and integrity, who are able to create enduring organizations, and who motivate their employees to provide better customer service (George, 2003). In both Eastern and Western societies, integrity and authenticity are considered as two of the most important societal values (George et al., 2007; Wang, 2010). Kouzes and Posner (2002) found that the most

Dan-Shang Wang and Chia-Chun Hsieh, Graduate Institute of



References: Avolio, B. J., Gardner, W. L., Walumbwa, F. O., Luthans, F., & May, D. R. (2004). Unlocking the mask: A look at the process by which authentic leaders impact follower attitudes and behaviors. The Leadership Quarterly, 15, 801-823. http://doi.org/fwqdjv Bass, B. M. (1990). Bass and Stogdill’s handbook of leadership (3rd ed.). New York: Free Press. Blau, P. M. (1964). Exchange and power in social life. New York: Wiley. Clutterbuck, D., & Hirst, S. (2002). Leadership communication: A status report. Journal of Communication Management, 6, 351-354. http://doi.org/ds6d6w Colquitt, J. A., Scott, B. A., & LePine, J. A. (2007). Trust, trustworthiness, and trust propensity: A meta-analytic test of their unique relationships with risk taking and job performance. Journal of Applied Psychology, 92, 909-927. http://doi.org/bxk853 Covey, S. M. R., & Merrill, R. R. (2006). The speed of trust: The one thing that changes everything. New York: Simon & Schuster. Cropanzano, R., & Mitchell, M. 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Authentic leadership: Development and validation of a theory-based measure. Journal of Management, 34, 89-126. http://doi.org/fq8cqt Walumbwa, F., Wang, P., Wang, H., Schaubroeck, J., & Avolio, B. J. (2010). Psychological processes linking authentic leadership to follower behaviors. The Leadership Quarterly, 21, 901-914. http://doi.org/cf9pdb Wang, T.-M. (2010). A moderation effect analysis of the relationships among authentic leadership, social characteristics and work outcomes. Unpublished master’s thesis, National Central University, Taoyuan, Taiwan, ROC. Whitener, E. M., Brodt, S. E., Korsgaard, M. A., & Werner, J. M. (1998). Managers as initiators of trust: An exchange relationship framework for understanding managerial trustworthy behavior. Academy of Management Review, 23, 513-530. http://doi.org/b3cstb Yammarino, F. J., Dionne, S. D., Schriesheim, C. A., & Dansereau, F. (2008). Authentic leadership and positive organizational behavior: A meso, multi-level perspective. The Leadership Quarterly, 19, 693-707. http://doi.org/d98hc7 Copyright of Social Behavior & Personality: An International Journal is the property of Society for Personality Research and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder 's express written permission. However, users may print, download, or email articles for individual use.

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