Study shows authentic leadership (AL) improves employee behaviour, creativity, and performance

Purpose: The authors set out to ask if authentic leadership (AL) could benefit workers’ performance. They felt there was a crisis of confidence in leadership in many countries and it was important to determine which styles of management were the most inspiring. Design/methodology/approach: The survey was based on 177 groups consisting of both leaders and followers from 25 private SMEs in Portugal. The followers recorded their assessments of their managers’ AL, whereas the leaders assessed their employees’ levels of creativity, OCB, and performance. Findings: Research showed a positive correlation between AL and employees’ OCB, creativity, and performance. This confirmed the findings of previous research. But the present study was based on a more rigorously empirical method and provided more information about the mechanisms through which AL influences performance. Originality/value: The authors said the results should encourage managers to adopt an AL approach. They suggested six principles to follow: first, allowing employees great freedom to choose what actions to take, as this encourages creativity; second, canvasing opinions widely, as it improves decision-making; third, admitting errors and encouraging similar levels of honesty in employees; fourth, putting in place multiple feedback mechanisms; fifth, making sure tasks are consistent with employee values; and finally, being aware of personal moral weaknesses under pressure.