The Relationship Between Power and Ethical Leadership:
The Mediation Role of Emotional Exhaustion
University of Groningen Research Paper for Pre-MSc HRM
EBS013A10
Date (25-05-2020)
Marjolein Atsma S4091205
m.atsma.1@rug.student.nl
Abstract
Why do some leaders act some leaders unethical, and what triggers these leaders to do so? Due to an increasing number of scandals in organizations, ethical behaviour of leaders becomes more important in business research. This research paper investigates the mediating role of emotional exhaustion of the leader on ethical decision-making in a business setting. It is well known that humans always strive towards the best, and want to maintain states that feel pleasurable. (Ryan & Deci, 2001) Therefore this could lead to self interested actions of leaders when they feel threatened to lose their power. They want to hold their power and make this their first priority. Furthermore, people can become emotionally exhausted due to high pressure of environmental demands. In this situation, leaders will not be able to perform satisfactory, because their energetic resources are diminished (Frankenhaeuser, 1979; Frankenhaeuser & Johansson, 1986). The high pressure of emotional demands could influence the ethical behaviour of a supervisor. However, this study brought forward that power is positively correlated with ethical leadership and reveals there is no relationship between power and emotional exhaustion. This contradicts the expectation that a high level of power increases the emotional exhaustion of the supervisor. Moreover, it can be concluded that a high level of emotional exhaustion has no relationship with the ethical behaviour of a supervisor. These findings have important implications for future research and organizational context.
Keywords:
Introduction
Each leadership position brings power with it, and each leader is dealing with his or her power on a different way. Subordinates need to trust their leaders to not misuse their power for their own self-interest. Due to an increasing number of scandals, businesses research about ethical behaviour of leaders becomes more important. For example, former CEO of Volkswagen Martin Winterkorn misused his power, which led to unethical decision making. Winterkorn may have contributed to illegal and unethical installation of software that failed to report emissions on Volkswagen vehicles. Although Winterkorn claimed not to be aware of the misconduct, this is an example that shows, leaders with high levels of power might be more prone to become involved in corruption affairs. It is well known that unethical behaviour leads to negative consequences, and is something an organization does not seek in leaders and management (Mayer, Aquina, Greenbaum & Kuenzi, 2012). But what influences leaders to behave in a certain way? It is important to research the different factors.
relationship?
Previous papers already argued that power shapes emotional experience (Clark, 1990; Collins, 1990; Kemper, 1991; Tiedens, Ellsworth, & Mesquita, 2000). Research has shown that individuals with different levels of power experience different positive or negative emotions (Anderson & Berdahl, 2002; Langner & Keltner, 2008). Yet, these findings do not demonstrate that the difference in emotions influence the relationship between power and ethical leadership. It is known that individuals with high-power will have less attention to the suffering of low-power employees (Fiske, 1993). In addition, high-power individuals also may respond less emotional to the suffering of other people than individuals with low power, because they are less dependent on other people, and therefore less invested in interactions with them (De Dreu & Van Kleef, 2004). However, no research shows the mediating role of emotional exhaustion in a leadership context. This study will empirically investigate the mediating role of emotional exhaustion of the leader on ethical leadership in a business setting. This study therefore reduces the above mentioned research gap in this under-investigated field. The first aim of the present research is to show that power is negatively associated with ethical leadership. The second aim of the present research is to show why this potential negative association occurs. Particularly, this study aims to show that the level of emotional exhaustion has a mediating role in the relationship between power en ethical leadership. What will the level of emotional exhaustion do to a leader’s ethical behaviour? In this research survey data collected among leaders and their subordinates will be used in order to investigate the hypotheses.
practical implications. For instance, knowing the influence of emotional exhaustion on the leaders within a business will help directors to make sure that their leaders have the right work-life balance.
Figure 1
Research model
Theory and Hypotheses Definitions
This section defines the different constructs that combine this research, namely the definition of power, ethical leadership, and what is understood by emotional exhaustion. This is illustrated in figure 1: the mediation model.
Power. According to Lammers, Stoker & Stapel (2010) there are many definitions of power, and there is no single definition of power that summarizes the entire concept. Therefore, it is suggested to define power based on 5 different dimensions. These dimensions are: (1) subjective power, (2) control over outcomes, (3) potential influence over others, (4) the actual influence over others, and (5) the achievement of intended effects.
Huczynski and Buchanan (2013), on the other hand, define power as ‘The capacity of individuals to overcome resistance on the part of others, to exert their will, and to produce results consistent with their interest and objectives.’ But how can power be defined in organizations, according Pfeffer (1993) power is defined as ‘the potential ability to influence behaviour, to change the course of events, to overcome resistance, and to get people to do things that they would otherwise not do.’ Power means being able to influence behaviour of other people in a certain direction, therefore power is a function of a relationship. Power can
come from different things. As a person you can take power, or you can be conferred or imbued with power. In this line of thought, French and Raven (1959) defined five sources of power: (1) positional power, (2) expert power, (3) referent power, (4) reward power, and (5) coercive power. The ideas of French and Raven have had big influence on future organizational research regarding this topic. Robbins and Judge (2013), suggest two broad categories of power based on the ideas of French and Raven, namely (1) formal, and (2) personal. ‘Formal power relates to the position of the individual within the organization and incorporates coercive, reward, legitimate and information power, all of which are particularly important in time of uncertainty and change. Personal power derives from the unique characteristics of individuals such as their skills and expertise, their personalities and their favored association with others from whom they gain status and other desirable resources.’ (Senior & Swailes, 2016)
Furthermore power can be defined as ‘the wise use of power involves exercising it in service of goals that are shared by subordinates and by the organization as a whole, rather than in service of the leader’s own goals’. Within organizations all leaders have power, which can be defined as control over valued resources (Fiske & Berdahl, 2007; Magee & Galinsky, 2008). In this way power is a central, defined element of leadership.
Nachreiner and Schaufeli, 2001) Based on these suggestions emotional exhaustion can be a result from workplace stressors.
On top of the three components of Maslach (1982) it is important to understand the basics of a burnout. More research has concluded that emotional exhaustion is the key component of a burnout. (Cordes & Dougherty, 1993; Gaines & Jermier, 1983; Wright & Bonett, 1997; Zohar, 1997) For example, Shirom (1989) suggest that defining burnout as emotional exhaustion helps to distinguish it from other social science concepts. With help of these researches the COR theory (Hobfoll, 1988) is derived, which helps understanding the role of emotional exhaustion in organizational behaviour. According to this theory emotional exhaustion is most likely to happen when the following parts are missing: (1) resource loss, (2) a perceived threat of resource loss, and (3) when an individual’s resources cannot meet the work demands. With resources is meant social support, degree of participation in decision making, autonomy, and job opportunities. Next to that, the workload level, role conflict and stressful events can be examples of work demands. A person feels emotionally exhausted when he or she has not sufficient resources to confront the stressors, in this case, work demands. This theory is closely related to the well-known P-E fit. This fit theory discusses the relationship of a individual resources of a person fit the demands of the environment or organization. If the relationship is not in balance, it will lead to stress, and when this stress is left unattended over a period of time it can lead to emotional exhaustion.
According to Brown, Trevino and Harrison (2005) ethical leadership consists of three key building blocks; being an ethical example, treating people fairly, and actively managing morality. The first two blocks describe desirable characteristics for ethical leaders like fairness and trustworthiness. The third block is related to the moral manager, whereby leaders encourage normative behaviour, and discourage unethical behaviour of their subordinate. It is important that leaders perform ethical behaviour, due to a role-modelling process. Social learning theories suggest that individuals learn appropriate behaviour from credible and attractive role models (Bandura, 1977). Employees are influenced by their leaders because leaders have the power to deal with rewards and punishments regarding ethical behaviour. By acting ethical as a leader, they influence their employees to engage in desired behaviour.
According to Kotter (1990), leadership can be described as ‘coping with change’, like setting direction and vision, facilitate learning, and motivate people. Leadership is fundamentally interwoven with a particular set of values and beliefs about what, right things are to do and not to do, so leadership at itself is intrinsic moral terrain. Another view of leadership is according to Gini (1997) ‘All leadership is value laden. All leadership, whether good or bad, is moral leadership ... the point is, all leadership claims a particular point of view or philosophical package of ideas it wishes to advocate and advance. All forms of leadership try to establish the guidelines, set the tone and control the manners and morals of the constituency of which they are a part.’
The Relationship between Power and Ethical Leadership
typically owned by individuals with a high level of power, engage in more traffic violations (Piff, Stancato, Côté, Mendoza-Denton & Keltner, 2012).
In an experiment conducted by Dubois et al. (2015), the participants reported their willingness to engage in unethical behaviour that would benefit others or themselves. Individuals with high-power reported being more likely to engage in unethical behaviour that benefited their selves, less likely than behaviour that benefited others. This research shows that the level of power increases selfishness. However, it does not one-sidedly increase immorality. Both are important factors of ethical leadership. According to Trevino et al. (2000) an ethical leader can be perceived as a moral person and as a moral manager. With a moral person is meant that a leader should be perceived as a genuine individual who is honest and integer. In order to be perceived as a moral person a manager needs to focus on values and ethics which will guide the actions of the employees in the right direction. It can be hypothesized that, when a leader has a high level of power, he or she will behave less ethical, and therefore will show a decreased level of ethical leadership. The following hypothesis is formulated:
Hypothesis 1: Power is associated with decreased ethical leadership The Mediating role of Emotional Exhaustion
resistance of high power individuals is based on how much this individual cares about a specific threat rather than on their general mood state.
According to research of Maslach and Jackson (1981) the level of emotionally overextension and exhaustion by work has shown negative effects on job attitudes and behaviour. In addition, research argued that organizational deviance is another consequence of emotional exhaustion. Organizational deviance can be described as behaviour that threatens the good and safety of an organization and violates significant organizational norms (Robinson & Bennett, 1995). Employees who are emotionally drained experience unfavorable impressions of their work and may react by violating organizational norms and withholding effort and thereby causing business inefficiencies (Colbert et al., 2004; Dunlop & Lee, 2004). To study whether the level of emotional exhaustion is influencing the ethical leadership of supervisor in the same level as organizational deviance, the following hypothesis is formulated:
Hypothesis 2: The relationship between power and ethical leadership is mediated by emotional exhaustion.
Method Participants & Procedures
The final data set consists of two different data sources: (1) the supervisor, and (2) the subordinates. In total, 228 supervisors and subordinates were contacted. The response rate of the supervisors was 74% and the response rate of the subordinates was 83%. For this research, the combined data set is used, which leads to a total amount of participants of 140. Because, 48 subordinates did not have combined supervisor data, and 29 supervisors did not have the belonging subordinate data.
To dive more into detail regarding the sample characteristics of the supervisors, the sample consisted of more male supervisor participants, amounting to 57.9%, than female participants, amounting to 41.4%. The majority of the supervisors ranged between the 51 and 60 years old (27.1%). Regarding the sectors that the supervisors belonged to, the Health sector was the most common one (19.3%), followed by the Retail sector (18.6%) and the Business sector (14.3%). Regarding the nationality of the supervisors, the majority of the respondents is Dutch with 82.9%, and 7.9% of the sample is Chinese. Furthermore, 80% of the supervisors have a permanent employment contract.
To give more insight in the sample characteristics among the subordinates the majority of subordinates in this sample is female with 58.6%. The majority of the subordinates ranged between the ages of 18 and 30 years (53.6%). In comparison with the supervisors less subordinates have a permanent contract, namely 69.3%. Regarding the sectors the subordinates belonged to, it is the same as their corresponding supervisor (health sector = 19.3%, retail sector = 18.6%, business sector = 14.3%). The majority of the subordinates is Dutch with 82.9%, and 7.9% of the subordinates is Chinese.
Measures
question was: ‘In your place of work, what level are you in the organizational hierarchy?’. Participants were provided with a 0-100 slider scale on which they could indicate their subjective power within their organizations (0 = bottom; 100 = top). The second question was: ‘Do you supervise / direct other employees?’. This question could be answered with ‘no’, or ‘yes’ with a range of the amount of employees (1= 1-5; 2= 6-10; 3= 11-15; 4= 16-20). And the third question was: ‘What is your current management position?’. Participants were provided with 4 options to answer this question: (1) ‘I don’t currently hold a management position’, (2) ‘Middle management’, (3) ‘Lower management’, (4) ‘Top management’. After standardizing the three items they were combined into one variable. This combined item has been used for the regression analysis, where this variable is referred to as power in the discussion section. The Cronbach alpha for this measure is .09.
Emotional Exhaustion. I measured this variable with 3 questions, based on Maslach, Jackson, & Leiter (1996). These items are ‘I feel emotionally drained from my work’, ‘I feel burned out from my work.’ and ‘I feel fatigued when I get up in the morning and have to face another day on the job.’. Participants were provided with a 5-point Likert scale that ranges from strongly disagree to strongly agree (1= strongly disagree 5= strongly agree). The Cronbach alpha for this measure is .90. Both the supervisors and subordinates have answered these items, but in this research only the data of the supervisors is used.
Control variables. As possible control variables age, gender and employment contract were measured. These variables are chosen because previous research has shown they can impact a supervisor’s level of emotional exhaustion and ethical behaviour. In addition, literature shows that women are more likely to define themselves in terms of their close relationships and to engage in interpersonal and cooperative behaviours that support those relationships (Baumeister & Sommer, 1997; Kidder, 2002).
Results Assumptions
To test both hypotheses, a regression analysis is conducted, by using the Process of Hayes (Hayes, Glynn, & Huge, 2012). In this analysis, ethical leadership is used as dependent variable, power is used as independent variable and emotional exhaustion is used as mediator. A regression analyses requires that several assumptions are met to validate multivariate normality of the sample.
In this research the dependent variable, ethical leadership, was assumed to be normally distributed. This assumption was tested with the Shapiro Wilk test, and the output shows not a normally distribution (W= .94, p= .00). This can also statistically be described in kurtosis and skewness. The level of kurtosis (K= -.110, SE= .408) shows a negatively skewed distribution, as well as the level of skewness (S= -.726, SE= .206). So, the variable ethical leadership did not demonstrate a normal distribution, as can be seen in Figure 2. The histogram can be described as a slightly negative skewed distribution. As the distribution is robust and only shows small deviations, no reason exist to not continue this research.
Figure 2
Histogram Ethical Leadership
Preliminary Research
Table 1
Descriptive Statistics and Intercorrelations M (SD) 1 2 3 4 5 6 7 8 1. Hierarchy 73.58 (22.56) 1 - - - - 2. Number of Subordinates 4.01 (1.73) .15 1 - - - - 3. Position 2.75 (.95) .50** .19* 1 - - - - - 4. Emotional Exhaustion 1.97 (1.03) -.11 -.05 -.13 1 - - - - 5. Ethical Leadership 4.10 (.68) .19* -.14 .09 -.04 1 - - - 6. Age 2.73 (1.26) .24** .06 .35** -.29** .10 1 - - 7. Gender 1.42 (.49) -.14 -.08 -.19* .07 .07 -.07 1 - 8. Employment contract 1.29 (.62) -.08 -.27** -.16* -.05 -.04 -.05 -.01 1 Notes: N= 140, *p < .05, **p < .01 Hierarchy: 0= bottom 100= top, Number of subordinates: 1= 1-5 2= 6-10 3= 11-15 4= 16-20, Position: 1= I don’t currently hold a management position, 2= Middle
management, 3= Lower management, 4= Top management, For Emotional Exhaustion and Ethical
Leadership: 1= strongly disagree 2= disagree 3= neither agree nor disagree 4= agree 5= strongly agree,
Age: 1= 18-30 2= 31-40 3= 41-50 4= 51-60 5= 61-100, Gender: 1= male 2= female, Employment
contract: 1= permanent contract 2= temporary contract 3= other
Main Research
Table 2
Regression Results for Mediation
Coefficient (SE) T P
Power – Emotional Exhaustion -.20 (.01) -1.65 .10
Emotional Exhaustion – Ethical Leadership -.02 (.06) -.42 .68
Total effect .06 (.08) .70 .49
Power – Ethical Leadership .05 (.08) .63 .53
Indirect effect .01 (.01) - (-.02, .04)
Notes: N= 140 values are unstandardized regression coefficients; standard error estimates are in parentheses. p < .10, * p < .05, **p < .01.
Figure 3
Graphical representation of mediation effect
Indirect effect: B = .01 (-.02; .04)
Discussion
In this paper the impact of power on ethical leadership is investigated, and whether this relationship is mediated by the level of emotional exhaustion. The research brought forward that power is positively correlated with ethical leadership, contradicting with Hypothesis 1, which assumed that the more ethical leadership decreases, the higher the hierarchical power increases. It was expected that a high level of power increases the emotional exhaustion of the supervisor, this study shows no support for this relationship between power and emotional exhaustion. Moreover, it can be concluded that a high level of emotional exhaustion has no relationship with the ethical behaviour of a supervisor. Therefore, there is no support for Hypothesis 2, that the relationship between power and ethical leadership is mediated by emotional exhaustion.
Theoretical Implications
This research does not find any support for the relationship between supervisors in a high power position and emotional exhaustion. There are several limitations to this research, which will be discussed in the following sections. These limitations can be a reason of the difference between the expected results and the actual research findings. A reason for this
contrary result can be the age of the sample. The majority of the sample has an age between 51 and 60 years. This implies that these supervisors are quite experienced in their work field due to their long career and different challenges they overcome in their lives. The ethics literature recognizes the important dimension of age into ethics research. For example, according to an experiment of Ruegger and King (1992), older students tend to make more ethical decisions, than younger students. In a study that compared two groups of the ages between 21 and 40 and 51 and 70, the researcher found that the older group displayed a less tolerant ethical view. (Longenecker, McKinney & Moore, 1988). Future research is necessary to find support for the relationship between age, work experience and emotional exhaustion in a leadership context.
research are contradicting with most previous research. However, the results of this study can also be seen as an important contribution, and a driver to do future research.
Practical Implications
In practice, it is important to know what influences leaders to act unethical, like the CEO of Volkswagen Martin Winterkorn, as introduced in the beginning of this research paper. This research shows that emotional exhaustion has no mediating role between power and ethical leadership. However, there is a negative relation between age and emotional exhaustion. This means that the younger the leader is, the more emotional exhausted he or she is. A practical implication of this finding for an HR manager could be to pay more attention to their younger employees. According to research conducted by Akkermans, Brenninkmeijer, van den Bossche, Blonk, & Schaufeli (2013), young employees with low educational levels experienced fewer job resources, less devotion, more emotional exhaustion, and poorer health and performance. The results of this research imply that extra attention should be paid to the younger employees (16 – 30 years) of an organization.
In this research a negative relation between hierarchical power and ethical leadership was expected. However, the opposite has been revealed. With this knowledge it can be said that people with a higher level of power will act more ethical. Therefore, a practical implication could be to distribute more power and authority within a team, such that everybody has his or her own level of power. This will increase the ethical behaviour positively. According to Schilling (2016) decentralization of power leads to faster decision-making, no social loafing, and less bureaucracy. These are all advantages of distributing power among team members.
Limitations and Future Research
participants have the same nationality, namely Dutch. A more diverse sample group could give a better insight, and other results. The Dutch culture can be described as individualistic, level-headed and where power is decentralized (Hofstede, 1980). Therefore, it could be that the level of power of this research is not representative, and cannot be generalized.
Next to that, the level of emotional exhaustion is a very subjective variable, and asks more than three questions to measure the current level of emotional exhaustion of the participant. Furthermore, it is possible a participant does not see or accept their own feelings of emotional exhaustion. Therefore, the answers to the questionnaire might not be representative results. Many researches regarding emotional exhaustion are conducted by performing an experimental field study (Hülsheger, Alberts, Feinholdt & Lang, 2013). The advantage of an experimental field study is, that this type of study asks how processes occur, and how people interact and events unfold. Therefore, it is recommended to perform this research in an experimental setting as well.
Furthermore, this research might suffer from a selection bias. Every participant of this research was asked if he or she wants to participate. Therefore, everybody who agreed to fill in the questionnaire can be considered as ethically good. A person, who acts ethical, can be described as ‘doing the good thing’ (Crane & Matten, 2010). There is a chance everybody who tends to act unethical, does not want to participate in a research focused on his or her power position and ethical behaviour. This limitation might have influenced the research due to the chance that only ethical supervisors and subordinates agreed to participate in the research, such that the results are not representative, and cannot be generalized. For future research it is recommended to collect participants by a random sampling method.
Galinsky, 2006), and enjoy a greater sense of control (Anderson, John, & Keltner, 2012). These positive feelings and thoughts come from the level of power, which leads to social status and material resources such as a higher pay. This will satisfy the fundamental human needs for control (Maslow, 1943). It is well known that humans always strive towards the best, and want to maintain states that feel pleasurable (Ryan & Deci, 2001). The potential loss or the inability of power and to gain control over valued resources will create stress among individuals, and this increase in stress can lead to greater risk taking by these individuals (Sapolsky, 1995). Still many leaders are acting unethical, and scandals are around the corner in many organizations. Therefore, it is important to understand by what leaders are triggered to act unethically, and to continue with future research on the topic of unethical behaviour among leaders.
Conclusion
It is important to act ethical, and to know where the boundary is. Literature suggests that power influences the level of ethical leadership negatively. However, based on this research it can be concluded that power has no significant influence on the ethical behaviour of a supervisor. Next to that, it can be concluded that the level of emotional exhaustion has no mediating role between the relationship power and ethical leadership. Therefore, based on the results of this study, emotional exhaustion is not a factor that needs to be paid attention to when working on the ethic behaviour of an individual. However, this statement is only true for the current sample group of this research since the findings contradict existing literature. Therefore, it is recommend doing future research in different settings.
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