UNIVERSITY OF GHANA 

 

AUTHENTIC LEADERSHIP AND EMPLOYEE ENGAGEMENT:  THE MEDIATING 

ROLE OF EMPLOYEE WORK ENVIRONMENT 

 

BY 

 

LATIFA ISSAHAKU 

(10280467) 

 

 

THIS THESIS IS SUBMITTED TO THE UNIVERSITY OF GHANA, LEGON IN 

PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE AWARD OF MPHIL IN 

HUMAN RESOURCE MANAGEMENT DEGREE. 

 

JANUARY, 2023

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DECLARATION 

I do hereby declare that this thesis is my own research work and that it has not been presented by 

anyone for any academic award in this or any other university. All references used in the study 

have been fully acknowledged. 

 

I bear sole responsibility for any shortcomings in the work. 

        4/1/2023 

………………………………………                                                    ………………………… 

LATIFA  ISSAHAKU                                                                                      DATE 

     (10280467) 

 

 

 

 

 

 

 

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CERTIFICATION 

I hereby certify that this dissertation was supervised in accordance with procedures laid down by 

the University of Ghana. 

 11/1/2023 

 

PROF. KWASI DARTEY-BAAH                                               DATE 

               (SUPERVISOR) 

 

 

     PROF. DAN OFORI                                                                      DATE 

     (CO-SUPERVISOR) 

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DEDICATION 

This work is dedicated to the Almighty Allah for all His interventions in my life. Again, I 

dedicate this work to my husband, Mr. Salifu M. Seidu and my children, Azma Alelamato Salifu 

and Azeem Nefa Salifu for their patience and motivation throughout this study. 

 

 

 

 

 

 

 

 

 

                                                            

 

 

 

 

 

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ACKNOWLEDGEMENT 

My utmost gratitude goes to my supervisors at the University of Ghana, Prof. Kwasi Dartey-

Baah and Prof. Dan Ofori for their guidance and patience during the period of this study.  

Again, my appreciation is extended to all the faculty members at the Department of Organisation 

and Human Resource Management for their contributions during the course of this work 

especially during the seminars. Their commitment and insights were very essential to the 

completion of this work.  

My gratitude also goes to all staff especially the Human Resource Managers of the Atiwa East, 

Okere, Birim South, Kwahu East and Lower Manya Krobo assemblies and all individuals who 

participated in the survey.  

Finally, I would like to express my profound gratitude to my siblings (Mr. Zakaria A. Issahaku, 

Ms Rubaba Issahaku, Ms Sadia K. Issahaku and Ms Hadiza M. Issahaku) for their prayers and 

support throughout the study. Further, I would like to show appreciation to Mr. Amin Bawa and 

all my classmates especially Mr. Emmanuel Boakye-Prempeh and Mr. Israel Akpeh for the 

support offered during the course of this programme. 

 

 

 

 

 

 

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TABLE OF CONTENT 

DECLARATION..................................................................................................................................... i 

CERTIFICATION ................................................................................................................................. ii 

DEDICATION....................................................................................................................................... iii 

ACKNOWLEDGEMENT .................................................................................................................... iv 

TABLE OF CONTENT ......................................................................................................................... v 

LIST OF TABLES ................................................................................................................................ ix 

LIST OF FIGURES ............................................................................................................................... x 

ABSTRACT ........................................................................................................................................... xi 

CHAPTER ONE: INTRODUCTION .................................................................................................. 1 

1.0 Background to the Study ....................................................................................................... 1 

1.1 Problem Statement ................................................................................................................ 5 

1.2 Research Objectives .............................................................................................................. 9 

1.3 Research Questions ............................................................................................................... 9 

1.4 Research Hypotheses .......................................................................................................... 10 

1.5 Significance of the Study .................................................................................................... 10 

1.6 Scope of the Study .............................................................................................................. 11 

1.7 Chapter Disposition ............................................................................................................ 12 

CHAPTER TWO: LITERATURE REVIEW ................................................................................... 13 

2.0 Introduction ......................................................................................................................... 13 

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2.1.1 Concept of Leadership ..................................................................................................... 13 

2.1.2 Leadership Theories ......................................................................................................... 16 

2.1.2.1 The Great Man Theory ............................................................................................................ 16 

2.1.2.2 The Trait Theory ...................................................................................................................... 17 

2.1.2.3 The Behavioural Leadership Theory ....................................................................................... 17 

2.1.2.4 The Situational Theory ............................................................................................................ 18 

2.1.2.5 Transformational Leadership Theory ...................................................................................... 19 

2.1.2.6 Transactional Leadership Theory ............................................................................................ 20 

2.2 Authentic Leadership .......................................................................................................... 20 

2.3 Employee Engagement ....................................................................................................... 24 

2.4 Employee Work Environment ............................................................................................ 26 

2.5 Theoretical Framework ....................................................................................................... 27 

2.5.1 The Social Exchange Theory ....................................................................................................... 27 

2.6 Empirical Review................................................................................................................ 31 

2.6.1 Authentic Leadership and Employee Engagement .................................................................... 31 

2.6.2 Authentic Leadership and Employee Work Environment .......................................................... 34 

2.6.3 Work Environment and Employee Engagement ........................................................................ 36 

2.6.4 Work Environment as a Mediator Between Authentic Leadership and Employee Engagement

 ............................................................................................................................................................ 38 

2.7 Conceptual Framework ....................................................................................................... 40 

CHAPTER THREE: METHODOLOGY ......................................................................................... 42 

3.0 Introduction ......................................................................................................................... 42 

3.1 Research Paradigm.............................................................................................................. 42 

3.2 Research Design.................................................................................................................. 47 

3.3 Research Population............................................................................................................ 48 

3.4 Sample Size ......................................................................................................................... 49 

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3.5 Sampling Technique ........................................................................................................... 50 

3.6 Source of Data..................................................................................................................... 51 

3.7 Data Collection Procedures................................................................................................. 52 

3.8 Data Collection Instruments ............................................................................................... 53 

3.9 Validity and Reliability ....................................................................................................... 55 

3.10 Piloting and Pre-test of Study Tool ................................................................................... 56 

3.11 Data Analysis .................................................................................................................... 57 

3.12 Ethical Considerations ...................................................................................................... 57 

3.13 Profile of Organisation ...................................................................................................... 58 

CHAPTER FOUR: PRESENTATION AND DISCUSSION OF FINDINGS ............................... 60 

4.0 Introduction ......................................................................................................................... 60 

4.1 Demographic Details of the Respondents ........................................................................... 60 

4.2 Preliminary Analysis ........................................................................................................... 64 

4.2.1 Missing Value/Data Analysis ...................................................................................................... 64 

4.2.2 Outliers ....................................................................................................................................... 65 

4.2.3 Normality Test ............................................................................................................................ 65 

4.3 Measurement Analysis ........................................................................................................ 66 

4.3.1 Exploratory Factor Analysis (EFA) .............................................................................................. 66 

4.3.2 Confirmatory Factor Analysis (CFA) ........................................................................................... 67 

4.3.3 Model Fit Indices for the CFA Model ......................................................................................... 71 

4.4 Reliability and Validity Analysis ........................................................................................ 72 

4.5 Correlation Matrix of the Study Variables.......................................................................... 73 

4.6 The Structural Equation Model ........................................................................................... 75 

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4.7 Hypotheses Testing ............................................................................................................. 77 

4.8 Objective one: To examine the extent to which authentic leadership style influences 

employee engagement. .............................................................................................................. 79 

4.9 Objective two: To investigate the relationship between authentic leadership and employee 

work environment. .................................................................................................................... 82 

4.10 Objective three: To determine the influence of employee work environment on employee 

engagement. .............................................................................................................................. 84 

4.11 Objective four: To establish how employee work environment serves as a mediator 

between authentic leadership and employee engagement. ....................................................... 86 

CHAPTER FIVE: SUMMARY, CONCLUSIONS AND RECOMMENDATIONS ..................... 88 

5.0 Introduction ......................................................................................................................... 88 

5.1 Summary of the study ......................................................................................................... 88 

5.2 Conclusion .......................................................................................................................... 89 

5.3 Recommendations ............................................................................................................... 90 

5.4 Research Limitations .......................................................................................................... 91 

5.5 Directions for Future Research ........................................................................................... 91 

REFERENCES ..................................................................................................................................... 93 

APPENDICES .................................................................................................................................... 108 

 

 

 

 

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LIST OF TABLES 

Table 3.1 Reliability of Study Variables with use of the Cronbach’s Alpha ……………….…56 

Table 4.1: The Demographic Details of the Respondents……………………………….….….61 

Table 4. 2: Skewness and Kurtosis of the Study Variables………………………………….…66 

Table 4.3: Exploratory Factor Analysis of the Variables……………….………………. ……108 

Table 4.4: Model Fit Measures and their Interpretations of the Measurement Model…….……71 

Table 4.5. Reliability and Convergent Validity coefficients of the main constructs………...…73 

Table 4.6: Fornell & Larcker Procedure for Discriminant Validity……………………………73 

Table 4.7: Pearson’s Correlation Matrix of the Study’s Variables…………………….………..74 

Table 4.8: Model Fit Measures and their Interpretations of the Measurement Model…….…....75 

Table 4.9: Summary of Hypothetical Relationships ………………...……………………........77 

 

                                                  

 

 

 

 

 

 

 

 

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LIST OF FIGURES 

Figure 2.1 Conceptual Framework………………………………………………………………41 

Figure 4.1: The Initial Measurement Model with Unstandardised Loadings…….………. …....69 

Figure 4.2: Final Measurement Model…………………...……………………….………....…70 

Figure 4.3: The final Structural Model of the study variables (mediation)……………….…....76 

     

 

 

 

 

 

 

 

 

 

 

 

 

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ABSTRACT 

The study investigated the interrelation between authentic leadership style and employee 

engagement in the local government service. It also investigated the effect of the employee work 

environment in mediating the relationship between authentic leadership and employee 

engagement. The study was quantitative in nature using a cross-sectional survey design. The 

cross-sectional survey design was utilised to collect data from five randomly selected assemblies 

in Ghana's Eastern Region. For this study, stratified and simple random sampling techniques 

were employed to collect data from a total of two hundred and forty-five (245) respondents. The 

data was analysed using the Statistical Package for Social Sciences (SPSS) version 21.0 and 

covariance-based structural equation modelling (IBM AMOS version 21.0). The study findings 

revealed that there is a significant positive association between authentic leadership and 

employee engagement. It was discovered that there was a significant positive association 

between authentic leadership and employee work environment. Furthermore, the findings 

revealed a significant positive association between the work environment of employees and 

employee engagement. The data also revealed that the employee work environment partially 

mediated the association between authentic leadership and employee engagement. It is 

recommended that attention be paid to the types of leadership styles demonstrated at the various 

assemblies and that supervisors be trained and encouraged to exhibit positive leadership 

attributes in order to foster improved levels of staff participation. 

  

 

 

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CHAPTER ONE 

INTRODUCTION 

 

1.0 Background to the Study 

One of the most crucial elements of every organisation is the human resource available to it. It is 

an undeniable fact that the activities of the human resource of an organisation keeps driving the 

organisation towards the fulfilment of its goals and objectives. Human resources drive change 

within organisations leading to efficiency at all times. The attainment of the above come about 

when employees in an organisation work in harmony under the direction and supervision of a 

focused and authentic leader. When the leader and the employees work in harmony, it creates a 

conducive working environment which can positively influence the growth of the organisation. 

Organisations are striving to gain competitive edge over others in the same industry in order to 

stay relevant as countries across the globe face soaring market fluctuations due to globalisation, 

advancement in technology, increased competition and the Covid -19 pandemic.   

To deal with the market turbulence and changing times, organisations are investing in skills, 

innovative behaviours and intellectual capacity building of the human resources to enhance staff 

commitment so as to remain productive and profitable (Bhuvanaiah & Raya, 2014; Oh, Cho & 

Lim, 2017).  

According to organisational researchers, employee engagement has been considered an 

important tool which has the potential of solving organisational challenges and for the survival of 

organisations especially during economic downturn (Amabile & Kramer, 2011). Bakker and 

Leiter (2010) pointed out that engaged workers of an organisation are an important asset in 

accomplishing corporate objectives and organisational performance as well as increased 

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organisational competitiveness. Sibanda and Ncube (2014) indicated that employee engagement 

has become a fully-fledged corporate priority for many organisations, as highly engaged 

employees in a competitive market are able to increase innovation, productivity and performance 

while minimizing costs through their enthusiasm and dedication to work. Employee engagement 

will help to address several organisational challenges such as customer satisfaction, attrition and 

low productivity (Gallup, 2013). Work engagement makes employees to have an emotional 

attachment to their job and the organisation in which they are employed and thus, helps in 

reducing employee turnover intentions (Aon Hewitt, 2011).  

However, the struggle for power and positions in organisations nowadays has created a rather 

harsh working environment in organisations (Banihani & Syed, 2017). This unhealthy 

competition among employees has endangered and negatively affected relationships among 

employees working in these organisations (Okoro, Okonkwo, Eze, Chigbo & Nwandu, 2018; 

Banihani & Syed, 2017). As a result, ethical leadership and an enabling organisational 

environment are necessary to encourage corporation and collaboration of employees and also 

facilitate motivation levels among workers within these organisations. Avolio, Gardner, 

Walumbwa, Luthans and May (2004), fully reinforced this call by adding their voice to the call 

that supportive and authentic leadership enables employees to inculcate the habit of self-

confidence and interpersonal trust since this interpersonal trust promotes work engagement 

among employees and improves job performance.  

Leadership plays a pivotal role in several aspects of employees’ work life, especially in these 

very turbulent times the world is facing in the business environment due to the Covid -19 

pandemic. Leadership enables the creation of a vision for the organisation and subordinates, and 

encouraging subordinates to have self-esteem and trust through coordination and communication 

(Bohn & Grafton, 2002). Leadership is essential in ensuring that organisations maximize their 

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efficiency and effectiveness towards achieving organisational objectives. The leader plays a 

central role in influencing and motivating employees towards achieving high productivity 

(Ambad, Kalimin, Damit & Andrew, 2021).  Leadership is the key driver in mobilizing an 

engaged workforce as effective leaders can mould the work attitudes and actions of a group of 

people working in an organisation (Tims, Bakker & Xanthopoulou, 2011). 

 Authentic leadership has been proposed by Avolio et al, (2004) as the main ingredient needed in 

activating positive and effective leadership in businesses and encouraging the self-confidence of 

employees in creating trust in management and other employees working in the organisation. 

Authentic leadership is concerned with the development of constructive mental and emotional 

capacities of employees and an exceedingly advanced organisational framework which impacts 

behaviours of both leaders and their subordinates (Luthans & Avolio, 2003). Authentic leaders 

unveil the unique principles and motives of the leader and expose these unique principles and 

motives to their subordinates, a move which provides positive role modelling of genuineness, 

ethical, future-oriented and advancement of leader-employee relations. 

The development of the leader-employee relationship requires a further investigation into the 

relationship between leadership and employee engagement. Schaufeli (2012) refers to employee 

engagement as a positive, satisfactory, job-related state of mind of a person that encompasses 

vigour, dedication and absorption. Leadership can keep employees engaged on the job by 

arousing their drive, commitment and enthusiasm of the employees with credit to their immense 

ability to arouse employees towards the performance of stated objectives. This has been 

supported by studies conducted by Alvesson & Einola (2019); Labrague et al., (2021); Luthans 

& Avolio, (2003) & Mawritz, Mayer, Hoobler, Wayne & Marinova, (2012). As a result, the 

presence of an authentic leader may have positive impact on how employees engage in activities 

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at the workplace since activities of a leader have the potential to arouse the interest and 

willingness of the employee to stay engaged on the job. 

Again, studying the relationship between leadership and work environment, existing studies 

advance the fact that leadership style, has been found to influence the voluntary work behaviours 

of employees by creating a conducive atmosphere for employees to perform their tasks which at 

the long run keep them engaged at all times (Boerner, Eisenbeiss, & Griesser, 2007). The link 

between leadership, employee work environment as well as employee engagement has been 

considered significant since employees look up to their leaders for answers and guidance at the 

workplace (Avolio & Gardner, 2005).  Additionally, leadership has been seen to boost morale of 

employees at the workplace and consequent surges in levels of productivity as well as employee 

retention (Chambers, 2008). Thus, the type of leadership style exhibited within an organisation 

goes a long way to influence the work environment of the employees as well as encouraging or 

discouraging the engagement of the employees in the performance of their respective duties.   

Over the last decade, Ghana has witnessed rising levels of corporate scandals, misuse of 

resources, growing mistrust and loss of confidence in leaders especially in the financial sector of 

Ghana as well as widely observed challenges of both the public and private institutions leading 

to the collapse of some of these institutions (Boateng, 2019). Notable amongst these is the 

financial sector scandals and misappropriations of funds by some banks such as the UT bank, 

investment companies such as DKM, Menzgold and host of others which compelled the 

government of Ghana to initiate the financial sector clean up in 2019. The challenges faced by 

the above institutions and their eventual collapse were caused by certain decisions taken by their 

directors or managers (BOG, 2017).  The countless institutional challenges have attracted the 

attention of researchers and sparked interest in research into positive and ethical forms of 

leadership such as authentic leadership (AL) to mitigate the organisational challenges, increase 

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positive employee outputs and organisational outcomes (Towsen et al., 2020). It is as a result of 

this development that this research aimed to investigate the mediational role of employee work 

environment on the relationship between authentic leadership and employee engagement among 

metropolitan, municipal and district assemblies in Ghana. 

 

1.1 Problem Statement 

Authentic leadership is one of the emerging leadership styles believed to bring out the best in 

others and which enables people to be honest, positive and realistic in all their dealings. It is a 

form of leadership which encourages candidness, strengthens the relationship between leaders 

and subordinates through trust building between managers and employees which are essential for 

creativity and ingenuity (Walumbwa et al., 2008). To Reiter-Palmon and Illies (2004), authentic 

leaders are capable of changing the perception of their followers by inspiring them to initiate 

new ideas and solutions to challenging tasks.   

Authentic leadership plays a vital role when it comes to the attainment of organisational success 

(Pearce, Yoo & Alavi, 2003). However, a review of current studies showed that research on the 

leadership concept is dominated by a focus on other forms of leadership notably, transactional 

leadership style and transformational style of leadership (Katsaros, Tsirikas & Kosta, 2020; Top,  

Abdullah & Faraj, 2020; Hoffmeister et al., 2014; Ospina, 2016; Osborne & Gaebler 1992;  

Clarke & Ward, 2006;  Moore 2013; Crosby & Bryson 2005; Lord, Day, Zaccaro, Avolio & 

Eagly, 2017; Scott-Young, Georgy & Grisinger, 2019; Clarke, 2013); whereas research on new 

concepts of the leadership construct such as authentic leadership has been given little attention 

(Elrehaila et al., 2018). Again, Yeboah-Appiagyei et al. (2018) attests that research in other 

leadership forms such as authentic leadership should be intensified to help guide leaders in 

choosing strategies to adopt in order to ensure the fulfilment of sustainable and improvement in 

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personal behaviours that will encourage change of attitudes of their subordinates to be committed 

to their work extraordinarily.  

Additionally, studies on authentic leadership (Luthan & Avolio, 2003; Shamira & Eilam, 2005; 

Towsen, Stander & Vaart 2020; Oh, Cho & Lim, 2017; Wong et al., 2010; Ilies et al., 2005) have 

mostly concentrated on definitions of the concept, authentic leadership theory development and 

its impact on employees with regards to role modelling. Furthermore, most of the research on 

authentic leadership and employee engagement (Qiu, Alizadeha, Dooleya & Zhang, 2019; Soieb, 

Othman & D’Silva, 2013; Ghani, Derani, Aznam, Mohamad, Zakaria & Toolib, 2018; Gigaba, 

2015) have mainly been studied within the Western context and not much on the continent 

Africa. Research by Pillai, Rajnandini, Williams and Ethlyn (1999) revealed that one leadership 

style in a particular culture does not have the same impact on attitudes and actions of 

subordinates and thus, inappropriate to apply the same outcomes into a different culture or 

context. Thus, since the cultural orientations of countries all over the world differ, there is the 

need to examine the influence of authentic style of leadership on employee engagement in Africa 

specifically in the Ghanaian context as the current studies are skewed towards the Western 

setting. To buttress this point, Yeboah-Appiagyei et al. (2018) noted that research investigating 

authentic leadership and its relationship with other constructs is insufficient within the Ghanaian 

context. Hence, the call for further research into the authentic leadership style in the African 

context specifically Ghana.  

Again, literature on authentic leadership revealed that authentic leadership had significant and 

constructive correlation with employee engagement (Álvarez et al., 2019; Scheepers & Elstob, 

2016; Oh et al., 2018) which also had a significant influence and positive correlation with 

performance in organisations (Bakker & Bal, 2010; Banihani & Syed, 2017; Bakker & Albrecht, 

2018). Employee engagement brings about loyalty which enables the workforce in an 

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organisation to execute their duties assigned to them with more zeal and professionalism leading 

to higher outputs. Again, employee engagement leads to increased creativity, dedication to work, 

vigour, greater efficiency as well as lower attrition levels and absenteeism (Jauhari, Sehgal & 

Sehgal, 2013). It is projected that an amount of about $11 billion lost annually in the US as a 

result of decline in production which is caused by a disengaged workforce could be avoided, and 

there could be an increment of 21% in profits if efforts are made to enhance levels of 

engagement of staff in organisations (Moletsane, Tefera & Migiro, 2019).  

Again, in the Ghanaian industry, most acts of incivility in the form of insolence, verbal assaults 

amongst others on customers in the public sector are being perpetuated by employees who are 

disengaged in the organisation (Akomeah, 2013).  It is reported that 78% of engaged workforce 

would recommend products or goods of their organisations compared to 13% of disengaged 

workforce who would recommend products and services of their organisation to potential 

customers (Jauhari et al., 2013). It is evident that, employee engagement has enormous 

contribution to the growth of organisations. Therefore, it is imperative that research enhancing 

and improving employee engagement in organisations be carried out especially in the recent era 

of increased organisational competitiveness and global economic downturn. 

Furthermore, reviewed literature revealed studies on leadership in many organisations in Ghana 

(Dartey-Baah & Ampofo, 2015; Abugri, 2012; Acheampong, 2013; Dartey-Baah, Amponsah-

Tawiah & Sekyere-Abankwa, 2011; Mekpor & Dartey-Baah, 2017), but research examining the 

relationship between authentic leadership and employee engagement in the local government 

service is virtually non-existent and therefore needs to be undertaken. Again, the work 

environment in an organisation which largely depends on leadership in that organisation, has a 

great influence on employee engagement (Miles, 2001). The conditions of at the workplace such 

as the psychosocial atmosphere plays an important role in improving employee engagement 

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(Atambo & Nyamwamu, 2015). Every aspect of the work environment is linked to the level of 

employee productivity which is as a result of employee engagement (Kamanja,2019). The better 

the work environment, the higher employee engagement and this has a positive effect on the 

employee's performance (Sugiyanta, Suyono, Damarsari, Chikmawati, & Zulkifli, 2021). Thus, a 

supportive work environment enhances productivity levels whiles unsupportive work 

environment invariably leads to occupational health diseases and lack of motivation by 

employees which eventually results in lower levels of productivity (Daniel, 2019). The 

supportive work environment in organisation is created by positive leadership styles such as 

authentic leadership in organisation which invariably leads to better employee engagement in the 

organisations (Saleem, Shenbei & Hanif, 2020). However, of all the studies reviewed on work 

environment, (Nasidi, Makera, Kamaruddeen, & Jemaku, 2019; Kamanja, Ogolla & Gichunge, 

2019; Saleem, Shenbei & Hanif, 2020; Ahakwa, Yang, Tackie & Atingabili 2021; Sarwoto, 

2015), only a small number of these aforementioned studies considered work environment as a 

mediator between two or more variables and virtually none, to the best of this researcher’s 

knowledge sighted within the Ghanaian context is with the exact relationship between the three 

constructs under this current study, authentic leadership, employee engagement and work 

environment. Therefore, this current study aims to fill the gap by studying the relationship 

between authentic leadership, employee engagement and employee work environment.  

Finally, it appears no research has looked at authentic leadership and employee engagement in 

the local government service of Ghana and how the work environment mediates the relationship 

between the variables, authentic leadership and employee engagement.  Hence, the need to 

examine how authentic leadership as well as how the work environment in the local government 

service plays a role in employee engagement.  

 

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1.2 Research Objectives 

The main objective of the study was to examine how authentic leadership and employee work 

environment impacts on employee engagement. In specific terms the study seeks:  

1. To examine the extent to which authentic leadership style influences employee 

engagement in the local government service. 

2. To investigate the relationship between authentic leadership and employee work 

environment in the local government service. 

3. To determine the influence of employee work environment on employee engagement in 

the local government service. 

4. To establish how employee work environment serves as a mediator between authentic 

leadership and employee engagement in the local government service. 

 

1.3 Research Questions 

In view of the research objectives, this study focused on addressing the underlisted research 

questions:  

1. To what extent does authentic leadership style influence employee engagement in the 

local government service? 

2. What is the relationship between authentic leadership and employee work environment in 

the local government service? 

3. What influence does employee work environment have on employee engagement in the 

local government service? 

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4. How does employee work environment serve as a mediator between authentic leadership 

and employee engagement in the local government service? 

 

1.4 Research Hypotheses 

The study proposed a test of the following hypotheses: 

H1. Authentic leadership will positively and significantly influence employee engagement. 

H2. Authentic leadership will positively and significantly influence employees’ work 

environment. 

H3. Employee work environment will influence employee engagement. 

H4. Employee work environment will mediate the relationship between authentic leadership and 

employee engagement.  

 

1.5 Significance of the Study 

This research is of relevance to academia and industry specifically, it serves as a contribution to 

research, practice and policy. In the area of research, findings and the discoveries of this study 

will add to the current literature on authentic leadership and employee engagement and the 

impact of work environment in that relationship. Additionally, this study serves as a point of 

reference for further research in the area. Thus, this present study helps to close the gap in this 

research field as it provides a basis and foundation for further research in the area.  Furthermore, 

this study is a contribution to the inadequate research on authentic leadership within the 

Ghanaian context. Thus, findings of this study bring new perspective and fills the gap in research 

as there is currently scarce literature on authentic leadership and employee engagement in the 

local government service of Ghana. Thereby adding context specific value to this study. With 

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regards to policy, the information from this research can be relied on to make informed policy 

decisions by the local government service, stakeholders and all institutions to enhance employee 

engagement to ensure increased productivity at the workplace. This research serves as a guide 

for reforms in human resource policies of the local government service and the public sector of 

Ghana to enhance performance in the sector. Furthermore, for practice, the research provides 

detailed information and procedures for line managers on how they can motivate employees in 

the public sector of Ghana to work with enthusiasm. Thus, findings serve as a guide to senior 

management of government institutions and private institutions in their day-to-day supervision of 

staff as discoveries from this study can help them understand the impact of authentic leadership 

style on the work environment and how that improves employee engagement. 

 

1.6 Scope of the Study 

This study laid emphases on the influence of authentic leadership style of supervisors on workers 

in the local government service and the mediating effect of the work environment at the 

assemblies. The local government service, thus, the Regional Coordinating Councils, 

Metropolitan/Municipal/District assemblies co-ordinate and provide supervision of all programs 

by agencies, ministries, departments and non-governmental organisations operating in Ghana. 

Specifically, the study focused on the coordinating directors, middle management and junior 

staff of the local government service at Atiwa East, Birim South, Kwahu East, Okere and Lower 

Manya Krobo assemblies. 

 

 

 

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1.7 Chapter Disposition 

For easy and better understanding of the research, this study has been organized into five 

chapters. Chapter One is mainly the introduction to the study, comprises subtopics such as the 

background to the study, the problem statement, the research objectives, research questions, the 

research hypotheses, scope of the study, significance of the study and chapter disposition. 

Chapter Two encompasses literature review, which included a review of theoretical and 

empirical literature relevant to this study. The chapter ends with a discussion on the theoretical 

framework underpinning the study. Chapter Three is made up of the methodology and is focused 

on the research paradigm, procedures and techniques of data collection adopted for this study as 

well as data analysis and ethical considerations. Chapter Four covers the presentation of results 

from the analysis of the primary data and discussion of findings. The demographic details of the 

respondents are presented, statistical tests used in testing the various hypotheses outlined in 

Chapter One. The chapter also broadly discusses the findings in relation to literature. Chapter 

Five presents summary of the study, conclusion, research limitations and recommendations for 

future studies and practice. 

 

 

 

 

 

 

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CHAPTER TWO 

LITERATURE REVIEW 

 

2.0 Introduction  

This chapter of the study extensively reviews relevant literature related to the research constructs 

and the relationships between them. The concepts examined in this study are authentic 

leadership, employee engagement and employee work environment. This chapter is categorized 

into four (4) main sections (review of concepts, theoretical review, empirical review and the 

proposed conceptual framework). The review of the concept leadership, focuses on shedding 

light on the various leadership theories, the theoretical review touches on the relevant theory that 

best fits the study and establish the relationship(s) between them. The empirical review section 

reviews various studies that have been done on the concepts which are of relevance to this 

current research.  The final section of the chapter is on the conceptual framework which presents 

a proposed conceptual framework for the study developed by the researcher.  

 

2.1.1 Concept of Leadership 

Leadership which is a well-researched concept in human resource management, has had several 

interpretations by scholars over the century. For many years now, several schools of thought 

have tried to propound a universal definition for the concept without universal consensus. This is 

due to the complex nature of societal values and aspirations (Dartey-Baah, 2016). Whereas some 

definitions of the concept interpret it as being central to group processes, other definitions, view 

leadership from a personality perspective with the assertion that the concept is a blend of distinct 

characteristics or qualities inherent in some individuals which enables those individuals to induce 

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others to achieve set objectives (Bass, 1990; Northhouse, 2013). Thus, there is no one generally 

accepted definition of the construct leadership (Addo, 2017). 

Nonetheless, leadership has been defined in several ways by various scholars in academia: 

majority of the definitions by the scholars in leadership research have described the concept as 

the process of encouraging others to accomplish set objectives and inspiring people to conquer 

challenges in organisations (Metz, 2020). For instance, Armstrong (2014) defines the concept as 

the process of inducing individuals to do their best in order to achieve a common goal and it can 

also be described as the ability to convince people to behave in a particular way.  

In a similar way, Buchman and Huczynski (2007) are of the view that leadership is the process of 

influencing actions of a group of people in its efforts towards the achievement of set goals (cited 

in Katsaros, Tsirikas & Kosta, 2020).  To Sharma & Jain (2013), leadership is a process through 

which an individual encourages others and directs an organisation in order to accomplish an 

objective. Furthermore, Tajeddini (2015) defines leadership as the process of providing support 

or motivation to a group of individuals to carry out assigned duties towards the realisation of a 

common objective which can be leading them with a strategy to accomplish a vision (cited in 

Top et al, 2020).  

Again, Koontz (1988), refers to the concept of leadership as an art of influencing followers to 

readily and eagerly strive to accomplish group objectives (cited in Aibieyi, 2014). In the same 

light, Heresay and Blanchard (1977) conceptualize the construct as the act of influencing 

activities of a person or a group in order to attain a certain level of achievement (cited in Aibieyi, 

2014). For Northouse (2007), leadership is a process that is focused on having an impact by 

exerting an influence of a leader on others to achieve a common aim. 

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Notwithstanding the fact that majority of the definitions on leadership focus on group processes 

and influence, another set of definitions by other scholars such as Northouse (2013) 

conceptualize the concept from a personality perspective with the assumption that it is a 

combination of unique qualities that particular individuals possess. Attesting to this assumption, 

Etzoni (1964) defines leadership as the ability based on the personal qualities of leaders to 

influence the followers’ voluntary compliance on issues (cited in Aibieyi, 2014). Similarly, for 

Aibieyi (2009), leadership is creative, adaptive and agile and that leadership looks at the horizon, 

not just the bottom line (cited in Aibieyi, 2014). Furthermore, Anwar (2017), defines the concept 

as the ability to guide, empower and motivate others towards productivity and advancement of 

their organisations (cited in Ali & Anwar, 2021). Naseri (2017) on the other hand, described 

leadership as an interconnected dream touch, building trust and improving workplaces, as well as 

encouraging others to work harder to maximize productivity and performance (cited in Cavaliere 

et al., 2021).  

Through the multitude of definitions by various scholars for the concept of leadership, one can 

infer from the above that the following themes run through it all: (a) Leadership is a process, (b) 

leadership involves influence, (c) leadership occurs in groups and (d) leadership involves 

common goals. Thus, these themes can be identified from the various definitions as being central 

to the phenomenon (Northhouse, 2013). The most common theme is influence. Thus, leadership 

involves influence of others. This refers to the role a leader plays in getting others to perform 

desired actions within an organisation to achieve an objective. Thus, the leader is able to 

convince the followers to perform what is expected of them within the group without any form of 

reluctance.  The concept as a process which is one of the themes, implies that leadership is not a 

one-way event, but an inter h active event where the leader affects followers and is in turn, 

affected by the same followers (Northhouse, 2013). Again, leadership occurs in groups is a third 

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theme that could be deduced from the various definitions of leadership by the scholars. This 

involves working with a group by giving a sense of direction or influencing them to work 

towards attaining a common objective.  

Finally, another theme that can be extracted from the above definitions of the concept is that 

leadership involves common goals. As a construct that involves common goals, leadership must 

work with the achievement of a common objective as a drive for the interaction between the 

leader and followers. Thus, both the leader and followers have a common purpose for the 

interaction which is to direct their energies towards the attainment of the common goal. Taking a 

clue from the above definitions of the concept leadership, this current study defines the construct 

as the interaction between a leader and his direct reports with a common purpose of achieving a 

common objective which is geared towards the benefit of all or the organisation where they 

belong. 

 

2.1.2 Leadership Theories 

Various scholars have formulated several leadership theories such as the great man theory, the 

trait theory to the behavioural theory to the situational or contingency theory of leadership to 

explain the concept, leadership (Mekpor, 2015). 

 

 

 2.1.2.1 The Great Man Theory 

The great man theory, advocated by Galton in 1870, is the oldest theory of the leadership 

concept. This theory was on the assumption that some people were born as great men with heroic 

abilities inherent in them that set them apart that made them leaders of others and that these 

leadership qualities are inherited by others. The theory asserts that people are born with divine 

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leadership characteristics that make them great and leaders among the lot. Thus, leadership is not 

learned but a divine gift to those who can be effective leaders (Sethuraman et al., 2014). The 

great man theory was popularised by scholars of the 19th century such as Carlyle and Galton and 

was developed based on the widespread philosophical viewpoints of the 18th century which 

sought to project some individuals as having daring characteristics to lead others (cited in 

Amanchukwu, Stanley, & Ololube, 2015). Over time, there was a change in the stance above to a 

focus on leaders having other qualities other than just being born great men paving way for the 

development of other leadership theories which focus on traits of morality and teamwork. 

 

2.1.2.2 The Trait Theory  

Again, there was the trait theory of leadership. This theory which was propounded by Thomas 

Carlyle in 1849, is one of the earliest theories of leadership. The proponents of this theory 

believed that people are born with certain inborn traits such as height, intelligence, self-

confidence, determination, integrity, sociability that make those people more likely to succeed as 

leaders (Northouse, 2013). They argue that leaders are born, not made (Chilala & Wayo, 2014). 

People who were therefore with such traits were seen as natural leaders and that only individuals 

born with those traits could become leaders. The trait theory assumes that the unique qualities 

that individuals were born with made them leaders and differentiate them from people who 

cannot be leaders (Northouse, 2013). 

 

2.1.2.3 The Behavioural Leadership Theory 

Going forward however, the behavioural leadership theory was developed as a counter theory to 

the trait theory of leadership.  This theory is based on the premise that individuals can be trained 

and educated to become leaders (Hartog & Koopman, 2001). Bass (1990), defined the 

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behavioural leadership theory as focused on two essential behavioural characteristics of a leader 

which are genuine concern for people and a strong desire to complete tasks. Thus, the employee 

centred leader behaviours focus on interaction with employees to create rapport and encourage 

mutual trust between the leader and subordinates whereas the job-centred behaviours of a leader 

are focused on getting tasks accomplished. To Yukl (1971), basic behaviours required of a leader 

are to clarify goals, to be concerned, supportive, listen to employees and give advice when 

necessary (Goff, 2003). 

 

2.1.2.4 The Situational Theory 

 A further study of the concept of leadership led to the development of situational or contingency 

theory of leadership. Originally developed by Paul Hersey and Ken Blanchard (1969), the 

situational theory of leadership stipulates that, situational factors in an environment also played 

an important role in shaping the form of leadership practice in an organisation (cited in Mekpor, 

2015). Thus, different leadership styles prevail in different contexts depending on the workplace 

environments. Situational theory emphasizes that the leaders will choose the best style of 

leadership based on the situation and the kind of followers being influenced (Sethuraman et al., 

2014). In recent times however, a further development of scientific thought in the field of 

leadership led to scholars proposing several new leadership theories which focus on followers 

and the kind of leadership style exhibited in organisations to suit different situations rather than 

just focusing on the role of a leader as earlier theories have done (Day, 2014). The 

transformational leadership theory, transactional leadership theory, authentic leadership theory, 

the leader-member leadership theory and the social exchange theory are leadership theories that 

were developed to explain the relationship between leaders and their followers. 

 

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2.1.2.5 Transformational Leadership Theory 

Originally proposed by Burns (1978), the notion of transformational leadership focuses on the 

growth and requirements of followers. Managers with a transformational leadership style put an 

emphasis on their staff's morale, motivation, and value growth (Ghafoor, Qureshi, Khan & 

Hijazi, 2011). Dartey-Baah, Amponsah-Tawiah, and Sekyere-Abankwa (2011) state that a 

fundamental tenet of transformational leadership is that its practitioners strive to inspire their 

followers to a point where they can carry out their responsibilities effectively and boost the 

performance of their organisations with little guidance from their superiors. According to Bass 

and Avolio (2004), there are four components of transformational leadership: intellectual 

stimulation, idealised influence, individualised consideration, and inspirational motivation. The 

capacity of a follower to think rationally and intelligently adapt to new circumstances increases 

when they are intellectually stimulated. The concept of idealised influence refers to a situation in 

which employees look up to, respect, and trust their superiors. Aspirational leaders are 

transparent about both their successes and mistakes with their followers, and they put the needs 

of their followers ahead of their own (Mekpor, 2015). The term individualised consideration 

refers to the practise of taking into account the unique qualities of each worker. Therefore, 

transformational leaders place equal value on the growth of each of their followers and the 

organisation as a whole, and they devote considerable effort to developing their followers' skills 

in a way that generates possibilities for advancement within the organisation (Ghafoor et al., 

2011). 

The term inspirational motivation is used to describe the effect of being led by a person who has 

remarkable abilities that allow them to create and communicate an ambitious vision and set lofty 

objectives (Bass, 1985). 

 

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2.1.2.6 Transactional Leadership Theory 

Bass and Avolio's (1997) concept of transactional leadership describes how managers and 

workers may work together to achieve goals via an exchange of incentives and objectives (Bass, 

1990). This kind of leadership emphasises two-way communication between superiors and those 

they are responsible for (Bass, 1999). Contingent reward, management by exception (active) and 

management by exception (passive) are the three pillars of Bass' (1985) transactional leadership 

model. Leaders' capacity to clearly communicate their expectations of employees and the 

rewards they may anticipate if they accomplish those objectives is an important aspect of 

transactional leadership. When a leader employs management by exception (active), he or she is 

looking to keep things as they are while also keeping an eye out for and fixing any problems that 

may arise with the organisation's current level of performance (Odumeru & Ifeanyi, 2013, cited 

in Mekpor, 2015). A passive kind of management, management by exception (MBE) suggests 

that leaders become involved only when there are issues that need to be fixed. Leaders that don't 

establish clear expectations for workers tend to have a high turnover rate. 

 

 

2.2 Authentic Leadership 

The rise of unethical leadership styles among many world leaders has resulted in widespread 

economic and political unrest, an increase in terrorist attacks, a global recession, and several 

business scandals (Northouse, 2013; Nikoli, Kvasi & Grbi, 2020). The idea of authentic 

leadership is a relatively recent development in the field of leadership theory. One's level of 

authenticity may be measured by how much their actions reflect their innermost beliefs and 

ideals (Luthans & Avolio, 2003). Leadership based on self-awareness, vulnerability, and 

integrity is a constructive style of leadership (Avolio, & Gardner, 2005). 

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The idea rests on the premise that effective leaders are trustworthy, moral, self-aware, and self-

controlled individuals who encourage their subordinates' own growth and development (Luthans 

& Avolio, 2003). The leaders, their subordinates and the organisation as a whole all stand to 

benefit in the long run by adopting a more moral and trustworthy leadership style. 

Moreover, true leadership involves not just honesty and reliability but also the existence of other 

crucial personal traits including a sense of mission, strong moral convictions, compassion, 

empathy and self-discipline. Authentic leadership behaviours (empathy, respect, trust, 

connectivity, balance) are bolstered by embarking on a journey of self-discovery, self-

improvement, reflection and renewal (Shirey, 2009). Again, several scholars have argued that 

authentic leaders are those that inspire their followers to care more about the well-being of their 

co-workers (Crosby & Bryson, 2005). Ethical principles are at the heart of this type of 

leadership, and therefore it is generally accepted that leaders who exude authenticity will act in 

ways that are consistent with their beliefs and principles (Boekhorst, 2015). 

Authentic leadership theorists go even farther, arguing that being genuine and trustworthy in all 

interactions is crucial for success (George, 2003; Luthans & Avolio, 2003). They believe that 

authentic leaders are those who are honest about who they are and what they care about and who 

put a premium on maintaining healthy interpersonal connections (Kiersch & Peters, 2017). To be 

an authentic leader is to play a crucial role in the growth of genuine followers (Gardner et al., 

2005). Self-awareness, honesty and openness, integrity and consistency are hallmarks of 

authentic leadership, which places a premium on building and maintaining meaningful 

connections with those under one's charge (Avolio & Gardner, 2005). In this context, transparent 

and ethical leadership refers to a set of practises that leaders adhere to in order to foster an 

environment where everyone feels comfortable contributing to decision-making and contributing 

information (Laschinger & Fida, 2014). 

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Empirical studies consistently find that honest leadership has a favourable impact on 

subordinates. This kind of leadership is an innovative approach that has the potential to assist 

businesses in adapting to changing conditions (cited in Jang, 2021). In these uncertain times of 

the covid-19 epidemic, when many businesses are failing, organisations need leaders who can 

adapt to changing environmental circumstances and encourage staff to accomplish their career 

ambitions and organisational objectives (Miidom et al., 2021). There are four fundamental 

components of authentic leadership: 1) self-awareness; 2) balanced processing; 3) relational 

transparency and 4) internalized moral perspective (Kernis & Goldman, 2006; Walumbwa et al., 

2008).   

Self-Awareness: Authentic leaders are very much self-aware of their weaknesses, strengths and 

where they fall short of and interact with others with frankness. Thus, they do not try to impress 

others but stay true to themselves. Authentic leaders welcome divergent views and interact more 

with their followers (cited in Sagbaş et al., 2021). These leaders try to keep in mind how they 

view themselves and how others view them, hence they do not hide those traits or pretend 

towards their followers. According to Kernis (2003), self-awareness involves having awareness 

of, and trust in, one’s motives, feelings, desires and self-relevant cognitions. This entails having 

full knowledge or personal insight of one’s strengths and weaknesses. Authentic leaders have 

self-reflection through which they gain clarity with regards to their personal core values, identity, 

emotions, motives and goals for better understanding of their persona (Gardner et al., 2005).  

Authentic leaders understand how behaviours portrayed affect employees. The leaders with a 

high level of self-awareness are more capable of leading and developing their employees (Jang, 

2021).  Research has shown that people with high sense of their strengths and weaknesses are 

also high on authenticity (Yadav & Dixit, 2017). 

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Balanced Processing: Balanced processing refers to a leader's ability to scrutinise all relevant 

information without partiality before taking a decision (cited Miidom, Dyke-Ebirika & Tidjoro, 

2021). Thus, authentic leaders often process information without any biases and are objective 

when it comes to decision making. Authentic leaders are with self-confidence and think through 

any action to be taken to ensure fairness in decisions taken. They make judgments based on the 

perspectives of all stakeholders and this enables employees to locate the information required in 

achieving their objectives (Miidom et al., 2021). The balance processing characteristic of 

authentic leaders make them objectively think through both positive and negative aspects of a 

problem before making important decisions (Kernis, 2003).  Similarly, employees participate in 

the decision-making process as these leaders seek their varied views on issues which gives these 

employees the impression that the leaders consider their opinions instead of imposing their views 

on them (Jang, 2021). Thus, authentic leaders do not impose their ideas and opinions on their 

followers but allows them to freely air their own views and ideas and try to encourage their 

subordinates to be objective and genuine (Yadav & Dixit, 2017).   

Relational Transparency: This refers to the habit of revealing one's true self to others and 

behaving according to one’s true nature instead of being manipulated by others (cited in Jang, 

2021). Authentic leaders show their true character to their followers whether it is good or bad as 

they ensure that they have clear motives for every action.  These leaders are honest, show 

genuine behaviours and consistently exhibit such values with their followers. (Oh, Cho & Lim, 

2017). To Walumbwa et al. (2008), relational transparency characteristic of authentic leaders 

makes them act with openness and sincerity in their interaction with their followers. Authentic 

leaders express themselves in plain language, with honesty and are transparent in explaining their 

feelings to their subordinates. The transparency exhibited by authentic leaders enhances the 

formation of trust and teamwork among co-workers and also promote positive relationship 

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between leaders and followers (Gardner et al., 2005). Leaders with relational transparency share 

their thoughts with sincerity by being open and obtaining consent and dissent from followers 

(Jang, 2021). Authentic leaders believe in building an organisational structure that allows 

employees to share information and their feelings in a genuine manner, without any fear (cited in 

Yadav & Dixit, 2017). 

Internalized Moral Perspective:  Internalized moral perspective component of authentic 

leadership means that authentic leaders are ethical, exhibit high sense of morality and behave 

according to their personal values and norms (Jang, 2021). Authentic leaders have high moral 

standards and ethical conduct and do not succumb to societal or organisational pressure which 

will make them deviate from their internalized moral standards and values (Yadav & Dixit, 

2017). Thus, they have internalized moral outlook and try to live by these internalized ethical 

standards as well as interact with followers by same set of ethical standards and values. These 

types of leaders hold people-oriented attributes in high esteem and value relationships. Authentic 

leaders try to improve upon their weaknesses from feedback received from others and are not 

pretentious when it comes to their values and beliefs (George, 2003). 

 

2.3 Employee Engagement 

Employee engagement, as defined by Schaufeli (2012), is a good, rewarding mental state 

associated with work that is characterised by commitment, excitement, energy, devotion and 

absorption. It's the workers' positive affective-cognitive state and level of dedication to their jobs 

that ultimately yields the greatest results (cited in Laschinger & Fida, 2014). Vitality, devotion, 

and immersion are the hallmarks of an engaged workforce (Schaufeli and Bakker, 2004). High 

levels of energy and mental toughness are what scholars mean when they talk about vigour, 

whereas the words significance, inspiration, pride, and passion are what scholars mean when 

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they talk about commitment. People who are absorbed in what they're doing are completely 

focused on it (Schaufeli and Bakker, 2010). 

Bedarkar and Pandita (2014) define employee engagement as the degree to which an 

organisation's efforts to foster a sense of belonging among its employees. Thus, it is the extent to 

which workers' own ambitions parallel those of the company for which they work. Referenced in 

Saleem et al. (2020). According to Schaufeli and Bakker (2004), the idea defines an employee's 

emotional connection with the organisation, which influences the amount to which he or she will 

go above and beyond to fulfil organisational aims. Therefore, an engaged worker is one who 

shows interest in and takes pride in his or her work, who values the success of the company and 

its reputation, and who consistently seeks to exceed colleagues. 

Job qualities, organisational support, supervisor support, incentives and recognition, procedural 

fairness, and distributive justice all influence employee engagement, as stated by Saks (2006). 

However, according to Joshi and Sodhi (2011), the amount of employee engagement is 

determined by elements such as pay and benefits, employee and employer relationships, 

employee and supervisor trust, opportunities for professional development, and collaboration 

(cited in Mohd, Shah & Zailan, 2016). Facilitating employee engagement requires organisations 

to have clearly defined responsibilities, provide opportunities for staff training and development, 

and cultivate an atmosphere that encourages participation (Saleem, Shenbei & Hanif, 2020). 

Since engaged workers are more likely to show dedication to company values and excel in their 

jobs, higher levels of employee engagement and commitment to work translate to greater success 

in meeting business goals (Kamanja, 2020). Research has demonstrated that the amount of 

employee involvement may be used to forecast money flow, results of employee performance, 

and the attainment of organisational success, making the idea of employee engagement of 

tremendous importance to any organisation (Mohd et al., 2016).  

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2.4 Employee Work Environment 

Working environment is everything about the surroundings, situations, behaviour of employers 

and colleagues and organisational attitude (Tyagi, 2016). Conditions at the workplace are a 

significant factor in determining the level of engagement and employee retention as people want 

to work in a safe workplace. Various aspects of the work environment can result in various levels 

of employee engagement (Miles, 2001).  A safe work environment attracts new applicants for 

jobs in an organisation while a poor work environment leads to high employee turnover (Saleem 

et al., 2020). An organisation with a work environment that is characterized by openness, justice 

and allows employee creativity and sharing of ideas, is one that will have more employees 

willing to increase their level of engagement (Anitha, 2014). Employees engage in the positive 

exchange of behaviours, feel motivated and committed towards their job when they are provided 

with a healthy work environment (Saleem et al., 2020). 

On the contrary, employees face occupational stress, feel toxicity among co-worker relationship, 

engage in absenteeism and work destruction which ultimately results in low work engagement 

when an organisation does not provide them with a healthy or supportive work environment 

(Saleem et al., 2020). Organisations that show concern about employees’ well-being, develop 

skills of employees, allow employees to freely express themselves and solve work-related 

problems are seen to be providing supportive working environment which is considered a key 

determinant of employee engagement (Mohd et al., 2016).  

 

 

 

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2.5 Theoretical Framework 

The Social Exchange Theory (SET) provides the theoretical underpinning for this study. In order 

to explain the relationships that exist between authentic leadership, employee engagement and 

employee work environment which are the constructs under study, this study relied heavily on 

the social exchange theory (SET). 

 

2.5.1 The Social Exchange Theory 

The Social Exchange Theory (SET) was originally initiated by Homans in 1961. Several scholars 

have contributed to the development of the theory including Homans’ (1958) work on social 

behaviour in the exchange process, the work on how value is placed on the benefits in an 

exchange relationship by actors in that relationship by Thibaut and Kelley (1959), Emerson’s 

(1962) work on the impact of power between actors in an exchange relationship as well as Blau’s 

(1964) work on social interaction as an exchange process (Addo, 2017). 

This theory is based on the premise that social behaviour is the result of an exchange process and 

that individuals are generally rational and do a cost and benefit analysis of every relationship. 

The theory is on the proposition that people weigh the benefits and risks involved in their 

interactions and association with others. According to Scholars (Homan, 1961; Emerson, 1962; 

Blau, 1964; Nunkoo, 2016), who advocate for this theory, most people will tend to terminate any 

relationship that is seen to have the risks outweighing the rewards (cited in Soieb, Othman, & 

D’Silva, 2013).  

Based on the assumptions of Homans (1961), Nunkoo (2016) argues that all participants in an 

exchange process are reliant on one another for advantages (both material and immaterial) and 

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choose to participate in the exchange process after weighing the pros and cons. For this reason, 

individuals would only enter into an exchange relationship if they believed the advantages 

outweighed the drawbacks (Nunkoo, 2016). Furthermore, Nunkoo (2016) adds that the 

advantages of social exchanges, as alluded to by the theory's proponents, are primarily 

discretionary and may take the shape of intangibles, but in the case of commercial transaction, 

concrete benefits are gained (Agbozo, 2018). 

Again, Blau (1964) claimed as a prominent proponent of the social exchange theory that the 

advantages of economic exchanges are primarily contractual while the benefits of social trade are 

unknown and not contractual. As Blau explains it, when an employer provides an employee with 

a perk, the person owes the employer something in return (cited in Bibi, Ahmad & Majid, 2018). 

Thus, if leaders treat their employees well, the workers will treat their superiors well. 

Furthermore, it can be deduced that if workers are given a pleasant place to work and sufficient 

tools to do their jobs, they will be encouraged to do their best since they will see the positive 

effects of their efforts on the company and the company on the worker (Soieb et al., 2013). 

Many studies have used the social exchange theory to analyse the interactions in various 

organisations (Bagger & Li, 2014; Blau, 1964; Colquitt, Baer, Parker, Williams & Turner, 2006; 

Long & Halvorsen-Ganepola, 2014), with the theory proposing that leaders form exchange 

connections with their subordinates by bequeathing certain advantages on them, such as offering 

support, fair treatment, or autonomy. Over time, the way subordinates feel and act is a direct 

reflection of the trade connections they've established with superiors (cited in Lorinkova & 

Perry, 2014). Similarly, when workers feel appreciated and respected by their employer, they are 

better able to give their all for the business. The same is true for leaders: when they have a 

healthy rapport with their superiors, they are more likely to want to give their subordinates the 

freedom to make decisions for themselves, which in turn improves their rapport with those 

employees (Eisenberger et al., 2001 cited in Bibi et al., 2018; Lorinkova & Perry, 2014). 

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Negative reciprocity, on the other hand, occurs when workers respond negatively to leaders' poor 

treatment of them by exhibiting unfavourable actions against the company (Fox, Spector & 

Miles, 2001). 

Using this idea as a framework, this research looks at how authentic leadership, employee 

engagement, and the workplace environment are connected. This is due to the fact that the social 

exchange theory offers a window of opportunity for understanding the connection between 

authentic leadership, employee engagement, and a positive work environment in the five 

assemblies selected for this analysis. Authentic leadership, according to the findings of empirical 

research, not only increases employee engagement by creating a positive work environment, but 

also increases followers' faith in their leaders. Therefore, if followers trust their leaders, they are 

less likely to question the motives and behaviours of the leaders, and they are more likely to 

willingly go above and beyond when requested to do so (Qiu et al., 2019). Those who adopt an 

authentic leadership style are able to improve office connections by providing an example of 

constructive interpersonal interactions and enforcing high standards for appropriate conduct 

(cited in Laschinger & Fida, 2014). Furthermore, such managers have a keener awareness of 

what it takes to do quality work, and they put in place all the tools their staff members need to 

succeed (Laschinger, Wong & Grau, 2012). 

Similarly, authentic leaders encourage their followers to exhibit their skills at work. This boosts 

morale and productivity. Authentic leaders, as argued by Laschinger, Grau, Finegan and Wilk 

(2010), work to mitigate the occurrence of workplace disputes and burnout. Leaders like them 

help workers deal with difficult situations on the job (cited in Laschinger & Fida 2014). A 

supervisor who encourages employees to be open and take responsibility for their actions, as 

well as one who facilitates the free flow of information and encourages employees to make 

decisions that are consistent with ethical principles, can greatly increase workers' motivation and 

engagement in order to meet job requirements (DeConinck, 2010). Therefore, it can be deduced 

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that leaders that demonstrate an authentic leadership style at work establish an exchange 

connection with their workers by offering support, motivation, an enabling atmosphere, and 

expressions of gratitude. By taking these measures, leaders may boost morale and, in turn, 

encourage their teams to return the favour by acting more positively toward them and the 

company as a whole (Lorinkova & Perry, 2014). 

In a similar spirit, companies foster relationships based on mutual benefit when their workers 

find that their professional experiences have a positive impact on their personal lives. Therefore, 

when workers believe that their organisation cares about them as individuals, provides good 

feedback, and encourages them to share ideas, grow professionally, and address issues at work, 

they are more likely to be invested in their job and committed to their employer (Jiang & Men, 

2015). Employees' level of commitment to their jobs improves when they believe their company 

cares about them. 

The empirical support for the social exchange theory across various organisational settings and 

the exchange relationships between leaders and employees and between the organisation and its 

employees, was the justification for the application of the social exchange theory in this study. In 

view of the social exchange theory and the principle of reciprocity, it can be inferred that when 

leaders exhibit authentic leadership style, they provide organisational support and create a 

conducive work environment. The conducive work environment would in turn, result in 

employees being obligated to reciprocate the good gestures by exerting additional effort to serve 

customers and the organisation without expecting anything in return. 

 

 

 

 

 

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2.6 Empirical Review 

2.6.1 Authentic Leadership and Employee Engagement 

As leaders decide what has to be done and where resources should be allocated, they are one of 

the most significant resources for employee work-engagement (Bakker and Demerouti, 2008). 

Leaders may thus serve as a crucial support system for their teams, helping to keep everyone 

enthusiastic about coming to work (Niswaty, Wirawan, Akib, Saggaf & Daraba, 2021). Workers 

often look to their interactions with their leaders as a guide to what kind of behaviour is expected 

of them on the job, therefore leaders have a significant role in defining the way everyone else 

perceives the workplace atmosphere (Macey & Schneider, 2008). The immediate supervisor is 

the most visible and concrete example of management's behaviours, rules, and procedures, 

according to Kozlowski and Doherty (1989) (cited in Boersk, 2014). 

Since the 1980s, the idea of authentic leadership has grown in popularity and academic study. 

The authors Henderson and Hoy (1983, p. 63) defined authentic leadership as "the embrace of 

responsibility, the non-manipulation and the primacy of the self above position needs" (cited in 

Oh et al., 2017; p. 277). Authentic leaders have an impact on employee engagement because they 

motivate their followers to provide 110% at work (cited in Shinnan, 2020). Again, they 

encourage and create employee commitment to participate with the organisation by displaying 

their genuine traits and providing resources to other workers (Walumbwa et al., 2010). Because 

of this, authentic leadership improves workers' dedication to their jobs. Authentic leadership has 

been shown to increase employee engagement, according to studies (cited in Niswaty et al., 

2021). Avolio, Koh, and Bhatia (2004) argue that authentic leaders affect their followers' work 

attitudes through inspiring optimism, trust, and pleasant emotions. So, when employees see their 

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chief executive officer as someone they can relate to and trust, they are more invested in their 

job. 

To back up the aforementioned claim, Niswaty et al. (2021) surveyed workers at one of 

Indonesia's major public service offices to examine the link between authentic leadership and 

staff morale. The study's findings demonstrated a strong correlation between authentic leadership 

and workers' dedication to their jobs. The results of the research showed that when leaders are 

genuine, their staff are more invested in their job. Because of this, leaders who exhibit authentic 

leadership qualities are in a better position to connect with their teams and inspire them to do 

their best work. 

Towsen et al. (2020) also studied the connection between authentic leadership, psychological 

empowerment, job clarity, and employee engagement in the South African mining industry. Two 

hundred and thirty-six workers at a coal-mining company in South Africa participated in the 

study so that researchers could examine the correlation between real leadership and employee 

engagement. According to the findings, there is a correlation between authentic leadership and 

employee engagement, and more authentic leadership results in better employee engagement. 

The results also showed that authentic leadership has an effect on employee job engagement, 

both immediately and later on via the employees' sense of psychological empowerment. 

Additionally, Novitasari et al. (2020) investigated the impact of authentic leadership style and 

psychological capital, on the creative work behaviour of an Indonesian manufacturing business 

and discovered a favourable correlation between the two. As a result, authentic leadership and 

psychological capital are important factors in predicting and shaping workers' creative and 

proactive actions in the workplace, both of which have the potential to increase or decrease 

engagement. 

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In addition, Qiu et al. (2019) analysed the results of a research they did on the impact of 

authentic leadership on confidence in leaders, organisational citizenship behaviour, and service 

quality in China's hotel and restaurant sector. After conducting pilot research at a polytechnic 

institution in the south of China, they collected data from sixty-seven (67) frontline workers at 

Chinese five-star hotels. According to the study's results, followers are more likely to go the 

extra mile for consumers if their leaders earn their confidence via authentic leadership behaviour. 

According to them, this has the potential to boost morale and productivity in the workplace. This 

also implies that authentic leaders may influence their teams to make choices that aren't directly 

in their purview just by being who they are. 

Oh et al. (2017) conducted another research on authentic leadership and employee engagement at 

work, this time focusing on the moderating role that living one's values at work plays. The 

study's authors surveyed 281 workers from three of South Korea's largest firms and found that 

authentic leadership significantly influenced employee dedication on the job. The results showed 

that the authentic leadership of Korean corporations had a substantial beneficial influence on 

worker dedication. If leaders have a good effect on their teams and model the organisation's 

ideals in their daily actions, those teams will respond positively and become more engaged in 

their job. 

Studying the impact of leadership on employee engagement, Othman et al. (2017) accounted for 

the moderating role of leadership communication styles. The workers of Johnson Controls 

Automotive Sdn. Bhd. in Malaysia (n=112) were surveyed. Employee orientation was shown to 

be a major predictor of employee involvement in a multiple regression study comparing three 

leadership styles often used in the workplace (employee orientation, change orientation, and 

production orientation). Thus, leaders may maximise employee engagement by paying close 

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attention to their staff, treating them fairly while also taking into account their needs and the 

staff's abilities. 

Yeboah-Appiagyei et al. (2018), in a research on authentic leadership and organisational 

commitment at selected institutions in the Brong Ahafo area of Ghana, sought to investigate the 

connections between social and emotional intelligence and authentic leadership, as well as the 

effects of authentic leadership on organisational commitment. Using a quantitative approach and 

a sample size of 295, this research found that there is a positive correlation between authentic 

leadership and employee loyalty to the company. It was also shown that both social and 

emotional intelligence had a strong positive correlation with authentic leadership.  

Based on the review of literature it was hypothesized that: 

          H1: Authentic leadership will positively and significantly influence employee engagement. 

 

2.6.2 Authentic Leadership and Employee Work Environment 

One leadership style that has been shown to have a significant effect on the culture of a company 

is that of authentic leadership. A review of the literature on authentic leadership demonstrates 

that its basic components self-awareness, transparency and balanced processing have a 

favourable effect on the workplace (Liu, Fuller, Hester, Bennett & Dickerson, 2017). 

There is an increased emphasis on open communication, especially among employees whose 

voices may not have been heard without the authentic leadership style being present 

(Walumbwa, Avolio, Gardner, Wernsing & Peterson, 2008; cited in Boersk, 2014). As a result, 

authentic leadership has a direct, beneficial effect on the office climate (Lee, Chiang, & Kuo, 

2018). Researchers have been studying this claim in various ways for years. To provide only one 

example, Sagbas and Surucu (2021) investigated the impact of authentic leadership on 

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occupational stress. Staff members at luxury hotels in Alanya, Turkey, were surveyed to see 

whether they had less stress when led by authentic leaders. A total of 311 staff members from 

luxury hotels participated in the quantitative survey. This study found that a more authentic 

leadership style was inversely related to increased levels of stress in the workplace. 

Once again, Yadav and Dixit (2017) looked at the connection between authentic leadership and 

the happiness of IT workers in India. The study’s authors set out to look into the connection 

between authentic leadership and workers’ work-related quality of life, which they described as 

factors including job and career satisfaction, overall well-being, job control, job stress, the home-

work interface, and working circumstances. A total of 45 team managers and 121 team members 

were sampled for this study. According to the findings, authentic leadership significantly 

improved employees’ lives across all six areas of job satisfaction. Therefore, authentic leadership 

promotes a healthy workplace. 

Furthermore, Laschinger and Fida (2014) investigated how authentic leadership influenced 

workplace bullying, burnout, and voluntary turnover. Three hundred and forty-two recently-

graduated nurses with less than two years of experience working in Ontario’s acute care hospitals 

provided the data. Workplaces with authentic leaders had fewer bullying incidents. They are 

more likely to set high standards of behaviour in the workplace and less likely to accept bullying 

behaviour because these leaders are honest and consistent in their interactions with followers. 

This indicates that when workers view their leader or supervisor to be genuine, they are less 

likely to be subjected to workplace bullying or suffer burnout. According to the literature, 

authentic leadership improves the workplace for everyone involved. The following hypothesis 

was therefore stated: 

H2: Authentic leadership will positively and significantly influence employees’ work 

environment. 

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2.6.3 Work Environment and Employee Engagement 

Employee engagement may be affected by the quality of the work environment, which has been 

shown to increase in productive and positive work environments and decrease in unproductive 

and negative ones. Staff members are more likely to give high-quality service if they are 

provided with a conducive work environment that allows them to make the most of their 

knowledge, abilities and resources (Leshabari et al., 2008; Nasidi et al, 2019). The key to a 

productive workplace is fostering positive connections among workers (Nugroho, et al, 2020). 

A study conducted by Bushir (2014) at the Institute of Finance Management in the Dar es 

Salaam Region provides more evidence for the claim stated above. Fifty participants were 

selected at random for this investigation. Employee performance was shown to be affected by 

factors related to the organisation’s working environment, including issues related to the 

availability of job aids, the usage of performance feedback, the prevalence of noise at work, and 

the supervisor's interpersonal interaction with subordinates. 

Kamanja et al. (2019) looked at how the workplace atmosphere in Kenya’s central government 

ministries affected employee engagement. They used a quantitative approach to survey 200 

workers in central government ministries in Meru County, Kenya, to learn more about the 

connection between workplace conditions and employee dedication. Employee engagement was 

shown to be significantly affected by both the physical and social aspects of the workplace. 

Employee enthusiasm was shown to increase in tandem with improvements in the emotional 

climate of the workplace. Despite this, allowing workers more freedom in their schedules did not 

boost morale. This indicates that an employee's willingness to contribute to the success of the 

company will increase if they feel at ease in their day-to-day work surroundings. 

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Mohd et al. (2016) investigated the impact of the office setting on the dedication of workers at a 

Kuala Lumpur-based telco. In order to determine how much of an impact, it has on incentives, 

work environment and work-life balance have on employee engagement, researchers surveyed 

250 workers at a Klang Valley telecommunications company. It was found that the work 

environment is the single most important element in determining whether or not workers are 

invested in the success of their organisation, and that this atmosphere must be both favourable 

and liberating for people to give their all. 

The academic staff at private institutions in the Gwalior area were the focus of Tyagi's (2016) 

research on the workplace as a predictor of employee engagement. Information was collected 

from 130 different universities. Employee engagement was shown to be highly influenced by the 

quality of the workplace. This indicates that when workers are happy with their workplace 

conditions, they are eager to step up their efforts for the company. 

Again, Nasidi et al. (2019) investigated the effect of the workplace on the enthusiasm of the 

University of Nigeria's non-academic workers. Researchers at one institution surveyed 150 non-

academic employees. The statistical software for the social sciences was used to conduct critical 

analysis and hypothesis testing and the results indicated a modest association between the 

workplace setting and employee engagement. This contradicts previous research that found 

workplace factors to be a predictor of employee engagement. Researchers concluded that this 

was because workers at the relevant institution were not being disrupted in their jobs by the 

surrounding environment, or alternatively, that the university environment did not need any 

unique considerations. 

In addition, Daniel (2019) investigated the impact of organisational culture on productivity in 

Nigerian workplaces. In this study, the researcher used a quantitative strategy and 142 workers 

from the Bayelsa State Ministry of Works and Infrastructure provided responses. It was found 

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that employees' dedication to their jobs was significantly influenced by their physical 

surroundings at work. Employee effectiveness and output were also significantly affected by 

factors such as job satisfaction and flexibility. Following the review of the literature above, it 

was hypothesized that: 

H3:  Employee work environment will influence employee engagement. 

 

2.6.4 Work Environment as a Mediator Between Authentic Leadership and Employee 

Engagement 

Companies that excel have workers who are emotionally invested in their work and who dedicate 

their whole mental, physical and emotional resources to it (Strom et al., 2003; cited in Gozukara 

& Simsek, 2015). Increased output may be attributed to the positive impact of a safe and healthy 

workplace on workers' attitudes and performance (Daniel, 2019). However, if employees are 

treated poorly or aren't happy where they work, productivity will suffer. Furthermore, leadership 

significantly correlates with the culture of an organisation. 

This notion is supported by a research conducted by Sugiyanta et al. (2021) on the impact of 

leadership and promotion on employee performance through the mediating function of the 

workplace. Using a quantitative method of study, the researchers gathered data from fifty 

respondents made up of workers of the College of Economics in Jakarta, Indonesia. It was 

revealed that leadership significantly affected the atmosphere at work. Inferring from this, it can 

be concluded that good leadership creates a pleasant workplace and bad leadership results in a 

less conducive workplace. Thus, in order to achieve high levels of employee performance, 

businesses should prioritise fostering an atmosphere where effective leadership styles, such as 

authentic leadership, may flourish. 

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The function of work environment and organisational culture as mediators between workplace 

violence and employee engagement was also studied by Saleem et al. (2020). Researchers 

employed a quantitative approach to analyse the role of work environment and organisational 

culture in the correlation between workplace violence and employee engagement. One hundred 

seventy-eight (178) university alums now working in Pakistan's caregiving, customer service, 

management and technology industries provided their responses. Employee engagement, along 

with the work environment and company culture, were shown to suffer as a direct result of 

workplace violence. These findings also highlight the importance of a healthy organisational 

culture and a supportive work environment as mediators between workplace violence and 

employee engagement. 

In addition, Labrague et al. (2021) investigated the importance of nurses' work environment and 

leadership self-efficacy in encouraging nurses to take up leadership responsibilities. Researchers 

in this study collected data from 1,534 nurses working in 24 different acute care hospitals 

throughout the Sultanate of Oman. The study's findings demonstrated a correlation between 

nurses' intrinsic drive and leaders' genuineness in their leadership styles. Furthermore, the 

relationship between authentic leadership and the drive to take on official leadership 

responsibilities was somewhat mediated by factors including nurses' perceptions of their own 

leadership skills and the culture of their workplaces. As a result, nurse managers' authentic 

leadership style was related to the enthusiasm of their staff nurses to take on leadership roles. 

This shows that workers are more likely to volunteer for leadership positions if they have a 

positive impression of their workplace and a high opinion of their own abilities. 

To this end, Lee et al. (2018) investigated the role that work environment and burnout played as 

mediators between authentic leadership and nurses' intentions to quit the profession. The study 

used a quantitative approach to gather data from three hospitals in southern Taiwan to examine 

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the role that work environment and burnout play in the link between authentic leadership and 

nurses' intentions to quit their current positions. The study's findings showed that authentic 

leadership influenced nurses' intentions to leave their jobs, but that this impact was mediated by 

factors including job satisfaction and exhaustion. The researchers came to the conclusion that 

leaders who are themselves genuine may foster conditions where employees are less likely to get 

burned out or to announce their plans to depart. As a result, they advocated for measures to foster 

a more upbeat atmosphere in the office. From the literature review, the following hypothesis was 

stated: 

H4: Employee work environment will mediate the relationship between authentic leadership and 

employee engagement. 

 

2.7 Conceptual Framework 

This section investigates several relationships among the independent and dependent variables. 

The figure 2.1 depicts the relationship between authentic leadership, employee engagement and 

employee work environment. This was informed by theoretical and empirical review of literature 

and the hypotheses formulated. From the diagram, it can be explained that authentic leadership 

has a direct relationship with engagement. Again, authentic leadership has an influence on 

employee work environment which in turns has a relationship with employee engagement. In 

summary, the figure postulates that authentic leadership style will predict employee engagement. 

Furthermore, employee work environment has a mediating role in the relationship between 

authentic leadership style and employee engagement. 

 

 

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Figure 2.1 Proposed Relationships between Authentic Leadership, Employee Work 

Environment and Employee Engagement.  

  

 H2 H4 H3 

 

            H1 

Source: Author’s Construct (2022) 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Authentic 

Leadership 

Employee 

Engagement 

Employee Work 

Environment 

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CHAPTER THREE 

METHODOLOGY 

 

3.0 Introduction 

This chapter describes the methodology adopted in this study in order to achieve the objectives 

stated in chapter one of this study. It explains the philosophical assumptions underlying the 

adoption of the method, the adopted research paradigm, research design, population and sample 

size and the sampling techniques employed for data collection as well as methods adopted for the 

analysis of data. The chapter further explains the ethical considerations made throughout this 

research.  

 

3.1 Research Paradigm 

A researcher's worldview has a substant