Transformational leadership and employee psychological well-being: The mediating role of employee trust in leadership

Abstract

The relationship between employees’ perceptions of their managers’ transformational leadership style and employees’ psychological well-being was examined in two studies. In Study 1, trust in the leader fully mediated the positive relationship between perceptions of managers’ transformational leadership and employee psychological well-being in a cross-sectional sample (n=436). Study 2 (n=269) (1) replicated the mediated effect found in Study 1; (2) extended the model by showing that active management-by-exception and laissez-faire behaviours negatively affected employee psychological well-being by reducing trust in the manager; and (3) excluded the possibility that these results were accounted for by individual differences or liking of the manager. Theoretical and practical applications, as well as directions for future research are discussed.