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Impact of Authentic Leadership, Organizational Culture on Employee's Job Satisfaction

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This study aimed to investigate the link between flexible-oriented culture and job satisfaction. It analyzed the data collected by 571 individuals who work for a private organization. The study focused on the factors that influence the commitment of employees in the service sector in Bangladesh. Some of these include team orientation, transformational leadership, and stability. The study also identified various factors that can influence a service sector employee's commitment. These findings will help business managers in their efforts to improve the effectiveness of their organizations

Key Words

Organization, Study, Various, Satisfaction, Influence


In today's dynamic work environment, authentic leadership is very important. It can help boost employee satisfaction and the effectiveness of the organization. According to Walumbwa and colleagues, authentic leadership involves developing a positive mental and ethical climate that encourages self-awareness and transparency. The process of authentic leadership involves cultivating a positive psychological climate and an organization's culture. This can be achieved through the sharing of key values and assumptions among employees. The desire to be satisfied comes from the relationship between work-related behaviours and one's job satisfaction. According to Locke, job satisfaction is the feeling of being able to fulfil one's job values.

Today's companies operate in a competitive environment, which is characterized by a financial crisis. To remain competitive, organizations must adapt to the changes brought about by the crisis and remain focused on developing and managing a unique culture. The creation of a unique culture can be done by the founder of the management team. It can also be developed over time as an organization faces various challenges.

In this environment, employees are more inclined to work in companies that have a flexible culture. This is because it can improve their job satisfaction and provide them with a competitive advantage during an economic crisis. Although this concept can be beneficial for companies that have a traditional culture, it can be challenging for them to adopt a flexible approach. This article aims to help organizations identify the leadership style that can help them develop a flexible culture. The study also identified a positive effect of a flexible culture on followers' positive outcomes. This type of leadership style has been linked to higher follower positive outcomes. It can also be beneficial for the development of authentic leaders. The article aims to explore the relationship between authentic leadership and organizational culture. It also explores the role of authentic leadership in helping individuals develop their job satisfaction.


Organizational Culture

An organization's culture refers to the set of values, assumptions, and norms that are shared by members of the organization. This concept has been associated with employee retention and job satisfaction. The study used the competing values model developed by Quinn and Rohrbaugh in 1983. It shows that the culture of an organization is influenced by two dimensions: internal and external orientation. The first dimension represents the organization's point of view. The focus can be directed toward the internal or external issues facing the company. The second dimension focuses on the organization's flexibility, its tendency toward decentralization, and its order. This combination of the two dimensions creates four cultural orientations. The flexibility dimension is very relevant to the discussion about the effects of culture on the well-being of employees. In fact, implementing effective culture-building programs can help create a flexible and resilient workforce. The study shows that a culture that is flexible can be characterized by an open mind and a willingness to try new ideas.

The cultures that are characterized by openness, spontaneity, and creativity are those that are geared toward achieving growth and innovation. According to Schein (1985), an organization's culture can be a reason for the development of authentic leadership. It provides a set of expectations that employees can follow. The concept of authentic leadership is a process that draws from the positive psychological capacities of individuals and the well-developed organizational context. This process can help build self-regulatory and self-awareness. An authentic leader exhibits a combination of positive emotions, trust, optimism, and hope. This person's self-control and integrity are also linked to his or her moral and ethical orientation. Four key components of authentic leadership are identified as self-awareness, balanced processing, relational transparency, and internalized moral perspective.

Studies have shown that authentic leadership is positively associated with a variety of organizational outcomes, such as job satisfaction and performance. The researchers also found that the presence of authentic leadership is linked to employees' commitment and organizational citizenship. The concept of authentic leadership was conceptualized by Luthans and Avolio in 2003. Their model highlighted the importance of the various elements of an organization's culture and its positive psychological capacities as the basis for developing authentic leaders. Although the concept of authentic leadership has been widely acknowledged, the role of culture in developing this type of leader is still unclear. Through honest and transparent interactions with employees, authentic leaders can stimulate creativity and innovation. In highly innovative organizations, it is believed that authentic leaders are more likely to foster innovative behaviour in their followers. This behaviour can be shared among employees. The presence of authentic leaders can also help foster a supportive and positive work environment.


Job Satisfaction

The concept of job satisfaction comes from the relationship between work-related behaviours and one's personal satisfaction. According to Locke, job satisfaction is defined as the feeling of being able to fulfil one's personal job values. Various studies have been performed in an attempt to analyze the link between different types of culture and job satisfaction. For instance, Lund (2003) found a positive relationship between job satisfaction and the types of cultures within an organization.

In another study, Silverthorne and colleagues found that job satisfaction increases when an organization's culture is supportive, then it is innovative, and then it is bureaucratic. Despite the numerous studies that have been conducted on the link between job satisfaction and culture, the exact relationship between these two factors is still unclear. However, the researchers believe that certain cultural factors can predict job satisfaction.

Faysal Bank, a private bank, has been identified as an example of an organization that has a strong organizational culture and authentic leadership. This bank aims to provide a great customer experience. Several studies have investigated the link between job satisfaction and authentic leadership. This study serves as a stimulus for further research on the link between leadership and employee satisfaction.


Problem Statement

The performance and behaviour of the leader can affect the job satisfaction of the employees. Authentic leaders can develop and inspire their teams and individuals. They can also help the organization create a positive environment that encourages continuous improvement.


Research Objectives

The objectives of this research are three folds:-

• Find the impact of authentic leadership on the job satisfaction of the employee.

• To investigate which type of organizational culture is effective for the employees.

• To examine the moderating role of organizational culture in the relationship between authentic leadership and employee job satisfaction.


Research Questions

This research intends to answer the following questions

• How authentic leadership has a great influence on employee performance?

• What are the measures through which authentic leadership is identified?

• What type of organizational culture is needed for the effective performance of the employee?


Literature Review

An authentic leader is very important for any project or organization. In Pakistan, the role of authentic leadership has not been studied at large. This research aims to present a short-term picture of the various factors that influence the effectiveness of this function.

A review of the literature has highlighted the various components of authentic leadership that are commonly cited in academic and research studies. These include self-regulation, balanced processing, and self-awareness.



Self-awareness refers to the ability to identify and trust in oneself and to understand the various facets of one's personality. It also includes the role of contradictory self-aspects in influencing one's thoughts and actions.

According to Gardner & Avolio, self-awareness is a process that leaders can use to improve their personal and professional capabilities. It is linked to the process of self-reflection, which helps them achieve clarity on their core values.

Balanced processing is a process that can help a leader make better decisions and develop effective strategies. Self-regulation is a process that enables authentic leaders to align their values with their actions and intentions. A balanced processing model refers to the process of self-evaluation that's carried out through an internal reflection or external evaluation. Authentic leaders do not distort, misrepresent, or ignore the information that they collect while they're going through this process. This process involves making one's goals and values transparent to the followers. It can also help one develop a consistent and balanced approach to leadership.

The concept of self-regulation is based on the idea that the regulatory system is driven by internal factors, not external forces. This concept is distinct from the concepts of impression management and self-monitoring. Instead of communicating with distorted communications, self-regulation involves establishing a set of internal standards.

Being able to self-regulate is a vital component of authentic leadership, as it allows leaders to align their values with their actions and intentions. This can help them manage their personal and organizational conflicts. Leaders who are authentic model the norms of authenticity by maintaining consistent and authentic behaviour. They can also reveal their true selves through transparency. Being able to reveal one's true self through transparency allows leaders to maintain a level of trust and intimacy with their followers. This can help them develop effective teamwork and cooperation.

Further, relational transparency is a component of authentic leadership, as it allows one to hold oneself accountable for the scrutiny and feedback that comes their way. According to Avolio & Luthans, authentic leadership should start at the top and spread to the next generation of leaders. They believe that this process should be rooted in the culture of the organization. A job satisfaction rating is a measure of how satisfied an individual is with his or her job. It can be expressed through various factors such as the working conditions, the reward system, and the other people who work with him or her. According to theorists, job satisfaction is a positive emotion that can help improve one's mental and physical health. It can also be measured through the job experience evaluation. This concept describes an individual's emotional reactions and attitudes towards their job. Some people have viewed it as a two-dimensional construct, while others have viewed it as a single dimension. Some people have viewed this concept as a two-dimensional construct, while others have viewed it as a single dimension. They can also see it as a bi-dimensional construct that consists of the satisfaction and dissatisfaction dimensions. A debate has emerged regarding the concept of job satisfaction. Some argue that it is a global concept and that it is composed of various facets of an individual's job satisfaction.

The debate has also focused on the factors that influence an individual's job satisfaction. For instance, if an employee enjoys working at their job, they are more likely to be satisfied with their work environment. The concept of organizational commitment has also been conceptualized as a way for employees to feel valued and connected to an organization. This concept is also linked to the employee's involvement in the company's operations. The concept of organizational commitment is also linked to the employee's involvement in the company's operations. It can also be seen as a way for employees to feel valued and connected to an organization. The concept of team commitment is also linked to the employee's involvement in the company's operations. It can be seen as a positive feeling toward an organization depending on the employee's experience with the company.

Working in a team can also be seen as a positive experience for an individual, as it can help them develop their skills and contribute to the goals of the organization. The concept of team commitment is defined as the strength of the team members' involvement and their identification with the organization. It can also be seen as a positive feeling toward an organization based on the employees' experience. In a similar scenario, a person who works in a team will feel valued and supported by their teammates, and they will want to remain in the organization to contribute to its goals.


Relevant Theory

The Neo-Human Relational Theory is a popular theory related to authentic leadership. It states that employees are satisfied with their work and are willing to work for the organization's goals. This theory also assumes that employees can effectively reach the organization's goals if the culture is supportive. The concept of authentic leadership is at its early stages and can be derived from the psychology philosophy and literature. According to this model, when people accept themselves for who they are, then they become authentic. An expert stated that people with authentic leadership characteristics are more likely to be open-minded and have a positive outlook on life. They are also more likely to have close relationships with their subordinates.

An authentic leader is someone who is self-aware, humble, and always seeking improvement. He or she is also committed to the welfare of the employees and the organization's social values. According to the psychologist, this type of leader can also foster a level of openness with others. An organization's culture can be categorized into three broad categories: innovation orientation, support orientation, and personal confidence. The latter two are characterized by the willingness of the employees to try new ideas and develop their creativity.

Being able to provide an environment that's conducive to employee empowerment is very important for a flourishing and productive organization. This can help minimize the stress levels of workers and make the work environment more pleasant. Job satisfaction is a pleasant state of mind that comes from the perception that one's job is satisfying. It can be triggered by various factors such as the work environment and the company's performance. A high level of job satisfaction can be achieved by attracting and keeping the best and most competent individuals. Studies have shown that being authentic leaders can help boost job satisfaction. These studies noted that the presence of authentic leaders can influence employees' performance. In 2012, two psychologists identified the importance of an organization's culture and authentic leadership as factors that can boost job satisfaction.


Conceptual Framework


H1: Job satisfaction is positively related to authentic leadership.

H2: Authentic leadership has a positive impact on the job satisfaction of employees.

H3: Organization culture moderates the relationship between authentic leadership and employee job satisfaction.



There are various theories about authentic

leadership but the Neo-Human Relational Theory is very relevant to the context of the employee's job satisfaction and the authentic leadership characteristics of the individual. This theory states that employees should be motivated by the organization's goals and values. The concept of authentic leadership emerged from the work of Kermis (2003). After reviewing the literature, the model suggested that individuals should develop stable self-esteem if they accept their weaknesses and strengths. According to Kermis, people with authentic leadership characteristics are more likely to be open-minded and free from defensive biases. They also tend to have close relationships with their co-workers.


Authentic Leadership

Being an authentic leader is defined as someone who values the welfare of his or her employees and adheres to the principles of social values. This individual also has a high degree of trust and loyalty toward the organization.


Organizational Culture

An organization's culture is characterized by the flexibility of its approach to innovation and creativity. It is based on the idea of being open to new ideas and developing effective ways to achieve growth. Being able to provide an environment that's conducive to employee empowerment can help minimize the effects of stress on the working environment.


Employee Job Satisfaction

The pleasant state of mind that comes from the perception that one's job is satisfying comes from the relationship between one's job and the company's goals and values. According to a 2003 study, high employee satisfaction can be attributed to the following factors: being paid well, being able to fulfil one's basic needs, and the environment.


Extracted variables

1. Independent variables: Authentic leadership

2. Dependent variable: Employee job satisfaction

3. Moderator variable: Organizational culture

The relationship between authentic leadership and employee job satisfaction is dependent on the culture of the organization. Being able to maintain a stable and positive environment can boost employee job satisfaction. The relationship between authentic leadership and job satisfaction is also dependent on the culture of the organization. If the organization's culture is good, then job satisfaction can increase.


Research Methodology

Data Collection

The study will collect primary and secondary data using a Likert scale questionnaire. The data collected will be analyzed using archival records and literature.


Sample Size Determination

The study's population is composed of the employees of Faysal banks in Rawalpindi.


Sample Selection

The study will involve 360 individuals from the population. Faysal bank employees are selected from the bank's branches in Rawalpindi.


Research Instrument

The study will also involve senior managers and team members of Faysal bank projects. The questionnaire will be used to collect data on job satisfaction and authentic leadership.



The study focused on the issue of common method bias. Through a single factor test, it was revealed that the first factor, which accounts for 35% of the total variable variance, does not indicate a serious issue. It was also found that the size of the company was related to job satisfaction. The study also suggested that flexibility-oriented organizations are more likely to have authentic leaders.

The study also found that the culture of flexible-oriented organizations and people who believe in authentic leadership was linked to higher job satisfaction. The study also revealed that the culture of flexible-oriented organizations and people who believe in authentic leadership was linked to higher job satisfaction.

The findings support the fourth hypothesis, which suggests that the role of authentic leadership can contribute to the development of flexible-oriented cultures. Kenny and Baron identified four conditions that can be used to establish a mediator. The study also supported the idea that being able to maintain a positive and stable environment can boost job satisfaction. It also found a positive correlation between the two conditions. The study also conducted a Sobel test to analyze the significance of the role of authentic leadership in boosting job satisfaction.


Conclusion and Discussion

The study also focused on the role of flexibility orientation in boosting job satisfaction. It revealed that the authenticity of the leadership can influence the culture of an organization. It was also theorized that authentic leadership can help employees feel satisfied within an organization by flowing through the followers.

The study also found that people who believe in authentic leadership are more satisfied than those who weren't. This suggests that promoting a flexible culture can improve job satisfaction. The findings of the study support this hypothesis. They also support the idea that authentic leadership can improve job satisfaction in flexible-oriented organizations. The study revealed that employees of large companies were more satisfied with their jobs than those of SMEs. This suggests that authentic leadership can help boost job satisfaction.     


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