Psychological Hardiness: A Double-Edged Sword in Despotic Leadership-Employee Performance Relationship

Abstract

This study explores role of despotic leadership in shaping employee performance with mediating role of job shirking and moderating role of psychological hardiness. There is paucity of research on despotic leadership-employee performance relationship. The study expanded the literature on this relationship in Pakistan. This study employed multi-source and time-lagged data from 448 employees was collected from leader-subordinate dyads, in the banking sector of Pakistan. Results indicated that despotic leadership negatively influences employee performance. Mediating role of job shirking in despotic leadership-job/task performance relationship was conditionally supported, moderating role of psychological hardiness in despotic leadership-job/ task-performance relationship was supported, moderating role of psychological hardiness in despotic leadership-job shirking relationship was not supported and the moderating role of psychological hardiness in job shirking-job/task-performance relationship was supported but in opposite direction. Findings emphasized the need of understanding psychological hardiness and mitigating the effects of despotic leadership in organizations.