The Impact of Ethical Leadership on Employee Performance: The Mediating Role of Employee Engagement and Organizational Citizenship Behavior (OCB)

Abstract

. A leader is a role model or example for subordinates in the organization whose attitude and behavior greatly affect the employees. Ethical leadership is needed for the company sustainability. According to previous studies, ethical leadership affects employees and overall organizational performance. This study aims to examine the effect of ethical leadership on employee performance mediated by employee engagement and Organizational Citizenship Behavior (OCB). Specifically, it clarifies the relationship between Ethical Leadership and Employee Performance mediated by employee engagement and Organizational Citizenship Behavior (OCB). Quantitative research methods and the Structural Equation Model were used to test the hypothesis. The respondents comprised of 207 outsourcing employees of service companies, such as banking and construction in Jakarta. The results show that Ethical Leadership positively affects Employee Performance with Employee Engagement as mediation. Furthermore, the effect of Ethical Leadership on Employee Performance is mediated by Organizational Citizenship Behavior (OCB). This contradicts a previous study, which showed that OCB is a mediating variable for the effect of ethical leadership on employee performance. However, this study contributes to knowledge about the relationship between ethical leadership and employee performance and helps understand the role of Organizational Citizenship Behavior (OCB).