Consequences of Managers’ Laissez-faire Leadership During Organizational Restructuring

Abstract

ABSTRACT This study draws upon conservation of resources theory to investigate if laissez-faire leadership influences employees’ perceptions of role clarity, and two forms of well-being (job satisfaction and work-related burnout), in the context of organizational restructuring. Moreover, role clarity is studied as a mechanism linking laissez-faire leadership to employee well-being. These relationships were tested using a three-wave time-lagged investigation conducted over a two-year period with a sample of 601 employees working in the Swedish process industry. The results of the structural equation modelling analyses showed that laissez-faire leadership was negatively related to role clarity 9 months later. In turn, role clarity mediated the relationship between laissez-faire leadership and employee well-being. This study contributes to the understanding of how laissez-faire leadership in the context of organizational restructuring may affect employee outcomes. We discuss implications for theories and practices, as well as directions for future research. MAD statement The majority of research on leadership during organizational restructuring has focused on positive outcomes of constructive forms of change leadership. However, other forms of leadership, such as laissez-faire leadership, may also play a crucial role for employee outcomes when implementing change. This study is to our knowledge the first to focus on the relationship between laissez-faire leadership and employee well-being in the context of organizational restructuring. We suggest that organizations work actively to include knowledge on this form of leadership in change-leadership training. We also suggest monitoring work-groups’ perceptions of role clarity (as a mechanism directly affected by laissez-fair leadership) during restructuring so that measures can be taken to facilitate transitions when needed.