Influence of ethical leadership on employees' job strain and outcomes, moderating role of organizational compassion
Creators: name: Hayat, Zoofishan
Publisher: name: Zenodo
Year: 2024
Subjects: Ethical leadership
organizational compassion
employee job strain
employee outcomes

description: In recent years' ethics has emerged as a leading subject of discussion in contemporary organisations. The topic of ethical leadership is still making headlines all around the world. Countries like Pakistan are not exempt from ethical lapses resulting in intense job strain and ineffective outcomes for the organisation. Based on existing literature such as (Brown, Trevino and Harrison, 2005; Mayer et al., 2009), this study investigated the influence of ethical leadership on employee job strain and outcomes in the Islamic banking sector of Pakistan with specific emphasis on the exploration of the moderating role of organisational compassion. The study employed descriptive and correlation research designs to determine the nature of the relationships. To maintain methodological rigour, the researcher used the most established quantitative survey technique and collected data through structured questionnaires from 200 employees working in Islamic banks of Pakistan. The researcher used correlational statistics to determine the relationship between the variables listed above. Data analysis has been performed using appropriate statistical tools such as simple, multiple, and regression analyses. This served as the foundation for the indepth analysis, findings, and suggestions. The key findings of the study showed a substantial negative relationship between ethical leadership and employee job strain, a direct relationship with employee outcomes, and a statistically significant moderate positive relationship between organisational compassion, employee job strain and outcomes. The contribute to the body of knowledge theoretically by conducting SLR and providing entire understanding of ethical leadership influences. The research expands the literature on ethical leadership by investigating the EL influences with organizational compassion practices. The research also contributes practically to HRM and HRD departments to enhance employee outcomes. The research provides empirical evidence to address employee job strain problem by incorporating ethical leadership and organizational compassion practices. Based on the findings, the study made the following conclusions. Islamic Banking sector and overall banking organisations in Pakistan should provide ethical leadership to their employees along with the acts of organisational compassion practices; this will improve outcomes for employees by reducing their job strain level. This study was valuable since it was the first of its kind in Pakistan's Islamic banking sector, in which the workforce was provided with the opportunity to generate empirical data relating to the ethical behaviour of their leaders, as well as to recognise the value of compassionate practices. The results bare significant implications for management in the Islamic banking sector of Pakistan, as they have a responsibility to ensure ethics remain an ongoing discourse, and the essence of compassion must be at the heart of overall management responsibilities. This research has opened new horizons for future research. The findings identify significant implications for the Islamic banking sector and the overall banking industry in Pakistan. Finally, Islamic banking organisations in Pakistan should not only consider a financial resource, but they should also consider the fact that other variables can impact their employment outcomes.