The Mediating Role of Optimism on the Relationship between Leader Member Exchange and Employee Engagement: Evidence from the Irish Further Education and Training Sector

AbstractEmployee engagement facilitates work performance and greater employee wellbeing and is associated with improved organisational outcomes and individual benefits (Bakker and Bal, 2010; Halbesleben and Wheeler, 2008;... [ view full abstract ]

Abstract

Employee engagement facilitates work performance and greater employee wellbeing and is associated with improved organisational outcomes and individual benefits (Bakker and Bal, 2010; Halbesleben and Wheeler, 2008; Schaufeli et al. ,2008; Xanthopoulou et al., 2009). Fostering and maintaining such engagement is thus a strategic imperative for organisational leaders as they struggle to navigate multiple challenges linked to public sector reforms.

While connections between leadership and employee engagement are established (Tuckey et al., 2012; Bakker et al., 2011; Amabile and Kramer 2011; Breevart and Bakker 2013), the role of the leader in fostering employee engagement has received limited attention. This study moves away from previous leader centric theories and looks to examining the influence of leadership on employee related outcomes, seeking a more relational model of leadership. The use of Leader Member Exchange theory, based on the premise that leaders develop unique, reciprocal exchange relationships with each employee has proven effective in predicting employee outcomes (Wang et al. 2005, Danserau, Graen and Haga, 1975; Schyns and Day 2010) and more specifically engagement (Burch and Guarana, 2014; Breevaart et al. 2015). In addition, studies have offered support for the role of personal resources (including optimism) as predictors of employee engagement (Prieto et al., 2008 and Xanthoupoulu, 2009) and as a possible mediator of the relationship between leadership and engagement (Tims et al., 2011).

This paper builds on this research and examines the influence of Leader Member Exchange (LMX) and its sub dimensions as predictors of Employee Engagement while allowing for a possible mediating role of optimism in the Irish Further Education and Training (FET) sector. Data was collected from a purposive sample of 156 teaching staff in three Education and Training Boards (ETBs) using a quantitative online survey and significant relationships were found between LMX (and its subdimensions) and employee engagement. In addition, mediation analysis reveals that optimism mediates between LMX and employee engagement at the 95% level. The implications of these findings mean that organisational leaders seeking to improve employee engagement in the FET sector need to consider both the direct impact of LMX on engagement and the indirect effect of LMX on engagement through optimism. Such a study will contribute to an enhanced understanding of the ways in which leaders can influence employees’ engagement, which will inform leadership and employee practice in context.

Keywords:  Leader-Member Exchange, Employee Engagement, Optimism, Mediator, Quantitative