Consequences of Managers’ Laissez-faire Leadership During Organizational Restructuring

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.