Is the role of authentic leadership effective in managing occupational stress and psychological capital?
Is the role of authentic leadership effective in managing occupational stress and psychological capital?

Summary/Abstract: This study examines the role of an authentic leadership stylein managing levels of occupational stress of employeesworking in the IT sectors of Pakistan and the UK. By combiningstrata, purposive and convenience sampling techniques,we gathered data from 220 employees working in softwarehouses in both economies by means of a cross-sectionalresearch design. The measurement model confirmed the reliabilityand validity of the distinctive variables while PartialLeast Square Structural Equation Modeling (PLS-SEM) andcorrelation were deployed to assess the relationship betweenthe research variables. The findings of the study confirmedthat an authentic leadership style is effective in managingoccupational stress, specifically organisational and personalstressors of employees working on time-bound projects. Additionally, authentic leadership is effective in developingpsychological capital. The research framework is effective forimproving employees’ work efficiency through stress reductionand the development of psychological capital under anauthentic leadership style.

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