The Moderating Effect of Inclusive Leadership on the Relationship between Person-Organization Fit and Facades of Conformity

The Facades of Conformity (FOC) is a false representation that, when the employee's values conflict with the organization's values, the employee suppresses their values and pretends to adopt the organization's values. It has many adverse outcomes for the organizations and the employees, such as burnout or intention to leave. Even though studies report the negative consequences of FOC, research on eliminating or reducing its negative effects is limited. Specifically, the role of inclusive leadership in reducing FOC has not been researched. This is important because understanding the role of inclusive leadership can help organizations create environments where employees feel valued and authentic, reducing the pressure for facades of conformity and improving workplace well-being. Addressing this gap and based on social identity theory, in this research, we investigate whether inclusive leadership can reduce the tendency to adopt FOC among employees with varying levels of Person-Organization Fit (P-O fit). Data were collected from 452 white-collar banking employees. PROCESS analysis was conducted to test research hypotheses. Findings revealed that P-O fit is negatively linked to FOC. Furthermore, inclusive leadership moderates this relationship, suggesting that the negative impact of P-O fit on FOC is more pronounced when inclusive leadership is practiced at a high level. This study contributes to the literature by showing that inclusive leadership reduces the need for employees to maintain FOC. Organizations should prioritize inclusive leadership to reduce FOC, especially when high levels of P-O fit cannot be achieved.