From Leader’s Heart to Employee’s Hustle: The Psycap-Spirituality Connection

The influence of leader behavior on employees has gained much attention for a while. This study extends our knowledge by examining the influence of Authentic Leadership (AL) on Employee Performance (EP) within Pakistan's private banking sector, incorporating Workplace Spirituality (WS) as the mediator, and Psychological Capital (PC) as the moderator. This research uses the Social Exchange Theory. Using quantitative methods, this study gathered data from 302 non-managerial workers across private banks in Pakistan, via convenience sampling. Data were gathered via structured questionnaires, and the model was tested utilizing Smart-PLS and SPSS software. This research found that AL does not have a direct effect on EP. However, AL significantly enhances WS, which in turn positively affects EP. Additionally, PC shows a positive correlation between WS and EP. These results highlight the indirect mechanisms by which AL affects EP. This research provides insights for managers in high-pressure environments, emphasizes the role of authentic leadership and workplace spirituality in improving employee performance, and offers conceptual frameworks for emerging markets. The novelty of the current research is the literary contribution via empirical testing of WS as mediator, and PC as moderator, between AL and EP, in Pakistan's private banking sector.