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Organizational Culture and Leadership Behaviors: Is Manager's Psychological Health the Missing Piece?

In a context where organizations struggle to attract and retain highly qualified workers, organizations need to prioritize the psychological health of employees as a retention factor. To do so, they need to provide a healthy work environment. Managers are an important factor in employee retention as an integral part of the employee experience. In past studies, researchers have focused on the importance of leadership in boosting employees' health without, considering factors encouraging such behavior in managers. Recently, some scholars have become interested in managers' health as a resource allowing them to adopt good leadership behavior. Indeed, these studies reveal interesting links between managers' emotional state and their behavior as leaders. Other studies, underscore the importance of considering the organizational context to better to understand better psychological health that may influence their leadership behaviors. This study proposes to examine the complex process by which organizational culture influences managers' psychological health, which acts as a resource favoring the adoption of good leadership behaviors that are known to be constructive and have positive effects on employee.

Leadership styles

Managers' psychological distress at work is positively related to transactional and laissez-faire leadership styles whereas psychological well-being at work is positively related to transformational and transactional leadership. Leadership and organizational culture taken together exert an influence on organizational phenomena (Hartnell etal., 2019; Xenikou, 2022). Transformational leadership refers to leaders who influence their followers through charisma, inspire them and stimulate them to engage in creative thinking and consider the needs of each follower (Avolio and Bass, 1995). On their part, transactional leaders establish reward for followers who perform in their job assignments, they are more focused on the tasks and process of sharing information and resources so that employees are able to get the job done (Judge and Piccolo, 2004). The last leadership style is the laissez-faire leadership which refers to leaders who are absent, avoid making decisions, and hesitate to take any kind of actions (Judge and Piccolo, 2004). Peterson and Wilson (2002) suggest that managerial systems, organizational structures, and leadership behaviors mediate the association between organizational culture and employees' health. Transactional leaders establish rewards for followers who perform in their job assignments. They are more focused on the tasks and process of sharing information and resources so employees can get the job done (Judge & Piccolo, 2004). Nielsen and Taris (2019) found that anxious managers exerted lower levels of transformational leadership and high levels of laissez-faire leadership over time. Concerning indirect associations, there is a significant and positive indirect association between group culture and transformational leadership and there is also a significant and negative association between group culture and laissez-faire leadership. Finally, there is a hierarchical culture and transactional leadership also have an indirect association through their leadership practices, managers can, among other things, protect or expose their employees to the psychosocial risks of the work environment (e.g., psychological demands, workload) (Chnard et al., 2018) while contributing to or hindering, the establishment of a psychologically safe work climate (Parent-Lamarche & Biron, 2022).

Organizational culture

Organizational culture is a critical component related to the social context of an organization, a factor which has proven to bean important predictor in the process leading to individuals' well-being (Dextras-Gauthier and Marchand, 2016; Haines etal., 2018). Viewed as a multi-levels concept, Schneider etal. (2013) define organizational culture as the shared values and beliefs characterizing an organization. Organizational culture has been studied as a contextual factor that sets constraints and boundary conditions for organizational phenomena to occur (Xenikou, 202 organizational culture provides the context for the establishment and adoption of management practices, it is in a position to influence not only the organizational structure (Buenger etal., 1996) and working conditions (Dextras-Gauthier etal., 2012), but also the resources leading to manager's well-being. Recent studies indicated that organizational culture is indirectly associated with psychological health at work via the influence it exerts on various element of the working environment and conditions (e.g., psychological and physical demands, rewards, number of working hours, autonomy, skills utilization) (Dextras-Gauthier and Marchand, 2016).

Group culture

Marchand etal. (2013) found that group culture, oriented toward workers and collaboration reduces psychological distress, depression and emotional exhaustion, while increasing well-being. These authors concluded that group culture is beneficial for employees' psychological health, while a competitive culture is detrimental. Research show that group culture is positively associated with managers' well-being and negatively associated with managers' psychological distress. The main characteristics of group culture is its orientation toward its human resources (Cameron etal., 1999). Thus, group culture is concerned with the well-being and personal development of its employees in the workplace (Cameron etal., 2006), and reduces those working conditions that are the most toxic for employee and manager's psychological health (Dextras-Gauthier and Marchand, 2016). For organizations, establishing a group culture could bethe first step toward creating a more healthy and safe working environment for their managers but also for their employees. This is particularly important since managers' positive leadership have an influence on followers' psychological health (Montano et al., 2023).

Employee retention

In a highly complex and changing environment, organizations has no choice but to keep their employees both healthy and high must keep their employees challenge is even more important in a context where organizations struggle to attract and retain highly qualified workers in the current labor shortages. In Canada, the labor shortage is such that organizations are finding it increasingly difficult to attract and retain employees (Statistics Canada, 2022).

Employee wellbeing.Human resources specialists have no choice but to prioritize the psychological health of employees as a retention factor (Di Meglio, 2021). Linking the organizational culture with an organization's available resources to prevent psychological health problems is consistent with the earlier theoretical conceptualization of Peterson and Wilson (2002) suggesting that managerial systems, organizational structures and leadership behaviors act as mediating variables in the association between organizational culture and employees' health. Recently, Lu et al. (2022) found that a patient safety-oriented organizational culture decreases burnout, which is an organizational resource for employees' well-being.

Manager's Psychological health.In recent years, the health and working conditions of the managers themselves have deteriorated especially in the healthcare sector (Dellve and Eriksson, 2017). As noted by Barling and Cloutier (2017), while employees' health has been studied many times, managers' health has remained under the radar. Psychological health referred to a multidimensional construct comprising positive (e.g., well-being) and negative (psychological distress, burnout) aspects (Gilbert etal., 2011). Although a number of studies emphasize the importance of organizational context in examining psychological health at work (Chowdhury and Endres, 2010), only a few have actually incorporated organizational culture into their analyses (Dextras-Gauthier and Marchand, 2016)

Leadership behaviors and interventions

In the literature, studies highlight the benefits of positive leadership practices for employees' functioning (Broetje etal., 2020; Montano etal., 2023) but few studies have considered the antecedents of leadership (Turgut etal., 2020). Tafvelin etal. (2019) recently claimed that "leading well is a matter of resources," stressing the importance of leaders' well-being and working environment for their capacity to adopt good leadership behaviors. However, limited attention has been paid to the boundary conditions that enable managers to deploy positive leadership practices (Nielsen and Taris, 2019). These boundary conditions relate to the conditions experience by managers such as their own health. These conditions may influence a manager's ability to adopt good leadership behaviors (Nielsen and Taris, 2019; Tafvelin etal., 2019). Moreover, in line with Hobfoll (1989), the assumed antecedent of leadership behaviors can becategorized as resources (Turgut etal., 2020). Hobfoll (1989) defined resources as those objects, personal characteristics, conditions, or energies that are valued by the individual or that serve as a means for attainment of these objects, personal characteristics, conditions, or energies.

Organizations could improve managers' psychological health through interventions aimed at building workplaces resources at multiple levels in the organization. Following the IGLOO model developed by Nielsen etal. (2017), organizations can improve resources at four level: individual (self-efficacy, competence, and self-esteem), group (social support between colleagues), leader (social support from the manager), organization (autonomy, skills variety, HR practices) and overreaching context, the global context in which an organization is nested (social context, national context and legislation).