The effects of leadership style on stress outcomes

The present study manipulated transformational and transactional leadership styles to examine their influence on individuals' performance on a stressful task, and on perceived social support, self-efficacy beliefs, emotions, and stressor appraisals. In addition, this study examined whether these variables mediated the relationship between leadership style and performance. Two hundred fourteen participants viewed video instructions for a stressful task presented by an actor depicting one of three leadership styles (transformational, transactional-contingent reward, and transactional-management by exception). Participants' psychological, emotional, and motivational responses to the videos were assessed prior to their engagement with the task. The transformational leadership condition was associated with enhanced task performance, higher social support perceptions, greater efficacy beliefs, lower negative affect, and lower threat appraisals compared to the transactional conditions. Causal modeling revealed that leadership style had a direct, rather than indirect, effect on task performance. The present research extends leadership research by providing an experimental evaluation of the costs/benefits of transformational and transactional leadership under stressful task conditions. Some of the results parallel those from correlational field studies, thus corroborating transformational leadership theory while other results diverge from theory, but present opportunities for future research.