Functions of Ethical Leadership and Supportive Leadership for Psychological Capital and Organizational Effectiveness

Background: Ethical and supportive leadership are among the leadership styles that have been seriously addressed in recent years. These types of leadership styles can influence the level of organizational effectiveness through different constructs. This research was administered with the aim of investigating the roles of ethical leadership and supportive leadership on psychological capital and organizational effectiveness. Method: Research method was correlation and statistical population was the employees of an industrial organization in Isfahan city, among them 380 persons were selected using simple random sampling. Research instruments were included ethical leadership questionnaire, supportive leadership questionnaire, psychological capital questionnaire and organizational effectiveness questionnaire. Data were analyzed using correlation coefficient and structure equation modeling (SEM). Results: Results showed that there is a significant and positive relationship between ethical leadership and supportive leadership and psychological capital and between psychological capital and organizational effectiveness. Results of structural equation modeling revealed that there is direct and significant relationship between ethical and supportive leadership with psychological capital and between supportive leadership along with psychological capital with organizational effectiveness. Also results indicated that psychological capital is a complete mediator on the relationship between ethical leadership and organizational effectiveness and is a partial mediator on the relationship between supportive leadership and organizational effectiveness. Conclusion: Overall, the results of this study showed that the potential of moral and supportive leadership can be used to strengthen the psychological capital and organizational effectiveness in workplaces.