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When your boss says no! The effects of leadership style and trust on employee reactions to managerial explanations

Authors


Correspondence should be addressed to Brian C. Holtz, Assistant Professor, School of Business, 227 Penn St., Camden, NJ 08102, USA (e-mail: bholtz@camden.rutgers.edu).

Abstract

The present study proposes and tests a model that examines the relationship between leadership style, trust, employee interpretations of managerial explanations, and justice perceptions. Using a critical incident methodology, 203 working adults were asked to recall a recent situation in which a request or proposal made to their manager was denied. Results provide strong support for the theoretical model. Namely, the effect of leadership style on explanation perceptions was indirect through employees' level of trust in their manager. Specifically, employees who felt their manager was transformational reported a higher degree of trust and more favourable reactions to managerial explanations.

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