Abstract:

Purpose -- This research examines the mechanism of inferiority complex underlying the relationship between despotic leadership (DL) and negative workplace outcomes in employees, using displaced aggression theory (DAT) as the theoretical framework. The study explores the effects of despotic leadership on employees' self-esteem and the indirect forms of retaliation, such as negative gossip and displaced aggression.

Study Design/Methodology/Approach -- Study is a three wave time-lagged survey with an interval of one month between waves. 550 self-reported questionnaire was distributed amongst employees working in telecom and service sectors in Rawalpindi and Islamabad region, final sample is a set of 309 employees. Confirmatory factor analysis (CFA) was conducted to assess the fit of the measurement models, and the PROCESS macro by Hayes was employed to test the mediation hypotheses.

Findings -- The findings indicate that inferiority complex mediates the relationship between despotic leadership and negative employee outcomes (displaced aggression and negative gossip). Despotic leadership was found to foster an inferiority complex in employees, which then prompted indirect acts of retaliation, supporting the link between toxic leadership and aggressiveness in the workplace. Additionally, power distance orientation (PDO) was tested as a boundary condition, but no significant moderation was found, suggesting that inferiority complex remains a key factor, even in high PDO settings.

Practical Implications/Limitations -- This study highlights the need for organizations to address despotic leadership practices and promote healthier leadership approaches to prevent the psychological damage caused by toxic leadership. Intervening early and providing psychological support can help organizations reduce the adverse effects of inferiority complex and prevent workplace aggression. Limitations include focus on one region and industry which may impact on the generalizability of the findings. Additionally, the use of self-reported measures could introduce the potential for response bias.

Originality/Value -- This study is the first to empirically test the mediating role of inferiority complex between despotic leadership and displaced aggression. By applying Displaced Aggression Theory (DAT), it offers a better understanding of how toxic leadership influences employee behavior in hierarchical workplaces. The results add to the research field of organizational behavior and offer insights into leadership training and systems for employee support.

Variables Despotic Leadership, Power Distance Orientation , Inferiority Complex, Displaced Aggression , Negative Gossiping against Leader

Please choose your submission type: Full Paper

Primary Track: Leadership and Leadership Development

Keywords: Traditional paradigms of leadership, including traits, behaviour and contingency approaches;Leadership skills and development;Psychodynamic approach to leadership;Transformational leadership in organisations;Emerging leadership theories

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Dr. Tasneem Fatima