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Toxic Leadership Effects On Job Satisfaction

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SA Journal of Human Resource Management

ISSN: (Online) 2071-078X, (Print) 1683-7584


Page 1 of 11 Original Research

Toxic leadership: Effects on job satisfaction,


commitment, turnover intention and
organisational culture within the South African
manufacturing industry

Authors: Orientation: The impact of toxic leadership on employees and organisations has only recently
Amelda Paltu1
become the focus of certain research studies.
Marissa Brouwers1
Research purpose: The general objective of this research was to investigate the relationship
Affiliations:
1
School of Human Resource
between toxic leadership, job satisfaction, turnover intention and commitment. The aim
Sciences, Faculty of Economic further was to test whether organisation culture mediates the relationship between toxic
and Management Sciences, leadership and certain job outcomes such as job satisfaction, turnover intention and
North-West University, commitment.
Potchefstroom, South Africa
Motivation for the study: Currently, no knowledge is available on the relationships between
Corresponding author:
toxic leadership and job outcomes within the context of South African manufacturing
Marissa Brouwers,
marissa.brouwers@nwu.ac.za organisations. Therefore, this study provides South African organisations and researchers
with an insight into such a relationship and the mentioned mediation of organisational culture
Dates: in the process.
Received: 10 Feb. 2020
Accepted: 26 May 2020 Research approach/design and method: A cross-sectional research design with a sample
Published: 13 July 2020 size of N = 600 manufacturing employees was used. Product–moment correlations, multiple
How to cite this article: regression and structural equation modelling were used.
Paltu, A., & Brouwers, M.
Main findings: The test results returned both direct and indirect effects for all the relationships,
(2020). Toxic leadership:
Effects on job satisfaction, which indicated only partial mediation in all the tested relationships.
commitment, turnover
intention and organisational Practical/managerial implications: The results provided organisations’ insight into the
culture within the South possible consequences of toxic leadership on employees and the organisations’ culture.
African manufacturing
industry. SA Journal of Contribution/value-add: The improved understanding of toxic leadership and the relationship
Human Resource with certain job outcomes contributes to the body of knowledge on both the theory of toxic
Management/SA Tydskrif vir leadership and on employees’ experience of such leadership styles in the work environment.
Menslikehulpbronbestuur,
18(0), a1338. https://doi.org/​ Keywords: toxic leadership; job satisfaction; organisation commitment; turnover intention;
10.4102/sajhrm.v18i0.1338 organisational culture; correlations; mediation; regression; structural equation.
Copyright:
© 2020. The Authors.
Licensee: AOSIS. This work Introduction
is licensed under the
Creative Commons Leadership contributes significantly to an organisation’s success or failure (Lok & Crawford, 2003).
Attribution License. According to Rasid, Manaf and Quoquab (2013), the capability of a leader to lead and motivate
employees should not be disregarded. However, in recent years, there has been a rise in toxic
leadership styles within organisations (Mehta & Maheshwari, 2013), and Veldsman (2012) argued
that as many as three out of 10 leaders may manifest such a toxic style of leadership. Veldsman
(2012) indicated that toxic leadership threatens the well-being of both individuals and organisations,
and this creates an urgent need to understand the nature and evolution of toxic leadership and the
organisations involved. Through an initial research into toxic leadership, several key themes have
emerged. These are the following: toxic leaders are harmful or abusive (Lipman-Blumen, 2005),
tend to micromanage (Mehta & Maheshwari, 2013), are unpredictable (Schmidt, 2008), display
narcissistic tendencies (Schmidt, 2008), show a lack of integrity and cause divisiveness (Lipman-
Read online: Blumen, 2005). However, minimal literature is available on the influence of toxic leadership on
Scan this QR organisations as well as the individuals who work in these organisations (Leet, 2011).
code with your
smart phone or
mobile device The manufacturing sector currently contributes around 13.2% of the gross domestic product (GDP)
to read online.
and is the fourth largest sector in the South African economy, as reported in March 2019 (IDC

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Page 2 of 11 Original Research

[Industrial Development Corporation], 2019). Furthermore, empirical testing on the relationship between toxic leadership
according to the IDC, the total number employed at the end and job-related outcomes.
of the last quarter of 2018 was 1.21 m people (IDC, 2019). The
sector has seen a decline of 1.4% over the last 6 years, According to Lok and Crawford (2003), there is also a strong
increasing the pressures that managers have to deal with in correlation between leadership, organisational culture and
terms of cost, electricity supply, skills shortages and its effect on organisational commitment and job satisfaction.
productivity levels (IDC, 2019). As the manufacturing Sadri and Lees (2001) found that negative organisational
industry is labour-intensive, it is important to recognise the culture impedes an organisation’s ability to perform. Van
behaviours of leaders that can be detrimental not only to the der Post, De Coning and Smit (1997) indicated that
organisation but also to the performance of the employees organisations are ‘living entities’ that exhibit their own
(Mehta & Maheshwari, 2013). Therefore, it is important to personalities through what is known as ‘organisational
investigate the prevalence and presence of toxic leadership in culture’. This culture in turn gives meaning and direction to
the manufacturing industry. the employees (Van der Post et al., 1997) and creates an
environment within which the organisation functions
Whilst positive leadership styles are correlated with good (Sempane, Reiger, & Roodt, 2002). Schein (2004) suggested
organisational results, certain negative leadership styles that the leadership of an organisation and its culture are
have harmful effects on employees and the work environment linked closely, and that senior leaders permeate an
(Akca, 2017). In this regard, results from a recent survey by organisation’s culture with their own personal characteristics
Life Meets Work Consulting indicated that as many as 56% of by establishing goals, values and norms (Schneider,
employees were currently working for a toxic leader whose Goldstein, & Brent-Smith, 1995). Giberson et al. (2009)
behaviour was creating an unhealthy work environment asserted that toxic leaders create a toxic culture by changing
(Lazarczyk, 2017). Several studies investigated negative the content of ideal leadership.
leadership styles from which the theme of toxic leadership
has emerged (e.g. Kusy & Holloway, 2009; Lipman-Blumen, Recent studies on leadership have indicated that
2005; Mehta & Maheshwari, 2014; Schmidt, 2008, 2014). organisational culture may have a mediating effect on the
relationship between leadership and job outcomes, and that
These initial studies into toxic leadership indicate that this the mediator’s influence is stronger than that of the
concept exists in numerous organisations today. Thus, scores independent variable (Imran, Zahoor, & Zaheer, 2012;
of employees have been exposed to leaders and managers Rasid et al., 2013). Therefore, it is necessary to investigate the
who display toxic behaviour styles (Mehta & Maheswari, influence or the mediating effect of organisational culture
2014). However, evident from the initial studies was the between toxic leadership and certain job outcomes, for
insight that toxic leaders may be highly competent and example, job satisfaction, organisational commitment,
effective in their jobs but help cause an unhealthy climate organisational culture and turnover intention. Such an
among their subordinates and peers, with the consequences investigation is necessary as, to date, no study in
of their actions reaching further than merely a few individuals South Africa has attempted to measure the mediating effect
(Tavanti, 2011). Toxic leadership also appeared to be a of organisational culture on toxic leaders.
leadership style in its own right, not merely defined as the
lack of effective leadership (Schmidt, 2008). Furthermore, in South Africa, limited research has been
conducted on the topic of toxic leadership as such. An
Through the above-mentioned studies, toxic leaders have introductory study by Veldsman (2012) centred on
been broadly referred to as individuals who, through their introducing and defining the concept. Dladla (2011), Du
destructive behaviour, inflict serious and enduring harm on Toit (2015) and Heine (2013) in South Africa restricted their
individuals, groups, organisations, communities and even research to investigating certain aspects of negative
nations that they lead (Lipman-Blumen, 2005). According to leadership, such as unethical behaviour and distrust. It is
Mehta and Maheshwari (2013), toxic leaders and their important to understand whether the phenomenon of toxic
decisions do not only affect the organisation but also every leadership is also present in the South African workplace,
individual with whom they come in contact. Schmidt (2008) and if so, what its impact is on employees in those
agreed that this leadership style has particularly negative organisations. Thus far, no study in South Africa has
consequences for the entire workforce and the organisation as attempted to measure toxic leadership and its relationship
a whole. Organisational outcomes because of toxic leadership with the above-mentioned job-related outcomes, as well as
include negative effects on a company’s performance its effect on the organisation and its employees. The
(Ashforth, 1997), higher turnover intention (Tate, 2009) and manufacturing industry in South Africa is currently under
a lack of commitment (Weaver & Yancy, 2010). Webster, pressure to remain competitive, and one of the main reasons
Brough, Daly and Myors (2011) found that the articles and for this pressure is inefficient leadership (Ebrahim & Pieterse,
books outlining the effects of toxic leadership have a 2016). Therefore, a study of this nature will help the
conceptual nature, with limited empirical investigations manufacturing industry assess toxic leadership in the
performed to test the effect on job outcomes. This finding is industry, as well as contribute to the limited research
supported by Schmidt (2014) who emphasised the limited available on this topic currently.

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Page 3 of 11 Original Research

Research purpose and objectives provides an avenue of explanation in that it presents that
social behaviour is the result of an exchange process with the
The general objective of this research was to investigate the
intention to maximise benefits and minimise costs. Therefore,
relationship between toxic leadership, job satisfaction,
if employees feel more satisfied with their job environment
turnover intention and organisational commitment. The aim
and leadership, they will be more inclined to perform better
further was to test whether organisational culture mediates
at work, resulting in an enhanced level of job performance,
the relationship between toxic leadership and certain job
positive work values, high levels of employee motivation,
outcomes, such as job satisfaction, turnover intention and
and lower rates of absenteeism, turnover and burnout
organisational commitment.
(Shaju & Subhashini, 2017).

Literature review Organisational commitment


Toxic leadership can and should be universally recognised as Organisational commitment refers to the psychological link
a unique set of destructive behaviours or characteristics that between employees and the organisation (Meyer & Allen,
negatively impact the subordinate group in a predictable 1991). This link creates a bond that will make it less likely
and intentional way (Padilla, Hogan, & Kaiser, 2007). that individual employees will leave the organisation
For the purpose of this study, toxic leadership can be voluntarily. Meyer and Allen (1991) referred to three
described as a concept that is multidimensional in nature, forms of organisational commitment, namely (1) Affective
which compromises various dimensions as outlined by commitment refers to the emotional attachment that employees
Schmidt (2008). Toxic leadership comprises five dimensions: feel towards their organisations; (2) Continuance commitment
(1) Abusive supervision refers to a leader’s perceived entails employees’ decision to remain with their organisation,
intentionally hostile behaviours towards employees (Dobbs, because they deem the cost of leaving too high; and
2014; Schmidt, 2014), excluding physical contact (Tepper,
(3)  normative commitment refers to employees’ bond with an
2007); (2) Authoritarian leadership attempts to exert excessive
organisation because of a perceived sense of obligation
authority and control over subordinates (Dobbs, 2014) in such
towards the organisation (Meyer & Allen, 1991). Mehta and
a way that the leaders ultimately control all the work (Schmidt,
Maheshwari (2013) found a statistically significant negative
2014); (3) Narcissism points to a style driven by arrogance and
relationship between toxic leadership and organisational
self-absorption, where self-orientated actions are designed to
commitment. Schmidt’s follow-up study found that toxic
enhance the self (Dobbs, 2014) but often fails to follow
leadership does not only affect organisational commitment at
company policies whilst expecting it of employees (Schmidt,
the individual level but also at the group level. The impact
2014); (4) Self-promotion advertises their accomplishments
and also take credit for others’ work (Dobbs, 2014), blame also indicated a statistically negative relationship (Schmidt,
others and deflect responsibility for mistakes (Schmidt, 2014), especially concerning the affective commitment
2014); and (5) Unpredictability: through their actions, they dimension of organisational commitment. Furthermore,
keep subordinates afraid and watchful (Dobbs, 2014). These Weaver and Yancy (2010) also found that forms of destructive
leaders act differently when their superiors are around leadership behaviour impact negatively on employees’
(Schmidt, 2008), and their consistently unpredictable actions commitment to the organisation.
eventually cause their subordinates to give up, feeling
helpless and powerless to protect themselves (Schmidt, 2014). Turnover intention
Tett and Meyer (1993) described turnover intention as a
Job satisfaction conscious and deliberate wilfulness (i.e. conscious and
Job satisfaction has to do with an individual’s perceptions deliberate determination) to leave the organisation. The
and evaluation of his job, and this perception is influenced by results of Schmidt’s follow-up study (2014) indicated that
the person’s unique circumstances, such as needs, values and toxic leadership significantly predicts employee outcomes
expectations. (Buitendach & Rothmann, 2009, p. 1) such as turnover intention. This finding supports Tepper’s
study which found that abusive supervision predicts
Mehta and Maheshwari (2013) found a statistically significant turnover (Tepper, 2007). Rayner and Cooper (1997) found a
negative relationship between toxic leadership and job positive relationship between employees’ turnover intention
satisfaction. Their findings are supported by Schmidt (2014) and toxic leadership. This finding is supported by Zangaro,
who indicated a statistically negative relationship between Yager and Proulx (2009) investigating the influence of toxic
toxic leadership and job satisfaction on both the individual leadership in the nursing profession, which indicates
and group level. Kusy and Holloway (2009), as well as Tepper increased absenteeism and higher turnover rates.
(2007), concurred that toxic, destructive and dysfunctional
leadership behaviour has a negative impact on employees’
job satisfaction. Job satisfaction is the most important
Organisational culture
factor in understanding worker motivation, effectiveness, Organisations are ‘living’ entities that reflect their own
retention and performance (Shaju & Subhashini, 2017). personalities and sets of values, which is what is known as
Enhanced levels of performance have a positive impact organisational culture (Van der Post et al., 1997):
of job satisfaction. This can be grounded from the social Organisational culture refers to a system of shared meaning, the
exchange theory (Cropanzano & Mitchell, 2005), which prevailing background fabric of prescriptions and proscriptions

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for behaviour, the system of beliefs and values and the technology consisting of 600 respondents representative of the population
and task of the organisation together with the accepted in the steel and paper manufacturing industry to complete
approaches to these. (p. 4) the questionnaires. Inclusion criteria used were: (1) well-
versed in English; (2) between the ages of 18 and 65 years;
Organisational culture gives meaning and direction to all and (3) defined as full-time working adults. The data are
employees (Van der Post et al., 1997) by creating the reflected in Table 1.
environment within which the organisation functions
(Sempane et al., 2002). According to Van der Post et al. (1997),
The data in Table 1 indicate that the majority of the
organisational culture can be broken down into 15 different
respondents (58.9%) were in the age group of 35–65 years,
factors (e.g. conflict resolution, culture management,
whilst 40.4% was under the age of 35 years. The gender
customer orientation, disposition towards change, employee
participation, goal clarity, human resource orientation, characteristics of the respondents indicate that most of
identification with the organisation, locus of authority, them were males (79.9%), with only 20.1% females. The
management style, organisation focus, organisation majority of the respondents were African (58.6%), followed
integration, performance orientation, reward orientation and by White (22.3%), Indian (12.5%), people of mixed race
task structure). (6.3%) and others (0.2%). Most of the respondents spoke
isiZulu (52.6%), followed by English (35.1%), Afrikaans
Various other studies were conducted on organisational (11%), isiXhosa (0.8%) and Sesotho (0.3%). In terms of
culture (e.g. Appelbaum & Roy-Girard, 2007; Bass, 1995). education, most of the respondents had a Grade 12/Matric
These scholars agreed that the survival of an organisation certificate (58.4%), followed by a diploma (21.5%), degree
depends on the shaping of its culture by effective leaders.
(11.3%), postgraduate qualification (2.7%) and others
Imran et al. (2012) examined the role of culture as a
(5.8%). Based on the occupational level, the data indicate
possible mediator, because of the underlying importance of
that most of the respondents were employed at the skilled
organisational culture in the overall performance of the
organisation. Their results are supported by Rasid et al. (2013), technical level (45.4%), followed by semi-skilled (28.6%),
who indicate that culture mediates the relationship between unskilled (13.8%), middle management (8.2%) and senior
leadership and organisational commitment. According to management (2.8%).
Appelbaum and Roy-Girard (2007), toxic leaders create a
TABLE 1: Characteristics of participants (N = 600).
toxic workplace, which over time will impact the organisation’s
Item Frequency Percentage
culture – because of the cumulative effect of their actions. The
Age
scholars argue that the glue, which keeps this toxicity together,
1951–1981 354 58.9
is the culture of the organisation. In other words, the higher 1982–1998 243 40.4
up the toxic leaders’ position is in the organisation, the Gender
stronger their influence would be on the culture (Appelbaum Male 480 79.9
& Roy-Girard, 2007). Therefore, the inference can be drawn Female 120 20.1
that toxic leaders create a toxic culture by changing the Race
content of the organisation’s culture (Giberson et al., 2009). It African people 352 58.6
is, therefore, important that the mediating effect of People of mixed race 38 6.3
organisational culture be investigated in the study. Indian people 75 12.5
White people 134 22.3

Research design
Other 1 0.2
Language
Research approach Afrikaans 66 11.0
English 211 35.1
The study followed a quantitative research approach and isiZulu 316 52.6
used a cross-sectional research design. This form of research Sesotho 2 0.3
focusses on gathering numerical data and generalising it isiXhosa 5 0.8
across groups of people or explaining a particular Educational level
phenomenon (Babbie, 2010). The term ‘cross-sectional’ in a Grade 12/Matric 351 58.4

research design refers to the collection of data in more than Diploma 129 21.5
Degree 68 11.3
one case, and at a single point in time. For this study, the
Postgraduate 16 2.7
advantage was that the data could be collected at a single
Other 35 5.8
point in time and from a specific population in the Occupational level 17 2.8
manufacturing sector (Struwig & Stead, 2013). Senior management
Professionally qualified and experienced 49 8.2
specialists and mid-management
Research method Skilled technical and academically qualified 273 45.4
workers, junior management, supervisors,
Research participants foreman and superintendents
This study used a combined convenience and purposive non- Semi-skilled and discretionary decision-making 172 28.6

probability sample (Coolican, 2014; De Vos et al., 2011), Unskilled and defined decision-making 83 13.8

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Measuring instruments Organisational Commitment Scale: This 24-item scale of


Demographical characteristics (such as gender, age, language, Meyer and Allen (1991) was used to measure organisational
highest qualification achieved and occupational level) of commitment. This scale measures three dimensions of
the participants were gathered using a biographical organisational commitment: continuance, affective and
questionnaire. These characteristics were only included to normative commitments.The Organisational Commitment
Scale (OCS) was scored on a 5-point Likert-type scale, ranging
describe the data.
from a score of 1 (strongly disagree) to 5 (strongly agree). The
reliability and validity for use of the OCS within the South
Toxic Leadership Scale: Toxic leadership was measured by
African context were confirmed by studies from Coetzee,
the scale developed by Schmidt in 2008. The 30-item scale
Schreuder and Tladinyane (2007), Ferreira (2009), as well as
measures five dimensions, namely, abusive supervision (seven
Lumley (2010). The Cronbach’s alpha coefficients for these
items), for example: ‘My supervisor speaks poorly about
dimensions in the above-mentioned studies ranged between
subordinates to other people in the workplace’; authoritarian
0.70 and 0.83, which indicates a high reliability for the scale.
leadership (six items), for example: ‘My current supervisor
determines all decisions in the unit whether they are
important or not’; narcissism (five items), for example: ‘My Organisational culture questionnaire: This instrument,
current supervisor thrives on compliments and personal developed by Van der Post et al. (1997), was used to measure
accolades’; self-promotion (five items), for example: ‘My organisational culture. The questionnaire has a total of
current supervisor denies responsibility for mistakes made in 97 items, which cover 15 factors that were considered in this
his/her unit’; and unpredictability (seven items), for example: study to measure organisational culture. The organisational
‘My current supervisor has explosive outbursts’. culture questionnaire (OCQ) was scored on a 7-point Likert-
type scale, ranging from 1 (strongly disagree) to 7 (strongly
agree). The Cronbach’s alpha coefficients for the different
The above-mentioned dimensions were scored on a 5-point factors range between 0.79 and 0.93 (Van der Post et al., 1997).
Likert-type scale, ranging from 1 (strongly disagree) to The overall reliability of the scale is 0.99 (Erwee et al., 2001).
5 (strongly agree). The reliability of the scale using Cronbach’s
alpha coefficients was calculated at 0.93 for abusive
supervision, 0.89 for authoritarian leadership, 0.88 for Research procedure and ethical considerations
narcissism, 0.91 for self-promotion and 0.92 for unpredictability. The Human Resource Managers of the various companies
The overall Cronbach’s alpha score was 0.90, suggesting that acted only as gatekeepers, ensuring access to the participants
the instrument is reliable (Schmidt, 2008). to ensure data collection. In total, 800 questionnaires were
distributed to the various organisations, and 600 were
Minnesota Satisfaction Questionnaire: This instrument collected. Data collection was done in the manufacturing
meant to measure job satisfaction was adapted by Buitendach sector and in the work environment, which is familiar to
and Rothmann (2009) for use in the South African the researcher, using a questionnaire booklet that was
context. The questionnaire requires respondents to rate the individually administered. Accompanying the questionnaire
experience of their jobs based on extrinsic and intrinsic booklets was a letter of introduction and an explanation of
factors for job satisfaction. This questionnaire consists of the objectives and importance of the study. Participants were
17 items: eight that measure extrinsic job satisfaction, and accommodated in the training centre or empty office space of
nine that measure intrinsic job satisfaction. Example item for the organisations to complete the questionnaires.
extrinsic job satisfaction is: ‘The way my boss handles his/
her workers’; and for job satisfaction is: ‘The way my job Although this was a self-administrated questionnaire, a field
provides for steady employment’. The scale was measured worker working as a human resource intern was available at
on a 5-point Likert-type scale, ranging from very satisfied to one of the organisations to assist participants who found it
very dissatisfied. Buitendach and Rothmann (2009) found the difficult to complete the questionnaire because of low literacy
scale to be reliable and valid, with a Cronbach’s alpha levels. The fieldworker was trained to assist the participants
coefficient of 0.86. during the data collection phase. No personal information was
recorded on the booklet, to ensure anonymity, respect privacy
and ensure confidentiality (De Vos et al., 2011). Furthermore,
Turnover Intention Scale: This six-item scale (TIS-6), which no ethical guidelines were breached by the researcher during
was adapted from the 15-item scale developed originally by the process. The researcher maintained the respect and dignity
Roodt (2004), was used to measure turnover intention. This of the participants throughout and adhered to the ethical
scale was validated for use in South Africa by Bothma and considerations (De Vos et al., 2011). Sufficient time was
Roodt (2013); it was found to be reliable with a Cronbach’s allocated for the participants to complete the survey.
alpha coefficient of 0.80, and was therefore used to assess
turnover intention (Bothma & Roodt, 2013). An example item The researcher coordinated the distribution of the
is: ‘How often have you considered leaving your job?’ The questionnaires, as well as the collection and safe storing of
TIS-6 was scored on a 5-point scale, ranging from a score of completed booklets. After all the booklets were collected, the
1 (never) to 5 (always). data were captured and the statistical analysis commenced.

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Page 6 of 11 Original Research

Statistical analysis also showed acceptable levels of internal consistency.


Furthermore, the results also indicate Cronbach’s alpha
Statistical analysis was carried out using the SSPS program
coefficients with acceptable levels of reliability. These
version 25 (IBM SPSS Inc., 2017) and AMOS 20 (Arbuckle,
coefficients range between 0.66 and 0.85. All the Cronbach’s
2011). Data were analysed through descriptive and inferential
alpha values were found to be above the cut-off point of
statistics such as means, standard deviation, skewness and
α ˃ 0.70, except for normative commitment, cultural management,
kurtosis. The Cronbach’s alpha coefficients were calculated
performance orientation and task structure, but these are still
to determine reliability, with values of 0.70, which according
regarded as reliable (Pacleb & Cabanda, 2014; Pallant, 2010;
to Pallant (2010), can be regarded as reliable. Confirmatory
Pevalin & Robson, 2009).
factor analysis (CFA) was done on the different scales of toxic
leadership, turnover intention, organisational commitment,
job satisfaction and organisational culture. The results for all Correlations
scales indicated that they could be used in their present form The correlation coefficients between the constructs are
to complete the statistical analysis. presented in Table 2.

To determine the relationships between variables (i.e. toxic Toxic leadership and job satisfaction
leadership, job satisfaction, organisational commitment and
Considering the relationship between toxic leadership
turnover intention) and the strength of these relationships,
dimensions and job satisfaction, it is evident from Table 2 that
product–moment correlations and Pearson’s correlation
abusive supervision and authoritarian leadership are positively,
coefficient were used. The correlation coefficient cut-off statistically and practically (with a medium effect) related to
scores were set at −1 to +1, with −1 indicating a negative intrinsic job satisfaction. Narcissism, self-promotion and
relationship, 0 no relationship and +1 a positive relationship. unpredictability, and toxic leadership dimensions were
Statistical significance was set at 95% (p ≤ 0.05). Practical statistically and practically related to a small effect on
significance was determined using effect size, and its cut-off intrinsic job satisfaction. Furthermore, abusive supervision,
point was set at 0.30 for medium effect and 0.50 for large authoritarian leadership, self-promotion and unpredictability
effect (Steyn & Swanepoel, 2008). were positively, statistically and practically (with a medium
effect) related to extrinsic job satisfaction. Only narcissism as a
The aim was to test whether organisational culture has a toxic leadership dimension was shown to be positively
mediational effect between toxic leadership and certain job related to a small effect on extrinsic job satisfaction.
outcomes such as job satisfaction, commitment and turnover
intention. For this test, structural equation modelling (SEM) Toxic leadership and turnover intention
was used as implemented by AMOS (Arbuckle, 2011). Several
The relationship between toxic leadership dimensions and
goodness-of-fit indices were used, namely, chi-square (χ2),
turnover intention indicates (Table 2) that all the toxic
the Comparative Fit Index (CFI), Tucker-Lewis Index (TLI)
leadership dimensions are positively, statistically and
and the root mean square error of approximation (RMSEA).
practically (with a medium effect) related to turnover intention.
Acceptable goodness-of-fit indices had the following cut-off
points: non-significant χ2 values; CFI and TLI values larger
than or equal to 0.90; and RMSEA values smaller than or
Toxic leadership and commitment
equal to 0.08 (Byrne, 2010). Regarding the relationship between toxic leadership
dimensions and commitment, it was found that the toxic
leadership factors all have statistically a significant negative
Results relationship with affective commitment. The four factors –
It is evident from the results that most variables were found abusive supervision, authoritarian leadership, self-promotion
to be distributed normally. The measuring instruments and unpredictability – were all practically significant

TABLE 2: Correlation matrix between constructs.


Variable 1 2 3 4 5 6 7 8 9 10 11
1. Abusive 1 - - - - - - - - - -
2. Authoritarian 0.73**‡ 1 - - - - - - - - -
3. Narcissism 0.63**‡ 0.65**‡ 1 - - - - - - - -
4. Self-promotion 0.73**‡ 0.71**‡ 0.69**‡ 1 - - - - - - -
5. Unpredictable 0.73**‡ 0.66**‡ 0.61**‡ 0.74**‡ 1 - - - - - -
6. Intrinsic job satisfaction 0.32**† 0.32**† 0.13** 0.22** 0.24** 1 - - - - -
7. Extrinsic job satisfaction 0.46**† 0.49**‡ 0.29** 0.39**† 0.44**† 0.54**‡ 1 - - - -
8. Affective commitment −0.37**† −0.32** −0.29** −0.38*‡ −0.38**† −0.42**† 0.51**‡ 1 - - -
9. Continuance commitment −0.01 0.08* 0.06 0.07 0.09* −0.06 −0.00 0.14** 1 - -
10. Normative commitment −0.10* −0.09* −0.12** −0.09* −0.07 −0.22** −0.24** 0.46**† 0.26** 1 -
11. Turnover intention 0.39**† 0.34**† 0.33**† 0.38**† 0.38**† 0.35**† 0.53**‡ −0.64**‡ −0.10** −0.40**† 1
*, p < 0.05 for all values; **, p < 0.01 for all values.
†, Correlation ≥ 0.30 is practically significant (medium effect); ‡, Correlation > 0.50 is practically significant (large effect).

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with medium effect. Authoritarian and unpredictable adequate fit (Lance, Butts, & Michels, 2006). According to
leadership were statistically significantly positively related Hooper, Coughlan and Mullen (2008), researchers must not
to continuance commitment; however, this relationship was lose sight of the substantive theory. In other words, by
found to be only to a small extent. Furthermore, abusive allowing model fit to drive the research, it moves the research
supervision, authoritarian leadership, narcissism and self- away from the original theory-testing purpose.
promotion were negatively, statistically and practically
(with  a very small effect) related to normative commitment. As mentioned above, the overall model was tested in three
separate models and is described below.
Mediation analysis
Model 1 tested the proposed mediating effect of organisational
The results of the mediation analysis are discussed and culture between toxic leadership and job satisfaction. The
displayed in Figure 1. hypothesised models all provided an adequate fit to the data.
The CFI value for Model 1 was found to be at 0.90, the
Structural equation modelling was used to test the proposed TLI (0.88) value just below the cut-off point of 0.90 and
mediating effect of organisational culture between toxic RMSEA was 0.09, which is indicative of a fit that is neither
leadership and job satisfaction, organisational commitment good nor bad. Model 1, therefore, shows acceptable model fit.
and turnover intention. The hypothesised mediation model
above tested whether organisational culture mediates the Model 2 tested the proposed mediating effect of organisational
relationship between toxic leadership and job outcomes, culture between toxic leadership and commitment. In terms
namely, turnover intention, job satisfaction and organisational of Model 2, both the CFI (0.89) and TLI (0.87) values were
culture. The results indicated a significant negative found to be just below the cut-off point, but RMSEA was 0.09,
relationship between toxic leadership and organisational which is indicative of a fit that is neither good nor bad.
culture (R2 = −0.50; SE 0.05; p = 0.00). Furthermore, a Model  2 shows weak but acceptable fit.
significant negative relationship was found between
organisational culture and job satisfaction (R2 = −0.48; Model 3 tested the proposed mediating effect of organisational
SE 0.02, p = 0.00). The results indicated a significant culture between toxic leadership and turnover intention.
positive relationship between organisational culture and Model 3 has TLI (0.86) and CFI (0.88) just below the acceptable
organisational commitment (R2 = 0.56; SE 0.04, p = 0.00), and cut-off point. Root mean square error of approximation was
a significant negative relationship between organisational 0.09, which indicates a fit that is neither good nor bad.
culture and turnover intention (R2 = −0.51; SE 0.05, p = 0.00). Therefore, Model 3 shows weak but acceptable fit.

The overall model was tested in three separate models, the Table 4 displays the results of the mediating effects of
results of which are displayed below. The mediation was organisational culture. The mediation model tested whether
partial for all the models that were tested and explain 45.8% organisational culture mediates the relationship between
of the variance in job satisfaction, 63.5% of the variation in toxic leadership, job satisfaction, organisational commitment
organisational commitment and 71.6% of the variance in and turnover intention. The model does not specify whether
the mediation is full or partial. The test results returned both
turnover intention.
direct and indirect effects for all the relationships tested,
which indicated that mediation is only partial in all of the
Table 3 displays the goodness-of-fit statistics for the three
relationships. In terms of job satisfaction, results indicated
models.
that organisational culture does mediate the relationship
between toxic leadership and job satisfaction. This mediation
Marsh, Hau and Wen (2004) cautioned that an acceptable
is found to be partial and explained 45.8% of the variance in
model can be rejected if there is a strict adherence to cut-off
job satisfaction. In addition, organisational culture also
values. Marsh et al. referred to a traditional cut-off values
mediates the relationship between toxic leadership and
amounting to “little more than rules of thumb based largely
organisational commitment. This mediation is partial and
on intuition and have little theoretical justification” (2004,
explains 63.5% of the variation in organisational commitment.
p. 321). Cut-off points should only be considered as
In terms of the results, it confirmed that organisational
guidelines, as there is little consensus on the values for
culture does mediate the relationship between toxic
leadership and turnover intention. This mediation was found
.02;
to be partial and explains 71.6% of the variance in turnover
E0
8; S Job intention.
-0.4 0
R = p = 0.0 sasfacon
2

Toxic Organisaonal R2 = -0.56; SE0.04;


Organisaonal TABLE 3: Goodness-of-fit statistics for all three models.
leadership culture p = 0.00
R = -0.50; SE0.05;
2
commitment Models χ2 χ2/df TLI CFI RMSEA p
p = 0.00 R 2=
-0.5 Model 1 (Job satisfaction) 1178.69 6.34 0.88 0.90 0.09 0.00
1
p = ; SE0. Turnover Model 2 (Commitment) 1288.55 6.26 0.87 0.89 0.09 0.00
0.0 05;
0 Intenon Model 3 (Turnover intention) 1514.89 5.57 0.86 0.88 0.09 0.00
CFI, Comparative Fit Index; TLI, Tucker-Lewis Index; RMSEA, root mean square error of
FIGURE 1: Organisational culture mediation across the models. approximation.

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Page 8 of 11 Original Research

TABLE 4: Mediating effects of organisational culture (standardised effects).


Predictors Job satisfaction (45.8%) Commitment (63.5%) Turnover intention (71.6%)
Direct Indirect Total Direct Indirect Total Direct Indirect Total
Organisational culture 0.00 0.00 0.00 0.56 0.00 0.56 0.00 0.00 −0.51
Toxic leadership 0.28 0.24 0.52 −0.16 −0.28 −0.44 0.24 0.25 0.49

Discussion most significant impact of toxic leadership is made on the


employees’ feelings towards their organisation – or affective
The first objective of this study was to investigate whether commitment. Lower levels of commitment in a manufacturing
there is a relationship between toxic leadership, job organisation will lead to absenteeism and decrease the
satisfaction, turnover intention and organisational production volumes because of staff shortages. This in turn
commitment among employees within the manufacturing will impact the organisation’s financial situation negatively if
industry. In this study, job satisfaction was divided into absenteeism continues unabated (Weaver & Yancy, 2010).
extrinsic and intrinsic forms. This study theorised that there
will be a statistically significant negative relationship The second objective of this study was to determine whether
between toxic leadership and job satisfaction. This postulate organisational culture mediates the relationship between
is in line with other studies by Mehta and Maheshwari (2013), toxic leadership and certain job outcomes (e.g. job satisfaction,
Kusy and Holloway (2009), as well as Schmidt (2014). The turnover intention and organisational commitment) among
results did indicate a statistically significant relationship. employees within the manufacturing industry. Direct and
However, in this study, the relationship was found to be indirect effects were returned for all the relationships tested,
positive for extrinsic job satisfaction, which implies that the which indicates that mediation was found to be only partial
more toxic the leader, the more satisfied the employees in all of the relationships. Organisational culture explains
seemed to be. The finding above was the case, especially for 45.8% of the variance in the relationship between toxic
authoritarian leadership, abusive supervision factors and leadership and job satisfaction; it further explains 63.5% of
extrinsic job factors. These job factors deal with aspects such the variation in the relationship between toxic leadership and
as company policies, working conditions, remuneration and organisational commitment. In terms of turnover intention,
the way the employees get along. It is suggested that such a organisational culture explains 71.6% of the variance in the
result could be because of the makeup of the study population. relationship between toxic leadership and turnover intention.
A significant number of participants are unskilled and semi- The partial mediation in all the tested relationships indicates
skilled workers (42.4%), and at this level, they are also given that when employees experience a leader to be toxic, it can
constant guidance on how to complete tasks. Such constant have a negative influence on the organisation’s culture. Such
supervision and guidance may contribute to the perception a toxic organisational culture may in turn cause employees,
that they feel secure in their performance. This could be the
who are less committed and feel dissatisfied with their
reason for the positive experience of job satisfaction.
workplace, wanting to leave the organisation. These results
confirm findings from previous studies that organisational
The relationship between toxic leadership dimensions and
culture functions as a mediator (e.g. Imran et al., 2012; Rasid
turnover intention indicates that all the toxic leadership
et al., 2013; Schmidt, 2014).
dimensions are positively, statistically and practically
significant (with a medium effect) in relation to turnover
intention. The more the leader is viewed as toxic, the stronger Practical implications
the potential for turnover. The results are also in line with According to Mehta and Maheshwari (2014), the behaviour
those of Schmidt (2008, 2014) and Akca (2017), who found a and performance of leaders must be monitored and assessed
statistically significant positive relationship between toxic constantly to ensure their interactions with staff are conducive
leadership and turnover intention. In the manufacturing to healthy work environments. Organisations often lack the
industry, which is labour-intensive, high turnover rates have experience and abilities to counteract the effects of toxic
a direct impact on productivity, because the new employee leadership, thus usually being forced to pay the hidden costs
may not be as productive as the one who has just left, at least inflicted by the dysfunctional behaviour of the toxic leader.
initially. According to Sarmiento et al. (2006), employee These hidden costs may entail: reduced productivity because
turnover can potentially cost a company indirectly through of an increase in absenteeism and sick leaves; weak performance
failed implementation of continuous improvement practices, of employees caused by commitment and dissatisfaction at
and directly through mistakes that untrained, unskilled new work; decreased brand equity as a result of reputational
employees might cause. damages of the organisation and legal costs (Vreja, Balan, &
Bosca, 2016). It is anticipated that studies such as these will
This study theorised a statistically significant negative encourage the organisations to focus more on instances of toxic
relationship between toxic leadership and organisational leadership within and help them put checks and balances in
commitment, similar to the finding of Mehta and Maheshwari place to ensure the early detection of toxic leaders (Mehta &
(2013). As expected, it was found that toxic leadership factors Maheshwari, 2014). In this regard, this study will help initiate
all have statistically significant negative relationships with interventions, where management within organisations can
affective commitment. The current results indicate that the focus on dealing with identified toxic leaders.

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Page 9 of 11 Original Research

Leadership studies have indicated that employees tend to In addition, the study should be expanded into other sectors
blame the organisation as a whole for having a culture that to confirm the relationships between toxic leadership and
tolerates toxic leadership. Employees respond to this perceived job outcomes, predictors and organisational culture as a
culture of tolerance by being negatively inclined towards the mediator. Such future research would be valuable, especially
organisation as a whole (Folger & Cropanzano, 2001). This in light of the fact that currently there are no other studies in
study has indicated that such a negative response among South Africa with which results can be compared. It would
employees is true to an extent. It has provided empirical data also be recommended that this study should compare if the
to support the statement that toxic leadership has a significant same results occur in various occupation levels from the
impact on job outcomes, and in turn on employees having to
same population.
cope with such an organisational culture.
Finally, although the mediation results indicated directional
The focus of the research, being a novel topic in the South
relationships between toxic leadership and job outcomes, the
African context, has expanded on the knowledge of toxic
data were not collected over an extended period of time;
leadership. In this regard, this study as such has increased
consequently, it was not possible to test the assumptions
the opportunity to deal effectively with the destructive
impact of toxic leadership on employees and organisations empirically. Therefore, the use of longitudinal studies can
at large. assist by measuring directional relationships over an
extended period of time. Such an approach will deliver
A practical implication for employees in the manufacturing richer data and have positive implications for operational
industry is that this study provides them with an explanation interventions, because it may give a deeper insight to the
of toxic leadership as a leadership style, and how it is cause and effect aspects (De Vos et al., 2011).
intertwined with an organisation’s culture. The results
explain further as to how this leadership style may affect Conclusion
employees in the workplace: an insight which could help
them make crucial decisions about their jobs and future This study provided the first analysis of toxic leadership
career. This study provides human resource professionals an within a South African working environment. The findings
in-depth understanding of the phenomenon of toxic indicated the impact of this leadership style on certain job
leadership. This focus may be a starting point to help outcomes such as turnover intention, job satisfaction
organisations decrease the prevalence of toxic leadership and organisational commitment. The study also investigated
styles, thereby reducing its destructive impact within the the mediation role of organisational culture. It is
workplace. important that other researchers build on the above-
mentioned recommendations for future studies, because
Limitations and recommendations several questions remain unanswered, for example, the
unexpected difference in the result of job satisfaction.
Firstly, the study was confined to the manufacturing sector in
South Africa. As indicated, such a restriction of the study
population and the sampling procedure may influence the Acknowledgements
generalisability of the results. Future research should, The authors convey their appreciation to Prof. Suria Ellis for
therefore, replicate the study in different sectors that represent the statistical analysis, and Ds. Claude Vosloo for the
different populations. Such a broadened research scope language editing of the dissertation. Furthermore, credit goes
would provide a true reflection of toxic leadership in South to Dr Marissa Brouwers as supervisor of the dissertation.
Africa and indicate whether the results in the various sectors
are similar or differ considerably.
Competing interests
Secondly, whilst self-promotion had the strongest impact on The authors declare that they have no financial or personal
job outcomes, certain other dimensions showed an amount relationships that may have inappropriately influenced them
of impact as well. Thus, it would be advantageous to in writing this article.
organisations if research could investigate the variance that is
unique to all five dimensions of toxic leadership. Authors’ contributions
Thirdly, this study confirmed relationships as well as A.P. fulfilled the role of the primary researcher, and this study
predictors in a small section of the manufacturing industry. formed part of her master’s research dissertation. She was
Therefore, it would be valuable to continue these studies responsible for the conceptualisation of the article, collection
in other manufacturing organisations to generate more of the data, interpretation of the research results and the
generalised results. Such a focus applies especially to this writing of the article. M.B. acted as supervisor and played
study’s unique finding on the positive experience of job an advisory role in this study and assisted with the
satisfaction. This finding is not in line with other studies; conceptualisation of the study design, the describing of
therefore, future research should replicate the study to assess statistical procedures and reporting, and assisted in the
whether this result is specific to this study population only. writing of the research article.

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Page 10 of 11 Original Research

Funding information Heine, G. (2013). The influence of integrity and ethical leadership on trust and
employee work engagement (Unpublished master’s dissertation). University of
Stellenbosch, Stellenbosch.
This study was supported by the North-West University
Hooper, D., Coughlan, J., & Mullen, M. (2008). Structural equation modelling:
(publishing of the article). Guidelines for determining model fit. Electronic Journal of Business Research
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Data availability statement IDC (Industrial Development Corporation). (2019). Economic trends: Key trends in the
South African economy. Retrieved from http://www.idc.co.za/images/download-
files/economicoverviews/RI-publication-Keytrends-in-SA-economy_March2019.pdf
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