When Faith Meets Power: How Despotic Leadership and Islamic Work Ethic Shape Employee Well-Being

What is it about?

This study investigates how despotic leadership—a leadership style marked by authoritarian and self-serving behavior—affects employees’ job performance, job satisfaction, and psychological well-being. It also examines the role of employees’ Islamic Work Ethic (IWE), a belief system emphasizing diligence, honesty, and moral integrity, in shaping these outcomes. Drawing on social exchange theory and person–environment fit theory, the authors explore how employees’ ethical values interact with unethical leadership to influence workplace experiences. Based on a two-wave study of 303 employees in Pakistan, the findings largely support the predictions. Employees under despotic leaders report lower performance, satisfaction, and well-being, showing that abusive power damages motivation and morale. However, those with strong Islamic work values perform better and feel healthier, though not more satisfied. Crucially, employees with stronger Islamic values are more negatively affected by despotic leaders—their moral sensitivity amplifies the harm caused by unethical leadership. For organizations, these findings highlight the importance of ethical alignment between leaders and employees. Despotic leaders can create especially toxic environments when employees hold strong moral convictions. Firms should thus adopt measures to identify and curb despotic behaviors, foster open feedback systems, and promote leadership grounded in fairness and respect. Encouraging an Islamic work ethic can benefit organizations, but only if leadership practices are consistent with those ethical principles.

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Photo by Kevin Liu on Unsplash

Photo by Kevin Liu on Unsplash

Why is it important?

This research contributes to understanding the “dark side” of leadership by examining its effects in a non-Western, Islamic cultural context, where values like respect, fairness, and collectivism are deeply embedded. It is one of the few studies to show that moral conviction can intensify the pain of unethical leadership, rather than protect against it. By combining perspectives from religion, ethics, and leadership psychology, the study deepens insights into how personal values and organizational environments interact. Its findings are timely for organizations operating in culturally or religiously grounded settings, underscoring the need to align managerial authority with ethical responsibility to protect employee well-being and performance.