Leadership-Transparency-Theory

This paper proposes to consider the influence of transparency in leadership styles on work performance and satisfaction. In an experimental setting, a pair of strangers were advised to solve a Sudoku in a digital environment under time pressure. With an induced hierarchy, the leader was able to view the task and the timer, whereas only the subordinate was enabled to actively edit the riddle. The treatment group was told to transparently communicate the intended leadership style during the preparation phase. The results indicate that transparency has a significant positive effect on the performance and the satisfaction of the teams. Furthermore, it is hypothesized that transparency may not be the direct cause of improved performance and satisfaction. Yet it might be crucial in establishing trust between the leader and subordinate, causing a positive effect on the two dependent variables. The paper is concluded by discussing limitations, practical implications and considerations for future research