Impact of leadership style and emotions on subordinate performance

This article examines whether the emotions of frustration and optimism mediate, fully or partially, the relationship between leadership style and subordinate performance in the context of structural equation modeling. The findings show that transformational leadership has a significant direct influence on frustration and optimism, with the negative influence of frustration having a stronger effect on performance than the positive influence of optimism. Frustration and optimism are found to have a direct influence on performance, and the emotions, frustration and optimism, fully mediate the relationship between transformational leadership and performance. Thus, the effect of transformational leadership style on performance is significant, but indirect. (C) 2002 Elsevier Science Inc. All rights reserved.