Impact of Authentic Leadership & Virtuousness on Organisational Performance during a Downsizing Exercise

Leadership plays a pivotal role in organisational performance which is often highlighted during periods of crisis (Cameron & Lavine, 2006). Typically in today’s modern society it is the board of directors who are given the role of leading organisations, the board operates by making decisions collectively in an environment where the relationship between the Chairperson of the board and the CEO has a cascade effect throughout the organisation (Australian Institute of Company Directors, 2010). This paper will examine the impact authentic leadership & virtuousness has on organisational performance during a downsizing exercise, highlighting the cascade effect of the Chairperson’s role combined with elements of organisational virtuousness on positive deviant outcomes. Key theoretical interests will focus on authentic leadership and organisational virtuousness.