The Impact of Leadership on Organizational Culture and Employee Well-Being

Abstract

Leadership is a critical determinant of organizational effectiveness, extending beyond strategic direction to profoundly influence organizational culture and employee well-being. This study investigates the mechanisms through which leadership behaviors shape these outcomes. Specifically, findings from a review of extant literature indicate that positive leadership styles, such as transformational and servant leadership, directly enhance employee well-being by fostering engagement, psychological safety, and resilience. Conversely, negative or toxic leadership cultivates dysfunctional cultures, leading to increased stress, burnout, stifled innovation, and higher turnover. Crucially, this study identifies organizational culture as the central mediating mechanism, translating leadership behaviors into established values and practices that subsequently impact employee well-being. The research contributes to the existing body of knowledge by integrating leadership and organizational culture frameworks, and it outlines specific theoretical and practical implications for leaders, organizations, and policymakers.