THE DARK SIDE OF AUTHORITY: HOW AUTHORITARIAN LEADERSHIP SHAPES EMPLOYEE PSYCHOLOGICAL WELL-BEING THROUGH PERSON–ORGANIZATION FIT

Abstract

Drawing upon social exchange theory and person–environment fit theory, this study examines the effect of authoritarian leadership on employee psychological well-being with person–organization fit serving as a mediating mechanism. The study focuses on understanding how authoritarian leadership behaviors shape employee outcomes within the higher education sector of Pakistan. Employing a quantitative, cross-sectional research design, data were collected through a structured questionnaire administered to faculty members working in higher education institutions across Islamabad, Rawalpindi, and surrounding cities. A total of 356 valid responses were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to test the proposed direct and mediated relationships. The findings reveal that authoritarian leadership has a significant negative effect on employee psychological well-being. The results further demonstrate that authoritarian leadership negatively influences person–organization fit, which, in turn, positively affects employee psychological well-being. Mediation analysis confirms that person–organization fit partially mediates the relationship between authoritarian leadership and employee outcomes, indicating that misalignment between individual and organizational values is a key mechanism through which authoritarian leadership undermines employee psychological well-being. This study contributes to the leadership and organizational behavior literature by isolating the role of authoritarian leadership within the broader paternalistic leadership framework and examining its consequences in the higher education context of Pakistan. By positioning person–organization fit as a central explanatory mechanism, the study offers theoretical insight into how leadership-induced value misfit translates into adverse employee outcomes. Consistent with social exchange theory (Blau, 1964; Alvarez & Barney, 2023), the findings suggest that authoritarian leadership behaviors disrupt reciprocal social exchanges, leading to diminished psychological well-being. Practically, the study underscores the importance for academic leaders and policymakers to minimize authoritarian practices and foster value alignment to enhance employee well-being.