Coping with Uncertainty: The Interaction of Psychological Safety and Authentic Leadership in their Effects on Defensive Decision Making
Experimental scenario study with 315 managers showing that low PS combined with low authentic leadership significantly increases defensive decision making — choosing a personally safer option over the organisationally better one. Authentic leadership can offset a lack of PS, but adds nothing when PS is already present. Estimates forgone opportunities from defensive decisions at 10.8% of annual revenue.
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