Abstract

ABSTRACT Research suggests that ethical leadership affects employee behavior and organizational functioning. This study aimed to determine the relationship between EL and productive energy, as mediated by person-organizational fit. The study used assumptions of the social learning and social exchange theories that posit that leadership has a direct impact on employee behavior, mainly through role modeling and the reciprocal nature thereof. An empirical paradigm using a cross sectional quantitative design was used. The PE instrument was assessed for construct validity within the South African context. The analysis included a comparison between the private and public sectors, emphasizing the importance of context as differentiator. Relatively high, statistically significant correlations were found between the variables for both sectors and the combined sample. The hierarchical regression analysis indicated that 18% of the variance in PE is explained by EL. This model was improved by the inclusion of POF. The conceptual model was confirmed with structural equation modeling. The findings of this study suggest that EL has a significantly positive effect on PE and POF, which mediates the relationship between EL and PE. Sectoral differences were reported.