Power and moral leadership: role of self‐other agreement

The relationships between moral leadership, transformational, transactional, and laissez‐faire leaderships, and certain outcomes were studied using a sample of 116 managers of a large manufacturing organization in eastern India. Results reveal that transformational leadership partially mediates moral leadership’s relationship with follower’s extra effort and satisfaction, and leader’s effectiveness, and it fully mediates moral leadership’s relationship with leader’s power. Based on whether leader’s self‐rating was more than, same as, or less than follower’s rating of leader’s transformational leadership, leader‐follower dyads were classified into three categories – overestimation, agreement, and underestimation. Findings show that moral leadership is lower in overestimation than in agreement, and is lower in agreement than in underestimation. Correlation between moral leadership and power is also the highest in the case of underestimation. Leader’s power, however, does not differ across categories.