Leadership and Employee Psychological wellbeing: A Systematic Review and Directions of Future

Abstract

Leadership practices have a substantial influence on employee mental health because they determine job satisfaction along with stress and total wellness outcomes. This analytical approach studies how various leadership methods affect worker mental health through results collected from many workplace sectors worldwide. The article evaluates how transformational leadership and transactional leadership and servant leadership and genuine leadership affect employee stress levels together with burnout and motivation and engagement. The research investigates important boundary conditions which include organization culture and autonomy and emotional intelligence and their impact on this relationship. The research established a positive relationship between transformational and servant leadership approaches which leads to better psychological state and strengthened employee resilience together with higher work satisfaction. A worker's stress increases as well as their emotional exhaustion under authoritarian leadership and laissez-faire managerial styles. The analysis reveals several weaknesses in current research since most studies lack longitudinal follow-ups and cross-national data. The study evaluation introduces research directions that require focus on psychological approaches and remote digital leadership examination using mixed research approaches to boost understanding.