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The Leadership Quarterly 21 (2010) 745764

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The Leadership Quarterly


j o u r n a l h o m e p a g e : w w w. e l s ev i e r. c o m / l o c a t e / l e a q u a

Leadership style and activating potential moderators of the relationships among leader emotional displays and outcomes
Shane Connelly a,, Gregory Ruark b
a b

The University of Oklahoma, USA The United States Army Research Institute, USA

a r t i c l e

i n f o

a b s t r a c t
The present study argues that leader emotional displays are important to consider both within and outside of transformational/charismatic paradigms and must look beyond positive and negative affect. Accordingly, this experiment examined the effects of emotion valence as moderated by leadership style (transformational vs. transactional) and activating potential (high vs. low) on follower satisfaction, evaluations of the leader, and creative task performance. Findings showed differential effects of positive and negative emotions for different leader styles for evaluations of transformational leadership and leader effectiveness and for follower performance. Additionally, positive emotions with higher-activating potential resulted in more desirable outcomes than those lower in activating potential, but the reverse was true for negative emotions. Findings are discussed in light of research and practical implications. 2010 Elsevier Inc. All rights reserved.

Keywords: Transformational and transactional leadership Leader emotion displays Follower performance Follower evaluations of leader

1. Introduction Some of the world's most inuential leaders throughout history are remembered in part by their impassioned communications regarding their beliefs, causes, and leadership vision. From Martin Luther King's eloquent and passionate I have a dream speech, to Nelson Mandela's declaration that I am prepared to die in the opening defense statement at his 1964 trial, emotions have been used to convey some of the very best and worst (e.g., Nazism) of leader ideals. There has naturally been a greater emphasis on studying leader emotion within charismatic and transformational leadership paradigms, given the importance of and sometimes reliance on emotional expression as a way for these leaders to connect with followers. However, one obvious point has been rather neglected in the literature on leadership and emotions. Simply put, emotional displays and exchanges occur on a regular basis between everyday leaders and their followers, but little research has examined this (Brotheridge & Lee, 2008). Other compelling reasons also exist for furthering the research on emotions and leadership, both within and outside of a transformational leadership paradigm. Much of the empirical research to date focuses on the contrast between positive and negative leader affect (e.g., Bono & Ilies, 2006; Newcombe & Ashkanasy, 2002). Few leadership papers examine discrete emotions or dimensions of emotion other than valence, despite studies in the general emotions literature linking different appraisals and outcomes with different same-valence emotions (e.g., Bodenhausen et al., 1994; Lerner & Keltner, 2000, 2001; Lerner & Tiedens, 2006; Nabi, 2003; Seitz et al., 2007). These observations and recent studies demonstrating the importance of moderators in examining the impact of leader emotions (Damen et al., 2008; Sy et al., 2005; Waples & Connelly, 2008) suggest that emotion type and leadership style may both be important to take into account in empirical studies seeking to further our understanding of how followers respond to leader emotions.

Corresponding author. E-mail address: sconnelly@ou.edu (S. Connelly). 1048-9843/$ see front matter 2010 Elsevier Inc. All rights reserved. doi:10.1016/j.leaqua.2010.07.005

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This study contributes to the literature on leadership and emotions in several specic ways. First, it compares the effects of emotional displays from transformational leaders to those of transactional leaders. We argue that followers may perceive and respond differently to the emotional displays of transformational and transactional leader because some emotions may be viewed as more congruent with the mechanisms through which these leaders exert inuence (e.g., contingent reward vs. charisma, intellectual stimulation, etc.) (Bass, 1985, 1990; Burns, 1978). Second, this study expands the number and nature of leader emotions examined, focusing on the independent and joint effects of two differentiating aspects of emotionsvalence (Russell, 1978; Watson & Tellegen, 1985) and activating potential (Mesquita & Frijda, 1992; Roseman, 1984). Third, follower performance is included as an outcome. Studies of discrete leader emotions to date have not examined follower task performance, with one notable exception having looked at team performance (see Van Kleef et al., 2009). Accordingly, the purpose of this study is to increase understanding of how positive and negative leader emotions impact important leadership outcomes when two potentially important moderators are in playdifferent leadership approaches or styles and the activating potential of the emotions. The potential effects of leader displays of positive and negative emotions are rst contrasted for transformational and transactional leaders with respect to follower satisfaction, perceptions of the leader, and performance on a creative task. In making this comparison, we take into account the observation that behaviors characterizing these styles of leadership are not mutually exclusive in the sense that transformational leaders build upon a transactional base (Avolio, 1999; Bass, 1998; Bass & Avolio, 1993; Judge & Piccolo, 2004). Effects of positive and negative leader emotions are then considered with respect to the activating or motivational potential of different emotions. 1.1. Emotion valence and leadership style Some leadership scholars have noted that both positive and negative emotions have the potential to be functional or dysfunctional for leaders (e.g., George, 2000; Sy et al., 2005). Part of being an effective leader may well lie in knowing how one's emotional displays resonate with individual followers and work groups, especially when an organization faces difcult challenges. In line with this, recent studies have suggested that a variety of factors may change how people perceive and respond to positive and negative emotions (Damen & van Knippenberg, 2007; Van Kleef et al., 2009; Waples & Connelly, 2008). Emotion perception does not occur in a vacuum. Frijda (2005) notes that situational meaning structures are part of every emotional experience. These structures represent information regarding an event or object's valence, benets or harms that might come from the event or object, and states of action-readiness. Knowledge of the leader's individual style, preferences, and behavior, as well as information about the context in which an emotional display is made, contribute to follower perceptions of leader emotions. For example, knowledge of or experience with the leader's attributes and general approach to leadership can help followers to evaluate whether the emotional display is typical or atypical with respect to how the leader commonly behaves. Likewise, knowing that there is intense time pressure or severe consequences for underperforming with respect to a particular objective may also inuence how followers perceive and respond to a leader's emotional displays. This is consistent with Weierter's (1997, 1999) research, which proposes that charisma is not only a function of the leader, but also depends on follower attributes (e.g., self-awareness, self-monitoring) and the situation (e.g., congruence of preexisting follower values with leader values/message). While there has been a fair amount of research focusing on the emotions of transformational and charismatic leaders, many other kinds of leaders also show emotions to their followers. Accordingly, we consider follower responses to emotional displays of both transactional and transformational leaders. 1.2. Transactional leaders Emotional displays of transactional leaders and their impact on followers must be considered in light of the key behaviors characterizing this approach to leadership. Transactional leaders provide stable, risk-averse leadership in exchange for follower effort and performance (Avolio, 1999; Bass, 1985; Burns, 1978; Howell & Avolio, 1993; Levy et al., 2002). Leaders ascribing to this approach focus on the effective and efcient exchange of information intended to: a) clarify objectives and expectations, and b) identify contingencies in the form of rewards and punishments for when followers meet or fail to meet those objectives. In essence, this kind of exchange forms the basis for leaderfollower interactions and relationships. In managing the exchange relationship, transactional leaders may take an active role, stepping in before problems become serious, or may be more passive, only taking corrective action after problems are serious. A recent review of transactional leadership studies by Podsakoff et al. (2006) demonstrated that consistency in providing rewards and punishments contingently, based upon performance, is central for transactional leaders to be perceived as fair, and to earn the trust, satisfaction, commitment, and effort of their followers. While some leaders may use multiple styles or approaches, our consideration of transactional leaders in this study rests on the assumption that transactional behaviors are a central part of how they exercise inuence. When transactional leaders display positive emotions, such as happiness or optimism, followers are likely to interpret this as an indication that things are going well and that their performance is meeting expectations. This is consistent with recent affect as information approaches to emotion which suggest that leader emotions provide social information about the task or one's relationship with the leader (DeSteno et al., 2000; George & Zhou, 2002; Martin et al., 1993; Schwartz, 1990; Schwartz & Clore, 1983; Van Kleef et al., 2009). When leaders display positive affect, followers may infer that they are correctly understanding and meeting task requirements, and assume no need for changing the status quo. Alternatively, positive affect communicated during a discussion of unmet expectations may still leave followers feeling good about their relationship with the leader and can have positive effects. This perception that the work is going well, or that the leaderfollower relationship is still intact despite

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performance shortfalls, is likely to inuence positive attitudes on the part of followers, such as satisfaction with the leader and perceived leader effectiveness. However, when transactional leaders provide honest, critical feedback to subordinates about performance that doesn't live up to organizational expectations, they may also display negative emotions. The authenticity of displaying negative emotions when things are not going well may be benecial, depending on what followers expect from the leader. However, negative emotions may be detrimental when they require subordinates to cope with those emotions and their implied sense of threat. The reduced cognitive resources may prevent followers from fully hearing or comprehending the content of the feedback (Baron, 1990; Frijda, 1993; Gaddis et al., 2004; Kluger & DeNisi, 1996; Weiss & Cropanzano, 1996). With transactional leaders, followers may see negative emotional displays as a form of punishment, one that may be viewed as non-contingent. Implicitly, followers may view displays of anger and frustration as going beyond the parameters of common reward and punishment structures, such as nancial rewards, special recognition, and changes in work assignments and responsibilities. Further, followers may see negative emotional displays as violations of interpersonal justice (Greenberg, 1993) regardless of whether they are tied to performance or not. Interpersonal injustice, in turn, has been associated with lower job satisfaction and more critical evaluations of those in positions of authority (Colquitt et al., 2001). Other research suggests follower reactions to a leader's emotional displays may be due to mood contagion. Leaders may consciously or unconsciously spread their positive or negative emotional state to followers. Several studies have found that leaders can signicantly inuence the overall affective state of the groups they lead (Cherulnik et al., 2001; George, 1995; George & Bettenhausen, 1990; Totterdell, 2000; Totterdell et al., 1998). More recently, Bono and Ilies (2006) demonstrated that leaders positive emotional expressions increased followers positive moods, and that follower positive moods led to higher ratings of leader charisma and effectiveness. Similarly, Johnson (2008) found that leader positive and negative affect was related to follower positive and negative affect through emotional contagion, and that follower emotions impacted perceptions of leader charisma. The foregoing observations suggest several hypotheses: H1. Followers will be more satised with a transactional leader who displays positive emotions versus negative emotions. H2. Followers will rate a transactional leader who displays positive emotions as more effective than a transactional leader who displays negative emotions. H3. Followers will rate a transactional leader who displays positive emotions as exhibiting more transformational leadership behavior than one who displays negative emotions. Transactional leader emotional displays may also have important implications for follower motivation and performance on work tasks. Given the transference of leader affect to followers through mood contagion, a second way leader emotions may exert inuence on followers is through their effect on cognitive performance. There have been numerous studies on the effects of emotional states on cognitive processing (Clore et al., 1994; Isen, 1993; Isen & Labroo, 2003). In general, positive affect has resulted in small but persistent facilitative effects on idea production, problem solving, information-processing, and decision-making (Isen & Labroo, 2003; Isen et al., 1987). Transactional leaders displaying positive emotions may create a positive affective climate that spreads to followers ultimately enhancing cognitive performance. Accordingly, we propose: H4. Followers will perform better on a creative task when a transactional leader displays positive emotions versus negative emotions. 1.1.2. Transformational leaders The nature of transformational leadership has a somewhat different set of implications for the impact of emotional displays. Once again, follower reactions must be viewed in light of the behaviors characteristic of this style. Building on a transactional base, transformational leaders exhibit charisma, provide inspirational motivation and intellectual stimulation, and consider the unique needs of followers (Avolio, 1999; Bass, 1985, 1990, 1998; Burns, 1978). Followers identify with these leaders in part because of their charisma, conviction, promotion of ethical standards and emotional appeals. Additionally, transformational leaders provide a vision for the future that is meaningful, challenging, and optimistic, expecting followers to move beyond the status quo and to think in new ways about organizational objectives and how to accomplish them. Transformational leaders exert inuence by emphasizing shared goals and values, helping followers to transcend self-interests to pursue group goals (Bass & Steidlmeier, 1999; Shamir et al., 1993). Transformational leadership has accounted for unique variance in follower satisfaction, motivation, and leader effectiveness beyond what is accounted for by transactional behaviors (Judge & Piccolo, 2004; Rowold & Heinitz, 2007). Additionally, transformational leaders have been rated by followers as more likable, competent, and effective than transactional leaders (Avolio & Yammarino, 1990; Dubinsky, Yammarino, & Jolson, 1995). Other research has shown that transformational leaders are trusted by followers and provide role clarity (Podsakoff et al., 1990). Certainly, positive emotional displays such as optimism go hand-in-hand with charisma and the articulation of an appealing vision (Ashkanasy & Tse, 2000). Positive emotional displays by transformational leaders may boost follower self-efcacy (Kirkpatrick & Locke, 1996) and, as with transactional leaders, communicate a sense that things are going well and followers are doing what they need to do. Followers may be more satised and see transformational leaders who display positive emotions as more effective. Moreover, emotional contagion may be even more likely given the identication followers tend to have with transformational leaders. Interestingly, at least one aspect of transformational leadership can result in lower follower satisfaction

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and trust. Podsakoff et al. (1990) showed that intellectual stimulation negatively correlated with these outcomes, suggesting that it creates stress, ambiguity, and conict in the short term. Followers may nd this less satisfying and less predictable, despite positive leader emotions. When it comes to actually changing the status quo and challenging followers to meet high expectations and standards, transformational leaders may be just as likely to display negative emotions as positive ones. Real change is not easy in organizational settings, and negative emotions may sometimes be necessary to communicate the need for new directions, shared goals, and higher levels of performance. Additionally, some negative emotions have been linked to ethical behavior (Connelly et al., 2004; Haidt, 2003; Kligyte, 2008). Negative emotions may transmit to followers via emotional contagion. However, followers who recognize these emotions as necessary for change may feel less threatened by negative emotional displays, seeing them as part of the process of meeting challenging goals. In line with this, recent research has demonstrated that followers respond better to negative leader emotions when they have higher epistemic motivation or desire a rich, accurate understanding of the situation (Van Kleef et al., 2009). Transformational leaders may instill greater epistemic motivation in followers compared to other types of leaders through communicating a meaningful and shared vision to followers. Additionally, followers respond more favorably to negative leader emotions that are appropriate (i.e., when they match negative content of the message) than those that are inappropriate (Newcombe & Ashkanasy, 2002). Finally, when the leader is considerate of individual needs and when followers are able to transcend self-interests for the good of group goals, followers may feel less personally threatened by a leader's negative emotional displays. In essence, the nature of the relationship between transformational leaders and followers enables not only a greater tolerance for negative emotions, but may enable followers to see a broader purpose for these emotions. Recent empirical studies demonstrate that the relationship between transformational leader displays of negative emotions and follower responses is moderated by different factors such as gender (e.g., Lewis, 2000), follower emotional competence (Waples & Connelly, 2008), message valence (Newcombe & Ashkanasy, 2002) and follower trait affect (Damen et al., 2008). Followers responded better to negative leader affect when the leader was male, when followers had lower emotional competence, when the valence of the message content was negative (matching the leader's affective display) and when follower trait affect matched the valence of the leader's display. Finally, distance from which leadership is exerted may play a moderating role. Bucy (2000) showed that people respond more favorably to public leaders negative versus positive affect, perceiving them as more honest, credible, and trustworthy. Taken together, these observations suggest there may be benets to both positive and negative emotions for transformational leaders. Thus, the valence of a transformational leader's emotional displays may have little effect on follower satisfaction and perceptions of the leader. While transformational leadership has been linked to achievement of organizational objectives and positive performance outcomes (e.g., Barling et al., 1996; Dubinsky, Yammarino, Jolson, et al., 1995; Yammarino et al., 1993) no studies have looked at how the emotions of transformational leaders affect individual follower performance. Transformational leaders are likely to emerge or be hired into an organization during times of crisis and change. They are dedicated to pursuing a vision that will lead the organization in new directions so that it will survive the crisis and thrive in the long term. Leaders who display predominantly positive emotions during such periods may not only be perceived as inauthentic, they may provide followers with the wrong message that the nature and level of task performance is acceptable. Again, considering this from an affect as information perspective (Schwartz, 1990; Schwartz & Clore, 1983), negative emotions may be necessary for transformational leaders to communicate the enormity of new challenges and tasks, and that current approaches will not meet these demands. If negative leader emotions spread to followers, consideration of how they impact cognitive performance is warranted. Some studies have shown benecial effects of negative emotions for certain kinds of tasks under certain conditions. For example, Vosburg and colleagues have shown that negative affect improves quality but not quantity of ideas (Vosburg, 1998) and that negative affect hinders initial idea generation but facilitates idea evaluation (Kaufmann & Vosburg, 2002). More direct evidence for the benecial impact of negative leader emotions on follower performance has been established in a few studies. Sy et al. (2005) found that leaders in a negative mood elicited more follower persistence on a group task than those in a positive mood. Likewise, Damen et al. (2008) showed that a match between follower trait affect and leader affect resulted in better follower task performance than a mismatch, even when controlling for the valence of the leader's message. Additionally, George and Zhou (2002) demonstrated that negative moods were associated with creative performance when people recognized how they felt and when they perceived creative performance was rewarded by the organization. Transformational leaders may help to foster a climate for creative performance and clarify follower moods through communicating and developing a shared vision and goals and providing accurate feedback. When the status quo will not achieve desired effects, transformational leaders may have a greater impact on follower creative performance through negative emotional displays, suggesting a fth hypothesis. H5. Followers will perform better on a creative task for a transformational leader who displays negative versus positive emotions.

As mentioned earlier, leadership style may only be one of several kinds of factors moderating the effects of emotional valence. Studies in the broader emotions literature have found different patterns of results for discrete emotions that share the same valence, but differ in other respects such as certainty, control, and activating potential (e.g., DeSteno et al., 2004; Keltner et al., 1993; Lerner & Keltner, 2000, 2001; Nabi, 2002; Raghunathan et al., 2006; Rucker & Petty, 2004). In a leadership context, one aspect of emotion that may be particularly important is the capability for increasing arousal and motivating behavior. Connelly et al. (2002) argue that once initial inuence patterns are established with followers, transformational leaders are capable of gaining follower support for goals through active emotions, both negative and positive.

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1.2. Emotion valence and activating potential The ability of an emotion to motivate behavior may be related, in part, to the internal feelings of arousal characterizing the experience of that emotion. Arousal is dened as the degree of intensity of the feeling state (Russell, 1978; Watson & Tellegen, 1985). Circumplex theories of emotion commonly arrange emotions along two axes, positive/negative valence and high/low arousal. For example, anger, fear, and excitement are some emotions associated with higher arousal, while relaxation, contentment, boredom and sadness are associated with lower arousal. While circumplex theories still debate the bipolarity of emotion valence (e.g., see Russell & Carroll, 1999a,b; Watson & Tellegen, 1999) there is general recognition that emotions are multidimensional and capable of being described on several dimensions. Related to arousal is the characterization of emotions in terms of action-readiness (Cacioppo et al., 1999; Frijda, 1986, 1993; Frijda et al., 1989) or readiness to engage in interactions with the environment. The activating potential or impulse to respond either internally or behaviorally is often goal-oriented and the nature of the response may depend on other aspects of the situational meaning structure (i.e., valence and expected benet/harm) (Frijda, 2005). In fact, some leadership research has examined this dimension of emotion in the presence of other moderators. Lewis (2000) found that male leaders displaying sadness (low-activating emotion) were rated as less effective than those displaying anger (high-activating). However, the reverse was true for female leaders, possibly due to the inconsistency of anger displays with female role expectations. Similarly, Damen and van Knippenberg (2007) demonstrated that both valence and arousal levels inuenced the relationship between leader affect and follower perceptions of the leader. Leaders displaying positive high arousal emotions were seen as more charismatic than those displaying negative high arousal emotions or low arousal emotions of either valence. Finally, Waples and Connelly (2008) found that more activating leader emotions (when externally focused) resulted in better follower performance than less activating ones, regardless of their positive and negative valence. Both transformational and transactional leadership behaviors suggest that emotions associated with higher activation will result in more favorable follower perceptions and performance. High-activating emotions such as pride and challenge are consistent with motivating followers to achieve goals (e.g., setting high standards, persuading followers to try new approaches, inspiring followers to persist in the face of obstacles). Emotions associated with lower activation such as contentment and happiness may result in satisfaction and liking, but leaders may be perceived as lower in initiative and willingness to take on new challenges. Low-activating emotions are consistent with management by exception-passive and laissez-faire behaviors, which have been negatively related to follower satisfaction, motivation, and evaluations of leader effectiveness (Judge & Piccolo, 2004). The impact of high- and low-activating negative emotions is not as straightforward. Because negative high-activating emotions such as anger and frustration are so salient, followers may feel more threatened when leaders use them compared to lowactivating emotions such as sadness and pessimism. However, it is also possible that followers will respond to threatening negative emotions in ways that attempt to minimize them (Taylor, 1991). This could include distorting one's perceptions about the leader to be more positive, providing a legitimate explanation for the display, or working harder on tasks to improve the leader's mood (Gaddis et al., 2004; Gibson & Schroeder, 2002). Negative emotions lower in activation such as pessimism and anxiety may fail to inspire condence and could result in less satisfaction, more negative evaluations of a leader's effectiveness, and less effort on tasks. However, since these emotions do convey dissatisfaction with the status quo and may be perceived as less threatening to followers, they may motivate follower performance. We propose several additional hypotheses regarding activating potential: H6. Followers will be more satised with leaders who display high-activating positive emotions than with those displaying lowactivating positive emotions. H7. Followers will rate leaders who display high-activating positive emotions as more effective than those who display lowactivating positive emotions. H8. Followers will rate leaders who display high-activating positive emotions as more transformational than those who display low-activating positive emotions. H9. Followers will perform better on a creative task for leaders who display high-activating positive emotions versus lowactivating positive emotions.

1.3. Follower attributes Research on the effects of emotions in organizational settings (e.g., affective events theory) leader emotions suggests that individual differences can directly impact the perception of affective events, affective experiences, and subsequent responses to these experiences (Damen et al., 2008; Gaddis et al., 2004; Weiss & Cropanzano, 1996). Several individual differences may be particularly important to measure and control in the present study, including follower trait emotions, follower positive and negative affect, gender, and aspects of personality known to correlate with either affective reactions or perceptions of leaders. For example, Weiss and Cropanzano (1996) suggest that affective disposition can inuence how intensely a person feels negative and positive emotions, such that a person high in negative trait affect may feel and react to events triggering these emotions more intensely. Likewise, a person with higher positive trait affect may increase the intensity of positive emotions in response to events

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triggering them. Finally, some research suggests that follower gender may impact the perception of and response to leader emotional displays (Hamann & Canli, 2004; Newcombe & Ashkanasy, 2002). When considering follower responses to leader emotional displays, aspects of follower personality may also be important to consider. It is well-established that extraversion correlates positively with positive affect and neuroticism correlates positively with negative affect (Diener & Lucas, 1999; McCrea & Costa, 1991; McNiel & Fleeson, 2006; Watson & Clark, 1997). Personality may directly inuence levels of trait affect, or, indirectly inuence it by impacting the situations an individual chooses to enter and interactions in those situations (Lucas et al., 2008). Either way, these aspects of personality may inuence perceptions of and responses to a leader's affective displays. Additionally, recent research has shown signicant correlations between follower personality attributes (extraversion, conscientiousness, agreeableness, openness to experience, and neuroticism) and perceptions of leadership (Schyns & Sanders, 2007). Given the potential impact of these individual differences on follower perceptions of leader emotional displays and follower responses to those displays when evaluating their own satisfaction, assessing leader effectiveness and transformational behavior, and performing for the leader, these individual differences will be measured and included as covariates in this study. 2. Method 2.1. Participants Two hundred and eighty-eight participants (92 male, 196 female) were given credit in a psychology class that fullled a general education requirement. Participants were randomly assigned to the experimental conditions. A variety of academic majors were represented in this sample (e.g., business, nursing, computer science, marketing, psychology, undeclared) and the mean age of the sample was 19.0. Average years of work experience and number of jobs held were 2.1 and 3.22, respectively. Seventy-two participants had supervisory experience on a prior or current job. 2.3. Design A 2 2 2 between subjects design was used to manipulate leadership style (transformational vs. transactional), leader emotion valence (positive vs. negative), and activating potential (high vs. low) in an organizational scenario where participants were assigned the role of a subordinate working in the marketing division of the ctitious organization. Dependent variables of interest included follower ratings of satisfaction, leader effectiveness, and transformational leadership, as well as follower performance on a creative marketing task. It is of note that transformational leadership is used in two different ways in this study. First it is manipulated as an independent variable to reect leadership style, something we think will moderate how followers respond to leader's emotional displays. Second it is measured as an outcome using the Multi-factor Leadership Questionnaire (Bass & Avolio, 1995). 2.4. Procedure The experiment was conducted in two sessions. During the rst session, participants read and signed an informed consent form, then individually completed a battery of covariate questionnaires assessing personality and trait affect. This session took approximately 30 min. During a second session 1 week later, participants worked individually to generate a marketing plan for an organization that sells technological personal care products and gadgets for the home. They were rst given a description of the organization's market focus, their own position within the organization, characteristic behaviors exhibited by their boss or leader (leader style manipulation), and a description of past interactions with and observations of this leader (emotion valence and activating potential manipulations). In order to ensure participants would attend to the leader description and emotion manipulations, they were told that they would be given feedback on the appropriateness of their responses to their leader. In actuality, no feedback was provided. The organizational description provided to all participants is shown in Appendix A. Participants then read a memo from the leader (boss) requesting that they come up with a marketing plan to reinforce the current customer base and to draw in new customers. The assignment involved: 1) developing a strategy for advertising and providing product information to customers, 2) identifying issues that may need to be discussed with the research and development division, and 3) convincing senior management that this is a good plan. The only other guidance given was that the solution must use the latest technological advances as a means to both enhance the store's image and to replace the current strategy of mailing catalogs. Participants were given 30 min to develop a plan, after which they lled out the Multi-factor Leadership Questionnaire (MLQ 5X-short) to evaluate the leader. Finally, participants completed a manipulation check questionnaire and were debriefed. This session lasted about 1 h. 2.5. Manipulations 2.5.1. Leadership style Half of the participants were assigned to conditions where the leader was depicted as transactional and the other half were assigned to conditions where the leader was depicted as transformational. The transactional leader description included behaviors

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discussed by Bass (1985) and Burns (1978), indicating that the leader clearly lays out expectations for performance, ensures access to resources, offers recognition and rewards when goals are accomplished, and closely monitors performance, taking corrective action as needed. In accordance with transformational leadership theory (Avolio, 1999; Bass, 1998; Bass & Avolio, 1993) the description of the transformational leader included core transformational leader behaviors as well as transactional behaviors. The transformational leader description indicated that the leader points out how employee work contributes to broader departmental and organizational goals, meets with people individually regarding work assignments, ensures access to resources, gives discretion for employees to handle problems on their own but provides back-up support, challenges and inspires people to reach high standards of quality, praises successes, discusses areas where improvements are needed and uses individually tailored approaches for addressing performance issues. 2.5.2. Emotion valence and activating potential Two aspects of leader emotionvalence and activating potentialwere manipulated through a description of prior interactions that participants were told they had with the leader directly or that they observed. Examples for two conditions are shown in Appendix B. Emotional content of these prior interactions included either positive emotions or negative emotions for the valence manipulation. Additionally, emotional content either reected emotions with high- or low-activating potential (Frijda, 1986, 1993; Frijda, 1993; Russell & Carroll, 1999a). Three specic emotions were embedded in each condition. Positive active emotions included pride, challenge, and responsibility. Positive passive emotions included happiness, contentment, and optimism. Negative active emotions included anger, frustration, and guilt. Negative passive emotions included hopelessness, anxiety/worry, and pessimism. Emotions were drawn from various lists of emotions in the broader literature (Frijda, 1986; Izard, 1971, 1989; Roseman, 1984, Scherer, 1988; Shaver et al., 1987) and were chosen based on valence, hypothesized activating potential and likelihood of occurrence in organizational and leadership settings. 2.6. Dependent measures 2.6.1. Transformational leadership Transformational leadership was measured using Bass and Avolio (1995) Multi-factor Leadership Questionnaire (MLQ 5XShort). Respondents judged the leader in the scenario on a range of specic behaviors. A number of studies support the construct validity of this measure for assessing transformational leadership (Bass et al., 2003) and there is evidence that students are able to effectively rate a written description of a leader using the MLQ (Bass et al., 1987). Each behavior was rated on a 5-point scale ranging from Not at all (1) to Frequently, if not always (5). Twenty items from ve subscales of the MLQ were averaged to create an overall transformational leadership score. These items reected idealized inuenceattributed, often referred to as charisma, idealized inuencebehavioral, inspirational motivation, intellectual stimulation, and individualized consideration. Scores on this variable ranged from 1 to 4.85. Prior research using the MLQ guided the decision to combine the subscales into one overall construct representing transformational leadership (Bass & Avolio, 2000; Bono & Judge, 2004; Carless, 1998; Dubinsky et al., 1995; Judge & Piccolo, 2004; Nemanich & Keller, 2007). Principle components analysis (no rotation) of the 20 items in the ve relevant scales produced a four component solution where the rst component had the largest eigen value (9.33) and accounted for 47% of the variance. Loadings for seventeen items on this component ranged from .60 to. .85. Additionally, correlations among the subscales were large, ranging from .69 to. .83. Accordingly, we averaged the 20 items in these scales to create an overall transformational leadership score, which had a coefcient alpha of .94. 2.6.2. Leader effectiveness Three items from the MLQ were averaged to assess leader effectiveness with scores ranging from 1 to 5. The coefcient alpha of this scale was .81. 2.6.3. Follower satisfaction Two items from the MLQ were averaged to assess follower satisfaction with scores ranging from 1 to 5. The coefcient alpha for this scale was .82. 2.6.4. Task performance The performance task required participants to create an original marketing/advertising strategy based on the needs of the organization as described in the scenario. Five-point benchmark ratings scales were developed to evaluate the quality and originality for the three aspects of the marketing plan (the actual plan, issues to discuss with research and development, and convincing senior management that the plan is good). Benchmark rating scales dene the construct of interest and its related facets and include sample behaviors or responses to mark each point on the scale. These kinds of rating scales have been employed in a number of studies to evaluate creative tasks (Borman, 1986; Osburn & Mumford, 2006; Redmond et al., 1993; Scott et al., 2005. Development of the benchmark rating scales was done in conjunction with two doctoral students in the school of business who had expertise in marketing. The authors read several book chapters and articles dealing with the topic of effective/creative marketing, particularly as it pertains to selling new technology. The exerts assisted the authors in selecting examples from participant data to exemplify low to high quality responses and low to high original responses and provided a review of the nal

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benchmark scales. Each scale point included a specic example of what type of answer would be assigned this rating so that raters could easily match the open-ended responses to the performance task to points on the rating scales. Example responses for plan quality and plan originality scale points are shown in Appendix C. Three raters evaluated each participant's marketing strategy, including one undergraduate research assistant who had completed two courses in marketing and two doctoral students in I/O psychology who had completed MBAs prior to starting their doctoral work. Prior to conducting these ratings, raters were trained on how to use the benchmark scales and how to avoid rating biases. They practiced making ratings on responses for 15 participants resulting in an average interrater reliability of .80 (Shrout & Fleiss, 1979). For the full sample, interrater reliabilities for the quality and originality across the three aspects of the plan ranged from .68 to .77, averaging .74. While reliabilities were smaller than those obtained during training, these levels are still considered acceptable for research purposes (Nunnally & Bernstein, 1994). An overall quality score was created by averaging judges ratings and summing across the three quality scores. An originality score was created in a similar way. Given the high intercorrelation (r = .91) of quality and originality, these scales were averaged to form an overall task performance score. Scores on this variable ranged from 1 to 4.22. 2.7. Covariates 2.7.1. Trait affect It was expected that follower positive and negative affect might impact appraisals of and reactions to leader emotional displays. Accordingly, the Discrete Affect Scales (DAS) (Diener et al., 1995) were administered to assess overall positive ( = .82) and negative affect ( = .92). This measure consists of 24 adjectives, with 16 marking negative affect, and 8 marking positive affect. Respondents indicated how often they have felt this way (for each item) during the past month PA and NA scores were calculated by averaging responses to the adjectives marking each. 2.7.2. Follower personality and gender Personality was assessed using John et al. (1991) Big Five Inventory. This is a 44-item instrument measuring extraversion ( = .88), agreeableness ( = .79), conscientiousness ( = .82), neuroticism ( = .84), and openness to experience ( = .81). Items are rated on a 1 (strongly disagree) to 5 (strongly agree) scale. Follower gender was assessed through a basic demographics questionnaire. 2.8. Analyses The data were analyzed using SPSS-15, to calculate reliabilities, correlations, t-tests for the manipulation checks, and ANCOVAs to test the hypotheses. Simple effects contrasts using GLM were performed to compare condition means for signicant interactions. The ANCOVAs indicated that agreeableness was the only covariate signicantly (and positively) inuencing the dependent variables and was retained as a control for these analyses. 3. Results Means, standard deviations, reliabilities and intercorrelations among the dependent variables and covariates in the total sample are shown in Table 1. Transformational leadership, satisfaction, and leader effectiveness are strongly and positively correlated, but do not correlate with task performance. Overall, personality and trait affect variables are uncorrelated with transformational leadership, satisfaction with the leader, leader effectiveness, and task performance, except agreeableness, which showed small positive correlations with each. Personality and trait affect variables were correlated in meaningful ways. Neuroticism was negative related to other Big-5 variables, but positively related to negative affect. Positive affect showed a positive correlation with extraversion and negative correlation with negative affect. Appendix D includes correlation matrices for these variables by condition. 3.1. Manipulation checks The effectiveness of the manipulations was assessed in a series of t-tests. Participant responses to questions about the extent to which the leader displayed positive, negative, high-activating, or low-activating emotions served as checks for the manipulations. People in the positive emotion conditions rated the leader as displaying more positive emotions (M = 3.66, SD = .73) than those in the negative emotion conditions (M = 3.48, SD = .73) t(1, 286) = 2.09, p b .05 (e.g., leader was hopeful about the future of the department; followers less likely to look for another job with a boss like this). Likewise, people in the passive emotion conditions rated the leader higher on questions pertaining to passive emotions (M = 3.12, SD = .69) than those in the active emotion (M = 2.90, SD = .65) conditions t(1, 286) = 2.79, p b .01 (e.g., leader seemed content, was satised with the department's performance, thought things were unlikely to change). Finally, people in transformational leader conditions gave the leader higher ratings of transformational leadership on the 20-item composite (M = 3.30, SD = .66) than those in the transactional leader conditions (M = 3.12, SD = .77) t(1, 286) = 2.00, p b .05. This pattern of results suggests that the manipulations were perceived as intended.

S. Connelly, G. Ruark / The Leadership Quarterly 21 (2010) 745764 Table 1 Descriptive statistics, reliabilities, and intercorrelations among study variables. M Transformational leadership Satisfaction with leader Leader effectiveness Task performance Agreeableness Conscientiousness Extraversion Neuroticism Openness Trait PA Trait NA 3.21 3.15 3.32 2.73 3.82 3.49 3.46 2.83 3.37 5.17 3.08 SD .72 1.17 .87 .71 .55 .56 .74 .71 .60 .90 .99 1 .94 .85** .81** .04 .12* .03 .02 .06 .04 .06 .03 2 .82 .79** .06 .16** .04 .03 .04 .01 .05 .04 3 4 5 6 7 8 9 10

753

11

.81 .04 .16** .00 .00 .04 .02 .06 .05

.74 .11 .05 .03 .03 .06 .05 .01

.79 .32** .13* .29** .20** .04 .08

.82 .14 .36** .04 .04 .17**

.88 .29** .21** .16** .13*

.84 .15** .20** .40**

.81 .04 .06

.82 .34**

.92

Note. N = 288. *p b .05; **p b .01; Coefcient alphas are presented on the diagonal; Average interrater reliability is shown for task performance.

3.2. Tests of the hypotheses 3.3. Leadership style as a moderator of emotional valenceoutcome relationships The rst three hypotheses dealt with expectations about follower satisfaction with and perceptions of a transactional leader who displays positive emotions. ANCOVA results for satisfaction with the leader, leader effectiveness, and transformational leadership are shown in Table 2. The covariate agreeableness was positively related to these three outcomes. Leadership style had a signicant main effect on follower satisfaction with the leader (F(1, 287) = 9.44, 2 = 0.03, p b .01) such that transformational leaders had more satised followers. Leadership style did not interact with emotion valence as expected, so hypothesis 1 was not supported. However, leadership style and emotion valence did signicantly interact to inuence follower perceptions of leader effectiveness and transformational leadership, supporting hypotheses 2 and 3. Leadership style and valence interacted to inuence leader effectiveness (F(1, 287) = 4.82, 2 = 0.02, p b .05), such that a transactional leader displaying positive emotions was viewed as more effective (M = 3.41, SD = .85) than one displaying negative emotions (M = 3.05, SD=.86) and was rated higher in transformational leadership (F(1, 287) = 4.55, 2 = 0.02, p b .05; M = 3.24, SD = .75 vs. M = 3.00, SD = .77). In fact, MLQ ratings of transformational leadership did not signicantly differ for transactional and transformational leaders who displayed positive emotions. The leadership styleemotional valence interactions are shown in Fig. 1a and b, and effect sizes were small. Hypothesis 4 suggested that followers would perform better on a creative performance task for a transactional leader who displays positive emotions versus negative emotions. ANCOVA results for task performance are shown in Table 3. Leadership style signicantly interacted with emotion valence (F(1, 287) = 4.76, 2 = 0.01, p b .05) for task performance, however, follow up contrasts showed no signicant performance differences for transactional leaders displaying positive versus negative emotions. Thus, hypothesis 4 was not supported. There was a small signicant difference in the expected direction with regard to follower performance for a transformational leader displaying positive versus negative emotions, supporting hypothesis 5. Contrasts showed that followers performed better on the creative marketing task when a transformational leader displayed negative emotions (M = 2.82, SD = .61) versus positive ones (M = 2.52, SD = .86). This interaction is shown in Fig. 2. 3.4. Activating potential as a moderator of emotional valenceoutcome relationships Hypotheses 6, 7, and 8 suggested that high-activating positive emotions would produce greater follower satisfaction, ratings of leader effectiveness, and evaluations of transformational leadership than low-activating positive emotions. The satisfaction

Table 2 Effects of leadership style, emotion valence, and emotion activating potential on MLQ ratings. Transformational leadership F Agreeableness Leadership style Emotion valence Activating potential Leadership style x Valence Leadership style x Activating potential Valence x Activating potential Style x Valence x Activating potential Note. 2 = partial eta squared. 7.77 7.35 .46 .87 4.55 2.12 76.53 .12 1, 1, 1, 1, 1, 1, 1, 1, df 287 287 287 287 287 287 287 287 p .00 .01 .50 .35 .03 .14 .00 .73
2

Satisfaction with leader F 12.61 9.44 1.12 1.47 2.60 1.53 67.71 .43 1, 1, 1, 1, 1, 1, 1, 1, df 287 287 287 287 287 287 287 287 p .00 .00 .29 .23 .11 .22 .00 .52
2

Leader effectiveness F 9.44 5.28 1.27 .69 4.87 1.93 36.82 .64 1, 1, 1, 1, 1, 1, 1, 1, df 287 287 287 287 287 287 287 287 p .00 .02 .26 .41 .03 .17 .00 .42 2 .03 .02 .01 .00 .02 .01 .12 .00

.03 .03 .00 .00 .02 .01 .22 .00

.04 .03 .00 .01 .01 .01 .20 .00

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Fig. 1. a. The moderating inuence of leadership style on the relationship of leader emotion valence to follower evaluations of leader effectiveness. b. The moderating inuence of leadership style on the relationship of leader emotion valence to follower evaluations of transformational leadership.

ANCOVA (Table 2) revealed a signicant interaction between activating potential and emotion valence (F(1, 287) = 67.71, 2 = .20, p b .001). Contrasts showed that followers were more satised with leaders who showed high-activating positive emotions (M = 3.66, SD = .92) versus low-activating positive emotions (M = 2.94, SD = .99), supporting hypothesis 6. While we had no hypothesis comparing negative emotions, contrasts showed a pattern opposite to that seen with positive emotions. Followers were more satised with leaders showing low- (M = 3.64, SD = .92) versus high-activating negative emotions (M = 2.61, SD = .99). This interaction is shown in Fig. 3a. This pattern of results was also replicated with leader effectiveness (F(1, 287) = 36.58, 2 = .12, p b .001) and transformational leadership (F(1, 287) = 76.53, 2 = .22, p b .001), supporting hypotheses 7 and 8. Leaders displaying

Table 3 Effects of leadership style, emotion valence, and emotion activating potential on task performance. Task performance F Agreeableness Leadership style Emotion valence Activating potential Leadership style Valence Leadership style Activating potential Valence Activating potential Style Valence Activating potential Note. 2 = partial eta squared. 3.76 1.73 2.95 .12 4.76 .06 .84 1.39 1, 1, 1, 1, 1, 1, 1, 1, df 287 287 287 287 287 287 287 287 p .05 .19 .09 .73 .03 .81 .36 .24 2 .01 .00 .01 .00 .02 .00 .00 .00

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Fig. 2. The moderating inuence of leadership style on the relationship of leader emotion valence to follower performance.

high-activating positive emotions were seen as more effective (M = 3.62, SD = .79 vs. M = 3.12, SD = .90) and transformational (M = 3.52, SD = .65 vs. M = 2.97, SD = .69) than those displaying low-activating positive emotions. These interactions had moderate effect sizes and are shown in Fig. 3b and c. While we didn't have expectations about the effects of negative high- and lowactivating emotions, they showed a similar pattern to the satisfaction analysis, where followers saw leaders who displayed lowactivating negative emotions as more effective and transformational than those displaying high-activating negative emotions. The expectation that followers would perform better on a creative task for a leader displaying high- versus low-activating positive emotions (hypothesis 9) was not supported as there was no signicant interaction between emotion valence and activating potential for task performance. 4. Discussion The present experiment contributes to the literature on emotions and leadership by testing causal relationships of leader emotions on follower responses. Specically, we examined the impact of positive and negative leader emotional displays on follower satisfaction, evaluations of the leader, and performance on a creative task in the presence of two moderatorsleadership style and the activating potential of the leader's emotions. Overall, emotions make a difference for both transformational and transactional leaders. We found that followers responded to negative leader emotions more favorably across three out of four outcomes for transformational leaders than transactional leaders, suggesting that these leaders can express a broader range of emotions without negative consequences to follower perceptions of the leader and creative task performance. On the other hand, negative emotional displays from a transactional leader reduced follower evaluations of the leader's effectiveness and transformational behavior. These ndings are in line with Dasborough and Ashkanasy (2002) propositions that followers attribute more transformational qualities to transactional leaders when they display positive emotions as well as other ndings that more charisma and transformational leadership is attributed to leaders who display positive emotions (Bono & Ilies, 2006; Johnson, 2008). Interestingly, while emotion valence did not affect follower performance for transactional leaders, negative emotions produced higher quality performance for transformational leaders. Followers of transformational leaders may have performed well because emotional appeals are anticipated and accepted from this type of leader as one mechanism used to inspire, motivate, promote ethical standards, and rally people around a vision. When leaders convey a broader sense of purpose to followers and when emotional appeals are expected, goal discrepancies highlighted by negative emotions may have a stronger impact than for leaders operating within a transactional framework. While effect sizes were small, these ndings indicate a clear difference in the impact of negative and positive emotions for these two leadership styles. A second key nding was that the effects of emotion valence were moderated by the activating or motivating potential of the emotion across leadership styles for follower satisfaction and evaluations of the leader. Positive emotions with high-activating potential (pride, challenge, responsibility) elicited better reactions than low-activating emotions (contentment, happiness, optimism). Perhaps not surprisingly, high-activating negative emotions (anger, frustration, guilt) produced the lowest scores on these measures. Anger is a particularly salient emotion that can be perceived as aggressive and threatening (Booth & Mann, 2005; Springer et al., 2007; Taylor, 1991) reducing feelings of well-being (Baron, 1990; Fitness, 2000). Of particular interest, however, is the nding that low-activating negative emotional displays (pessimism, worry and hopelessness) resulted in outcomes similar to the high-activating positive emotions. Followers may have felt less of a sense of threat from these emotions, possibly interpreting them as a leader's worry/concern for organization's welfare. While follower emotions were not measured as an outcome in this study, it would be interesting to know whether these emotions evoked a sympathetic response in followers, rather than inducing

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Fig. 3. a. The moderating inuence of activating potential on the relationship of leader emotion valence to follower satisfaction. b. The moderating inuence of activating potential on the relationship of leader emotion valence to follower evaluations of leader effectiveness. c. The moderating inuence of activating potential on the relationship of leader emotion valence to follower evaluations of transformational leadership.

negative affect. Additional research is needed on the nature of reciprocal emotions experienced by followers in response to leader displays of emotion. Effect sizes of these interactions were moderate, suggesting this may be more important in moderating emotion valence than leadership style.

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4.1. Research implications Beyond the general connotation that leader emotions merit additional consideration outside of transformational and charismatic paradigms, ndings from this study contribute to the research on leadership and emotions in a number of ways. Much of the theoretical and empirical research to date has emphasized the benets of positive versus negative emotions in leadership contexts (e.g., Erez et al., 2008; Gaddis et al., 2004; Johnson, 2008; Newcombe & Ashkanasy, 2002). This study qualies and extends those ndings suggesting that research needs to look beyond valence in understanding the effects of leader emotions, this study shows that certain positive emotions may do more harm than good. The same applies to negative leader emotions. Our ndings are consistent with recent research showing effects for other moderators of leader emotional displays, such as epistemic motivation (Van Kleef et al., 2009) distance (Bucy, 2000) and suggest that other dimensions associated with the appraisal and experience of emotions merit consideration. For example, control, certainty, responsibility, and effort have been identied by various appraisal theories as important dimensions of emotional experience beyond pleasantness (Roseman et al., 1990; Smith & Ellsworth, 1985) and have shown effects in the broader emotions literature (e.g., Bodenhausen et al., 1994; DeSteno et al., 2000; Keltner et al., 1993; Lerner & Keltner, 2000, 2001; Tiedens & Linton, 2001). Our ndings are also interesting because they highlight the differential effects of emotions for follower performance outcomes, at least for transformational leaders. The observed differences in follower responses to discrete leader emotions imply the potential importance of other moderators that might inuence emotion perception. For example, physical, perceived social and interactional distance (Antonokis & Atwater, 2002; Howell et al., 2005) of leaderfollower relationships may impact follower perceptions of emotional displays. Followers who have distant relationships with leaders may perceive and respond to leader emotions differently than those with close relationships. It is possible that physical and interactional distance can reduce feelings of threat potentially associated with negative emotional displays. Or, these forms of distance might reduce the salience of the emotion and possibly the importance of the message, either positive or negative. Similarly, psychological distance might have advantages and disadvantages. Followers who are emotionally or socially close to the leader may give him or her more emotional latitude with negative displays. However, they may also feel they have more to lose (e.g., social bond) when the leader displays negative emotions than followers who are not as close. Level of analysis might also be important to consider. Leader emotions can be powerful inuences on both individual followers and groups of followers. In light of a growing number of studies showing the effects of leader mood on group affective tone (George, 1990; Totterdell, 2000), group effort (Sy et al., 2005) and group coordination (Barsade, 2002; Sy et al., 2005) it would be interesting to explore the impact of discrete leader emotions on groups. 4.2. Practical implications Taking into consideration that replication of these ndings in organizational settings is needed, this study has some utility for leadership practices. First, it is critical for leaders to understand that their emotional displays are viewed, interpreted, and responded to through a variety of lters, one of which is leadership style. Second, recognizing that not all positive emotions have desirable effects (and not all negative ones have undesirable effects) may help leaders to better tailor their emotional displays to achieve desired outcomes. Future research is needed to examine additional outcomes of interest, such as other forms of follower performance, leader performance, and organizational outcomes. These results also have implications for emotional intelligence and leadership, particularly with respect to emotion management (Mayer & Salovey, 1997; Mayer et al., 2000). Leaders need to know when to use different types of emotions to accomplish different purposes with different followers, integrating both individualized consideration and emotion management. Part of being an effective transformational or transactional leader may involve tailoring one's emotional displays according to the emotional dispositions and other attributes of followers. However, this also places greater emotional labor requirements on leaders (Humphrey et al., 2008). Leader development efforts aimed at enhancing emotion management and emotion understanding might benet from knowing more about the unique and interactive effects of discrete leader emotions. 4.3. Limitations This study has some limitations. First and foremost, this study was conducted in a laboratory setting where participants responded to an articially created leadership situation, potentially limiting the generalizability of the ndings. However, as others have pointed out (Dipboye, 1990; Ilgen, 1986), laboratory research has a place in theory development and testing, especially when there are few studies or untested theories. Ilgen (1986) noted that the direction of effects across eld and lab studies has been highly similar, despite some differences in magnitude. Given that little is known about the effects of specic leader emotions on followers as well as factors that moderate their inuence, laboratory studies may provide valuable insight. In fact, Brown and Lord (1999) argued that experimental methodologies are particularly appropriate for investigating nonconscious aspects of leadership such as emotions. Finally, recent research has demonstrated correspondence between the effects of leadership styles and behavior across laboratory experiments and eld studies (De Cremer et al., 2005; van Kippenberg & van Knippenberg, 2005).

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Second, the use of a paper-leader may have presented participants with a weak situation (Mischel, 1977) potentially limiting the effects of leader style and leader emotions, and, enabling individual differences to have a greater impact on study outcomes. Our effect sizes for the valence by leadership style interaction were small. Indeed, use of a live leader may have increased the salience and effects of leader emotions as indicated in a recent meta-analysis which found that visual and auditory emotion manipulations produce larger effect sizes (Angie, 2008). This is one potential reason we did not see any signicant effects for follower gender as a covariate. However, research on E-leadership has shown that written information (i.e., description of leader's behavior, e-mail) is enough for the individual to understand the leader's intent and style as long as the information portrays the presence of the leader (Avolio & Kahai, 2003; Avolio et al., 2000; Bass et al., 1987). With respect to individual differences, only one of the covariates examined in this study (agreeableness) was signicantly related to the dependent variables and had relatively small effects. A third potential limitation is that we did not explicitly measure the emotional reactions of followers or other mediating mechanisms that would explain why leader emotions had the impact they did. However, several studies now have found mood contagion operating with respect to leaders spreading their emotional state to followers (Bono & Ilies, 2006; Cherulnik et al., 2001; Erez et al., 2008). Additionally, Lewis (2000) observed that high activation leader emotions led followers to experience greater arousal, while low activation emotions led them to feel greater fatigue. An alternative explanation is that followers responded well to leader emotions that matched what might be expected for the leader's particular style. The idea of affective congruence is intriguing and consistent with other research showing more benecial outcomes for leader affect that matched message valence (Newcombe & Ashkanasy, 2002) and follower affect (Damen et al., 2008). More research is needed on these mechanisms and how they operate with specic kinds of emotions. This study examined just a few possible combinations of leader emotions for the purpose of examining the effects of valence and activation potential. Other combinations of emotions, including a mix of both positive and negative, are both probable and may have different effects. It would be interesting to look at different patterns of emotional expressions in organizational leaders and how followers interpret and respond to these. Additionally, more insight is needed into the short and long-term effects of different kinds of leader emotions. As Sy et al. (2005) noted, negative leader emotions may produce short term gain in terms of group effort, but might have more negative effects if displayed on a frequent basis or over a long timeframe. 5. Conclusions Bearing these caveats in mind, this study adds to the body of data on emotions and leadership, particularly with respect to the role of emotion valence. We showed that leader emotions have the potential to inuence follower satisfaction, perceptions of the leader and follower performance on creative tasks. We hope this research stimulates new investigations examining other types of leader emotions, follower emotions, and other types of work behavior. Appendix A Name of Organization: The Luxuries of Life Type of Organization: National chain-store Products: Various novel items ranging from sonic-care toothbrushes to Sony's robotic dog Robitic-1. Current Customer Base: Products from this store are priced fairly high, given that they cannot be found in other stores; after all, the products not necessities are in fact true luxuries. For example, the sonic-care toothbrush is priced at $99.99, while the Sony dog goes for $750. Some of the other popular items, including the personal massage recliner, can be priced as high as $2,000. Levels of Division: The rm is composed of six distinct divisions: (1) research & development; (2) production; (3) marketing; (4) shipping; (5) sales; and (6) management. History: The company began in 1988 and consisted of only 12 stores equally distributed between San Francisco, Los Angeles, Chicago, and New York City. The store has grown to nearly 60 stores nationwide. Successful growth can be contributed to both the creation of innovative, but high quality products along with successful marketing. Company growth leveled off two years ago, and the rm is now exploring new sources of revenue to stimulate organizational growth once again. Previously, the rm focused production to appeal to consumers with a yearly income of no less than $80,000, but now have decided that growth can only occur by expanding its consumer base. Primary Goal for this Year: To expand its current customer base to increase name recognition, market share, and protability. Your Role: You have been a member of the Marketing Department for 12 years. The department consists of 15 members, all but three having started at the same time you did. This has provided the department with a stable working environment. Employee responsibilities include conducting market surveys, designing advertising strategies, suggesting product improvements/designs based on collected information, informing the senior management and executive committee about market demands, and nally responding to senior management requests.

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Appendix B Manipulation of Positive, High-Activating Emotionsa (Responsibility, Pride, Challenge) Prior Interactions with Your Boss: Over the last several years, you have had an opportunity to work closely with your boss. You have observed your boss in many different situations and you know exactly what to expect in terms of your boss's reactions and behavior in a variety of circumstances. Some examples include: Your boss recently met with your department as a group to relay the primary strategic emphasis of reaching more customers in the coming year. Although your boss expressed pride in the group's efforts, your department did not implement suggested strategies last year, which would have begun to expand the customer base. Your boss accepted responsibility for not providing better direction and oversight for the department and promised to remedy this, pointing to several things that could be done to avoid some of the specic mistakes made by individuals in your group. The boss felt accountable for not keeping up with the progress made by direct competitors who have successfully reached out to a wider customer base and challenges your group to perform better than competitors next year. Your boss then communicated the strategic emphasis of the department for the coming year. Last month, you overheard your boss talking to another manager about an employee in your department who has not been performing well. Your boss told the manager about the employee's unnished projects, inaccurate market surveys, and problems getting along with other staff members. Realizing that a different approach would have to be taken, your boss asked the other manager for advice in how to change this employee's behavior to get her to be more dependable and take ownership of her work. The boss admits it will be difcult for this employee to change, but takes pride in trying to turn her performance around. You recently had a performance evaluation meeting with your boss. Generally, you have been doing a good job, but you have a few areas that need improvement. After listing the things you did well, your boss's tone changes. Although I am continually telling other senior managers about your capabilities and accomplishments, you need to be more consistent. It's my job to help you stay focused and to ensure you handle your poor performing subordinates. You could be the next Vice President of Marketing. Specically, your boss tells you that you need to instill a stronger sense of pride and responsibility to meet challenges in your subordinates who don't get work completed on time or miss important meetings. Manipulation of Negative, Low-Activating Emotionsa (Hopelessness, Pessimism, Anxiety) Prior Interactions with Your Boss: Over the last several years, you have had an opportunity to work closely with your boss. You have observed your boss in many different situations and you know exactly what to expect in terms of your boss's reactions and behavior in a variety of circumstances. Some examples include: Your boss recently met with your department as a group to relay the primary strategic emphasis of reaching more customers in the coming year. Your boss expresses pessimism and uncertainty regarding your department's future efforts given that the department did not implement suggested strategies last year, which would have begun to expand the customer base. Your boss expresses doubt and worries that your department will not perform better in the coming months, reminding the group about specic mistakes made by individuals in your group. The boss also seems to feel that the progress made by direct competitors, who have successfully reached out to a wider customer base, will only increase in the future, making competition more intense and the future of your company more uncertain. Your boss then communicated the strategic emphasis of the department for the coming year. Last month, you overheard your boss talking to another manager about an employee in your department who has not been performing well. Your boss told the manager about the employee's unnished projects, inaccurate market surveys, and problems getting along with other staff members. Given these performance problems, your boss sounded as if the employee was a lost cause, saying that she was unlikely to change in the coming months and there was not much that could be done about it. Your boss is anxious about what problems this employee will cause next. You recently had a performance evaluation meeting with your boss. Generally, you have been doing a good job, but you have a few areas that need improvement. After listing the things you did well, your boss's tone changes. You do your job well most of the time, but I have serious doubts about your inconsistency. I'm not sure that this is a problem that can be xed. I used to think you had the potential to be the next Vice President of Marketing if you stay focused and handled your poor performing subordinates, but it would take a miracle for this to happen. Specically, your boss tells you that there isn't much hope for doing anything about your subordinates who don't get work completed on time or miss important meetings. Your boss is anxious about your performance and the impact your subordinates might have. Notea: Text was not italicized in any of the materials given to participants.

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Appendix C Benchmarks for Evaluating Quality and Originality of Marketing Plan Quality Considerations

Completeness: Did the person appear to fully understand the task instructions? Did the person follow the instructions fully and completely in recommending the marketing strategy? Did the person recommend a strategy in sufcient detail? Coherence: Did the person's strategy clearly address the requests of the senior management? Was the person's strategy well thought out and logical?

Example Anchors. 1 Target the product for the intended market group 2 Utilize graphic designs to enhance the catalog's images and details 3 Develop a new slogan/jingle that can be aired on radio and television programs sponsored by the company 4 Design celebrity based infomercials that will be aired on public television, and include contact information emphasizing the online store 5 Coordinate with Net-product sites that correspond with the company's products to establish direct links to the online store (e.g., Consumer review on electronic toothbrushes contains a link to our Sonic-care Brush

Originality Considerations Novelty: Did the strategy approach the problem in an unexpected, imaginative, unpredicted, or creative way? Descriptiveness: Did the person expand upon basic ideas and suggestions to help the reader understand the details of the suggested strategy? Newness: Did the person reach beyond the current strategy of catalog mailing, and included suggestions that utilized additional sources to market the company and its products?

Example anchors. 1 Make the catalog pictures bigger with more detailed descriptions of the products 2 Develop a coupon/advertisement will be located in the coupon section all national Sunday newspapers 3 Advertise store products using electronic billboards in metropolitan areas 4 Use internet pop-up advertising devices that will give the viewer product information and a direct link to the online store 5 Coordinate with a major motion movie production so that one of the company's trade-marked products is extensively used by the leading role(s)

Appendix D Intercorrelations among study variables for conditions within each manipulation
Transformational (lower diagonal) and transactional leadership style. 1 Transformational leadership Satisfaction with leader Leader effectiveness Task performance Agreeableness Conscientiousness Extraversion Neuroticism Openness Trait PA Trait NA .82** .83** .09 .21** .10 .12 .07 .00 .09 .06 2 .87** .81** .04 .30** .15 .11 .15 .01 .04 .01 3 .80** .78** .06 .18 .04 .05 .08 .10 .08 .01 4 .19* .19* .17* .02 .00 .02 .09 .03 .07 .05 5 .07 .06 .17* .24** .32** .09 .27** .23** .01 .06 6 .11 .18* .01 .09 .30** .07 .33** .05 .06 .07 7 .06 .17* .04 .03 .17* .22** .21** .24** .20** .08 8 .15 .19* .12 .03 .30** .39** .36** .09 .28** .37** 9 .09 .02 .04 .09 .17* .02 .18* .20* .16* .03 10 .04 .07 .04 .03 .08 .15 .12 .15 .07 .30** 11 .01 .10 .11 .06 .13 .29** .17* .43** .09 .37**

Note. Transformational leadership style, N = 144; transactional leadership style, N = 144; *p b .05; **p b .01.

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Positive (lower diagonal) and negative emotion valence. 1 Transformational leadership Satisfaction with leader Leader effectiveness Task performance Agreeableness Conscientiousness Extraversion Neuroticism Openness Trait PA Trait NA .84** .82** .07 .08 .04 .08 .09 .05 .07 .08 2 .86** .80** .05 .13 .06 .02 .04 .06 .09 .01 3 .80** .79** .02 .13 .01 .08 .06 .08 .04 .11 4 .17* .09 .13 .08 .05 .06 .06 .08 .04 .04 5 .13 .17* .15 .17* .35** .16 .34** .20* .04 .10 6 .03 .04 .00 .08 .29** .14 .44** .04 .17* .23** 7 .05 .11 .09 .03 .08 .14 .29** .20* .28** .15 8 .05 .06 .02 .02 .23** .27** .30** .12 .34** .45** 9 .13 .06 .01 .07 .16 .00 .21** .16 .04 .05 10 .05 .01 .09 .06 .04 .15 .01 .04 .05 .40** 11 .01 .09 .00 .05 .04 .08 .09 .34** .03 .27**

Note. Positive valence, N = 146; negative valence, N = 142; * p b .05; **p b .01.

High activation potential emotions (lower diagonal) and low activation emotions. 1 Transformational leadership Satisfaction with leader Leader effectiveness Task performance Agreeableness Conscientiousness Extraversion Neuroticism Openness Trait PA Trait NA .86** .80** .02 .21** .02 .01 .05 .14 .08 .06 2 .84** .79** .08 .24** .02 .02 .03 .09 .09 .08 3 .83** .79** .10 .22** .00 .03 .01 .03 .18 .03 4 .05 .03 .04 .18* .09 .08 .06 .14 .01 .04 5 .03 .05 .06 .01 .38** .15 .30** .28** .04 .04 6 .10 .12 .00 .01 .24** .14 .40** .04 .08 .09 7 .07 .05 .05 .16 .11 .15 .27** .17* .18* .06 8 .08 .06 .06 .12 .28** .32** .32** .09 .15 .41** 9 .10 .10 .12 .06 .06 .03 .26** .22** .05 .01 10 .03 .01 .06 .10 .14 .18 .14 .26** .03 .37** 11 .12 .15 .12 .03 .23** .25** .19* .38** .14 .30**

Note. High activation, N = 147; low activation, N = 141; * p b .05; **p b .01.

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