The role of strategic leadership on the effects of digitalisation and automation on employees’ psychological well-being and engagement in the workplace

Abstract

Purpose – The objective of this paper is to analyse the correlation between strategic leadership and digitalisation in the workplace. The study aims to explore the impact of strategic leaders in managing the adoption and implementation of digitalisation and automation initiatives. The study focuses on three main constructs: strategic leadership, psychological well-being, and workplace engagement. Design/methodology/approach – The study utilised a positivist quantitative methodology to gather data from the information technology departments and their corresponding business units in the South African banking industry. The study employed a cross-sectional research design and utilised exploratory factor analysis to analyse the collected data. Findings – The findings indicate that strategic leadership in the South African banking industry has a clear vision for digitally transforming their organisation. However, the study also reveals that employees are not included in the decision-making process regarding digitalisation and automation. As a result, many employees have experienced negative psychological well-being, which in turn affects their level of engagement at work. Practical implications – The paper will build upon the current body of literature regarding digital transformation. Originality/value – The instruments were derived from existing literature, but they were not simply copied. The study's findings could prove to be extremely valuable for organisations and industries looking to embrace and incorporate digitalisation and automation.