The Moderating Effect of Leadership Style on the Relationship between Employee Monitoring and Employee Outcomes

The emergence of employee monitoring technologies has significantly impacted the contemporary work environment across the globe, giving rise to concerns over privacy, trust, and employee outcomes. This study aims to evaluate the moderating role of leadership style in the relationship between employee monitoring and employee outcomes applying McGregor’s Theory X and Y. The study involved a community of practice (COP) comprised of 203 human resources practitioners with diverse backgrounds. Data were gathered using Google Forms and online interviews and then analysed in alignment with the study's hypotheses and conceptual framework. The study revealed that leadership style moderates the relationship between employee monitoring and employee outcomes. It also found that excessive monitoring negatively impacts employee outcomes, including job satisfaction, trust in leadership, and organisational commitment, ultimately hindering productivity (H2a aligns with Theory X). Collaboration, open and honest communication, and trust between leadership and employees were identified as essential processes for growth and development, promoting positive outcomes such as job satisfaction and improved performance (H2b, Theory Y). The study recommends that organisations optimise employee monitoring by aligning their practices with leadership styles that prioritise trust, empowerment, and open communication, such as those outlined in Theory Y. This study enhances understanding of the complex interplay between leadership styles and employee monitoring. Offering empirical evidence on the moderating role of leadership, the study provides practical insights for organisations aiming to maximise the benefits while minimising the drawbacks of monitoring practices.