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The purpose of this study is to understand the leadership humour style and the mechanism through which leadership humour style transforms into follower’s workplace positive and negative outcomes such as thriving at work and burnout. It uses comprehensive elaboration theory and relational process theory to explore self-disclosure and perceived similarity as two new constructs to assess their relation to intrapsychic (self-enhancing and self-defeating) and interpersonal (affiliative and aggressive) leader’s humour style, respectively.

An exploratory qualitative study through semi-structured interviews was conducted with 10 leaders to understand the different aspects of leadership humour and their outcomes. Based on these dimensions, a questionnaire was created and sent to 200 respondents, and 158 responses were received. The empirical analysis of data was done by building structural equation modeling using smart partial least square.

The empirical study has shown that self-enhancing leadership humour is related to self-disclosure, and both affiliative and aggressive leadership humour styles are related to perceived similarity. When looking at the two critical outcomes of leadership humour, both perceived similarity and self-disclosure were related to social intimacy and thriving at work. The mediation effect showed that self-enhancing humour leads to self-disclosure which increases social intimacy leading to improving thriving at work and aggressive humour leads to norm violation which further leads to burnout.

The study has used the mixed methodology to understand leadership humour and its outcomes by conducting in-depth interviews with leaders and also provides empirical evidence related to leadership humour style by using the survey to collect data from the followers capturing their perceptions. And very critically, it has explored self-disclosure and perceived similarity as two new constructs to see their relation to leadership humour style and positive and negative outcomes at the workplace.

The study aims to closely look at the phenomenon of transformational leadership and the psychological capital of followers by using affective process theory (APT). It has empirically tested the mediation of the perceived emotional labor (EL) of a leader and susceptible emotional contagion (EC) of followers when studying the effect of transformational leadership on the psychological capital (PsyCap) of followers.

The method adopted was mixed methodology. The data were collected from the 120 respondents and their perception regarding the construct as identified by previous literature was captured through a structured questionnaire. The relationships and hypotheses were tested by the structural equation modeling (SEM) model using SMART PLS. Further 20 semi-structured interviews were conducted using a qualitative approach.

The current research has empirically shown how specific aspects of transformational leadership, i.e. individual consideration perceived by followers also show high use of perceived deep acting strategy. Deep acting EL strategy is impacting positive EC and positive EC is leading to higher PsyCap of followers generating more work efficacy, hope, optimism and resilience. Mediation of positive EC between Deep acting EL and PsyCap was also observed. In qualitative studies done with the participants, major themes that emerged were transformational leadership, EL strategies, EC and PsyCap.

In times of uncertainty and stress after the post-COVID scenario, employees are facing emotional burnout due to increased work pressure and workload. Transformational leadership has become very critical to manage the PsyCap of followers by using correct EL strategies. Leaders can focus on the optimism and resilience aspect of PsyCap.

The current research has taken affective process theory (APT) as a foundation to understand the connection between transformational leadership and the PsyCap of followers. The study has specifically picked up the fourth mechanism of affective linkage as suggested by Elfenbein (2014) called emotional recognition and seen how emotions are transferred from source (leaders) to recipient (followers). The research has contributed by empirically testing the mediation of the perceived EL of leaders and the susceptible EC of followers and how they affect the PsyCap of followers.