Sustainability (Switzerland), cilt.14, sa.20, 2022 (SCI-Expanded)
© 2022 by the authors.The purpose of this study is to provide a theoretical framework that demonstrates how psychological capital (PsyCap) can simultaneously mediate the effects of servant leadership (ServL) and authentic leadership (AuthL) on employee engagement in the workplace. This study examines whether AuthL better explains PsyCap and workplace engagement from the perspective of Generation Z (Gen Z) than ServL, although recent research shows that ServL and AuthL correlate well with Generations X and Y, respectively. In addition, there is limited research on the above aspects in the hospitality industry. These studies either have a very limited sample, contradictory results in their own context, or contradictory results in the same industry regarding the above relationships. This study will attempt to shed light on these contradictory findings. The researchers surveyed 393 members of Gen Z working in the hospitality business in one of Russia’s most popular destinations, Krasnodar. Data were analyzed using structural equation modeling, bootstrap analysis and descriptive statistics. Although both leadership styles have a positive impact on PsyCap and work engagement (WorkE) of Gen Z employees, AuthL has a greater impact on PsyCap and work engagement than ServL, according to the results. PsyCap was found to mediate the relationship between the two leadership styles and frontline Gen Z employees, and the study also found that it influenced overall Gen Z performance. The influence of PsyCap on the job engagement of Gen Z employees in the Russian hospitality industry is examined.