Laissez-faire leadership is universally considered to be the most ineffective leadership style. However, a few recent studies revealed that laissez-faire leadership may have modest or even significant positive influence on subordinates’ work outcomes. To explain the inconsistent findings of laissez-faire leadership studies, the current study draws on stress theory and achievement goal theory to examine the boundary conditions and mechanisms underlying the impact of laissez-faire leadership on subordinates, cognitive appraisal and subsequent performance. Results from an experience sampling study of 68 supervisor-subordinate dyads that completed daily surveys over 10 consecutive work days indicated that: (1) when subordinates’ learning goal orientation is high, the relationship between laissez-faire leadership and hindrance appraisal will be positive; the indirect relationship between laissez-faire leadership and subordinates’ performance via subordinates’ hindrance appraisal will be negative; and (2) when subordinates’ performance-prove or performance-avoid goal orientation is high, the relationship between laissez-faire leadership and challenge appraisal will be positive; the indirect relationship between laissez-faire leadership and subordinates’ performance via subordinates’ challenge appraisal will be positive. This study found the double-edged sword effect of laissez-faire leadership at within-person level, which helps integrate inconsistent views in previous studies and explore the impact of laissez-faire leadership from a more nuanced and balanced perspective.

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