Transformational Leadership, Change Self-Efficacy on Affective Commitment to Change, in Banking versus Insurance Industries

2018 ◽  
Vol 24 (1) ◽  
pp. 497-499
Author(s):  
Wustari L Mangundjaya ◽  
Denvi Giovanita
Author(s):  
Denvi Giovanita ◽  
Wustari L. Mangundjaya

Objective - It is essential for organizations in 21st century to evolve with time. In this regard, both the management and employees of an organization play an essential role in the implementation of change. One way of determining the success of organizational change is by identifying the employees' commitment to change. This research aims to identify the effect of transformational leadership (organizational factors) and employees' change self-efficacy (individual factors) on effective commitment to change, to identify which of those two factors has a more significant effect on affective commitment to change. Methodology/Technique - The respondents of this study are employees in the finance sector. The data was collected using commitment to change, change self-efficacy and transformational leadership inventories. The data was analyzed using multiple hierarchical regressions. Findings – The result show that both transformational leadership and change self-efficacy have a positive and significant effect on affective commitment to change. Furthermore, change self-efficacy proved to have a more significant effect on affective commitment to change compared to transformational leadership. Based on these results, organisations may wish to further focus on the development of change self-efficacy of individuals. Novelty - This study can be used by HR practitioners when dealing with organizational change, as a guide to improving the success of such change. Type of Paper - Empirical. Keywords: Affective Commitment to Change; Change Self-Efficacy; Leadership; Organizational Change; Transformational Leadership. JEL Classification: M10, M19.


Author(s):  
Tim Brouns ◽  
Roxane Rexin ◽  
Kai Externbrink

The purpose of the paper is to contribute to the inner workings of transformational leadership in the context of organizational change. According to the organizational role theory, role conflict is proposed as a mediator between transformational leadership and affective commitment to change and irritation. Cross-sectional data were collected in a German company in the textiles sector, undergoing a pervasive IT-related change. Confirmatory factor analysis and structural equation modeling was performed for validity and hypothesis testing. The findings suggest that role conflict acts as a full mediator in the relationship between transformational leadership and affective commitment to change, as well as irritation. Transformational leadership is often discussed in terms of change-oriented leadership. Surprisingly, only a few studies have examined the specific impact of transformational leadership on attitudinal outcomes during change processes, yet. Consequently, research on the underlying psychological mechanisms of the relationship is scarce, too.


2014 ◽  
Vol 27 (6) ◽  
pp. 900-921 ◽  
Author(s):  
Carolin Abrell-Vogel ◽  
Jens Rowold

Purpose – Followers’ affective commitment to change has been found to constitute a strong predictor of the success of change initiatives in organizations. Several studies have yet shown positive effects of transformational leadership on followers’ commitment to change. However, up to date there is no study examining the direct effects of different transformational leadership behaviors on followers’ commitment to change and the moderating impact of leaders’ commitment to change on these relationships. The paper aims to discuss these issues. Design/methodology/approach – This study uses a cross-sectional, multilevel design based on multisource date from 38 teams from different organizations with a total of 177 participating team members. Data of leaders’ and followers’ commitment to change as well as ratings of transformational leadership behavior were captured applying a quantitative approach. Findings – Results show a significant positive effect of the transformational leadership behavior “individual support” on followers’ affective commitment toward change. Moreover, the transformational leadership behavior “providing an appropriate model” was shown as only positively contributing to followers’ commitment to change when leaders’ own commitment toward change was high. Research limitations/implications – Due to the multilevel and multisource data, the sample is relatively small which limits the external validity of findings. Also, future studies should invest in longitudinal replication of relationships. Research on leaders’ and followers’ commitment to change should continue to develop more complete models of interacting influence factors. Practical implications – For team leaders and organizations, results underline the importance of individual support of team members. Thus, leaders need to be enabled to invest individual leadership in the long run. Also, leaders need to become aware of their own commitment toward the change and, going beyond, need to develop a positive bond to the change if they want to be able to act as successful role models. Originality/value – This paper contributes to existing literature by offering a more detailed insight for researchers and practitioners into the effectiveness of transformational leadership in change by exploring the impact of different transformational leadership behaviors effecting followers’ commitment to change. Moreover, it provides important knowledge about the relevance of leaders’ own commitment to change as a moderator of effective leadership in change.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  

Purpose This study has two purposes. Firstly, it aims to investigate whether self-efficacy constitutes one of the mechanisms by which transformational leadership impacts on employee positivity in reacting to change. Secondly, it aims to investigate whether the extent of change moderates the relationship between transformational leadership, self-efficacy and reactions to change. This study also explores the possibility that when the extent of change is higher, the effectiveness of transformational leadership may be lower. Design/methodology/approach This study used a sample of employees where the organization was going through significant change. Employee ratings on specific scales were used to measure transformational leadership, self-efficacy, affective commitment to organizational change, and intention to support change. A cumulative change index was used to assess the number of changes employees had experienced during the change process. Findings The results confirmed hypothesis 1 that transformational leadership was related to affective commitment and intention to support change and this was to a high level of statistical significance. Testing hypothesis 2 that self-efficacy mediated the effect of transformational leadership on commitment and intention to support change indicated that self-efficacy did mediate in this relationship confirming both hypothesis 2a and 2 b. The results did not support hypothesis 3a, with no significant interaction effect showing that the interaction between transformational leadership and self-efficacy did not differ between low versus high extent of change. However, the results did support hypothesis 3 b with the strength of the positive relationship between self-efficacy and reactions to change differing across high versus low extent of change. For both affective commitment and intention to support change, the interaction of self-efficacy and change index was significant. Research limitations/implications Current weaknesses in the transformational leadership research include: a bias towards heroic leadership and away from collective and shared process of leadership, the underlying processes have not been clearly identified, lack of precision about situational variables that may impact on these processes. This paper does not address the first weakness. Practical implications Self-efficacy gains importance when the extent of change is high. The results suggest that change managers should adopt a transformational style of leadership to enhance recipients’ self-efficacy to generate positive attitudes and behaviours during change. They also suggest the selection and training of managers in transformational leadership attributes and also the inclusion of this in the monitoring of managers’ behaviours in post. The research outlined in this paper makes a significant contribution to an organization’s capacity to achieve change, particularly when the extent of change is high. Social implications This research provides ways in which organizations can better achieve change through positive processes. Originality/value Transformational leadership can create a vision of the future and inspire followers to work to achieve it and to build hope and confidence for the future. This can prevent or overcome resistance to or reluctance about change. Lack of alignment of values between employees and the organization can result in change failure. This paper provides original insight into how change can be achieved by transformational leadership building self-efficacy.


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