The Effect of Transformational Leadership on Commitment to Change Mediated by Trust and Employee Engagement in Public Organization

Abstract:

Leadership and employee commitment to change is very important for the successful implementation of an organizational change initiative. Type of leadership that is often associated with organizational change is transformational leadership. The aims of this study are to determine the effect of transformational leadership on commitment to change and the mediation effect of trust and employee engagement at the public organization. The research was conducted at institution X that is implementing a change in organization structure (restructuring). The respondents were the employee on a staff position (nonstructural) of institution X at the head office in Jakarta. Structural Equation Modeling (SEM) was used to analyze the data from 247 respondents. The result of the study showed that transformational leadership had a significant but negative direct effect on commitment to change. Also, this effect mediated by trust and employee engagement.

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