The factors impacting employee commitment to organizational change
Abstract
In the financial sector, the need for organizational change is impacted by the consequences of pandemic, changes in consumer needs, competition, climate change, and increasing number of financial technology start-ups. The banks play a vital role in the economies of countries, so the changes taking place in them are undoubtedly important, and the commitment of employees to change is considered a necessary condition for the successful implementation of change. However, the studies, investigating how different factors contribute to the employees’ commitment to change in the Lithuanian banking sector, are scant. Therefore, the aim of this article is to determine how transformational leadership style, organizational change goals, communication quality, and certainty affect employees’ commitment to change in banking sector organization. The results of the study demonstrate that transformational leadership style, quality of change communication, clarity of goals, and certainty increase employees’ commitment to change, and transformational leadership style increases employees’ commitment to change by acting as a mediator between organizational communication, clarity of organizational change goals, and other information that increases employees’ feeling of certainty. The findings provide insights for managers who want to support employees and seek the success of organizational changes.
Keyword : organizational change, commitment to change, transformational leadership style, organizational change goals, quality of change communication, certainty
How to Cite
Petrauskaitė-Jocienė, V., & Korsakienė, R. (2024). The factors impacting employee commitment to organizational change . Business: Theory and Practice, 25(2), 488–501. https://doi.org/10.3846/btp.2024.21130
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Chebbi, H., Yahiaoui, D., Sellami, M., Papasolomou, I., & Melanthiou, Y. (2020). Focusing on internal stakeholders to enable the implementation of organizational change towards corporate entrepreneurship: A case study from France. Journal of Business Research, 119, 209–217. https://doi.org/10.1016/j.jbusres.2019.06.003
Cole, M. S., Harris, S. G., & Bernerth, J. B. (2006). Exploring the implications of vision, appropriateness, and execution of organizational change. Leadership & Organization Development Journal, 27(5), 352–367. https://doi.org/10.1108/01437730610677963
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Errida, A., & Lotfi, B. (2021). The determinants of organizational change management success: Literature review and case study. International Journal of Engineering Business Management, 13. https://doi.org/10.1177/18479790211016273
Hanusz, Z., Tarasinska, J., & Zielinski, W. (2016). Shapiro-Wilk test with known mean. Revstat, 14(1), 89–100. https://doi.org/10.57805/revstat.v14i1.180
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Herscovitch, L., & Meyer, J. P. (2002). Commitment to organizational change. Journal of Applied Psychology, 87(3), 474–487. https://doi.org/10.1037/0021-9010.87.3.474
Hussain, S. T., Lei, S., Akram, T., Haider, M. J., Hussain, S. H., & Ali, M. (2018). Kurt Lewin’s change model: A critical review of the role of leadership and employee involvement in organizational change. Journal of Innovation & Knowledge, 3(3), 123–127. https://doi.org/10.1016/j.jik.2016.07.002
Igartua, J. J., & Hayes A. F. (2021). Mediation, moderation, and conditional process analysis: Concepts, computations, and some common confusions. Spanish Journal of Psychology, 24, 1–24. https://doi.org/10.1017/SJP.2021.46
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Khaw, K. W., Alnoor, A., Al-Abrrow, H., Tiberius, V., Ganesan, Y., & Atshan, N. A. (2022). Reactions towards organizational change: A systematic literature review. Current Psychology, 42, 19137–19160. https://doi.org/10.1007/s12144-022-03070-6
Kim, H., Im, J., & Shin, Y. H. (2021). The impact of transformational leadership and commitment to change on restaurant employees’ quality of work life during a crisis. Journal of Hospitality and Tourism Management, 48, 322–330. https://doi.org/10.1016/j.jhtm.2021.07.010
Korsakienė, R., Juodeikė, R., & Bužavaitė, M. (2017). Factors impacting and restricting success of organizational changes. In 5th International Scientific Conference “Contemporary Issues in Business, Management and Education‘2017” (pp. 250–256). Vilnius Gediminas Technical University. https://doi.org/10.3846/cbme.2017.096
Levovnik, D., & Gerbec, M. (2018). Operational readiness for the integrated management of changes in the industrial organizations – assessment approach and results. Safety Science, 107, 119–129. https://doi.org/10.1016/j.ssci.2018.04.006
Liu, X., Wang, F., & Wong, C. (2022). Impact of traditional behavior of customers, employees, and social enterprises on the fear of change and resistance to innovation. Frontiers in Psychology, 13, 923094–923094. https://doi.org/10.3389/fpsyg.2022.923094
Luu, D. T., & Phan, H. V. (2020). The effects of transformational leadership and job satisfaction on commitment to organisational change: A three-component model extension approach. The South East Asian Journal of Management, 14(1). https://doi.org/10.21002/seam.v14i1.11585
Men, L. R., Neill, M. S., April Yue, C., & Verghese, A. K. (2022). The role of channel selection and communication transparency in enhancing employee commitment to change. Journalism & Mass Communication Quarterly. https://doi.org/10.1177/10776990221100518
Men, L. R., Yue, C. A., & Liu, Y. (2020). “Vision, passion, and care:” The impact of charismatic executive leadership communication on employee trust and support for organizational change. Public Relations Review, 46(3), Article 101927. https://doi.org/10.1016/j.pubrev.2020.101927
Oreg, S., Bartunek, J. M., Lee, G., & Do, B. (2018). An affect-based model of recipients’ responses to organizational change events. Academy of Management Review, 43(1), 65–86. https://doi.org/10.5465/amr.2014.0335
Ouedraogo, N., Zaitouni, M., & Ouakouak, M. L. (2023). Leadership credibility and change success: Mediating role of commitment to change. International Journal of Productivity and Performance Management, 72(1), 47–65. https://doi.org/10.1108/IJPPM-01-2021-0017
Pakalniškienė, V. (2012). Determining the reliability and validity of research and evaluation tools, methodological tool. Vilnius University Publishing House.
Ramos-Maçães, M.-A., & Román-Portas, M. (2022). The effects of organizational communication, leadership, and employee commitment in organizational change in the hospitality sector. Communication & Society, 35(2), 89–106. https://doi.org/10.15581/003.35.2.89-106
Seggewiss, B. J., Straatmann, T., Hattrup, K., & Mueller, K. (2019). Testing interactive effects of commitment and perceived change advocacy on change readiness: Investigating the social dynamics of organizational change. Journal of Change Management, 19(2), 122–144. https://doi.org/10.1080/14697017.2018.1477816
Shore, L. M., Cleveland, J. N., & Goldberg, C. B. (2003). Work attitudes and decisions as a function of manager age and employee age. Journal of Applied Psychology, 88(3), 529–537. https://doi.org/10.1037/0021-9010.88.3.529
Shrivastava, S., Pazzaglia, F., Sonpar, K., & McLoughlin, D. (2022). Effective communication during organizational change: A cross-cultural perspective. Cross Cultural & Strategic Management, 29(3), 675–697. https://doi.org/10.1108/CCSM-08-2021-0144
Stelmokienė, A., & Endriulaitienė A. (2009). Psychometric indicators of the Lithuanian version of the General Transformational Leadership Scale. Psichologija, 40, 88–102. https://doi.org/10.15388/Psichol.2009.0.2584
Wang, Y. (2022). Analyzing the mechanism of strategic orientation towards digitization and organizational performance settings enduring employee resistance to innovation and performance capabilities. Frontiers in Psychology, 13, 1006310–1006310. https://doi.org/10.3389/fpsyg.2022.1006310
Warrick, D. D. (2022). Revisiting resistance to change and how to manage it: What has been learned and what organizations need to do. Business Horizons, 66(4), 433–441. https://doi.org/10.1016/j.bushor.2022.09.001
Zhang, Y., Zhang, J., Forest, J., & Chen, C. (2018). The negative and positive aspects of employees’ innovative behavior: Role of goals of employees and supervisors. Frontiers in Psychology, 9, 1871–1871. https://doi.org/10.3389/fpsyg.2018.01871
Zwick, T. (2002). Employee resistance against innovations. International Journal of Manpower, 23(6), 542–552. https://doi.org/10.1108/01437720210446397
Albrecht, S. L., Connaughton, S., Foster, K., Furlong, S., & Yeow, C. J. L. (2020). Change engagement, change resources, and change demands: A model for positive employee orientations to organizational change. Frontiers in Psychology, 11, 531944–531944. https://doi.org/10.3389/fpsyg.2020.531944
Allen, J., Jimmieson, N. L., Bordia, P., & Irmer, B. E. (2007). Uncertainty during organizational change: Managing perceptions through communication. Journal of Change Management, 7(2), 187–210. https://doi.org/10.1080/14697010701563379
Bagga, S. K., Gera, S., & Haque, S. N. (2022). The mediating role of organizational culture: Transformational leadership and change management in virtual teams. Asia Pacific Management Review, 28(2), 120–131. https://doi.org/10.1016/j.apmrv.2022.07.003
Bekešienė, D. (2015). Fundamentals of data analysis (a textbook). General Jonas Žemaitis Lithuanian Military Academy.
Bordia, P., Hunt, E., Paulsen, N., Tourish, D., & DiFonzo, N. (2004). Uncertainty during organizational change: Is it all about control? European Journal of Work and Organizational Psychology, 13(3), 345–365. https://doi.org/10.1080/13594320444000128
Chebbi, H., Yahiaoui, D., Sellami, M., Papasolomou, I., & Melanthiou, Y. (2020). Focusing on internal stakeholders to enable the implementation of organizational change towards corporate entrepreneurship: A case study from France. Journal of Business Research, 119, 209–217. https://doi.org/10.1016/j.jbusres.2019.06.003
Cole, M. S., Harris, S. G., & Bernerth, J. B. (2006). Exploring the implications of vision, appropriateness, and execution of organizational change. Leadership & Organization Development Journal, 27(5), 352–367. https://doi.org/10.1108/01437730610677963
Čekanavičius, V., & Murauskas, G. (2004). Statistika ir jos taikymai (I, II). TEV.
Čekanavičius, V., & Murauskas, G. (2015). SPSS abstracts. http://www.statistika.mif.vu.lt/wp-content/uploads/2014/04/SPSS_konspektai_2015.pdf
Errida, A., & Lotfi, B. (2021). The determinants of organizational change management success: Literature review and case study. International Journal of Engineering Business Management, 13. https://doi.org/10.1177/18479790211016273
Hanusz, Z., Tarasinska, J., & Zielinski, W. (2016). Shapiro-Wilk test with known mean. Revstat, 14(1), 89–100. https://doi.org/10.57805/revstat.v14i1.180
Haque, M., TitiAmayah, A., & Liu, L. (2016). The role of vision in organizational readiness for change and growth. Leadership & Organization Development Journal, 37(7), 983–999. https://doi.org/10.1108/LODJ-01-2015-0003
Herscovitch, L., & Meyer, J. P. (2002). Commitment to organizational change. Journal of Applied Psychology, 87(3), 474–487. https://doi.org/10.1037/0021-9010.87.3.474
Hussain, S. T., Lei, S., Akram, T., Haider, M. J., Hussain, S. H., & Ali, M. (2018). Kurt Lewin’s change model: A critical review of the role of leadership and employee involvement in organizational change. Journal of Innovation & Knowledge, 3(3), 123–127. https://doi.org/10.1016/j.jik.2016.07.002
Igartua, J. J., & Hayes A. F. (2021). Mediation, moderation, and conditional process analysis: Concepts, computations, and some common confusions. Spanish Journal of Psychology, 24, 1–24. https://doi.org/10.1017/SJP.2021.46
Islam, M. N., Furuoka, F., & Idris, A. (2021). Mapping the relationship between transformational leadership, trust in leadership and employee championing behavior during organizational change. Asia Pacific Management Review, 26(2), 95–102. https://doi.org/10.1016/j.apmrv.2020.09.002
Joseph, R. (2010). Individual resistance to IT innovations. Communications of the ACM, 53(4), 144–146. https://doi.org/10.1145/1721654.1721693
Khaw, K. W., Alnoor, A., Al-Abrrow, H., Tiberius, V., Ganesan, Y., & Atshan, N. A. (2022). Reactions towards organizational change: A systematic literature review. Current Psychology, 42, 19137–19160. https://doi.org/10.1007/s12144-022-03070-6
Kim, H., Im, J., & Shin, Y. H. (2021). The impact of transformational leadership and commitment to change on restaurant employees’ quality of work life during a crisis. Journal of Hospitality and Tourism Management, 48, 322–330. https://doi.org/10.1016/j.jhtm.2021.07.010
Korsakienė, R., Juodeikė, R., & Bužavaitė, M. (2017). Factors impacting and restricting success of organizational changes. In 5th International Scientific Conference “Contemporary Issues in Business, Management and Education‘2017” (pp. 250–256). Vilnius Gediminas Technical University. https://doi.org/10.3846/cbme.2017.096
Levovnik, D., & Gerbec, M. (2018). Operational readiness for the integrated management of changes in the industrial organizations – assessment approach and results. Safety Science, 107, 119–129. https://doi.org/10.1016/j.ssci.2018.04.006
Liu, X., Wang, F., & Wong, C. (2022). Impact of traditional behavior of customers, employees, and social enterprises on the fear of change and resistance to innovation. Frontiers in Psychology, 13, 923094–923094. https://doi.org/10.3389/fpsyg.2022.923094
Luu, D. T., & Phan, H. V. (2020). The effects of transformational leadership and job satisfaction on commitment to organisational change: A three-component model extension approach. The South East Asian Journal of Management, 14(1). https://doi.org/10.21002/seam.v14i1.11585
Men, L. R., Neill, M. S., April Yue, C., & Verghese, A. K. (2022). The role of channel selection and communication transparency in enhancing employee commitment to change. Journalism & Mass Communication Quarterly. https://doi.org/10.1177/10776990221100518
Men, L. R., Yue, C. A., & Liu, Y. (2020). “Vision, passion, and care:” The impact of charismatic executive leadership communication on employee trust and support for organizational change. Public Relations Review, 46(3), Article 101927. https://doi.org/10.1016/j.pubrev.2020.101927
Oreg, S., Bartunek, J. M., Lee, G., & Do, B. (2018). An affect-based model of recipients’ responses to organizational change events. Academy of Management Review, 43(1), 65–86. https://doi.org/10.5465/amr.2014.0335
Ouedraogo, N., Zaitouni, M., & Ouakouak, M. L. (2023). Leadership credibility and change success: Mediating role of commitment to change. International Journal of Productivity and Performance Management, 72(1), 47–65. https://doi.org/10.1108/IJPPM-01-2021-0017
Pakalniškienė, V. (2012). Determining the reliability and validity of research and evaluation tools, methodological tool. Vilnius University Publishing House.
Ramos-Maçães, M.-A., & Román-Portas, M. (2022). The effects of organizational communication, leadership, and employee commitment in organizational change in the hospitality sector. Communication & Society, 35(2), 89–106. https://doi.org/10.15581/003.35.2.89-106
Seggewiss, B. J., Straatmann, T., Hattrup, K., & Mueller, K. (2019). Testing interactive effects of commitment and perceived change advocacy on change readiness: Investigating the social dynamics of organizational change. Journal of Change Management, 19(2), 122–144. https://doi.org/10.1080/14697017.2018.1477816
Shore, L. M., Cleveland, J. N., & Goldberg, C. B. (2003). Work attitudes and decisions as a function of manager age and employee age. Journal of Applied Psychology, 88(3), 529–537. https://doi.org/10.1037/0021-9010.88.3.529
Shrivastava, S., Pazzaglia, F., Sonpar, K., & McLoughlin, D. (2022). Effective communication during organizational change: A cross-cultural perspective. Cross Cultural & Strategic Management, 29(3), 675–697. https://doi.org/10.1108/CCSM-08-2021-0144
Stelmokienė, A., & Endriulaitienė A. (2009). Psychometric indicators of the Lithuanian version of the General Transformational Leadership Scale. Psichologija, 40, 88–102. https://doi.org/10.15388/Psichol.2009.0.2584
Wang, Y. (2022). Analyzing the mechanism of strategic orientation towards digitization and organizational performance settings enduring employee resistance to innovation and performance capabilities. Frontiers in Psychology, 13, 1006310–1006310. https://doi.org/10.3389/fpsyg.2022.1006310
Warrick, D. D. (2022). Revisiting resistance to change and how to manage it: What has been learned and what organizations need to do. Business Horizons, 66(4), 433–441. https://doi.org/10.1016/j.bushor.2022.09.001
Zhang, Y., Zhang, J., Forest, J., & Chen, C. (2018). The negative and positive aspects of employees’ innovative behavior: Role of goals of employees and supervisors. Frontiers in Psychology, 9, 1871–1871. https://doi.org/10.3389/fpsyg.2018.01871
Zwick, T. (2002). Employee resistance against innovations. International Journal of Manpower, 23(6), 542–552. https://doi.org/10.1108/01437720210446397