Leadership styles in relation to employees' trust and organizational change capacity: evidence from non-profit organizations

• Main Authors: Yasir, M., Imran, R., Irshad, M. K., Mohamad, N. A., Khan, M. M.
• Format: Article
• Published: SAGE Publications Inc. 2016
• Subjects: HD28 Management. Industrial Management
• Online Access: http://eprints.utm.my/id/eprint/71947/; https://www.scopus.com/inward/record.uri?eid=2-s2.0-85008697738&doi=10.1177%2f2158244016675396&partnerID=40&md5=f8290ab9a51b10f0bd8376e5377141bc

This article intends to examine the role of leadership styles (transformational, transactional, and laissez-faire) and employees’ trust toward organizational change capacity (OCC). Data were collected from a convenient sample of managers, coordinators, officers, community facilitators, social organizers, and activists through questionnaires. A total of 250 respondents were sent questionnaire, usable questionnaires were 204. Results revealed positive and significant relationship between transformational leadership and employees’ trust. Moreover, an insignificant relationship was found between transactional leadership and employees’ trust, whereas laissez-faire and employees’ trust were found to be negatively associated. Findings of the study also depicted a positive and significant relationship of transformational leadership and transactional leadership with OCC. However, laissez-faire was negatively associated with OCC. Results also revealed that employees’ trust mediates the relationship between leadership styles (transformational and laissez-faire) and OCC. However, employees’ trust did not mediate the relationship between transactional leadership and OCC. Finally, implications and suggestions for future research are provided.