The Moderating Role of Followership between the Relationship of Transformational and Transactional Leadership Styles and Factors of Employees’ Reactions towards Organizational Change

Abstract

This study examined the moderating role of followership between the relationship of transformational and transactional leadership styles and the factors of employees’ reactions towards organisational change. The factors of employees’ reactions were based on content, context and the process factors of change. The content factor was associated with the frequency of change, the context factor was related to employees’ trust in the management and the process factor was based on employees’ participation. The mixed methods approach was applied, in which the explanatory sequential research design was used to conduct data collection and analyses. In this design, quantitative data analysis was followed by qualitative data analysis. Convenience sampling was applied to collect data from 506 employees of telecommunication companies in Pakistan. All data were analysed using Smart PLS version 3.0. It was discovered from the results that both transformational and transactional leadership styles were positively and significantly related to the frequency of change, trust in management and employee’s participation. Moreover, the process results further identified the moderating role of followership, as it significantly affects the direct relationship of transformational leadership with all three factors of employees’ reactions towards organisational change. On the other hand, followership also influenced the direct relationship between the transactional leadership style frequency of change and employees’ participation; however, no moderation effect was found between transactional leadership style and the employees’ trust in management. The qualitative results also supported the quantitative findings. it has been concluded that for the success of changes in telecom organizations of Pakistan, not only leaders but employee level of creativity and engagement are also important. Managers are not the only agents that implement change successfully but followers also act as change agents during organizational change programs. Among leadership styles transformational leadership was mostly effective in shaping employees’ reactions. Management in telecom sector of Pakistan needs to focus on followers’ development and not only on leadership development. To maintain high level of trust and participation followers’ involvement in decision making and working processes should be encourage