Transformational Leadership vs Change Self-Efficacy and Its Impact on Affective Commitment to Change

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.