Organizational Change: The Effects Of Trust In Organization and Psychological Capital During Change Process

Abstract

Due to dynamic business environments, organizations must implement changes in their strategies, structures and/or processes when existing conditions are not sufficient to create a competitive advantage in the market. According to Kotter and Schlesinger (1978), most companies must undertake moderate organizational changes at least once a year and major changes every four or five years because of increasing demands from government, growth, competition, technological development, and changes in workforce. With all this movement, organizational change has become a very popular topic for scholars. In this research, factors affecting an individual’s response to organizational change were investigated in order to determine how organizational changes can be more successful. The contribution of psychological capital on resistance to change through trust in organization was explored. The research was conducted among 583 employees. The result of the regression analysis showed that psychological capital plays a mediating role between trust in organization to resistance to change.

Keywords

• Change,resistance to change,trust in organization,psychological capital.

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