How Ethical Leadership Shapes Employees' Readiness to Change

Organizations must continuously adapt to compete in today's changing business environment. However, employees tend to resist change viewing it as a threat. When organizations need to change, employees need to be ready for it, a concept known as individual readiness. Employees are less resistant to change when they perceive their leaders are trustworthy and have "faith in their intentions. This resource points out how ethical leadership can aid employees when undertaking change initiatives. The research analyzes the mechanisms that ethical leaders can use.

Materials and Methods

Data Analysis

SPSS 24.0 was used to (1) obtain descriptive statistics and (2) run an exploratory factor analysis to examine the potential for common method variance in the data. Then, for the testing of hypotheses, PROCESS was used. The hypotheses were tested through running bias-corrected bootstrap analyses at a 99% level of significance (using 5,000 subsamples) via Hayes' PROCESS macros with PROCESS v2.10. While bootstrapping treats the original sample as the population, this method resamples (with replacement) observations from within that sample thousands of times over to generate sample-based estimates of the population values. This method is suitable for mediation as it helps to estimate indirect effects, confidence intervals, and standard error.