The Effect of Leader-Member Exchange Leadership on Employee Readiness for Organizational Change: The Case of East Africa Bottling Share Company
No Thumbnail Available
Date
2020-06
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Addis Ababa University
Abstract
In order to excel the highly competitive and changing environment, organizations need to continuously change their organizational structure, systems, processes, or technology. Without people, organizations can not implement change successfully. The way employees respond to change is the key to organizational success which in turn requires effective change leadership.
This study aims to investigate the influence of leader-member exchange leadership on employees` readiness to organizational change. The study is conducted in EABSC, one of the largest and oldest beverages company in Ethiopia. Out of 133 target population a sample size of 100 was taken using Taro Yamane’s statistical formula. The study adopted an explanatory research design. The role of LMX leadership on employee readiness to change are assessed quantitatively using structured five-point Likert scale questionnaire and regression data analysis method. The hypothesis that LMX has significant and positive relationship with employee change readiness is empirically accepted. The result of the study reveals that the relationship between high-quality leader-member exchange and change readiness is significant and positive at 99% with a sig value of .000. The data was statistically analyzed using SPSS VR 23. It is recommended that leaders should be able predict and work on their subordinates’ degree of change readiness by evaluating their level of loyalty, contribution, affect and personal respect towards the leader-follower relationship before implementing organizational change initiatives
Description
Keywords
Leader-member exchange, organizational change, readiness to change