Hinduan, Zahrotur R, Wilson-Evered, Elisabeth, Moss, Simon and Scannell, Evelyn (2009) Leadership, work outcomes and openness to change following an Indonesian bank merger. Asia Pacific Journal of Human Resources, 47 (1). pp. 59-78. ISSN 1038-4111 (print) 1744-7941 (online)

Abstract

Although charismatic, inspiring, and transformational leaders enhance work attitudes in stable work environments, their utility in dynamic contexts has not been investigated extensively. Furthermore, whether or not the benefits of this leadership style depend on openness to change has not been explored. To redress these shortfalls, leaders (n = 57) and followers (n = 91) in a post-merger Indonesian bank completed questionnaires that assess the perceived leadership style of supervisors, as well as the job satisfaction, intention to leave, commitment to the change, and openness to change in employees. Affectivity of leaders was also examined. Transformational leadership was positively related to job satisfaction, particularly when employees demonstrated openness to change. Furthermore, leaders who experienced positive affect were most likely to demonstrate transformational leadership. This finding indicates that leadership styles that are regarded as effective in stable environments are also applicable soon after mergers, especially if employees conceptualize change as an opportunity for growth and advancement.

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