How does human relations climate and organizational support affect readiness to change? The mediating role of employee participation and leadership excellence

Abstract

AbstractThe emerging competitiveness in the external environment and persistent need for adaptation have led organizations to recognize the essence of successful readiness to change. While individual and organizational outcomes of readiness to change have been discussed in the existing literature, a lack of clarity exists regarding how individuals embrace readiness for change. Using the social exchange theory, this empirical research examines the impact of perceived organizational support and human relations climate on individual readiness for change. The research also incorporates the intervening role of employee participation and leadership excellence for understanding the indirect effects. Hypotheses regarding the relationship between the key variables were tested through a structural equation model on a sample consisting of 284 respondents from managerial‐level employees in organizations from Pakistan. The findings suggested a positive impact of human relations climate on readiness to change. In addition to the direct effects, indirect effects via employee participation and leadership excellence were found to be significant on readiness to change. Based on the findings, theoretical and practical implications of the study along with suggestions for improvement are also elaborated.