Role of Trust in the Relationship between Authentic Leadership and Job Satisfaction and Organizational Commitment among Indian Bank Employees

Abstract

The present study was aimed to explore the mediating effect of three different types of trust namely dispositional trust, trust in supervisor and trust in coworker in the relationship between authentic leadership and job satisfaction and organizational commitment among Indian banking employees. Data were collected from (N = 115) banking professionals recruited from the branches of five major nationalized banks located in Varanasi (U.P., India). The results of hierarchical regression analysis indicated that the employee’s perceptions of authentic leadership significantly positively predicted multiple forms of trust (dispositional, trust in supervisor, trust in coworker) as well as both job satisfaction and organizational commitment of employees included in the study after controlling the effects of demographic variables. Regarding the relationship between multiple forms of trust and outcomes, the findings indicated that all the three forms of trust significantly positively predicted organizational commitment of employees while only trust in coworker and trust in supervisor significantly positively predicted job satisfaction of employees. The results of mediated regression analysis revealed that only trust in coworker significantly partially mediated the relationship authentic leadership and job satisfaction and only trust in supervisor significantly partially mediated the relationship authentic leadership and organizational commitment. The findings of the study implicated that organizations should understand the role trust plays in an organization and it should be viewed as a strategy to enhance job satisfaction and organizational commitment of Indian Banking Employees. Given the importance of authentic leadership top management should consider major dimensions of authentic leadership not only in developing strategies, evaluation, and selection of employees but also to transform the entire organization and producing positive workplace outcomes.