Transformational Leadership Influence on Rapid Organizational Change in Procter and Gamble Global Manufacturing Operation

Most companies lack the ability to implement organizational change; over 70% of Organization Change Initiatives (OCIs) fail. This inability has negative economic and survival implications for companies. OCIs must be effective and rapid to match the high pace of change in the business environment. Transformational leadership (TL) has been linked to successful OCIs through its positive influence on employee commitment and reduced resistance to change, yet little research has been done to identify its association with OCI implementation speed. This study tested TL and change theory and their association with change implementation. It sought to determine if a relationship exists between TL behavior and OCI implementation time. Archival survey and change data from 98 domestic and international manufacturing plants were used to examine relationships between employees' perceptions of leadership communication and trustworthiness and the speed of change. Hierarchical linear regression was used to determine if these behaviors could predict the change speed of an OCI. The study confirmed the association between effective leadership communication and employee trust in leadership, but it found no significant relationship between TL behavior and the speed of change. This finding is inconsistent with the majority of TL literature; however, companies may still benefit from exploring the potential of the study's theoretical concepts to help them improve the speed of organizational change. The limitations of the study were also noted as a potential contributor to the lack of significant findings, and recommendations are offered to reduce validity risk for similar studies in the future