Proceedings of the 9th International Academic Conference, Istanbul

PSYCHOLOGICAL EMPOWERMENT AND ORGANIZATIONAL TASK ENVIRONMENT IN COMMITMENT TO CHANGE

WUSTARI MANGUNDJAYA

Abstract:

The purpose of this study is to elaborate the role of psychological empowerment, and perceptions of external environment in committing employees with organizational change. This study tested the effect of dimensions of psychological empowerment as well as the effect of employee’s perception on external environment on organizational commitment to change in financial state owned organizations in Indonesia. Data was gathered from 539 employees working in financial state owned organizations in Indonesia. Data collection was using Organizational Task Environment, Psychological Empowerment and Commitment to Change inventories. Results showed the significant effect of Psychological Empowerment and Organizational Task Environment on commitment to change. Results also showed that perceptions on external environment have more contribution to commitment to change compares to psychological empowerment. Moreover, the study also revealed that all dimensions of Organizational Task Environment (capacity, dynamism and complexity) have significant effect on commitment to change, with capacity has the strongest impact on commitment to change. Likewise, all psychological empowerment dimensions (meaning, competence, self-determination and impact) has significant effect on commitment to change, with meaning has the highest contribution to commitment to change. This study is a contribution to theory and practice of change management, with an increased understanding on commitment to change, psychological empowerment and perceptions of external environments in committing the employees with the organizational change.

Keywords: Psychological Empowerment, Organizational Task Environment, Commitment to Change and Organizational Change.

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