Transformation Leadership and Employee Engagement: Moderating Role of Organizational Trust in Confectioner Industry

Abstract

The continued survival of any organization largely depends on the performance of her employees. Human resource is the most important resource available to any organization and her performance can positively or negatively chart her course. Employee engagement outlook worldwide is scary and a cause of concern for organizations. The number of engaged employees versus disengaged employees worldwide costs companies annually billions of dollars in lost
revenues. The study examines the effects of transformational leadership on employee engagement; moderating the role of organizational trust in the confectioner Industry. The study adopted a quantitative research design and data were collected by using instruments adapted from past studies. A total of 108 employees of Gusau Sweet Factory participated in the research. The study utilized partial least square structural equation modeling PLS-SEM through Smart PLS 3.1 software. The results of the structural model showed that transformational leadership dimensions of vision and intellectual stimulation have significant effects on employee engagement. It also confirmed that organizational trust has a positive significant effect on employee engagement. The result further revealed that organizational trust moderated the relationship between the transformational leadership dimension of vision and employee engagement. Finally, the study also revealed that organizational trust did not moderate the relationship between intellectual stimulation and employee engagement. The study recommended that an open and transparent workplace should be encouraged by the leadership and that necessary policies and strategies be enacted to foster employee engagement in the organization.