Research On The Effect Of Transformational Leadership On Organizational Trust And Organizational Commitment

Entering the 21 st century, along with the acceleration of information process in our country, the members within the organization will more widely come into contact the information of external organization. Understanding of the external organizations will promote them to rethink their dependence on the organization, so they will measure the cost of leaving the organization. This has potential to raise the turnover intention of the staff and will affect their enthusiasm for their work. Organizational trust is the trust degree of employe es to the organization, the organizational commitment is the loyalty of employees to the organization. The higher the level of organizational trust and organizational commitment is, the more likely employees are to maintain a positive state in the organization and continued to contribute. Both reflect the psychological attitude of the staff to the organization, so it can provide a reference for the leaders to investigate the working state of the staff.With employees in Shandong province as the research object, this study was mainly intent to analyze the effect of transformational leadership on organizational trust and organizational commitment by constructing SEM. Through careful reading and combing the domestic and foreign literature, the background and significance of the study was elaborated. The relationship between transformational leadership, organizational trust and organizational commitment was analyzed based on the review of the research status of transformational leadership, organizational trust and organizational commitment. On the basis of theoretical analysis, the hypothesis of the relationship between the three variables and the model was put forward and use ANOVA to analyze demographic factors’ impact on this study. Then use software AMOS21.0 established SEM to verify the hypothesis, according to the results of the analysis draws the final conclusion. Based on the conclusion we put forward the suggestions for the leaders to raise the level of organizational trust and organizational commitment.Study found that transformational leadership of virtue, charisma and individualized care can have a positive effect on organizational commitment. However, three dimensions of the organizational trust have a positive effect on the organizational trust except the vision motivation. Therefore, on the whole, transformational leadership can not only have a direct positive impact on organizational trust and organizational commitment, but also has an indirect on organizational commitment positively influence through organizational trust. According to the empirical results, leaders can directly enhance employees ’ organizational trust and organizational commitment level through the improvement of their leadership style, but also can be in creating a good organization trust climate indirectly raise the level of organizational commitment, so as to reduce staff turnover rate improve employee’s working state and promote the healthy development of the organization.