The Effect of Perceived Organizational Support, Communication, and Psychological Capital on Employee Readiness for Organizational Change

Dynamic changes in the external environment forces not only private companies but also public sector organizations to respond and adapt to these changes in order to survive. This research investigated the role of perceived organizational support and communication, mediated by psychological capital, during the process of change in enhancing employee readiness for organizational change. Cross-sectional survey involving 400 employees of an Indonesian public sector institution was analyzed using structural equation modeling (SEM) technique to test seven hypotheses related to employee readiness for change. The results showed that both perceived organizational support and communication were positively associated with readiness for change, with psychological capital as the mediator. This research helps to advance the fields of human resource management and organizational change management by elucidating the significance of perceived organizational support and communication on readiness for change at public sector. It also offers practical guidance on how to improve change readiness in Indonesian public sector, and elsewhere, during times of organizational change.