Collective compass to unit performance: linking transformational leadership climate, trust and engagement

Abstract

Purpose: The purpose of the study is to examine how shared perceptions of collective behaviors, such as transformational leadership climate (TLC), collective trust and collective engagement, affect unit performance. Design/methodology/approach: The sample consisted of 450 employees in 74 agencies of a financial organization, using measurements at the collective team level. Multiple structural equation modeling analyses were used to test the hypotheses. Findings: The relationship between TLC and unit performance was sequentially mediated by collective trust and collective engagement. Originality/value: This study highlights how employees' shared perceptions of different team characteristics can affect the overall functioning and performance of an organization.