Managing Change Under Threat: How and When Leader Threat Perception Relates to Employee Change Adaptivity

Managing Change Under Threat: How and When Leader Threat Perception Relates to Employee Change Adaptivity

• Visiting Assistant Professor of Management Xiaoyun “Aarn” Cao

Abstract:
Among the factors that can relieve threats of organizational changes, research points to the provision of information about the change. Yet the effect of information depends on its content and timing. Some research suggests that information may actually heighten recipients’ experience of threats, when it does not correspond with recipients’ needs. In this case, junior leaders, who are often responsible for implementing the change, serve as gatekeepers and may engage in information buffering to prevent the experience of threat from their subordinates, and thus improve their adaptivity. In the present study, we test this possibility using data from 52 team leaders and 383 employees. We found that leader threat perception was indirectly negatively associated with employee adaptivity, via leaders’ information buffering and employees’ threat perception. Moreover, we found that effects of information buffering were weaker among team leaders who had poor relationships (i.e., leader-member exchange) with their teams.

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The Friday Research Presentations series showcases ongoing academic research projects conducted by Stuart School of Business faculty and students, as well as guest presentations by Illinois Tech colleagues, business professionals, and faculty from other leading business schools.