Organizational Change and Job Satisfaction: An Analysis of Mediating Effect of Organizational Trust

Organizational change is a growing area of importance for modern organizations’ strategic development. Effective organizational change is imperative for the success of competitive organizations. The available theory conceptualizes that organizations have realized the equal importance of job satisfaction and organizational trust as a mean to gain and sustain competitive advantage.  Therefore, an attempt has been made to study the relationship among three variables of the study viz; organizational change, job satisfaction and organizational trust, and to analyse the mediating effect of organizational trust on the relationship of organizational change and job satisfaction. The analysis has been done on the basis of primary and secondary data. The primary data has been collected from 150 respondents of an IT company with the help of three standardized questionnaires. The hypotheses have been tested using correlation and regression analysis. The findings based on correlation analysis confirm a positive and significant relationship between organizational trust and job satisfaction (r=0.62); organizational trust and organizational change (r=0.74) and organizational change and job satisfaction (r=0.52). Furthermore, the results of regression analysis shows that organizational trust exerts a mediating effect on the relationship of organizational change and job satisfaction (β=.264; p<.01; Adjusted R2 =.112). The study concludes that organizational change should be carried out in an atmosphere of mutual trust. It further leads to the formation of an affective bond between the organization and employees, which in turn, leads to job satisfaction.