Abstract (150 Words)
This study examined the roles of transformational leadership and human resource management cost retrenchment strategies on employee outcomes under COVID-19 related conditions. The effects were examined in comparison between the tourism industry and other industries of a US travel destination considerably suppressed by COVID-19 global health pandemic. The respondents (n=161), members of two professional organizations, participated in the online survey. The results of partial least-squares structural-equation modeling (PLS-SEM) revealed that transformational leadership positively affects cost retrenchment, employee job satisfaction, and other-focused ethical organizational climate; transformational leadership negatively affects self-focused ethical organizational climate. Self-focused ethical climate negatively influences employee job satisfaction and trust in the employer; other-focused ethical climate positively influences employee trust. The results of multi-group analysis (PLS-MGA) showed that other-focused ethical climate significantly higher affects trust in the employer for tourism organizations. The results of the study bring forward the significant role of transformational leadership during crisis management.
COVID-19 Human Resource Retrenchment Strategies and the Role of Transformational Leadership
This study examined the roles of transformational leadership and human resource management cost retrenchment strategies on employee outcomes under COVID-19 related conditions. The effects were examined in comparison between the tourism industry and other industries of a US travel destination considerably suppressed by COVID-19 global health pandemic. The respondents (n=161), members of two professional organizations, participated in the online survey. The results of partial least-squares structural-equation modeling (PLS-SEM) revealed that transformational leadership positively affects cost retrenchment, employee job satisfaction, and other-focused ethical organizational climate; transformational leadership negatively affects self-focused ethical organizational climate. Self-focused ethical climate negatively influences employee job satisfaction and trust in the employer; other-focused ethical climate positively influences employee trust. The results of multi-group analysis (PLS-MGA) showed that other-focused ethical climate significantly higher affects trust in the employer for tourism organizations. The results of the study bring forward the significant role of transformational leadership during crisis management.