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

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.