Consequences of managerial indecisiveness

Abstract

PurposeIn a banking context, this study applies uncertainty management theory (UMT) to test the impact of managerial indecisiveness on salespersons' trust in their manager, perceived role ambiguity and turnover intentions. In addition, the moderating role of managers' leadership style on the link between indecisiveness perceptions and role ambiguity is tested.Design/methodology/approachA questionnaire was distributed among customer facing employees from a multinational bank in one of the large metropolitan cities in India. In total, out of 360 questionnaires distributed, 255 responses were coded for analysis resulting in a response rate of 71%. Structural equation modeling, mediation and moderation analyses were applied.FindingsPerceptions of managerial indecisiveness strengthen role ambiguity, which negatively impacts trust in the manager, which in turn increases turnover intentions. The level of participative leadership moderates the link between indecisiveness and role ambiguity.Originality/valueThis is one of the first studies in the sales literature that examines how managerial indecisiveness, role ambiguity and trust in the supervisor can impact salespersons' turnover intentions. Thus, this research makes a useful contribution by examining how managers' decision-making style can shape employee cognition and behavior at the workplace.