The Role of Psychological Capital and Psychological Empowerment on Individual Readiness for Change

Many organizations today have to change and adjust themselves with the changing external environment. However, not all organizational change had been succeeded. One of the reasons why the change process often failed was due to lack of readiness for change. The aim of this study is to identify the role of psychological capital and psychological empowerment on individual readiness for change (IRFC). The results from 175 respondents collected from state own construction company in Indonesia showed that both psychological capital and psychological empowerment have positive and significant influence on individual readiness for change (R 2 = 0.451). The results also showed that psychological empowerment has slightly higher influence on individual readiness for change (R 2 = 0.341), compared to psychological capital (R 2 = 0.341).