Organizational Change

Psychological effects and strategies for coping

Maria Vakola, Paraskevas Petrou, Maria Vakola, Paraskevas Petrou

• Editorial: Routledge
• Año: 2018
• ISBN:
  9781315386089
• Edición: 1
• Categoría: Psicología
• Categoría: Historia y teoría en psicología

Organizational change is a reality of 21st-century working life, but what psychological effects does it have on individual workers, and what coping strategies can be used to mediate its impact? In today's turbulent work and career environment, employees are required not only to accept changes as passive recipients, but to proactively initiate changes and demonstrate attitudes, behaviours and skills valued by current employers. As a result, organizational psychologists, both researchers and practitioners, have had to acknowledge and understand the myriad of challenges faced by employees as a result of organizational change.

In this important new book, an international range of prominent scholars examine the key psychological issues around organizational change at the individual level, including:

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• health and well-being

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• stress and emotional regulation

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• performance and leadership

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• attitudes and implications for the psychological contract

Analyzing and presenting the impact of organizational change, and possible coping strategies to successfully manage change, the volume is ideal for students and researchers of work and organizational psychology, business and management and HRM.

1
An overview of the impact of organizational change on individuals and organizations

An introductory note

Maria Vakola and Paraskevas Petrou

Introduction

Organizational change is seen as an integral part of organizational life and as a critical driver of organizational success (Beer & Nohria, 2000). Recent studies reveal that there is a high rate of failure of organizational change (Beer & Nohria, 2000) which in some cases reaches the pessimistic 80% to 90% (Burnes, 2011; Cartwright & Schoenberg, 2006). The potential impact of change on both organizations and individuals is significant. On the positive side, change can challenge the status quo and provide opportunities for growth, learning and development; but, on the negative side, it can create major problems in organizational life with impact on how people think, feel and behave (Cartwright & Cooper, 1993; Kotter, 2007).

More specifically, change has both work-related and personal consequences. According to a systematic review by Oreg, Vakola, and Armenakis (2011), the most frequently considered consequence of organizational change is organizational commitment (e.g., Fedor, Caldwell, & Herold, 2006; Oreg, 2006) which focuses on employees’ perceptions of their alignment with or attachment to their entire organization (Meyer & Allen, 1991). Change planning and implementation can impact organizational commitment as change challenges individuals’ alignment with the organization (Hui & Lee, 2000; Judge, Thoresen, Pucik, & Welbourne, 1999). Apart from organizational commitment, many authors have established the relationship between the effect of change implementation and career outcomes or work attitudes such as job satisfaction (Amiot, Terry, Jimmieson, & Callan, 2006; Axtell et al., 2002; Judge et al., 1999). Other related constructs that are affected by organizational change are intentions to leave the organization, organizational citizenship behavior, motivation and morale (Ashford, 1988; Fedor et al., 2006).

Apart from work-related consequences as a result of the change, there are important personal consequences to consider. Oreg et al. (2011) reviewed evidence on the impact of change on change recipients’ psychological well-being, mental health and somatic health complaints (Cartwright & Cooper, 1993; Näswall, Sverke, & Hellgren, 2005), psychological withdrawal (Fried, Tiegs, Naughton, & Ashforth, 1996), work-related irritation (Wanberg & Banas, 2000), leisure satisfaction (Pierce & Dunham, 1992), emotional exhaustion (Paulsen et al., 2005), anxiety (Axtell et al., 2002) and stress or strain (Bordia, Jone, Gallois, Callan, & Difonzo, 2006).

This chapter aims at setting up the scene to understand the dark and bright side of organizational change. Examining the impact of change on individuals and organizations may reveal important contingencies that can explain how positive organizational outcomes during times of change can be stimulated. Another aim of this introductory note is to discuss potential resources and strategies of coping with organizational change through the lenses of the contributing authors. That means that a synthesis of results coming from each chapter will be discussed here offering insights regarding the impact of organizational change and effective ways of dealing with aspects of this impact (Figure 1.1).

The dark and bright side of organizational change

The high failure rate of organizational change may explain why research very often focuses on the dark side of organizational change. Following a systematic analysis conducted by Fedor et al. (2006) and Oreg et al. (2011), the negative impact of organizational change on individuals is found in research considering the following:

• increased workload and job complexity; role conflicts, increased work demands (Spector, 2002; Axtell et al., 2002);
• fears and uncertainties; job insecurity, career uncertainties, a loss of control, uncertainty for the employees about their future with the organization and fear of failure as they face new job demands (Armstrong-Stassen, 1998; Cunningham et al., 2002; Fried et al., 1996; Näswall et al., 2005; Paulsen et al., 2005);
• threats to individual sense making (Ledford, Mohrman, Mohrman, & Lawler, 1990);
• perceptions of distributive justice and anticipated negative outcomes (Armenakis, Bernerth, Pitts, & Walker, 2007; Paterson & Cary, 2002).

According to Fedor et al. (2006) the bulk of the research evidence seems to suggest that increasing amounts of change are associated with negative individual outcomes and reactions. They also pointed out that even in cases that change can ultimately be positive for some individuals, most of the existing literature seems to indicate that change tends to be disturbing for employees (e.g., Oreg, 2003) at least for a short term until change can be finalized (Fedor et al., 2006).

Although most evidence on organizational change focuses on its negative consequences, there are studies revealing that organizational change does not always have to be negative or detrimental. The analysis of the positive impact of organizational change can be found in research that considers anticipated positive outcomes such as more interesting and challenging work, increased personal development or improved employability, and increased pay (Bartunek, Rousseau, Rudolph, & DePalma, 2006) and outcome favorability (Daly, 1995; Coyle-Shapiro, 2002). Furthermore, studies have shown that anticipating positive outcomes is related to positive attitudes toward change, such as greater readiness and acceptance of the change and higher commitment and willingness to participate in it (e.g., Van Dam, 2005). Perceived positive outcomes from change are also found to be related with change recipients’ post-change job attitudes, such that there was a positive relationship with organizational commitment and job satisfaction and a negative one with turnover intentions (Fedor et al., 2006; Herold, Fedor, & Caldwell, 2007; Rafferty & Griffin, 2006; Wanberg & Banas, 2000). In addition, research on positive organizational change showed that employees’ and leaders’ positive psychological and social resources and behaviors are key factors to deal with dysfunctional attitudes and behaviors related to organizational change and can lead to positive organizational change (Avey, Wernsing, & Luthans, 2008).

Figure 1.1 Success change factors and positive change outcomes

Taken together, the evidence above regarding the negative and positive side of organizational change suggests that rather than treating change as good or bad, researchers should focus on the factors that highlight the negative or positive potential of change. In other words, literature identifies factors on the organizational, team and individual level that can make organizational change a success or failure. This is also the perspective that the present book takes. As organizational changes of increasing frequency and severity become the norm, improving our understanding of success factors and their underlying relationships becomes increasingly important. As a result, the discussion is not about the positive or negative impact of change but has to focus on exploring the factors that contribute to it.

The content of this book

In Chapter 2, Bellou, Xanthopoulou and Gkorezis discuss the direct assessment of organizational change (i.e., the frequency of change implementation, the extent of the change or its impact on daily work), its immediate consequences and most importantly, potential moderators that may buffer its unfavorable effects on employee functioning (i.e., well-being, attitudes and performance). They suggest that organizational changes may be particularly unfavorable for employees when resources at the organizational, the team and the individual level of analysis are scarce. In contrast, the availability of resources is likely to shield change recipients against the negative implications of organizational change. The authors conclude that organizational-level resources (i.e., resources that are allocated through the way work in managed, organized and designed) such as high performance work practices, justice, trust and communication, buffer unfavorable change consequences and increase commitment during change. In similar vein, team-level resources (residing within the team context; e.g., leader-member exchange, team climate strength) and individual resources (employee’s characteristics or actions; e.g., optimism, meaning-making and proactive behavior) may buffer the negative impact of organizational changes on employee functioning and in turn facilitate employee adaptation to change.

In Chapter 3, Jimmieson and Tucker analyze change consultation in the form of information and participation that fulfill various motivational and cognitive functions. While change consultation is recognized as a vital step in change planning, there is a lack of research examining its role as a job resource, protecting against employee strain in the face of specific role demands. Sample 1 comprises 191 employees of a government agency undergoing restructuring and redundancies, in addition to the announcement of a relocation of all employees to another geographical location. The authors explain that change consultation moderates the effect of role conflict on cognitive weariness, physical fatigue and intentions to change jobs within the organization. However, the assumed stress-buffering effect of change consultation is not found. Rather, the positive association between role conflict and employee strain is more marked for those perceiving high, compared to low, change consultation. Employee strain is at its lowest when role conflict is low and change consultation was high. Overall, this pattern of results suggests that the effectiveness of change consultation is dependent on other demands placed on employees. In Sample 2 (1,100 employees from an energy company experiencing prolonged restructuring for two years), the authors replicate the effect among a group of redeployed employees through a multi-group comparison. Specifically, role ambiguity is more stressful when change consultation is high. However, the effect is evident only for those who are still in their original position. The authors suggest that change consultation is not effective when role stressors are high.

In Chapter 4, Rafferty and Jimmieson identify three internal resources (generalized self-efficacy, dispositional resistance to change and trait positive affectivity) and two external resources (information about change and participation in change) as antecedents of the dimensions of change readiness, in a cross-sectional survey conducted within an Australian provider of community and residential aged care. In line with Bellou, Xanthopoulou and Gkorezis (Chapter 2), the authors conclude that both internal and external resources are important in predicting the change readiness dimensions. More specifically, of the three internal resources examined, dispositional resistance to change and trait positive affectivity are most influential as reflected in their significant relationships with most of the dimensions of change readiness. As a result, organizations may need to consider providing additional support such as coaching or mentoring employees so that they take a positive perspective on change. Rafferty and Jimmieson conclude that the relationships between the external resources and the change readiness dimensions are slightly stronger than the relationships with the internal resources. They suggest that even if one does not have a dispositional profile of internal resources to promote change readiness, if organizations introduce the right change processes, then they may still be able to build change readiness.

In Chapter 5, van Dam suggests that organizational change often serves as an affective event that can elicit different emotions in employees ranging from negative emotions, such as worry, anxiety and anger, to positive ones, such as excitement and enthusiasm. Change research has shown that negative emotions can serve as antecedents of employees’ change attitudes and behaviors and are indicative of employees’ resistance to the change. It is important to note that while emotions are often seen as irrational or problematic during change implementation, they are inherently motivational and could be valuable, signifying employees’ perceptions, concerns, sense making and adaptation to the change. Van Dam calls for more attention to how employees regulate their emotions which has an impact on employee behavior and well-being at work. Employees will adjust to the change more easily when they apply adaptive regulation strategies such as positive reappraisal and distraction.

In Chapter 6, Nielsen explores the impact of cognitive appraisal on the well-being of employees experiencing organizational change. Cognitive appraisal theory suggests that the positive, neutral or negative appraisals of events influence well-being. The existing literature on cognitive appraisals of organizational change has found that appraisals of a better or a worsened standing/position in the organization after the change have severe well-being consequences. She suggests that employees are not just passive recipients of organizational change but actively appraise whether the change is good or bad for them and whether the change process itself is problematic or positive. Positive appraisals of the change process and the way it is handled by management are related to better well-being and less fears of losing one’s job. As a result, Nielsen recommends to organizations to ensure that employees appraise the change and the changes processes in a positive light as these appraisals influence employees’ well-being. More specifically, she recommends effective communication of the change vision, employee involvement in the change process during and after change implementation, active leadership role, increased trust and fairness perceptions, managers’ training and continuous monitoring of the change.

In Chapter 7, Kaltiainen, Lipponen and Petrou suggest that trust and fairness have the potential to boost employee work engagement via appraisals of the change, and by enhancing proactive employee behaviors targeted at improving one’s work environment (i.e., job crafting). On basis of the literature they review, they suggest that changing organizations should follow a holistic approach, recognizing that both trust and fairness could be and should be built both at the supervisor and at the top management level. To enhance trust and fairness perceptions, it is important that leaders and managers are perceived to share common values with the employees, demonstrate consistency in their actions and decisions over time and across people, aim for common good, are competent and effective, provide opportunities for employees to express their opinions, treat others with respect and are ready to trust others. Within this context, it is more likely that employees will appraise change as a challenge and less as a threat. Challenge appraisals will empower employees to engage in expansive forms of job crafting that will help them learn and grow, even in the face of organizational changes.

In Chapter 8, Tomprou and Hansen suggest that psychological contract obligations may become particularly challenging to manage during change interventions. Change is likely to interfere with the organization’s ability to fulfill its obligations to employees which can cause psychological contract breach (for example, budget cuts may mean that flexible scheduling or bonuses can no longer be guaranteed). Perceptions of breach are associated with negative employee affect (e.g., feelings of violation), attitudes and behavior all of which damage effective organizational functioning and can interfere with the success of the change intervention. The authors explain that recent developments in psychological contract (PC) theory suggest that some organizational change efforts, although still disruptive to the PC, may lead to positive outcomes. For example, the organizational change initiative may satisfy personal goals and lead to obligation fulfillment through the delivery of valued inducements or provide an opportunity for employees to request customized work arrangements. Thus, whether the change is perceived as positive or negative, disruption of the PC is likely to have significant implications for the success of the change effort. In accordance with Nielsen (Chapter 6), Thomson and Michel (Chapter 11) and Kaltiainen, Lipponen and Petrou (Chapter 7), the authors recommend two-way communication and trust in management to deal with negative disruptions because of the change. The authors also recommend activation of social networks (i.e., structures of social ties in the workplace) which are an important source of information during organizational ch...

Índice

• Cover
• Title
• Copyright
• Contents
• List of contributors
• 1 An overview of the impact of organizational change on individuals and organizations: an introductory note
• Part I Resources as change facilitators
• Part II Emotions and cognitions and change outcomes
• Part III Organizational-level and team-level facilitators of change
• Index