Employee 's Perception Of Organizational Restructuring Essay

Employee 's Perception Of Organizational Restructuring Essay

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An employee’s perception of organizational restructuring can vary greatly, particularly when it comes to morale. For the purpose of this literature review, we will define morale as the feelings of enthusiasm and loyalty that a person or group has about a task or job (Merriam-Webster). Also for the purpose of this literature review, we will use Caplow’s (1976) definition of an organization which is, a social system deliberately established to carry out some definite purpose (p. 3). Employees’ work morale is very difficult to decipher, and is very unsettling, highly dynamic, and sensitive to many factors. This includes individual differences, jobs, and workplace variations (Yang, 2009).
According to Swanson and Power (2001), “Organizational change and restructuring is often perceived as leading to increased occupational stress, impacting negatively on the psychological well-being of employees (p. 161).” The uncertainty of future employment for remaining employees after a restructuring process can lead to high stress levels, low productivity and overall dissatisfaction with their current or new roles. Ugboro (2006) conducted a study to see what relationship existed between job description changes, employee empowerment, and the remaining employee’s intent to quit after an organizational restructuring (p. 238). The study primarily focused on mid-level managers supervisors who were survivors of an organizational restructuring process.
Ugboro selected this group of individuals because they typically have more responsibilities added to their current roles and responsibilities. The results of the study were statistically significant and showed that an employee’s intent to quit and subsequent employee turnover indeed posed a serious threa...


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...eorganizational process as well as listen to feedback from the employees. Upper management can also provide social support groups to help with stress levels of employees while the restructuring process is taking place. Organizational morale can make or break performance and turnover in an organization and management needs to be in tune with what is going on with their employees in order to mitigate and lessen as many stressors as possible. Results of Swanson & Power (2001) support these statements by suggesting that “… organizational restructuring episodes should be represented as chronic rather than acute stressors in terms of impact on role conflict, ambiguity, overload and feedback, and also that potential moderating factors such as support from managers and co-workers should be encouraged in the longer term as important structures for coping with stress (p.176)”.

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