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8/6/2019 Presentation Pide

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Factors Affecting Commitment toOrganizational Change and itsOutcomes

A Presentation by

Hina Jawaid Kalyal

NUST Institute of ManagementSciences, Rawalpindi


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Organizational change is a processwhich involves alterations or

modifications to an organizationsstructure, goals, technology or worktasks (Carnall, 1986).


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Privatization refers to the productionof goods and services for profit

generation rather than for publicbenefit (Forster & Mouly, 2006).

Privatization leads to a sharp changein strategy, power structures andcontrol of the organization (Tushman,Newman & Romanelli, 1986)


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PIDC established in 1952

Nationalization in early 1970s

Denationalization 1977

SOEs privatization late 1980s

Privatization Commission established

in 1991


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Mismanagement and overstaffing

Inappropriate and costly investments

Poor quality and coverage of services

High debt and fiscal losses

Production and profits well below their

potential


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Reduction in staff

Reduced demand for labor due to

reduced production by oligopolists

Reduced demand for labor due tocapital intensive methods of

productionContractual employment


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An employees attachment to theentire organization, an organizational

subunit, a supervisor or even achange program (Ford, Weissbein &Plamondon, 2003; Herscovitch &Meyer, 2002).


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a mindset that binds an individual toa course of action deemed necessary

for the successful implementation of achange initiative (Herscovitch &Meyer, 2002, p.475)


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Organizational change a vast topic

Previous studies focus mostly on

resistance


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One of the most important factorsinvolved in employee support for the

change initiatives (Herscovitch &Meyer, 2002)

It connects the employees withorganizational goals for change(Conner, 1992)


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Conner (1992)

Coatsee (1999)

Herscovitch-Meyer (2002)

Conner(1992) and Coatsee(1999)presented theoretical models which

were not tested empirically.


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Three stage process:

Preparation- awareness of change

Acceptance- understanding of change

Commitment- internalization ofchange


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Commitment to change a product of:Knowledge- employee abilities regardingchange

Information- what is communicated aboutchangeEmpowerment- employee decision makingauthorityRewards and recognition- for participating inthe change effortShared visions- employee understanding ofthe future


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A general model of workplace commitment(Meyer & Herscovitch, 2001)


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Research pertaining to commitment tobe organized according to their

relevance to underlying mechanismsi.e.,

Identification- affective commitment

Investment- continuance commitment

Reciprocity- normative commitment


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First to empirically test commitment tochange.

Multidimensional model based onHerscovitch-Meyer model (2001)

Three forms of commitment to change

Affective commitment (AC); a

desire to provide support for thechange based on its inherent benefits(Herscovitch & Meyer, 2002, p.475)


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Normative commitment (NC); asense of obligation to provide support

for the change (Herscovitch & Meyer,2002, p.475)

Continuance commitment (CC); arecognition that there are costs

associated with failure to providesupport for the change (Herscovitch& Meyer, 2002, p.475).


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Model hypothesis based on relationbetween commitment components

and change-related behavior i.e.,compliance; willingness to do what isrequired, cooperation; willingness tomake extra effort for change successand championing; willingness toaccept change and getting others toaccept it as well.


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Positive correlation between the threecommitment to change components

and compliance.AC and NC correlated positively withcooperation and championing whileCC correlated negatively with both.

Commitment to change affectedchange related behavior more thanorganizational commitment


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The relation between AC, CC andcompliance was greater when the

other component of commitment wasweak as opposed to strong.


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Proposed model


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Commitment in the Workplace

perception is more important thanreality

employees react to situations as theyperceive them


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perceived powerlessness to maintaindesired continuity in a threatened job

situation (Greenhalgh &Rosenblatt,1984, p. 438)


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Fear of job loss

Fear of loss of job features i.e.,

working conditions, salary, status,career advancement (Ashford, Lee &Bobko, 1989)


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Major organizational changes viewed as athreat to working relationships and routines(Nadler, 1987)

Resulting uncertainty leads to job insecurity.

Resistance to organizational change

increases (Noer, 1993) and job satisfactionand organizational commitment decreases(Ashford et al., 1989; Davy et al.,1997)


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Research Question # 1. Afterprivatization, does the fear of job

loss affect commitment toorganizational change and change-related behavior, more than the fearof loss of job features?


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Three basic types of job or rolestressors:

Role ambiguity; a situation where anindividual does not have cleardirection about the expectations of hisor her role in the job or organization

(Rizzo, House & Lirtzman, 1970).


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Role conflict; incompatibility incommunicated expectations that

interfere with perceived roleperformance (Rizzo, House, &Lirtzman, 1970)

Role overload; the extent to which the

job performance required in a job isexcessive.


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Major organizational changes causestress due to increased work targets,

threats of job losses, changes in jobholders responsibilities and authorityand shifts in the balance of power(McHugh & Brennan, 1994)

These role stressors may affectemployee commitment to change


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Research Question # 2. Do rolestressors i.e. role conflict, role

ambiguity and role overloadadversely affect employeecommitment to organizationalchange?


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Expecting commitment for the changeinitiative from individuals experiencing

job insecurity and job stress!!!


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Change related communication

Perceived employability


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Key factor in influencing thephenomenon of perceived job

insecurity (Johnson, Bernhagen, Miller& Allen, 1996)

Ineffective internal communication is amajor contributor to the failure of

change initiatives (Coulson-Thomas,1997)


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Communication can be used to:

reduce resistance

minimize uncertainty and

gain involvement and commitment asthe change progresses

This in turn improves morale andretention rates (Klein, 1996)


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Role conflict and role ambiguity canalso be reduced by providing timely

feed back to employees regarding thechanges.


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Perceived employability refers to apersons perception of his or her

ability to secure a new job (Bernston,Sverke & Marklund, 2006, p.225).


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Two forms of employability (van derVliet, C. & Hellgren, J., 2002)

Internal employability- perceivedability of an employee to secureemployment within the sameorganization

External employability- perceivedability of the employee to secureemployment outside the organization


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Individuals with high levels of perceivedemployability are:

more adaptable

benefit more from changing work situationsby identifying personal benefits in thechange process

able to make the best of all situations by

altering their attitudes and responsesaccordingly

proactive attitude


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Research Question # 3. How far areemployee commitment to

organizational change and change-related behavior determined by thelevel of change-relatedcommunication and employability?


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Job Satisfaction

Organizational Commitment


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Organizational commitment refers tothe degree of loyalty shown by

employees towards their organizationJob satisfaction refers to apleasurable or positive emotionalstate resulting from the appraisal of

ones job or job experiences (Locke,1976, p. 1300)


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Job satisfaction and organizationalcommitment have been found to be theoutcomes of general attitudes towards

change, change acceptance and positiveviews about change (Judge, Thoresen,Pucik & Welbourne (1999; Wanberg &Banas, 2000)

Negative attitudes toward change have

been related with lower job satisfaction andcommitment (Schweiger & DeNisi,1991).


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Research Question # 4. Willcommitment to organizational

change lead to job satisfaction andorganizational commitment?


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Job Insecurity

Role Stressors

Commitmentto change &Change-related

behavior

Change-relatedCommunication

Employability

PrivatizationJob

Satisfaction

Organizational

Commitment


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(i) Commitment to change scale(Herscovitch & Meyer, 2002)

(ii) Behavioral support for changescale(Herscovitch & Meyer,2002)

(iii) Job Insecurity Scale(Hellgren,Sverke & Isakson, 1999; Ashford,

Lee & Bobko, 1989)


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(iv) Change-related CommunicationScale(Topolnytsky, 2001).

(v) Role Stressors Scale(Beehr,Walsh & Taber, 1976; Sverke,Hellgren & Ohrming, 1997 ; Rizzo,House and Lirtzman, 1970); Caplan,1971)

(vi) EmployabilityScale (van derVliet & Hellgren, 2002)


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(vii) Job satisfaction Scale(Hellgren, Sjoberg & Sverke,1997)

(viii) Organizational CommitmentScale(Meyer, Allen and Smith, 1993)


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To investigate the relationship between jobinsecurity and commitment to organizationalchange

To investigate the effect of role stressors oncommitment to organizational change

To explore the role of employability as amoderator between role stressors, job

insecurity and commitment to change


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To investigate the role of organizationalcommunication to mitigate the negativeeffects of job insecurity

To investigate the role of organizationalcommunication and employability infostering compliance and championingbehavior for the change.

To study the effects of commitment tochange on job satisfaction andorganizational commitment.


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Use of self-report measures

Cross-sectional research design

which does not allow theestablishment of causal relationships


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Significance of study


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Extension of Meyer-Herscovitch (2002) three-component model of commitment to change outsideNorth-America.

Contributing to international literature on commitment

to change by testing the model with a different set ofvariables.

Empirically studying the process of commitment toorganizational change in Pakistan for the first time.

Providing empirical support for the development of HRpolicies during organizational change.

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