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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.