A diagnostic model for employee satisfaction during organisational transformation

Abstract

Organisations are always confronted with the need to transform in order to adapt to environmental changes and have a competitive advantage. The concern is that when an organisation embarks on a transformation process, its individual employees are affected either positively or negatively. Employees can respond to transformation change by either being satisfied or dissatisfied in the organisation. The main aim of this research was to develop a diagnostic model for measuring employee satisfaction during organisational transformation. The first construct of organisational transformation was conceptualised using the open system paradigm, theoretical definitions and models of organisational change. In this study, organisational transformation is second order and drastic in the sense that it alters the way in which the organisation functions and relates to the external environment focusing on the vision, processes, systems, structure and culture. It is the fundamental and constant change at all levels of the organisation caused by external factors posing as risks for organisational survival. vi The second construct of employee satisfaction was conceptualised focusing on the humanistic paradigm, theoretical definitions and models. Employee satisfaction in this study is the individual’s positive emotional state of contentment stemming from the organisation’s ability to meet his or her needs and expectations based on his or her experience and evaluation of various organisational processes and practices. It influences employees’ performance and commitment to the organisation. A theoretical model was developed as a framework to enable organisations to diagnose or assess their employees’ satisfaction during organisational transformation. The model highlighted dimensions essential to diagnose employee satisfaction such as organisational strategy, policies and processes and outcomes, in order to determine employees’ contentment and fulfilment in the organisation. The main aim of the empirical research was to conduct a three year longitudinal study of employee satisfaction during organisational transformation; to operationalise the conceptually developed diagnostic model of employee satisfaction during transformation; and develop a structural equation model (SEM) in order to test the theoretical model. The Employee Satisfaction Survey (ESS) was used in 2003, 2007 and 2008 to measure employee satisfaction. The initial year of the study (2003) comprised 1 140 participants who voluntarily completed the measuring instrument. The second year of the study (2007) involved 920 participants, while the final year of the study (2008) included 759 participants. In terms of the reliability and validity of the ESS, it was determined that in the three years of the study, most of the dimensions had acceptable internal consistency reliability based on the results of the Cronbach alpha test. The SEM investigated the impact of organisational strategy, policies and procedures and outcomes as the three domains of employee satisfaction during organisational transformation. The confirmatory factor analysis of the latent variables was conducted, and the path coefficients of the latent variables of organisational strategy, policies and processes and outcomes indicated a satisfactory fit for all these variables. The goodness-of-fit measure of the model indicated both absolute and incremental goodness-of-fit. The SEM confirmed the causal relationships between the latent and manifest variables, indicating that the latent variables, organisational vii strategy, policies and procedures and outcomes are the main indicators of employee satisfaction. This research adds to the field of organisational behaviour by proposing a model of employee satisfaction during organisational transformation. The domains of this model should enable organisations to identify developmental areas based on employees’ dissatisfaction or areas of strengths based on employees’ satisfaction. The diagnostic model will also enable organisations and practitioners to initiative interventions aimed at addressing areas of dissatisfaction as developmental areas and to leverage on its strengths as areas of satisfaction in the organisation.