The role of effective change management and psychological capital on organisational behaviour during organisational restructuring : a cross-sectoral study

Abstract

The study set out to assess the impact of organisational restructuring (OR), the independent variable on organisational behaviour (OB), the dependent variable, in private and public sector organisations as well as state-owned enterprises (SOEs) in South Africa. OB, for the purposes of this study, consists of turnover intention, resistance to change, commitment to change and job security. It further aimed to evaluate whether the various types and magnitude of OR impact on employees in the different sectors. OR was delineated into three factors, that being Restructuring (Type), Restructuring (Leadership) and Restructuring (Frequency), before being further regressed into sub-factors, that being Restructuring (Type_Count), Restructuring (Leadership_Count) and Restructuring (Frequency_Count), for the purposes of using it as categorical variables and indexing it. The study assessed whether effective change management (ECM) mediated the relationship between OR and OB, across sectors. ECM is underpinned by effective change management processes, leader-member exchange (LMX) and perceived organisational support (POS). Finally, it aimed to assess whether employees’ psychological capital (PC), comprised of self-efficacy, hope, optimism and resilience, moderated the relationship between ECM and OB. The study found that OR does, indeed, impact on the OB of employees in different sectors. It has also confirmed the mediating role of ECM and that PC moderated the relationship between ECM and OB. The study assessed whether effective change management (ECM) mediated the relationship between OR and OB, across sectors. ECM is underpinned by effective change management processes, leader-member exchange (LMX) and perceived organisational support (POS). Finally, it aimed to assess whether employees’ psychological capital (PC), comprised of self-efficacy, hope, optimism and resilience, moderated the relationship between ECM and OB. The study found that OR does, indeed, impact on the OB of employees in different sectors. It has also confirmed the mediating role of ECM and that PC moderated the relationship between ECM and OB. The study found that the unidimensional construct, effective change management, coupled with PC, another unidimensional construct, has indeed been able attenuate the impact of OR on OB. In the case of this study, it was primarily the employees of large organisations, such as SOEs, which are affected, while employees of private and public organisations were also affected. Recommendations to organisational leaders and practitioners are provided, with the aim of assisting with the successful implementation of organisational change and restructuring initiatives, while at the same time reducing the impact thereof on the organisational behaviour of employees