Enabling wonders at work

Effects of Organizational Change on ​​
Employee Engagement and Performance

An original research study to help to enhance workforce engagement and performance
in an increasingly changing business world.

Organizational change is a necessity for businesses to adapt to today’s dynamic business environment. Implementation and the role that employees play are critical for the success of the change initiatives (1,2,3) . ​With this study, we collected information about employees’ perceptions of an undergoing change to explore how it affects employees, in particular, their engagement and performance at work, and which change components have the biggest impact. Based on the identified organizational change factors that have the biggest impact on employee engagement and performance, we recommend strategies to improve employee engagement and performance when planning and implementing organizational changes.

Using the study insights and recommendations, companies can improve their employees' engagement and performance during change and the success of their change initiatives in today's dynamic business world. 
    


Planning or Going through an organizational change?
Do you know how your change initiative might affect your employees, their engagement and performance? 
Understand the change factors that affect the employees the most, and identify where you can improve how you plan and manage change so that your employees are engaged and perform to their best for the success of the change initiatives and other benefits. 

Key Findings 

Most Impactful Change Factors
What It Means for Leaders 
- Management of the change
- Employee's thoughts and feelings about       the change
- Impact on employee's role and position
- Support from the direct manager
If designed and managed well, an organizational change can improve employee engagement and performance, otherwise, it will have a negative effect.
Change management affected employees’ engagement the most, followed by the perceived impact of change on the individuals’ roles, and job performance.

For the role performance, employees’ thoughts and feelings about the change had the biggest influence, followed by the support from the direct managers, the perceived impact on their power and prestige position, and their engagement. 
Organisations should focus on improving their change management practices with timely and high-quality communication, involving employees in the process, and enhancing management’s change leadership capabilities.

They should also make the change meaningful for employees, in particular with consideration for the impact of change on individuals while encouraging and helping the direct managers for their increased support to employees during the change.         
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About the Research Study

The academic research study is conducted for a dissertation towards a Masters degree in Organisational and Business Psychology and under the guidance of a dissertation advisor and the academic and ethical review boards of the University of Liverpool.

The purpose of this research study is to examine the relationship between organizational change and employees’ engagement and performance to identify which factors have the most impact.  
Background ​

Employee engagement has gained a lot of management attention in recent years due to its association with positive organizational outcomes, including performance, customer satisfaction, and profits. Although organizations are changing more rapidly, only recently scholars have been studying its impact on employees. There are limited studies on how it affects individuals’ engagement and performance at work.    
Contribution

The study made unique contributions with insights into the effects of organizational change on employee engagement and performance through which aspects had the biggest impact, based on the perceptions of employees. Furthermore, since the participants came from multiple organizations, perspectives were based on various change initiatives and climates represented ( 4) .  The study also provided further support for the relative importance of conditions for engagement and performance (e.g., meaningfulness versus stressors) from previous studies ( 5,6) , and the bidirectional relationship between employee engagement and performance ( 7) , and in the context of organizational change.
 
Based on the study findings, organizations can design strategies to maintain or improve the engagement and performances of employees during an organizational change, and subsequently the success of their change initiatives.


What was done

The self-reported data was collected from 93 working adults (that satisfies the statistical requirements for significance and effect size) in 14 countries experiencing a major organizational change in the past year. The collected data was analyzed for change-related correlations and predictors of employees’ engagement and performances using IBM's SPSS software.  

Research Author - Ozlem Peevey (MSc, MBA)

Ozlem Peevey is an organizational development consultant and executive coach with extensive international business experience at leading multinational companies. Her track record of success has been in developing high-growth businesses, and building and leading teams. She helps leaders and organizations in the areas of organizational development and leadership effectiveness for improved employee engagement and performance.

She holds the MSc in Organisational and Business Psychology, an MBA and BSc in Computer Engineering.  She is a qualified user of the British Psychological Society registered Quintax® Personality Questionnaire. She is a member of the Society for Industrial and Organisational Psychology and Organisation Development Network Singapore. 

Research Advisor - Penny Cortvriend (Ph.D.)

Penny Cortvriend is a Chartered Occupational Psychologist and executive coach with substantive experience of working in both the public and private sectors,  including the NHS, local government, housing, higher education, pharmaceutical, food retail, finance, and marketing. She is an Honorary Lecturer and Dissertation Advisor for Online Psychology Programmes at the University of Liverpool. She is also an Associate Lecturer for the MSc Leading in Care at the Manchester Business School of the University of Manchester.

She holds a Ph.D. and MSc in Organisational Psychology and BSc in Psychology. She is a member of the British Psychological Society for the Divison of Occupational Psychology and the Special Group in Coaching, and The Association for Coaching, UK. She has published research in the areas of leadership development, change management, coaching, human resource management and performance.