The effects of workplace restructuring on job satisfaction

Masters in Public Administration - MPAThis study has been conducted before when the company in question underwent a restructuring (name change) but did not threaten the loss of jobs. This study is being conducted again because another restructuring has taken place over the period of 2011/2012 and involved the retrenchment of employees nationally. The company represented in the study is one of the largest cleaning companies in South Africa and has a very broad and influential client base. They are in high demand in the cleaning industry and have positively impacted many companies and organisations over their many years of existence. Because of the magnitude of the workplace restructuring this time around, more people have been affected (both those who were retrenched as well as those who were left behind). According to Vermeulen, 2002, “Downsizing” is a term that emerged in managerial circles and was used in the business press, but no precise theoretical formulation underpins any clear definition of the term. When hearing the term downsizing, one often will use this together with the term “laying-off” interchangeably. However, some authors will focus on different elements of downsizing for example in reporting on a comprehensive study of downsizing in American industry, Cameron, Freeman and Mishra (1993) limited the term's use to a programme which is an intentional process. This process involves an overall reduction in personnel with a view to improving the efficiency of the organisation. The process wittingly or unwittingly affects work processes at the organisation concerned. According to Hellgren, et al (2005), the attitudinal constructs investigated in this study were job satisfaction, job involvement, organisational commitment, and turnover intention. Job satisfaction represents a general affective response to the overall job situation. Following Locke (1976, p. 1300), we define job satisfaction as “a pleasurable or positive emotional state resulting from the appraisal of one’s job or job experience”. ...employees who survived downsizing were likely to experience high levels of stress and decreased levels of organizational commitment and motivation. These individuals are often known as the "victims" of downsizing due to research that documents the devastation of job loss, focusing on negative consequences in terms of psychological and physical well-being (Bennett, Martin, Bies, & Brockner, 1995; Cappeili, 1992; Fallick, 1996; Leana & Feldman, 1992). This study inevitably aimed to prove that workplace restructuring very well has an effect or impact on an employee’s job satisfaction, whether these effects were positive or negative. The findings of the study highlighted significant positive correlations between the two variables and highlights strong relationships between employees’ career advancement opportunities and job satisfaction; trust and job satisfaction, communication and job satisfaction, as well as employee commitment and loyalty and job satisfaction whereas trust (2) or employee morale seem to have no significant relationship with job satisfaction