International Peer-Reviewed JournalOpen AccessISSN 2456-8880
irejournals@gmail.com+91-7433024337

Home / Current Issue / Paper 1703991

1703991 Vol 6 · Issue 7 Download Paper

Impact of Organization Restructure in Employee Satisfaction: Evidence from Ethiopia Governmental Organizations.

Michael Aregawi DR. G.S. Vijaya

Subject area: Management and Commerce  ·  Area of research: employee satisfaction

Abstract

This paper examines the impact of restructuring an organization on employees? satisfaction. Organizations take initiatives for organizational restructuring because of internal or external factors to increase the performance of an organization and stay in the competitive market. Beyond other resources of an organization, employees should be considered as an important factor that plays a key role for the overall achievementof organization goals. Satisfied employees have a power to make the organization competent and take competitive advantage. An issue related to the influence of restructuring on employee satisfaction has been studied by various researchers. In their studies they found out conclusion, there is anassociation between organizational restructuring and employee satisfaction. 383 respondents who are working in governmental organizations in Ethiopia from four regionalstates were participatedin the study. The objective of the study isinvestigating whether organizational restructuring has an impact on employee satisfaction in Ethiopia governmental organizations. Six factors are extracted from twenty one variables as a factor that intervened in the relationship between restructuring and employee satisfaction. Additional researches are needed to get more insight into the impact of restructure on the overall performance of anorganization. The study practices quantitative research approach and the data were collected using the questionnaire research instrument and analysed by factor analysis and correlation especially spearman?s rank types of correlation. The21 items categorized into 6 components or factors using factor analysis, namely employee empowerment, employee job satisfaction, employee participation, employee motivation, employee work environment these five factors measures employee satisfaction and computed with organizational restructuring, The result of the study shows, there is positive and moderated relationship between empowerment, employee work satisfaction, employee participation, employee motivation, employee work environment and employee satisfaction. Organizational restructuring and employees? satisfaction has strong and positive relationships, and statistical significant (0.01), the spearman?s rank correlation rs= 0.46, n=383, p-value = 0.000. So, it can be concluded that organizational restructuring have a significant impact on employee satisfaction in governmental organizations in Ethiopia.

References

[1] Aamodt, M. (2012). Industrial/organizational psychology: An applied approach. Toronto: Nelson Education.

[2] Akib, H., Wagianto, E., Daraba, D., Farida, U., &Niswaty, R. (2019).Shift-share analysis of the development of local competence as a basis for interregional cooperation in West Sulawesi Province, Indonesia.Journal of Legal, Ethical and Regulatory Issues, 22(1).

[3] Akob, M., Arianty, R., & Putra, A. H. P. K. (2020). The mediating role of distribution Kahns engagement: An empirical evidence of salesforce in Indonesia. Journal of Asian Finance, Economics and Business, 7(2), 249-260. https://doi.org/10.13106/jafeb.2020.vol7.no2.249

[4] Ali, R., Ahmad, M.S., (2009). The impact of reward and recognition programs on employee’s motivation and satisfaction:an empirical study. Int. Rev. Bus. Res. Pap. 5(4), 270–279 (2009).

[5] Ali, R., Ahmad, M.S., (2009). The impact of reward and recognition programs on employee’s motivation and satisfaction: an empirical study. Int. Rev. Bus. Res. Pap. 5(4), 270–279 (2009).

[6] Anders, C. & Cassidy, A. (2014), “Effective organisational change in healthcare: Exploring the contribution of empowered users and workers”, International Journal of Healthcare Management, Vol. 7 No. 2, pp. 132-151.

[7] Arasli, H., Daskin, M., &Saydam, S. (2014).Polychronicity and Intrinsic Motivation as Dispositional Determinants on Hotel Frontline Employees' Job Satisfaction: Do Control Variables Make a Difference? Procedia - Social and Behavioral Sciences, 109, 1395-1405. https://doi.org/10.1016/j.sbspro.2013.12.643

[8] Arshadia, N. (2010). Necessary need satisfaction, work motivation, and job performance in an industrial company in Iran. Procedia - Social and Behavioral Sciences, 5(January), 1267-1272. https://doi.org/10.1016/j.sbspro.2010.07.273

[9] Avdelidou-Fischer, N., (2015). The relationship between organizational restructuring and performance: The case of the fortune 500. Value Creation in Multinational Enterprise: 169-206.

[10] Azin, T., &Reihane, D. (2013). Job Performance: Mediate Mechanism of Work Motivation. Procedia - Social and Behavioral Sciences, 1601-1605.

[11] Bowman, E.H., Singh, H., Useem, M., &Bhadury, R. (1999). When does restructuring improve economic performance? California Management Review, winter, 41 (2), 33-54.

[12] Brown, D. (2014). The Future of Reward Management. Compensation & Benefits Review, 46(3), 147-151. https://doi.org/10.1177/0886368714549303

[13] Buhai, S., Cottini, E., Nielseny, N. (2008).The Impact of Workplace Conditions on Firm Performance. Discussion Paper, Tinbergen Institute, 08-077/3. DOI: http://dx.doi.org/10.2139/ssrn.1262698

[14] Burns, L. R. and Alexander, J. A. (2020) ‘The Impact of Employee Motivation on Organizational Commitment The Impact of Employee Motivation on Organizational Commitment’, European Journal of Business and Management, 9(15), pp. 134–137.

[15] Busck, O., Knudsen, H., & Lind, J. (2010). The transformation of employee participation: Consequences for the work environment. Economic and Industrial Democracy, 31(3), 285-305. doi:10.1177/0143831x09351212

[16] Business and Institutional Furniture Manufacturer’s Association (BIFMA) (2018), “About BIFMA”, available at: www.bifma.org (accessed 17 April 2010).

[17] Chandrasekar, K. (2011). Workplace Environment and Its Impact Organizational Performance in Public Sector organizations. International Journal of Enterprise Computing and Business Systems, 1(1), 1-19.

[18] Chang et al,. (2010). The mediating role of psychological empowerment on job satisfaction and organizational commitment for school health nurses: A cross sectional questionnaire survey. International Journal of Nursing Studies􀀏􀀃47(4), 427-433.

[19] Chawla, D., Dokadia, A., &Rai, S. (2017). Multigenerational Differences in Career Preferences, Reward Preferences and Work Engagement among Indian Employees. Global Business Review, 18(1), 181-197. https://doi.org/10.1177/0972150916666964

[20] Chipunza, C. & Berry, D.M. (2010).The relationship among survivor qualities – attitude, commitment and motivation – after downsizing. African Journal of Business Management, 4(5), 604-613.

[21] Creswell, J. W., 2014. Research Design: Qualitative, Quantitative, and Mixed Methods Approaches. London, United Kingdom: SAGE Publications.

[22] De Jong, T., Wiezer, N., de Weerd, M., Nielsen, K., Mattila-Holappa, P., &Mockałło, Z. (2016). The impact of restructuring on employee well-being: A systematic review of longitudinal studies. Work & Stress, 30(1), 91–114. https://doi.org/10.1080/02678373.2015.1136710

[23] Demircioglu, M. A., & Chen, C. A. (2019). Public employees' use of social media: Its impact on need satisfaction and intrinsic work motivation. Government Information Quarterly, 36(1), 51-60. https://doi.org/10.1016/j.giq.2018.11.008

[24] Dietz, G., Wilkinson, A., & Redman, T. (2010).Involvement and Participation. In A. Wilkinson, N. Bacon, T. Redman, & S. Snell (Eds.), The Sage Handbook of Human Resource Management (pp. 245-268). London: SAGE Publications Ltd. doi:10.4135/9780857021496.n15

[25] Ding. W. et al., (2021). Corporate immunity to the COVID-19 pandemic.J. Financ. Econ.(2021)

[26] Edmans, 2012). Does the stock market fully value intangibles? Employee satisfaction and equity prices.J. Financ. Econ.(2011)

[27] Elnaga, A., & Imran, A. (2013).The effect of training on employee performance.European Journal of Business and Management, 5(4), 137-147.

[28] Euro found (2017). Sixth European working conditions survey – overview report (2017 update). Luxembourg: Publications Office of the European Union.

[29] Firman, A., Mustapa, Z., Ilyas, G. B., & Putra, A. H. P. K. (2020). Relationship of TQM on managerial perfomance: Evidence from property sector in Indonesia. Journal of Distribution Science, 18(1), 47-57. https://doi.org/10.15722/jds.18.01.20201.47

[30] Gilley, A., McMillian, H., & Gilley, J. W. (2009).Organizational change and characteristics of leadership effectiveness. Journal of Leadership & Organizational Studies, 38-47.

[31] Hamsinah (2021).The influence of organizational restructuring, Organizational culture and organizational commitment on employee performance at Perum LKBN ANTARA.Pinisi Discretion Review Volume 4, Issue 2, March 2021 Page. 401-414

[32] Handoko, T Hani. 2014. ManajemenPersonalia&SumberdayaManusia.EdisiKedua. Cetakan Ke-21. Yogyakarta: BPFE YOGYAKARTA.

[33] Haoet al., (2012), Hao, Q., Kasper, H. and Muehlbacher, J. (2012), "How does organizational structure influence performance through learning and innovation in Austria and China", Chinese Management Studies, Vol. 6 No. 1, pp. 36-52.https://doi.org/10.1108/17506141211213717

[34] Hasibuan, M. S. .(2006) ManajemenDasar, Pengertian, dan.Masalah,EdisiRevisi. Jakarta: BumiAksara.

[35] Hyun, C., &Asbari, M, Purwanto, A., MayestiWijayanti, L., (2019). The Effect of Tansformational, Transactional, Authentic and Authoritarian Leadership Style Toward Lecture Performance of Private University in Tangerang. DIJDBM, 1(1), 29–42. https://doi.org/10.31933/DIJDBM

[36] Imam, S. L., Armanu, T., Umar, N., &Djumahir.(2015). The Role of Cooperative Culture and Employee Motivation as a Mediating variable of Leadership Style related with the Employee Performance (Study in Perumperhutani).Procedia - Social and BehavioralSciences, 211, 1142-1147. doi: 10.1016/j.sbspro.2015.11.152

[37] Indahingwati, A., Launtu, A., Tamsah, H., Firman, A., Putra, A. H. P. K., &Aswari, A. (2019). How Digital Technology Driven Millennial Consumer Behaviour in Indonesia. Journal of Distribution Science, 17(8), 25-34. http://dx.doi.org/10.15722/jds.17.08.201908.25 

[38] International Interior Design Association (IIDA) (2018), “About IIDA. Vision and mission”, available at: www.iida.org/content.cfm/vision-mission (accessed 5 April 2010).

[39] Jackson, S.E., Schuler, R.S., Jiang, K., (2014). An aspirational framework for strategic human resource management. Acad. Manag. Ann. 8(1), 1–56 (2014).

[40] Jacquiline, F.N. (2014). Employee empowerment ant job satisfaction.Research journali's journal of human resource, 2(2), 1-12.

[41] Khan, M.K., Tariq, A., Hamayoun, A.A., &Bhutta, M.H (2014).Enhancing organizational commitment through employee empowerment- Empirical evidence from telecom sector employees.Middle-East Journal of Scientific Research, 21(1), 148-157.

[42] Kumar, R., 2005. Research Methodology. London: SAGE Publications.

[43] Lal, D., Pitt, C.D., &Beloucif, A. (2013).Restructuring in European telecommunications: Modeling the evolving market. European Business Review, 13(3), 152-158.

[44] Landy, F. J. in Conte, J. M. (2007). Work in the 21st Century. An Introduction to Industrialand Organizational Psychology. Personal Psychology, 61 (2), 447-450Warr &Inceoglu, 2012

[45] Lane, K., Esser, J., Holte, B., Anne, M. M. (2010). A study of nurse faculty job satisfaction in community colleges in Florida. Teaching and Learning in Nursing, 5(1), 16-26.

[46] Leder, S., Newsham, G.R., Veitch, J.A., Mancini, S. and Charles, K.E. (2016), “Effects of office environment on employee satisfaction: a new analysis”, Building Research and Information, Vol. 44 No. 1, pp. 34-50.

[47] Lin, C.-Y. & Huang, C.-K. (2021), "Employee turnover intentions and job performance from a planned change: the effects of an organizational learning culture and job satisfaction", International Journal of Manpower, Vol. 42 No. 3, pp. 409-423. https://doi.org/10.1108/IJM-08-2018-0281

[48] Mappamiring, M., Akob, M., & Putra, A. H. P. K. (2020). What Millennial Workers Want? Turnover or Intention to Stay in Company. Journal of Asian Finance, Economics and Business, 7(5), 237-248. https://doi.org/10.13106/jafeb.2020.vol7.no5.237 

[49] Marinak, B. A., &Gambrell, L. B. (2008). Intrinsic motivation and rewards: What sustains young children's engagement with text? Literacy Research and Instruction, 47(1), 9-26. https://doi.org/10.1080/19388070701749546

[50] McKay, K., Kuntz, J.R.C., &Naswall, K. (2013). The effect of affective commitment, communication and participation on resistance to change: The role of change readiness. New Zealand Journal of Psychology, 42(2), 29-40.

[51] Meyerson, G., &Dewettinck, B. (2012). Effect of empowerment on employees performance. Advanced Research in Economic and Management Sciences, 2, 40-46.

[52] Mohammed, F., &Eleswed, M. (2013). Job satisfaction and organizational commitment: A correlational study in Bahrain.International Journal of Business, Humanities and Technology, 3(5), 43-53

[53] Mougbo, U.S. (2013). The impact of employee motivation on organisational performance (a study of some selected firms in Anambra state Nigeria.Intern.J. Eng. Sci. 2(7), 70–80 (2013).

[54] Newstrom, J. (2014). Organizational Behavior: Human Behavior at Work. New York: Business & Economics.

[55] Norley, L., Swanson, J., & Marshall, P. (2012). A Practitioner’s Guide to Corporate Restructuring. New York, NY: City Planning Publishing.

[56] Purwanto, Johannes ParlindunganLumbantobing, NanangS.Hadisaputra,DonnySetiawan , JohanesBangunSuryono.(2020). Do ISO 9001:2015 Reinforce Company Performance?Anwers from Indonesian Industries,Management Science Letters,10(15). 3553–3560 http://www.growingscience.com/msl/Vol10/msl_2020_217.pdf

[57] Robbins and Judge (2015 Robbins, Stephen P dan Timothy A Judge. 2015. PerilakuOrganisasi, Edisi 16, Jakarta :SalembaEmpat.

[58] Saifullah, N., Alam, M., Zafar, M.W., &Humayon, A.A . (2015). Job satisfaction: Acontest between human and organizational behaviour. International Journal of Economic Research, 6(1), 45-51.

[59] Schneider, B., Hanges, P. J., Smith, D. B., &Salvaggio, A. N. (2003). Which comes first:Employee attitudes or organizational financial and market performance? Journal ofApplied Psychology, 88, 836-851.

[60] Singh, A., Syal, M., Grady, S.C. and Korkmaz, S. (2010), “Effects of green buildings on employees health and productivity”, American Journal of Public Health, Vol. 100 No. 9, pp. 1665-1668.

[61] Skalli, A., Theodossiou, I., Vasileiou, E. (2008). Jobs as Lancaster Goods: Facets of Job Satisfaction and Overall Job Satisfaction. The Journal of Socio-Economics, 37(5), 1906–1920.

[62] Spagnoli, P., Caetano, A., & Santos, S. C. (2012). Satisfaction with job aspects: Do patterns change over time?Journal of Business Research, 65(5), 609 616. doi:10.1016/j.jbusres.2011.02.048

[63] Syam, H., Akib, H., Patonangi, A. A., & Guntur, M. (2018). Principal entrepreneurship competence based on creativity and innovation in the context of learning organizations in Indonesia. Journal of Entrepreneurship Education, 21(Special Issue).

[64] Wadhwa, D.S., &Verghese, M. (2015). Impact of employee empowerment on job satisfaction and organizational commitment: An empirical investigation with special reference to selected cement industry in Chhattisgarh. International Journal in Management and Social Science,3(3), 280-286.

[65] Wibowo, 2014.PerilakudalamOrganisasi, cetakan ke-1.Jakarta : PT Raja GrafindoPersada. Yaseen, A. (2013). Effect of Compensation Factors on Employee Satisfaction-A Study of Doctor's Dissatisfaction in Punjab. International Journal of Human Resource Studies, 3(1), 142

[66] Wilkinson, A., &Dundon, T. (2010). Direct Employee Participation. In P. J. Gollan, D. Lewin, M. Marchington, & A. Wilkinson (Eds.), The Oxford Handbook of Participation in Organizations (pp. 168-182): Oxford University Press. doi:10.1093/oxfordhb/9780199207268.003.0007.

[67] Yousef, D. A. (2017). Organisational commitment, job satisfaction and attitudes toward organisational change: A study in the local government. International Journal of Public Administration, 40(1), 77-88. https://doi.org/10.1080/019006 92.2015.1072217

How to cite this paper

Michael Aregawi, DR. G.S. Vijaya "Impact of Organization Restructure in Employee Satisfaction: Evidence from Ethiopia Governmental Organizations." Iconic Research And Engineering Journals Volume 6 Issue 7 2023 Page 48-61
Michael Aregawi, DR. G.S. Vijaya "Impact of Organization Restructure in Employee Satisfaction: Evidence from Ethiopia Governmental Organizations." Iconic Research And Engineering Journals, vol. 6, no. 7, Jan. 2023
Michael Aregawi, DR. G.S. Vijaya (2023). Impact of Organization Restructure in Employee Satisfaction: Evidence from Ethiopia Governmental Organizations.. Iconic Research And Engineering Journals, 6(7).
Michael Aregawi, DR. G.S. Vijaya "Impact of Organization Restructure in Employee Satisfaction: Evidence from Ethiopia Governmental Organizations." Iconic Research And Engineering Journals, vol. 6, no. 7, Jan. 2023.
@article{1703991,
      author = {Michael Aregawi, DR. G.S. Vijaya},
      title = {Impact of Organization Restructure in Employee Satisfaction: Evidence from Ethiopia Governmental Organizations.},
      journal = {Iconic Research And Engineering Journals},
      year = {2023},
      volume = {6},
      number = {7},
      pages = {48-61},
      issn = {2456-8880},
      url = {https://www.irejournals.com/formatedpaper/17039911.pdf},
      abstract = {This paper examines the impact of restructuring an organization on employees? satisfaction. Organizations take initiatives for organizational restructuring because of internal or external factors to increase the performance of an organization and stay in the competitive market. Beyond other resources of an organization, employees should be considered as an important factor that plays a key role for the overall achievementof organization goals. Satisfied employees have a power to make the organization competent and take competitive advantage. 
An issue related to the influence of restructuring on employee satisfaction has been studied by various researchers. In their studies they found out conclusion, there is anassociation between organizational restructuring and employee satisfaction. 
383 respondents who are working in governmental organizations in Ethiopia from four regionalstates were participatedin the study. The objective of the study isinvestigating whether organizational restructuring has an impact on employee satisfaction in Ethiopia governmental organizations. Six factors are extracted from twenty one variables as a factor that intervened in the relationship between restructuring and employee satisfaction. Additional researches are needed to get more insight into the impact of restructure on the overall performance of anorganization. 
The study practices quantitative research approach and the data were collected using the questionnaire research instrument and analysed by factor analysis and correlation especially spearman?s rank types of correlation. The21 items categorized into 6 components or factors using factor analysis, namely employee empowerment, employee job satisfaction, employee participation, employee motivation, employee work environment these five factors measures employee satisfaction and computed with organizational restructuring, The result of the study shows, there is positive and moderated relationship between empowerment, employee work satisfaction, employee participation, employee motivation, employee work environment and employee satisfaction. Organizational restructuring and employees? satisfaction has strong and positive relationships, and statistical significant (0.01), the spearman?s rank correlation rs= 0.46, n=383, p-value = 0.000. So, it can be concluded that organizational restructuring have a significant impact on employee satisfaction in governmental organizations in Ethiopia.},
      month = {January},
  }