Organizational cynicism and its impact on privatization (evidence from federal government agency of Pakistan)

Abstract

Purpose – The aim of this study is to explore the impact of cynicism on the relationship among personality traits, organizational contextual factors and job outcomes. This study set up and examined the overarching model on resistance to change. Moreover, there were two models theoretically presented and investigated, i.e. direct and indirect models. This study was an attempt to explore and capture the causes of organizational cynicism against the change initiative. Design/methodology/approach – A case study research design was used in this study, and data were collected from 335 employees by using purposive sampling technique and structured questionnaire. While linear regression and Baron and Kenny’s (1986) tests were used to evaluate the direct and indirect models. Findings – Results highlighted the considerable positive relationship between dispositional resistance and employee’s turnover intention. Additionally, significant connection was also examined among organizational contextual factors and job outcomes, whereas interactive impact of behavioral resistance was found in the relation among dispositional resistance, organizational contextual factors and employee’s intent to quit. However, another dimension of organizational cynicism, i.e. cognitive resistance, could not influence the direct linear relationship between organizational context and continuance commitment. Research limitations/implications – Major limitations of this research were non-probability sampling technique, cross-sectional design, single organization and traditional data collection tool. Practical implications – Management can eradicate cynicism by providing social support and positive information, i.e. job security, wage award, medical benefits and promotion criteria, after implementing change. The management can clarify the objectives of that change by including employees in decision-making, reducing employee’s turnover intention. Organizational cynicism is a faith, which means that the change leaders have lack of integrity; when organizational cynicism mixes with negative cognitive process, it leads to a more destructive behavior against that change. Originality/value – This study contributed to the extensive knowledge of organizational cynicism. A conceptual model of resistance to change the model was unique in nature. There were rare studies conducted to check the impact of organizational cynicism on privatization, especially in the sub-continent. Therefore, it will add a good contribution in quality literature to understand the cynicism and its consequences for privatization.