Determinants of employee trust during organisational change in higher institutions

Abstract

Purpose The researchers in this study aim to understand the impact of a recent merger between two high performing institutions, on employee trust and well-being. The purpose of this paper is to quantitatively test the relationships between communication initiatives, human resource management initiatives, and cultural congruence and their impact on employee trust during organisational change. Design/methodology/approach To empirically validate these hypothesised relationships, 139 employees of the organisation were surveyed; the data were analysed using structural equation modelling. Findings The results indicate that HR planning and successful communication by the organisation are vital if a merger is to achieve the gains envisioned at its inception. Research limitations/implications Future research may explore longitudinal study to establish time of how employee trust are affected from the early merger announcement stage, during the merger-related activities and most importantly the post-merger period. The researchers are of the opinion, that understanding the impacts of change and how employee trust is affected during change is vital. The scope of this study permitted only three independent variables, consideration should be given for further research to explore the influence other activities may have on trust such as policy, government restraint, governance and internationalisation. Practical implications These results further establish the need for educational and commercial organisations to focus on internal and external relationship management and on communication strategies that can affect employees before, during and after a merger. Social implications Understanding factors that will influence employee vulnerability is important for any organisation as it is possibly the first step to understanding what planning needs to take place to foster change and consider contingencies pre, during and post-merger related change. Considerable thought and planning should be given to the re building of culture and regaining of lost trust post-merger. Originality/value This is the first empirical research that quantitatively test the relationships between communication initiatives, human resource initiatives, cultural congruence and their impact on employee trust during organisational change in higher academic institution. This particular study has further add value to change management research, particularly from New Zealand perspective where there is little literature on the current Institute of Technology and Polytechnic sector merger.