Profiling employee psychological responses during restructuring and downsizing in the public sector: “Flourishers”, “Recoverers” and “Ambivalents”

Abstract

PurposeThis study aims to examine configurations of person-centered psychological change during organizational restructuring and downsizing in a public sector setting. Drawing on a social cognitive framework of organizational change the authors explore and identify the existence of different groups of employees who demonstrate varied responses (on commitment, engagement and anxiety) to restructuring and downsizing.Design/methodology/approachSurveys were collected from employees in three longitudinal waves (Time 1 N = 253; Time 2 N = 107; Time 3 N = 93, twelve months apart) at a UK public sector organization shortly before, during and after restructuring and downsizing.FindingsThree classes of response emerged based on levels of and change in anxiety, organizational commitment and work engagement: a positive “Flourishers” profile was identified along with two relatively negative response profiles, labeled as “Recoverers” and “Ambivalents”. Higher levels of job control accounted for membership of the more positive response profile; higher structural uncertainty predicted membership of the most negative response group.Practical implicationsUsing a person-centered approach, the authors form an understanding of different types of employee responses to downsizing; along with potential factors that help explain why groups of employees may exhibit certain psychological response patterns and may need to be managed differently during change. Thus, this approach provides greater understanding to researchers and managers of the varied impact that restructuring/downsizing has on the workforce.Originality/valueTo date there has been little research exploring employee responses to organizational restructuring and downsizing that has attempted to take a person-centered approach, which assumes population heterogeneity. Unlike variable centered approaches, this unique approach helps identify different patterns of employee responses to restructuring and downsizing.