Power to the people: A social identity perspective on organizational decentralization and employee well‐being

Abstract

AbstractOrganizational identification underpins a range of important outcomes in the workplace, including workers' well‐being. Drawing on the social identity approach to health (SIAH), here we explore whether certain organizational forms—specifically, organizational decentralization—can boost organizational identification and, in this way, employee well‐being. We test this possibility in four high‐powered samples of workers in the UK, US and Italy (N total = 1960). Results confirm that workers are more likely to identify with an organization when they perceive power to be decentralized. Importantly, we find the expected indirect effects between increased decentralization perceptions and ratings of improved well‐being (including job satisfaction, work engagement and reduced burnout) through organizational identification. These results were consistent across samples, proving the generality of the findings across different cultural contexts. Empirical and practical implications of shared decision‐making power to increase workers' well‐being are discussed. Please refer to the Supplementary Material section to find this article's Community and Social Impact Statement.