The impact of organisational restructuring on employee commitment at the Otago Polytechnic

Abstract

This report presents results from a study of employee commitment at the Otago Polytechnic following a major organisational restructuring and downsizing exercise that commenced in October 2003 and concluded in December of the same year. One hundred and fifty academic and non-academic staff in restructured and nonrestructured positions were randomly selected to complete a quantitative and short answer questionnaire designed to gauge their perception of the restructuring process and its impact on their commitment to the organisation. The relationship between survivor syndrome, organisational commitment and the psychological contract was analysed. Findings indicate a clear association between the presence of symptoms of survivor sickness and a damaged psychological contract, which collectively and individually show a significant negative impact on the level of commitment staff now feel towards their organisation. The analysis also shows a significant difference between the levels of commitment felt by academic staff when compared with non-academics and between staff in restructured positions when compared with staff in positions that were not restructured. This report discusses the potential implications for the Otago Polytechnic in light of these findings and offers suggestions for improving staff commitment levels both during and following a restructuring exercise.