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The upside of organizational death: Investigating change in productivity, efficiency, performance, motivation, and psychological climate during plant closure
Stockholm University, Faculty of Social Sciences, Department of Psychology.
Stockholm University, Faculty of Social Sciences, Department of Psychology.
Stockholm University, Faculty of Social Sciences, Department of Psychology.
(English)In: Journal of Occupational and Organizational Psychology, ISSN 0963-1798, E-ISSN 2044-8325Article in journal (Refereed) Submitted
Abstract [en]

This longitudinal study examined qualitative change in productivity, efficiency, as well as blue-collar and white-collar workers‟ performance, motivation, and psychological climate. The results showed that productivity and efficiency improved throughout the years (T1: Dec-05 and T2: Nov-07), indicating that there was a Closedown effect present. Repeated measures showed that there was a main effect of time in all the performance, motivation and climate variables. Both quantitative and qualitative role overload, together with job involvement, decreased over time, while all the other variables increased. There were also main effects of collar, whereas white-collar workers perceived higher job autonomy, lower levels of qualitative role overload and higher levels of managerial support. No effects of collar were found in the motivational or performance variables. Lastly, no significant interaction effects were found.

Keyword [en]
organizational death, closure, productivity, psychological climate, motivation, performance
National Category
Applied Psychology
Research subject
Psychology
Identifiers
URN: urn:nbn:se:su:diva-43598OAI: oai:DiVA.org:su-43598DiVA: diva2:358553
Available from: 2010-10-22 Created: 2010-10-22 Last updated: 2017-12-12Bibliographically approved
In thesis
1. Organizational death and employee motivation: Investigating a plant closure in a multi-plant organization
Open this publication in new window or tab >>Organizational death and employee motivation: Investigating a plant closure in a multi-plant organization
2010 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

Major organizational changes are often connected with a variety of negative outcomes for both employees and the organization alike. As a contrast to this, organizational deaths have instead been associated with increased productivity and motivation to perform, despite certainty of job loss. These results have been regarded as counter-intuitive, since employment and job security are regarded as a foundation for work motivation.

Consequently, this thesis aims at investigating the motivational aspects of organizational deaths in terms of change in motivation as individuals adjust to changing realities. The thesis rests on three empirical studies.The first study's results showed (contrary to theoretical postulations) that goal setting was able to influence employees' in-role and extra-role performance, job-induced tension, commitment to the closure, and job satisfaction. The second study showed that organizational productivity, efficiency, performance, motivation and psychological climate increased for both blue-collar and white-collar employees'.

The results of the third study lend support to the anecdotal reports that high-performers stop performing during organizational deaths. However, this study also found that low-performers perceiving low justice increased their effort which may show that they have a personal gain in performing (e.g., positive self-perception). The results of the empirical studies support the notion that organizational productivity increases along with employees' motivation to perform.

Finally, a common pattern in the data was that most positive variables increased and the negative variables decreased. These results are explained by the adoption of new goals, which creates horizontal coherence (harmony) among goals, which gives rise to goal proximity (motivation increases due to moving closer to the goal).

Place, publisher, year, edition, pages
Stockholm: Department of Psychology, Stockholm University, 2010. 68 p.
Keyword
Plant closure, closedown, goal theory, goal setting, motivation, organizational death, productivity, efficiency, performance and psychological climate
National Category
Psychology
Research subject
Psychology
Identifiers
urn:nbn:se:su:diva-43603 (URN)978-91-7447-156-4 (ISBN)
Public defence
2010-11-19, David Magnussonsalen (U31), Frescati Hagväg 8, Stockholm, 10:00 (Swedish)
Opponent
Supervisors
Note
At the time of the doctoral defense, the following papers were unpublished and had a status as follows: Paper 1: In press. Paper 2: Submitted. Paper 3: Submitted. Available from: 2010-10-28 Created: 2010-10-22 Last updated: 2010-10-25Bibliographically approved

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