Abstract
Major cuts in government spending and the ever increasing demands for enhanced efficiency, effectiveness and service quality have impacted upon public sector organizations throughout Europe. Such environmental hostility and turbulence have forced these organizations to embark upon programmes of strategic change. For many, the prevailing chaotic situations have adversely affected the well-being of employees, and it is argued that this is likely to have a number of costly consequences for the organization. This article outlines some of the challenges presented by strategic change within the Swedish social insurance organization, namely Forsakringskassan. The case study presented draws attention to the fact that organization change is a stressful experience for individuals. However, it is argued that much stress can be alleviated through successful change management which focuses upon continuous organizational improvement programmes.
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