Organizational Agility During Crisis: Do Employees’ Perceptions of Public Sector Organizations’ Strategic Agility Foster Employees’ Work Engagement and Well-being?

Abstract

The purpose of this paper is to examine the mediating role of a public sector organization’s perceived strategic agility in relation to employee outcomes in times of crisis. While the need for strategic organizational agility is acknowledged as boosting organizational performance, its value and application for employees are unknown, especially during times of crisis and in the public sector context. We use survey-based quantitative methodology to capture employees’ perceptions (n = 5469) of strategic agility in public sector organizations during the COVID-19 crisis and identify the impact on work engagement and well-being. Data analysed using a structural equation modelling approach. Our results suggest that an organization’s perceived strategic agility has a positive significant effect on employee work engagement and thus on well-being. Organizational learning, leadership, and aim clarity are factors that positively contribute to public sector organizations’ strategic agility. By examining the moderating role of perceived agility, we add to job demands-resources (JD-R) theory by showing that perceived strategic agility serves as an organizational resource that is needed for employees in times of crisis. We conclude that if employees are supported by leaders who sense change, make timely decisions, and act in an agile way, they will experience higher work engagement during a crisis, thus positively contributing to their well-being and organizational performance. This paper contributes to the understanding of organizational agility and discusses the theoretical and practical implications of the results and avenues for future research.