Abstract

Restructuring in business firms is often characterised by uncertainty, anxiety, low morale, tardy job performance and high levels of absenteeism and staff turnover. Restructuring has recently been extended to tertiary education, but its effects on the higher education environment have not been thoroughly investigated.This study investigates the impact of restructuring (mergers) on the organisational commitment, job performance and intent to resign of tertiary education staff, as well as the relationship between selected antecedents (commitment to top management and satisfaction with career factors, monetary remuneration, fringe benefits, relations with peers and growth needs) and organisational commitment.The results show that the respondents, during the early stages of restructuring, exhibit low levels of organisational commitment, commitment to top management and satisfaction with monetary remuneration, fringe benefits and career factors. They also report high levels of satisfaction with growth factors (opportunities for training and development), relations with peers and performance intentions, and low levels of intentions to resign.Multiple regression analyses reveal that organisational commitment is positively related to performance intentions and negatively related to intent to resign. The results also show that commitment to top management and satisfaction with fringe benefits, peer relations and career factors were positively related to organisational commitment. Neither satisfaction with monetary remuneration nor the satisfaction of growth needs was significantly related to organisational commitment. The managerial implications of these findings are discussed.

Highlights

  • Former Royal Dutch/Shell executive, Nijenrode Learning Centre and London Business School academic and author of the best-selling book The living company, Arie de Geus, recently made the point that he has been kept busy for the past five years by the question why business firms are saying that people are their most important asset, yet they are quick to lay off workers in an economic downturn (Sunday Times, Business Times, 2 November 2003:7)

  • This study investigates the impact of restructuring on the organisational commitment, job performance and intent to resign of tertiary education staff, as well as the relationship between selected antecedents and organisational commitment

  • The results show that commitment to top management and satisfaction with fringe benefits, peer relations and career factors were positively related to organisational commitment

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Summary

Introduction

Former Royal Dutch/Shell executive, Nijenrode Learning Centre and London Business School academic and author of the best-selling book The living company, Arie de Geus, recently made the point that he has been kept busy for the past five years by the question why business firms are saying that people are their most important asset, yet they are quick to lay off workers in an economic downturn (Sunday Times, Business Times, 2 November 2003:7). Firms want committed and productive employees to meet production targets over the short-term in order to achieve their long-term goals, such as return on investment and the survival of their firms. De Geus suggests that the critical success factors in the oil and car industries, for example, are whether firms in these industries are better in extracting more oil from the ground or making a car more attractive to a consumer This calls for high levels of human talent and ingenuity rather than replacing the latter with more machines (Sunday Times, Business Times, 2 November 2003:7)

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