Psychosocial Hazards Focus:
Change Management
In the latest instalment of our Psychosocial Hazards Series, we explored organisational change management. Whether driven by technological advancements, market shifts, or internal strategy adjustments, change is an integral part of staying competitive. However, not all change is managed effectively.
Poor change management can have profound negative effects on employees, leading to increased stress, reduced job satisfaction, and even a decline in organisational performance.
This article delves into what change management is, how poor change management affects workers, how to identify it, and the steps we can take to control it.
To access the full content, please watch the recording of the session below.
“Against a backdrop of increasing globalisation, deregulation, the rapid pace of technological innovation, a growing knowledge workforce, and shifting social and demographic trends, few would dispute that the primary task for management today is the leadership of organisational change.”
Source: Graetz, F. , 2000. Strategic change leadership , Management Decision 38 (8) (2000), pp. 550–562
Definition of Change Management
Change management is the process of continually renewing an organization's
direction, structure, and capabilities to serve the ever-changing needs of
external and internal customers
Source: Moran, J. W. , and Brightman, B. K. , 2001. Leading organizational change , Career Development International 6 (2) (2001), pp. 111–118.
~ 70% of change programmes fail
Source: Balogun, J. , and Hope Hailey, V. , 2004. Exploring Strategic Change, . London: Prentice Hall; 2004
The Impact of Poor Change Management on Employees
Research clearly shows that uncertainty from poorly managed change negatively impacts several key areas of employee well-being:
Increased Stress
Uncertainty is linked to elevated stress levels as employees worry about their job security, roles, and the future​
Reduced Job Satisfaction
When employees are unsure of what’s coming next, their overall satisfaction with their role and workplace declines​
Higher
Turnover Intentions
Uncertainty also makes employees more likely to consider leaving the organisation, resulting in higher turnover​
Decreased Organisational Commitment
Trust in leadership erodes when communication is unclear or inadequate during change. Employees may feel less loyal and committed to the organisation​
Sources: Bordia, P., Hobman, E., Jones, E., Gallois, C., & Callan, V. J. (2004). Uncertainty During Organizational Change: Types, Consequences, and Management
Hui, C., & Lee, C. (2000). Moderating effects of organization-based self-esteem on organizational uncertainty: Employee response relationships. Journal of Management, 26(2), 215–232
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HBW Change Management Impact Checklist
Adapted from: Bordia, P., Hobman, E., Jones, E., Gallois, C., & Callan, V. J. (2004). Uncertainty During Organizational Change: Types, Consequences, and Management Strategies. Journal of Business and Psychology, 18(4), 507–532.Â
Strategic Level
1. Did we communicate well:
- The reasons for change
- The future direction of the organisation
- The nature of the business environment the organisation will face and its sustainability
2. Did we plan the change well, including allowing sufficient time for the
different stages involved?
Structural Level
1. Did we communicate well:
- Changes to reporting structures
- Changes to systems, policies, processes or physical location
- Changes to different business units, including their function
- Any staff restructure or redundancies
2. Did we allow sufficient resources for the changes above to be implemented?
Individual Level
1. Did we communicate well changes to individuals regarding their job,
including:
- Changes to their role or reporting lines
- Changes to systems, policies, processes or physical location
- Promotion opportunities
- Job security
2. Did we give line managers sufficient resources to support their teams through
the change process?
3 Key Principles for Effective Change Management
Based on this assessment, organisations can focus on three principles to manage change more effectively and reduce the psychosocial risks:
1.Quality Change Communication
- Clear and timely communication is essential to reducing uncertainty. Employees need regular updates on the progress of the change, even if there is no new information
- Consistent updates reassure employees and give them a sense of control over the change outcomes​
2. Participation in Decision-Making
- Involve employees in decision-making, especially on operational and tactical decisions that directly affect them. When employees are part of the process, they are more likely to accept and adapt to change​
3. Objective Assessment of Psychosocial RisksÂ
- Conduct an objective assessment to understand whether change management is creating psychosocial risks such as stress, increased workload, or role ambiguity
- Identifying these risks early allows organisations to address them before they cause significant harm to employee well-being​
Change management is vital for organisational success, but when done poorly, it becomes a serious psychosocial hazard. It increases uncertainty, stress, and turnover while decreasing employee engagement and productivity.
By focusing on clear communication, involving employees in decisions, and assessing psychosocial risks, organisations can manage change in a way that promotes well-being and success.
For more details, please watch the recording of the live webinar below:
