c Consult author(s) regarding copyright matterseprints.qut.edu.au/64949/1/64949.pdf · BEc, MBA (Int. Business), PhD (HRM) Department of Management AUT Business School AUT University

This may be the author’s version of a work that was submitted/acceptedfor publication in the following source:

Newton, Cameron, Teo, Stephen, Pick, David, Yeung, Melissa, & Salam-onson, Yenna(2013)Flexibility in change practices and job outcomes for nurses: exploring therole of subjective fit.Journal of Advanced Nursing, 69(12), pp. 2800-2811.

This file was downloaded from: https://eprints.qut.edu.au/64949/

c© Consult author(s) regarding copyright matters

This work is covered by copyright. Unless the document is being made available under aCreative Commons Licence, you must assume that re-use is limited to personal use andthat permission from the copyright owner must be obtained for all other uses. If the docu-ment is available under a Creative Commons License (or other specified license) then referto the Licence for details of permitted re-use. It is a condition of access that users recog-nise and abide by the legal requirements associated with these rights. If you believe thatthis work infringes copyright please provide details by email to [email protected]

Notice: Please note that this document may not be the Version of Record(i.e. published version) of the work. Author manuscript versions (as Sub-mitted for peer review or as Accepted for publication after peer review) canbe identified by an absence of publisher branding and/or typeset appear-ance. If there is any doubt, please refer to the published source.

https://doi.org/10.1111/jan.12198

https://eprints.qut.edu.au/view/person/Newton,_Cameron.html

https://eprints.qut.edu.au/64949/

https://doi.org/10.1111/jan.12198

FLEXIBILITY IN CHANGE PRACTICES AND JOB OUTCOMES FOR NURSES: EXPLORING THE ROLE OF SUBJECTIVE FIT

Associate Professor Cameron Newton BCom, BA(Psych) (Hons), PhD (Org Psych) School of Management Queensland University of Technology Australia E-mail: [email protected] Professor Stephen T.T. Teo BEc, MBA (Int. Business), PhD (HRM) Department of Management AUT Business School AUT University Auckland 1010 New Zealand E-mail: [email protected] Associate Professor David Pick BSc(Hons), MA, PhD School of Management Curtin University Australia E-mail: [email protected] Ms Melissa Yeung BA, Grad Dip InfoTech, M Mgt School of Electrical and Information Engineering University of Sydney Australia E-mail: [email protected] Associate Professor Yenna Salamonson BSc, MA, PhD School of Nursing University of Western Sydney Australia E-mail: [email protected] Correspondence: Please address all correspondence to Cameron Newton on the address details noted above.

Change Practices and Occupational Stress

2

FLEXIBILITY IN CHANGE PRACTICES AND JOB OUTCOMES FOR NURSES:

EXPLORING THE ROLE OF SUBJECTIVE FIT Abstract Aims. The present study represents an integration of existing theoretical perspectives on change management, subjective fit, and occupational stress to better understand the effects of change on employee adjustment. Background. While subjective fit with organizational goals and objectives has been shown to have positive effects on employee adjustment its role in the organizational change-occupational stress context is not understood. This represents a caveat in research when considering the notion that those who feel they fit with the organization’s goals may be better equipped to reconcile and deal with change. Design. A cross-sectional survey of nurses from public and nonprofit sector hospitals was conducted. Method. Data were collected from 252 public and nonprofit sector nurses via online surveys. Data were collected from June until October in 2010. Structural equation modeling was used to test the direct and indirect effects among the focal variables. Results. The results showed that public and nonprofit nurses experience flexibility-limiting and flexibility-promoting change initiatives and that these are differentially related to the perception of administrative stressors and adjustment with these relationships directly and indirectly influenced by perceptions of subjective fit. Flexibility-limiting change initiatives lead to lower levels of subjective fit, higher levels of administrative stressors, and less favorable adjustment. On the other hand, flexibility-promoting change practices led to higher levels of subjective fit, lower levels of administrative stressors and ultimately better adjustment. Conclusion. The results further the theoretical understanding of the role of subjective fit in organizational change and occupation stress theories. Keywords: organizational change, administrative stressors, subjective fit, psychological health, job satisfaction, organizational commitment


3

Summary Statement

Why is this research or review needed?

The effects of different organizational change practices on nurses experience of

occupational stress is under researched.

Research has yet to unpack the potential mediating role of subjective fit in the

relationship between change practices and nurses’ perceptions of administrative

stressors and job-related attitudes.

What are the three key findings?

Flexibility-promoting change practices had a positive influence on levels of non-

nursing administrative stressors via subjective fit.

Flexibility-limiting change practices (such as downsizing and outsourcing) resulted in

higher levels stressors both directly and via reduced subjective fit.

As nurses experienced more administrative stressors, they tended to report lower

levels of psychological health, job satisfaction, and organizational commitment.

How should the findings be used to influence policy/practice/research/education?

Employers should very clearly justify the need for and positive longer term outcome

of flexibility-limiting change practices.

When flexibility-limiting change initiatives are required, employers should consider

simultaneously introducing other flexibility-promoting initiatives in an effort to buffer

the negative effects of the flexibility-limiting change on subjective fit, administrative

stressors and nurses job-related attitudes.


4

INTRODUCTION

Consistent with the world-wide phenomenon in health care management, the Australian

health care sector has been experiencing on-going change at industry, organizational and

work-unit levels. These changes have resulted in the implementation of a variety of

organizational change initiatives relating to team work, empowerment, and performance

management in both public and nonprofit health care organizations. While the relative impact

of different change initiatives is moderately understood in the broader context, research

relating to change in the health sector (and its impact on nurses in particular) is lacking.

Nursing is a high stress occupation (Lim et al. 2010) and while previous research has found

negative consequences of work intensification on the psychological and job outcomes of

nursing staff, there is a lack of empirical evidence on the impact of organizational change

initiatives. More specifically, research has not demonstrated the effects of different types of

change initiatives in relation to nurses’ perceptions of fit with their organizations and their

experience of occupational stress.

Background

The notion of subjective fit with the organization and its values has been demonstrated as

being important to employee adjustment [as measured by affective attitudinal (e.g., job

satisfaction and organizational commitment) and health-related (e.g., psychological health)

variables]. For instance, individuals whose values are aligned with that of their organizations

are more likely to report a higher level of job satisfaction and organizational commitment

(e.g., Cable & DeRue 2002, Newton & Jimmieson 2008). This concept of fit is potentially

relevant to the change-stress-employee adjustment context. Indeed, individuals experiencing

change in the workplace will perceive differing levels of fit with their organization depending

on their impressions of the favorability of the change, which will subsequently reduce or

magnify their interpretation of stressors and adjustment. More specifically, it is possible that


5

different types of change initiatives (i.e., initiatives that offer more flexibility in the

workplace versus those that do not) will have an impact of perceptions of fit and occupational

stress. The present study aims to examine the role of subjective fit in the relationships

between change initiatives, perceptions of stressors, and employee adjustment in the nursing

context. As such, a path model is developed based on an integration of change management,

subjective fit, and occupational stress literatures.

Organizational Change, Occupational Stress, and Employee Adjustment

Organizational change occurs in different ways and means many different things. In an

attempt to categorize the different types of change initiatives, Dunford et al. (2007) reviewed

100 books and articles relating to change. They found nine types of organizational practices

implemented by Australian organizations, including the formation of collaborative

networks/alliances, outsourcing of non-core activities, disaggregation of business units,

delayering (e.g., reducing hierarchical levels in the organization), reducing internal and

external boundaries, developing flexible work groups, empowering employees, and the use of

short-term staffing. Some of these change initiatives can be flexibility-limiting in that they

constrict flexibility associated with work processes and employee choice (FL change) while

others can promote flexibility by providing autonomy and more choice in the workplace (FP

change). These organizational practices are prevalent in both the profit and nonprofit sectors

and are consistent with the practices identified in the new public management (NPW)

literatures (e.g., Stanton, Willis, & Young 2005). Stanton et al. identified a range of

organizational practices (such as outsourcing, structural change, and flexible work groups)

implemented as a result of the adoption of new public management in Australian health care

organizations. Furthermore, public and nonprofit organizations have been found to adopt

private sector managerial practices, including a more strategic approach to human resource

management (e.g., Rodwell & Teo 2008).


6

Overall, many different relationships have been reported with respect to change

initiatives and employee job-related attitudes. These reforms have been widely adopted in

Western nations as a means to increase efficiency, accountability and productivity in the

public sector (Chandler et al. 2002). Hood (2000, p.4) noted that the NPM is a ‘recipe for

correcting the perceived failings of traditional public bureaucracies over efficiency, quality,

customer-responsiveness and effective leadership’. The outcomes though have been mixed.

Diefenbach (2009) found that the New Public Management (NPM)-inspired changes to the

corporate culture and working conditions had detrimental impacts on public sector

employees. NPM reforms have been widely adopted in Western nations as a means to

increase efficiency, accountability and productivity in the public sector (Chandler et al.

2002). Commentators such as Hood (2000, p.4) noted that the NPM is a ‘recipe for correcting

the perceived failings of traditional public bureaucracies over efficiency, quality, customer-

responsiveness and effective leadership’.

Some of the detrimental outcomes of NPM reforms include higher levels of

occupational stressors, a decline in job satisfaction and motivation, and an invisible net of

managerial power and domination. Noblet et al. (2005) for example, found evidence of

increased job and psychological strain. Within the nursing context, Stanton et al. (2005)

reported a number of negative consequences on nursing and health care workers. One

consequence was that managers had less autonomy and resources to support employees in

dealing with increased administrative demands (see Pick et al. 2012). Further, Chang et al.

(2005) and Lim et al. (2010) found the stressors common to nurses included workload and

the work environment, with these stressors manifesting as a result of administrative burdens.

These papers have collectively found that the heightened accountability associated with NPM

placed further pressure on managerial personnel to achieve performance targets, which in

turn exacerbated the level of strain experienced by employees as a result of increasing


7

administrative stressors. In this study, administrative stressors are administration related,

contextual stressors. These are different from the stressors encountered by nurses in relation

to patient care, such as those outlined in the nursing stress scale (Gray-Toft & Anderson

1981). These stressors were similar to what others such as Chang et al. (2005) and Lim et al.

(2010) have identified in their studies.

Not all NPM-inspired change necessarily leads to inflated perceptions of stressors and

ultimately strain for employees. For instance, some change initiatives identified by Dunford

et al. (2007) are related to the provision of greater flexibility and autonomy (e.g.,

empowering, reducing internal boundaries, and fostering flexible working groups). The

positive effects of increased flexibility and control are well documented in the stress

literature. Perceived control is theoretically and empirically supported as a buffer of the

negative effects of stressors on strain in Karasek’s (1979) Job Demand Control Model.

Newton (2006) found that employees reported lower levels of change-related and other work

stressors (such as perceived lack of training, unpredictability, overload, and ambiguity) in

organizational cultures characterized by more flexibility and autonomy. This latter result

suggests that organizational changes, which provide more flexibility and perceived control

over the changes, may not be perceived as stressors but more as challenges. Moreover,

Spector and Jex (1998), and Lepine et al. (2005) highlight that having a large amount of work

does not automatically result in negative employee outcomes. High work demands may not

be interpreted as a stressor, but rather a source of challenge; especially when the change

results in more freedom and control.

Hypothesis 1: FL change practices will be related to higher levels of

administrative stressors.

Regardless of the antecedents of stressors, it is well documented that higher

perceptions of work-related administrative stressors are negatively related to employee


8

attitudes and outcomes (see Örtqvist & Wincent 2006). In the nursing domain, Tovey and

Adams (1999) noted that nurses in a United Kingdom sample reported lower levels of

satisfaction when they perceived higher levels of stressors related to increased paperwork and

a lack of resources and equipment. Similarly, Zangaro and Soeken (2007) concluded that

there was a strong negative correlation between job stress and job satisfaction among US

nurses. Furthermore, Bartram et al. (2004) found that their sample of Australian nurses who

reported higher levels of job stress tended to report a lower level of job satisfaction.

Hypothesis 2: Higher levels of administrative stressors will be related to lower

levels of job satisfaction.

The effects of administrative stressors have also been found to negatively impact

psychological health. In the general work context, many empirical studies provide evidence

of a negative relationship between role stressors related to overload, ambiguity, and conflict

and employee psychological health (see Jackson and Schuler 1985, Abramis 1994). Similarly,

stress resulting from workplace change has also been found to negatively impact

psychological health (as measured by anger, grumpiness, and withdrawal) (see Stensaker et

al. 2002). In the nursing context, Swanson and Power (2001) found that during organizational

restructuring in a public utility in the UK, employees and managers reported higher levels of

occupational stress that subsequently impacted negatively on their psychological wellbeing.

The present study also aims to explore the relationships between the focal employee

adjustment variables and organizational commitment. Overall, the effect of job satisfaction is

well established. Studies suggest that lower levels of job satisfaction, in turn, impact

organizational commitment (see Huang et al. 2012). For instance, Matthieu (1991) showed

that the influence of job satisfaction on organizational commitment was found to be stronger

than the reverse effect. Similarly, Clugston (2000) concluded that job satisfaction had a

positive causal relationship with organizational commitment. However, little support has been


9

found for a direct relationship between psychological health and organizational commitment.

Rather, research has tended to show that psychological health is positively related to job

satisfaction (e.g., Huang et al. 2012).

Hypothesis 3: Higher levels of administrative stressors will be related to lower

levels of psychological health.

Hypothesis 4: Higher levels of psychological health will be related to higher

levels of job satisfaction.

Hypothesis 5: Higher levels of job satisfaction will be related to higher levels of

organizational commitment.

Subjective Fit

Fit between a person and an organization has been theoretically defined in various ways.

Complementary fit occurs when employee characteristics complement the organization

(Muchinsky et al. 1987, Powell 1998). Supplementary fit is a closeness between the

employee’s characteristics and the organization (Kristof 1996). Fit also has been

operationalized differently; subjectively or objectively (see Verquer et al. 2003). Subjective

fit measures how well employees perceive their own characteristics to match the organization

and it has posited such perceptions of fit may be more important than objective and indirect

measures: if an employee believes they are (or are not) similar, this may be all that is needed

to influence attitudinal and behavioral outcomes (see Kristof 1996; Kristof-Brownet et al.

2005).

Positive effects of subjective fit on employee outcomes have dominated research.

Subjective fit has been related to better job satisfaction, organizational commitment,

perceived support, and lower intentions to leave (see Cable & DeRue 2002, Verquer et al.

2003, Newton & Jimmieson 2008, 2009). Further, Meyer et al. (2010) argue that P-O fit is an

important factor in the organization commitment thus affecting intention to stay. This is


10

especially the case under conditions of change (Caldwell 2011). Interestingly, the significant

relationships between subjective fit and job-related attitudes have not been replicated with

respect to employee health. While some researchers have found weak yet significant

correlations between subjective fit and psychological health, these effects have become non-

significant when accounting for control variables (such as age, gender, and negative

affectivity) and work stressors (Newton & Jimmieson 2008, 2009).

One important dimension of P-O fit is ‘value congruence’, that is the extent to which

an employee’s values match that of the organization where they are employed (Caldwell

2011). Results suggest that value congruence may act as a buffer for nurses against job

dissatisfaction (Bao et al. 2012). Indeed, value congruence has been for a long time

recognized as a determinant of job satisfaction and organizational commitment (Kristof

1996), as well as intention to quit (Cooper-Thomas & Poutasi 2011).

Hypothesis 6: Higher perceptions of subjective fit will be related to higher levels

of job satisfaction.

Hypothesis 7: Higher perceptions of subjective fit will be related to higher levels

of organizational commitment.

Subjective fit and the change-stressor-employee adjustment relationship

The present study sought to extend the scope of existing research by investigating the

potential of indirect effects of subjective fit on the organizational change-employee

adjustment relationship. Moreover, the prevalence of change (especially, organizational

culture change) in organizations from different industries throughout the world makes

investigating an individual’s fit with an organization particularly vital (Noblet et al. 2006).

Overall, there is some theoretical and empirical evidence to suggest that subjective fit has a

vital role to play in change and stress-related workplace investigations.

The theoretical concepts underlying organizational identification (a sense of ‘oneness’


11

with an organization) are similar to subjective fit (Ashforth & Mael 1989). Furthermore,

organizational identification and subjective fit have similar relationships with employee

outcomes (see Saks & Ashforth 1997, Riketta 2005). Organizational identification is based on

Social Identity Theory which allows us to understand how individuals can be part of a social

group (e.g., an organization) through processes of self-categorization (e.g., Tajfel & Turner

1979, Haslam 2001). It highlights the causes of linkages between employees and their

organization; helps in understanding the relative strength of these linkages, and enables

prediction of consequences for group behavior (Haslam et al. 2003). In the present study, a

shared social identity creates a mechanism for social support and coping. Indeed, literature

has found that a shared social identity (which involves a process of categorizing oneself with

a group) leads to higher levels of social support to other in-group members (see Levine et al.

2002, Levine et al. 2005). As such, change-related practices that empower people to access

supportive mechanisms may lead to higher levels of identification or feelings of group

membership. This concept is represented by perceptions of subjective fit in the present study.

It can therefore be theoretically argued that changes which inhibit the formation of and access

to support mechanisms could lead to lower levels of subjective fit with the organization.

Hypothesis 8: Higher perceptions of FP change initiatives will be related to higher

levels of subjective fit.

Hypothesis 9: Higher perceptions of FL change initiatives will be related to lower

levels of subjective fit.

Overall, empirical research investigating subjective fit beyond main effects is still

under researched and the role of subjective fit in a change-related context has yet to be

explored. Nevertheless, several studies guide hypotheses in the present study. For instance,

Boon et al. (2011) found a direct relationship between clear and flexible human resource

(HR) practices and subjective fit. Further, they found that subjective fit mediated the


12

relationship between HR practices and organizational commitment. Additionally, Huang et

al. (2005, 2012) have found direct relationships between a supportive culture and clear

communication and more favorable levels of subjective fit. In both studies, subjective fit

mediated the relationships of the independent variables with employee adjustment. While

there is a clear indication from the literature that favorable organizational characteristics can

lead to higher levels of subjective fit, few studies have actually explored the effect of less

favorable or even negative HR or change-related practices. However, the stress literature

provides guidance in formulating expectations. For example, change-related stressors and

organizational stressors such as a lack of resources are negatively related to subjective fit (see

Newton 2006).

The stress literature has found subjective fit to be an important moderator and

mediator in the work stressor-employee adjustment context providing further support for

hypotheses in the present study. Newton and Jimmieson (2008) found that those reporting

higher levels of subjective fit were protected from the negative effects of stressors (such as

ambiguity and conflict) on job satisfaction, intentions to leave, and psychological health. In a

separate study, similar results were found for role overload (Newton & Jimmieson 2008) and

the relationship between subjective fit and employee adjustment has been found to be

mediated by work stressors (Newton & Jimmieson 2006). More specifically, employees

reporting higher subjective fit also reported lower levels of role conflict and ambiguity and

higher levels of job satisfaction and psychological health.

Hypothesis 10: Higher perceptions of subjective fit will be related to lower levels

of administrative stressors.

Hypothesis 11: Subjective fit will mediate the relationship between flexible

change initiatives and levels of administrative stressors.

Hypothesis 12: Administrative stressors will mediate the relationship between


13

subjective fit and employee adjustment [i.e., psychological health (H12a) and job

satisfaction (H12b)].

The direct and indirect hypotheses are proposed in the present study and are displayed in

Figure 1 below.

-----------------------------

Insert Figure 1 about here

-----------------------------

THE STUDY

Aim

The aim of the study was to explore the effects of flexibility-promoting and flexibility-limited

change management practices, subjective fit, and occupational stress to better understand the

effects of change on employee adjustment.

Design

A cross-sectional design was employed to test the hypotheses.

Sample/Participants

Over 220,000 registered nurses and 50,000 enrolled nurses are employed in the Australian

health care system. Enrolled nurses work under the supervision of a registered nurses and

typically have a graduate diploma in nursing from a technical college or registered training

organization representing approximately 18 months/two years of training. Overall, 67 percent

of nurses work in the public sector and 33 percent in the private sector (Australian Institute of

Health and Welfare 2010). An online research company sent an email containing a link to the

online survey to 630 members who matched the occupational and background requirements

(such as nurses who were at least 18 years old in age and residing in Australia). Overall, 252


14

useable responses were received equating to a response rate of 40%.

Data collection

Data were collected between June and October 2010. The electronic survey consisted of

questions regarding demographic characteristics, perceptions of change initiatives, stressors,

subjective fit, psychological health, and job-related attitudes (e.g., job satisfaction and

organizational commitment).

Ethical considerations

Ethical approval was obtained for the Human Research Ethics Committee at the

administering university.

Data analysis

Preliminary data analyses were conducted using SPSS. These analyses included reliability,

exploratory factor, and correlation analyses. AMOS (Arbuckle 2003) was used to test the path

model. A bootstrapping procedure with 1000 sub-samples was carried out to provide extra

confidence that the results were not sample-specific.

Validity and reliability/Rigor

Pre-validated scales were used in the study.

Organizational change initiatives. Palmer and Dunford (2002) used nine items to

measure organizational change initiatives implemented in Australia. Exploratory factor

analysis resulted in two factors. Factor one demonstrated flexibility-promoting (α = .87)

aspects of organizational change (including empowerment and flexibility) while factor two

comprised flexibility-limiting (α = .81) or delimiting initiatives such as downsizing and

outsourcing. Items were measured on a scale from 1 (not at all) to 5 (a large extent).

Administrative stressors. Following Noblet et al. (2005), we used 34 items to

measure context-specific administrative stressors. Member validation checks and

comparisons with the occupational stress literature (e.g. Cox & Cox 1993) indicated that the


15

overall analysis had satisfactory levels of internal and external validity. Items rated by at least

50 percent of respondents as being a moderate, large or major source of stress (that is, a score

of three, four or five on the 5-point scale) were retained for further analysis. Altogether 12

items were retained with items representing resource and time/workload stressors (α = .88).

Example items include ‘Unrealistic performance targets’ and ‘Not having enough time to do

job as well as you would like’. Items were rated on a scale from 1 (not at all) to 5 (a major

source of stress).

Subjective fit. Following Newton and Jimmieson (2008), we used the 3-item scale

from Cable and DeRue (2002) to measure the level of subjective fit (α = .92). This scale has

been validated and used in over 100 workplace studies. An example item is ‘The things that I

think are important are also the things that are important to the organisation’. Subjective fit

was operationalized as a formative scale, rated on a 5-point scale from 1 (strongly disagree)

to 5 (strongly agree).

Job satisfaction. This is measured by using the 15-item scale from Warr et al. (1979)

as respondents were asked to rate their job satisfaction on a 7-point scale from 1 (extremely

dissatisfied) to 7 (extremely satisfied). Items included satisfaction rating with respect to ‘the

physical work conditions’ and ‘taking everything into consideration, how do you feel about

your job as a whole’ (α = .92).

Psychological wellbeing. We used GHQ-12 scale (Goldberg & Williams 1988) to

measure self-perceived psychological health. Respondents were asked how their health had

been in general over the last few weeks by responding to a 4-point scale (e.g., have you been

able to enjoy your day-to-day activities?’) (α = .85). The 4-point scale ranged from 0 (more

so than usual) to 3 (much less than usual) and was reverse-scaled. A higher value implies

higher level of psychological health (or less psychological strain).

Organizational commitment. Following Noblet et al. (2005), we adopted the six item


16

scale from Porter et al. (1974). An example item is ‘I really care about the future of this

organisation’. Respondents were asked to rate each item on a 6-point scale ranging from 1

(strongly disagree) to 5 (strongly agree) (α = .91).

RESULTS

Characteristics of the Sample

The respondents (N=252) were mainly female (72 percent) with 77 percent coming from the

public sector and the remaining from the nonprofit sector. Over half of the respondents

worked full time (56 percent) with the remaining sample reporting part time work. Overall,

just over half the respondents were aged 31-50 years old (59 percent) and nearly half of the

sample had worked in their current position for between three to 10 years (46 percent). Just

over 70% of the sample reported having management or supervisory responsibilities.

Preliminary data analyses

Descriptive data (means and standard deviations) and inter-correlations among the focal

variables are displayed in Table 1. Most correlations were low to moderate, indicating that

multicollinearity was not a serious threat to the analyses (Tabachnick & Fidell 2001). Table 1

reveals that while correlation between the two types of change was moderate (r = .62, p <

.01), they were differentially related to the other focal variables. For instance, FL change was

less significantly related to subjective fit (r = .15, p < .05) than FP change (r = .43, p < .01).

A similar result was revealed for organizational commitment. It is also interesting to note that

FL change was not significantly related to psychological health or job satisfaction, while FP

change was significantly and positively related to these same outcome measures. While a

significant bivariate correlation was not found between FL change and administrative

stressors as expected, the nonsignificant correlation between FP change and administrative

stressors was not in line with preliminary expectations. One-way ANOVAs revealed no

significant differences in the focal variable as a function of public or nonprofit sector


17

employment, education, managerial level, employment status, or gender.

Common Method Variance

Two analyses were conducted to assess the potential effects of common method variance

(CMV). First, Harman’s single-factor test was run via an exploratory factor analysis in SPSS

using varimax rotation (Podsakoff et al. 2003). The unrotated factor solution revealed that

the single factor accounted for 25% of total variance, which is well below the level that could

suggest a CMV problem. Second, AMOS was used to load all items onto an additional latent

CMV factor. As only an additional 1% of shared variance was accounted for by this latent

factor, CMV was not suggested to be a threat in the present study.

Path Model Analysis

A path model was developed and tested to explore the direct and indirect effects relating to

our hypotheses (see Figure 1) as well as to test the fit of the model to the data. As can be seen

in Table 2, this model (Model 1) was a reasonable fit to the data although the RMSEA and

sRMR indicators were high (CFI = .97; NFI = .95; RMSEA = .08; sRMR = .07). Inspection

of the modification indices further revealed that a path was appropriate between FP change

and psychological health. Once this path was added all AMOS indices revealed a very good

fit of the model (Model 2) to the data (CFI = .99; NFI = .97; RMSEA = .04; sRMR = .04).

-------------------------------------

Insert Table 1 and 2 about here

-------------------------------------

As can be seen in Table 3, all hypotheses proposed in this study were supported. In

addition, a significant path between FP change and psychological health was revealed along

with several non-hypothesized indirect effects. The results support the assertion that FL

change leads to lower levels of subjective fit with the organization, which in turn results in

higher levels of administrative stressors. This, in turn, leads to lower psychological health and


18

job satisfaction and ultimately lower levels of organizational commitment. Conversely, the

results also reveal that, as expected, change that promotes flexibility leads to higher levels of

fit with the organization, which in turn leads to lower levels of administrative stressors,

higher levels of psychological health and job satisfaction and ultimately greater

organizational commitment.

---------------------------------

Insert Table 3 about here

---------------------------------

DISCUSSION

The aim of the current study was to examine the causal effect of organizational change

initiatives on employee attitudes such as job satisfaction, psychological wellbeing and

organizational commitment. The next aim was to determine if perceptions of subjective fit

with the organization have an impact on the change-stressor-employee adjustment

relationship. This study shows that public and nonprofit nurses experience different levels of

non-nursing administrative stressors as a result of the implementation of FP change or FL

change initiatives implemented by public and nonprofit health care organizations. FP change

initiatives were found to have a positive influence on the level of non-nursing administrative

stressors via subjective fit, while FL change initiatives (such as downsizing and outsourcing)

resulted in higher level stressors both directly and via subjective fit. As nurses experienced

more administrative stressors, they tended to report lower levels of psychological health, job

satisfaction, and organizational commitment.

The findings showed that change initiatives, especially those that have flexibility

limiting characteristics for nursing work, if not managed effectively, could result in an

increase in administrative stressors (such as resource and time stressors). This represents a


19

particularly important outcome in that it is the first study to examine the relationships

between change characteristics and nursing outcomes in this fashion. The findings also

contribute to the empirical evidence on the impact of organizational change in public and

nonprofit sector and how that impacts on work outcomes and employee attitudes. This

illuminates the need for senior management in health care organizations to be cognizant of

the negative work experiences of nursing staff, especially when there is an increasing level of

administrative expectations during organizational change.

However, the results also have broader implications when considering the role of

subjective fit. While previous research has already identified the buffering role of subjective

fit in the work stressor-employee adjustment relationship and its effect on the perception of

stressors (see Newton & Jimmieson 2006, 2009), its role in a change and stress context has

yet to be explored. As such, not only has this study shed new light on the change process as it

occurs specifically for nurses, it has also contributed to the broader literature by examining

and revealing the important role that subjective fit with the organization has in the effect of

different change initiatives on the experience of stress and employee adjustment. At a

strategic level, effective implementation of organizational change initiatives is clearly vital as

it has the potential to unsettle people from their perceptions that they fit with the

organization. The flow on effect of this misfit is potentially deleterious to employees’ abilities

to frame stressors more as challenges. Moreover, such a situation can ultimately lead to less

committed employees at a time when commitment to the organizations objectives is critical

(i.e., during change). While senior management can focus on helping the nursing workforce

to undertake various strategies to cope effectively with stress, the current study has shown

that values alignment is the most important variable, especially as it resulted in higher job

satisfaction, which ultimately led to organizational commitment.

Practical and managerial implications.


20

The current study has implications for human resource managers and senior management in

health care organizations. One implication is to focus on selective staffing as the way to

appoint new staff, with the aim of minimizing turnover intentions. Selection tests can be

used to identify those staff who fulfill the technical requirements of the job description and

exhibit the same values as that of the employing organization. McCulloch and Turban (2007)

noted that effective recruitment, by ensuring fit between the new recruits and the hiring

organization, could result in cost savings in relation to recruitment, hiring, training, and

managerial time.

Another important implication is the way in which change is introduced. For instance,

employers need to very clearly justify the need and positive longer-term outcome of FL

change initiatives. Furthermore, when FL change initiatives are required, employers should

actively seek to simultaneously introduce other FP initiatives. This may have the effect of

buffering the negative effects of the FL change on subjective fit and the subsequent

perceptions of administrative stressors and employee adjustment.

Limitations and future research implications

In the current study, we relied on self-complete questionnaire in a cross sectional sample.

Hence, there is a possibility that our findings could be affected by common method bias,

however, two independent analyses have suggested that this threat is not likely. Future studies

could minimize this potential effect by collecting data from multiple sources and/or across

different time periods. Data should also be collected from other occupations to explore the

generalizability of the findings of the present study.

CONCLUSION

This study has shown that senior management must take note of implementing different

aspects of change initiatives in health care organizations. Furthermore, the orientation of

change initiatives in terms of their relationship towards flexibility clearly has effects on the


21

extent that employees feel they fit with the organization’s goals and objectives and ultimately

their commitment to the organization. In addition to contributing to better understanding the

effect of subjective fit in change-stressor-employee adjustment relationships, this study has

also highlighted practical implications for health-care human resource managers when they

are undertaking recruitment and implementing change.


22

Figure 1. Path Model


23

Table 1 Descriptive data for focal variables

Variables

Mean (SD)

1 2 3 4 5 6 7

1 Flexibility limiting change 2.63 (.87) (.81 ) 2 Flexibility promoting change 2.51 (.88) .62** (.87) 3 Subjective fit 2.71 (1.01) .15* .43** (.92) 4 Administration stressors 3.09 (.94) .06 -.09 -.34** (.88) 5 Psychological health 17.48 (5.42) .04 .24** .18** -.30** (.85) 6 Job satisfaction 4.37 (1.03) .09 .32** .51** -.52** .42** (.92) 7 Organizational commitment 4.45 (1.33) .19** .32** .41** -.24** .24** .44** (.91) Note. Cronbach’s (1951) alpha reliability coefficients appears in the diagonal.

* p < .05; ** p < .01.


24

Table 2 Goodness of fit statistics for confirmatory factor analysis for stressor classifications

Goodness of Fit Statistics Model 1 Value

Model 2 Value

Chi-square 24.74 13.30 DF 18 19 DF/ Chi-square 2.57 1.48 CFI .97 .99 NFI .95 .97 RMSEA .08 .04 Standardized RMR .07 .04


25

Table 3

Results of Path Analysis

Paths Standardized

path coefficients and significance

Standard error

Hypothesis support

Direct Paths FL change Administration stressors

.12† .06 H1 √

FP change Subjective fit .55*** .08 H8 √ FL change Subjective fit -.19** .08 H9 √ FP change Psychological health

.36

Subjective fit Administration stressors

-.36*** .06 H10 √

Administration stressors -> Psychological health

-.30*** .34 H3 √

Administration stressors -> Job satisfaction

-.33*** .06 H2 √

Subjective fit -> Job satisfaction .36*** .05 H6 √ Psychological health Job satisfaction

.26*** .01 H4 √

Subjective fit Organizational commitment

.20** .08 H7 √

Job Satisfaction Org Commitment

.29*** .08 H5 √

Indirect Paths FP change Subjective fit Administration stressors

-.20** .05 H11 √

FP change Subjective fit Job satisfaction

.28** .05

FL change Subjective fit Administration stressors

.07** .03

FP change Psychological health Job satisfaction

.24** .05

Administration stressors Psychological health Job satisfaction

.08** .02

Subjective fit Administration stressors Psychological health

.11** .03 H12a √

Subjective fit Administration stressors Job satisfaction

.08** .04 H12b √

Psychological health Job satisfaction Organizational commitment

.08** .03

Subjective fit Job satisfaction Organizational commitment

.15** .04

† p=.05; *p<.05; **p<.01; ***p<.001


26

REFERENCES

Abramis D.J. (1994) Work role ambiguity, job satisfaction, and job performance: meta-

analyses and review. Psychological Reports 75, 1411–1433.

Arbuckle J. L. (2003) Amos 5.0 Update to the Amos User's Guide. Smallwaters Corporation,

Chicago.

Australian Institute of Health and Welfare (2010) Nursing and Midwifery Labour Force

Survey. Commonwealth of Australia: Canberra.

Ashforth B.E. & Mael F. (1989) Social identity theory and the organization. Academy of

Management Review 14, 20–39.

Bao Y., Vedina R., Moodie S. & Dolan S. (2012) The relationship between value

incongruence and individual and organizational well-being outcomes: an exploratory

study among Catalan nurses. Journal of Advanced Nursing. doi: 10.1111/j.1365-

2648.2012.06045.

Bartram T., Joiner T.A. & Stanton P. (2004) Factors affecting the job stress and job

satisfaction of Australian nurses: implications for recruitment and retention.

Contemporary Nursing 17, 30–38.

Boon C., Den Hartog D.N., Boselie P. & Paauwe J. (2011) The relationship between

perceptions of HR practices and employee outcomes: examining the role of person-

organisation and person-job fit. The International Journal of Human Resource

Management 22, 138–162.

Cable D.M. & DeRue D.S. (2002) The convergent and discriminant validity of subjective fit

perceptions. Journal of Applied Psychology 87, 875–884.

Caldwell S.D. (2011) Bidirectional relationships between employee fit and organizational

change. Journal of Change Management 11(4), 401–419.


27

Chandler J., Barry J. & Clark H. (2002) Stressing academe: the wear and tear of the new

public management. Human Relations, 55(9), 1051–1069.

Chang E.M., Hancock K.M., Johnson A., Daly J. & Jackson D. (2005) Role stress in nurses:

review of related factors and strategies for moving forward. Nursing and Health

Sciences 7, 57–65.

Clugston M. (2000) The mediating effects of multidimensional commitment on job

satisfaction and intent to leave. Journal of Organizational Behavior 21, 477–486.

Cooper-Thomas H.D. & Poutasi C. (2011) Attitudinal variables predicting intent to quit

among Pacific healthcare workers. Asia Pacific Journal of Human Resources 49(2),

180–192.

Cox T. & Cox S. (1993) Occupational health: control and monitoring of psychosocial and

organisational hazards at work. Journal of the Royal Society of Health 113, 201–205.

Diefenbach T. (2009) New public management in public sector organizations: the dark sides

of managerialistic 'enlightenment’. Public Administration 87(4), 892–909.

Dunford R., Palmer I., Benveniste J. & Crawford J. (2007) Coexistence of 'old' and 'new'

organizational practices: transitory phenomenon or enduring feature? Asia Pacific

Journal of Human Resources 45, 24–43.

Goldberg D. & Williams P. (1988) GHQ: A Users Guide to the General Health

Questionnaire. NFER-Nelson, Windsor.

Gray-Toft P. & Anderson T.G. (1981) Stress among hospital nursing staff: Its causes and

effects Social Science and Medicine 15, 539-647.

Haslam S.A. (2001) Psychology in Organizations: The Social Identity Approach. Sage,

London.

Haslam S.A., Postmes T. & Ellemers N. (2003) More than a metaphor: organizational identity

makes organizational life possible. British Journal of Management 14, 357–369.


28

Hood C. (2000) Paradoxes of public-sector managerialism, old public management and

public service bargains. International Public Management 3(1), 1–22.

Huang M.P., Cheng B.S. & Chou L.F. (2005) Fitting in organizational values. The mediating

role of person-organization fit between CEO charismatic leadership and employee

outcomes. International Journal of Manpower 26(1), 35–110.

Huang C.C., You C.S. & Tsai M.T. (2012) A multidimensional analysis of ethical climate,

job satisfaction, organizational commitment, and organizational citizenship behaviors.

Nursing Ethics 19(4), 513–529.

Jackson S.E. & Schuler R.S. (1985) A meta-analysis and conceptual critique of research on

role ambiguity and role conflict in work settings. Organizational Behavior and Human

Decision Processes 36(1), 16–78.

Karasek R.A. (1979) Job demands, job decision latitude, and mental strain: implications for

job redesign. Administrative Science Quarterly 24(2), 385–308.

Kristof A.L. (1996) Person-organization fit: an integrative review of its conceptualizations,

measurement, and implications. Personnel Psychology 49, 1–49.

Kristof-Brown A.L., Zimmerman R.D., & Johnson E.C. (2005) Consequences of individual’s

fit at work: a meta-analysis of person-job, person-organization, person-group, and

person-supervisor fit. Personnel Psychology 58, 281–342.

LePine J.A., Podsakoff N.P. & LePine M.A. (2005) A meta-analytic test of the Challenge

stressor-hindrance stressor framework: an explanation for inconsistent relationships

among stressors and performance. The Academy of Management Journal 48(5), 764–

775.

Levine M., Cassidy C., Brazier G. & Reicher S. (2002) Self-categorization and bystander

non-intervention: two experimental studies. Journal of Applied Psychology 32, 1452–

1463.


29

Levine M., Prosser A., Evans D. & Reicher S. (2005) Identity and emergency intervention:

how social group membership and inclusiveness of group boundaries shapes helping

behavior. Personality and Social Psychology Bulletin 31, 443–453.

Lim J., Bogossian F. & Ahern K. (2010) Stress and coping in Australian nurses: a systematic

review. International Nursing Review 57, 22–31.

Mathieu J.E. (1991) Across level nonrecursive model of the antecedents of organizational

commitment and satisfaction. Journal of Applied Psychology 76, 607–618.

McCulloch M.C. & Turban D.B. (2007) Using person–organization fit to select employees

for high-turnover jobs. International Journal of Selection and Assessment 15, 63–71.

Meyer J.P, Hecht T.D., Harjinder G. & Toplonytsky, L. (2010) Person–organization (culture)

fit and employee commitment under conditions of organizational change: a longitudinal

study. Journal of Vocational Behavior 76(3), 458–473.

Muchinsky P.M. & Monahan C.J. (1987) What is person-environment congruence?

Supplementary versus complementary models of fit. Journal of Vocational Behavior,

Special Issue: Conceptual and Methodological Issues in Person–Environment Fit

Research 31, 268–277.

Newton C.J. (2006) An exploration of workplace stressors and employee adjustment: An

organisational culture perspective. PhD Dissertation, The University of Queensland.

Newton C.J. & Jimmieson N.L. (2006) Perceptions of values-based fit with the organization:

the impact of role stressors and coping abilities. International Commission of

Occupational Health Conference on Psychosocial Factors at Work, Okayama, Japan.

Newton C.J. & Jimmieson N.L. (2008) Role stressors, participative control, and subjective fit

with organizational values: main and moderating effects on employee outcomes.

Journal of Management & Organization 14, 20–39.

Newton C.J. & Jimmieson N.L. (2009) Subjective fit with organizational culture: an


30

investigation of moderating effects in the work stressor-employee adjustment

relationship. International Journal of Human Resource Management 20, 1770–1789.

Noblet A., McWilliams J., Teo S.T.T. & Rodwell J.J. (2005) Work characteristics and

employee outcomes in local government. International Journal of Human Resource

Management 17, 1804–1818.

Örtqvist D. & Wincent J. (2006) Prominent consequences of role stress: a meta-analytic

review. International Journal of Stress Management 13(4), 399–422.

Palmer I. & Dunford R. (2002) Out with the old and in with the new? The relationship

between traditional and new organizational practices International Journal of

Organizational Analysis 10(3), 209–25.

Pick D., Teo S.T.T. & Yeung M. (2012) Friend or foe? New managerialism and technical,

administrative and clerical support staff in Australian universities. Higher Education

Quarterly 66, 3–23.

Podsakoff P.M., Mackenzie S.B., Lee J.Y. & Podsakoff N.P. (2003) Common method biases

in behavioural research: a critical review of the literature and recommended remedies.

Journal of Applied Psychology 88(5), 879–903.

Porter L.W., Steers R.M., Mowday R.T. & Boulian P.V. (1974) Organizational commitment,

job satisfaction, and turnover among psychiatric technicians. Journal of Applied

Psychology 59, 603–609.

Powell G.N. (1998) Reinforcing and extending today’s organizations: the simultaneous

pursuit of person-organization fit and diversity. Organizational Dynamics 26, 50–61.

Riketta M. (2005) Organizational identification: a meta-analysis. Journal of Vocational

Behavior 66, 358–384.

Rodwell J.J. & Teo S.T.T. (2008) The influence of strategic HRM and sector on perceived

firm performance in health services organizations. International Journal of Human


31

Resource Management 19, 1825–1841.

Saks, A.M. & Ashforth B.E. (1997) A longitudinal investigation of the relationships between

job information sources. Applicant perceptions of fit, and work outcomes. Personnel

Psychology 50, 395–426.

Spector P.E. & Jex S.M. (1998) Development of four self-report measures of job stressors

and strain: interpersonal conflict at work scale, organizational constraints scale,

quantitative workload inventory, and physical symptoms inventory. Journal of

Occupational Health Psychology 3(4), 356–367.

Stanton P., Willis E. & Young S. (eds) (2005) Workplace reform in the healthcare industry:

The Australian experience. Palgrave Macmillan, Melbourne.

Stensaker I., Meyer C.B., Falkenberg J. & Haueng A.C. (2002) Excessive change: coping

mechanisms and consequences. Organizational Dynamics 31, 296–312.

Swanson V. & Power K. (2001) Employees’ perceptions of organizational restructuring: the

role of social support. Work & Stress 15, 161–178.

Tabachnick B.G. & Fiddell L.S. (2001) Using Multivariate Analysis. Allyn and Bacon,

Boston.

Tajfel H. & Turner J.C. (1979) An integrative theory of intergroup conflict. In The Social

Psychology of Intergroup Relations (Austin W.G. & Worchel S. eds), Brooks/Cole

Monterey, CA, pp. 33–47.

Tovey E.J. & Adams A.E. (1999) The changing nature of nurses’ job satisfaction: an

exploration of sources of satisfaction in the 1990s. Journal of Advanced Nursing 30,

150–158.

Verquer M.L., Beehr T.A. & Wagner S.H. (2003) A meta-analysis of relations between

person-organization fit and work attitudes. Journal of Vocational Behavior 63, 473–

489.


32

Warr P., Cook J. & Wall T. (1979) Scales for the measurement of some work attitudes and

aspects of psychological well-being. Journal of Occupational Psychology 52, 129–148.

Zangaro G.A. & Soeken K.L. (2007) A meta-analysis of studies of nurses’ job satisfaction.

Research in Nursing & Health 30, 445–458.

Documents

c Consult author(s) regarding copyright matterseprints.qut.edu.au/64949/1/64949.pdf · BEc, MBA (Int. Business), PhD (HRM) Department of Management AUT Business School AUT University