Research has shown that closedowns seem to result in increased productivity even though all productivity targets have been abandoned. The closedown case analysed in this article is different from previous research since management came to employ high goals for productivity and efficiency throughout the entire closedown process (29 months). The article argues that individuals gradually accept the demise and detach themselves from the dying organization by adopting new career goals which they can start pursuing after the actual closure, thus the closure becomes a subgoal. This study examines change in the dependent variables' mean values, and the relationships between goal setting, job performance, goal commitment, organizational citizenship behaviour, job satisfaction and job-induced tension. A longitudinal design (N = 151) based on two data points (T1: February 2006, T2: February 2007) were tapped into the annual goal setting process. The results support that goal setting was effective in this specific closedown scenario.
Major organizational changes are often connected with a variety of negative outcomes for both employees and the organization alike. As a contrast to this, organizational deaths have instead been associated with increased productivity and motivation to perform, despite certainty of job loss. These results have been regarded as counter-intuitive, since employment and job security are regarded as a foundation for work motivation. Consequently, this thesis aims at investigating the motivational aspects of organizational deaths in terms of change in motivation as individuals adjust to changing realities. The thesis rests on three empirical studies.The first study"s results showed (contrary to theoretical postulations) that goal setting was able to influence employees" in-role and extra-role performance, job-induced tension, commitment to the closure, and job satisfaction. The second study showed that organizational productivity, efficiency, performance, motivation and psychological climate increased for both bluecollar and white-collar employees". The results of the third study lend support to the anecdotal reports of high performers decreasing in their efforts during closures, but only when they perceive low justice, and while low performers perceiving low justice, received had second highest scores on effort. The results of the empirical studies support the notion that organizational productivity increases along with employees" motivation to perform. Finally, a common pattern in the data was that most positive variables increased and the negative variables decreased. These results are explained by the adoption of new goals, which creates horizontal coherence (harmony) among goals, which gives rise to goal proximity (motivation increases due to moving closer to the goal).
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