Winning and Losing: Understanding Managers' Reactions to Strategic Change

Abstract

Managers' interpretation of and reactions to large-scale organizational change that resulted in a new business unit strategy are examined in one firm. We find differences in the configuration of attitudes that predict support for the strategy, depending upon whether the employees gained or lost power and opportunity as a result of the change. Among “winners,” the strongest predictor of support for the new strategy was positive career expectations and current career satisfaction. Among “losers,” the strongest predictor was belief that people had been treated fairly during the change process.

The Effects of Organizational Performance on the Relationship between Perceived Organizational Support and Career Satisfaction: An Application on Insurance Industry

“…As a result of the ISSN 1941-899X 2015 www.macrothink.org/jmr 40 researches done, relationship of career satisfaction with variables such as performance, commitment, intention to quit job, support for change and gains obtained has been identified (Greenhaus, Panasuraman and Wormley, 1990;Gaertner, 1989;Seibert and Kraimer, 2001). Employees have more satisfaction and exhibit positive organizational behaviors when the position they are in is compatible with their desires (Sullivan, Garden and Martin, 1998).…”

Variations in Strategic Philosophy among American and Mexican Managers

“…Indeed, a strategic change is most risky when competitors are better equipped to respond if it is successful (Wemerfelt and Kamani, 1987). Further, a successful strategic change is often seen as unsuccessful in the short run, and therefore must endure efforts to return to the former strategy when organizational "losers" -typically those whose careers may suffer as a result of the change-will mount a stiff opposition (Gaertner, 1989;Yoshihara, 1990). Further, strategic change can challenge the assumptions of all organizational members and may be difficult to implement even with employee support (Saffold, 1988;Scholes, 1991).…”

Reactions to unjust dismissal and third-party dispute resolution: A justice framework

“…Failure to achieve a desired outcome may contribute to unmet expectations, especially if the complainant believed that had the employer only listened to the employee's or the conciliator's viewpoint, a different outcome may have been achieved. A second phenomenon is that when unfavorable outcomes are received, people are sensitized to procedural concerns (Gaertner, 1989;Leung & Li, 1990;Lind & Tyler, 1988) Process control, in effect, becomes a substitute for outcome control. Sensitivity of the complainants to the LMS process was enhanced by the severity of their situation, namely, permanent job loss.…”