We know that organizations of different but related kinds greatly influence each other’s evolution. Although empirical findings abound, the theories behind them are still being developed. We advance a model of ecological interdependence between emergent and established populations. Our model is based on three main ideas. First, we consider related populations to be those that overlap in identity and resource space and that simultaneously exhibit competitive and mutualistic relationships, the latter leading to legitimacy transfer. Second, we build on the idea that legitimated forms codify prescriptive sanctions for deviations from identity blueprints, and predict that when an emergent population overlaps with an established one in identity space, its early proliferation will manifest violations of established social identities and will trigger prescriptive sanctions. Third, we rely on the notion of a focused identity to argue that organization-level changes affect external perceptions of the population’s collective identity, and hamper legitimacy. Analysis of the survival rates of financial cooperatives in Singapore—a population overlapping the identity and resources of commercial banks—confirms our predictions.
After the Asian financial crisis, companies are now contending with the current global economic slowdown. Whether it is at the national, industry or organizational levels, restructuring has gained currency as a strategic decision to realign internal structure with changing macro environmental factors. Faced with more competitive markets and greater demands on costs controls, organizations and businesses are taking the fast track to cost-cutting by downsizing, reorganizing their divisions, streamlining their operations, and closing down unprofitable divisions. Changes that are introduced in an organizational restructuring will affect the socio-psychological well-being of organization members given the potential for uncertainty that may accompany such changes. There is a need to better understand the consequences of organizational restructuring and consider some of its potential side effects on the work environment. Employees in a post-restructuring context are understandably wary about the future direction of the organization and their roles within it. This study is an attempt to examine the social-psychological impact of organizational restructuring on trust and work satisfaction. Additionally the inter-relationships between trust and work satisfaction, including their antecedents in the work environment are examined. Trust and work satisfaction levels were tracked before and three months after organizational restructuring for varying types of changes that were initiated during the restructuring. Both trust and satisfaction with working in the organization declined significantly when compared to pre-restructuring levels. Independent t-tests analysis indicated that there was a significant decline in trust for the work group which had a newly hired manager and a change in work processes. Results showed that there was a negative relationship between both work satisfaction and trust with the extent of change required of employees. The findings also showed that there was a positive relationship between trust and work satisfaction and that trust contributed to work satisfaction. Perception of colleagues’ willingness to help solve job-related problems contributed significantly to strengthening of trust relations among colleagues. Additionally, colleagues and supervisor’s willingness to listen to employee problems contributed significantly to work satisfaction. Results of the study highlighted the need for strategic decision-makers to consider the social impact of organizational restructuring. Top managers must realize that both trust and work satisfaction are important ingredients for the effective functioning of an organization and to actively ensure that support systems or structures are adequate and available to mitigate the negative impact, particularly if the changes to be implemented are extensive. Copyright Springer Science + Business Media, Inc. 2005organizational change, work satisfaction, trust,
Purpose – The purpose of this paper is to investigate relational contracting (RC) practices that give rise to higher quality interpersonal relations between these pairs of stakeholders at the end of public projects: clients and contractors; contractors and consultants; and clients and consultants. It developed models to predict the level of quality of interpersonal relations between the stakeholders at the completion of public projects. Design/methodology/approach – Using a set of questionnaire, data were collected from randomly selected construction industry practitioners who have had experience in public projects in Singapore. The data were analysed to identify association between the use of RC practices and quality of interpersonal relations between stakeholders. In-depth interviews with experts were conducted. Findings – It was found that when certain RC practices were adopted to a larger extent, public projects also have significantly higher quality of interpersonal relations between clients, contractors and consultants. Three mathematical models were developed to predict the relationship quality between stakeholders at the end of the public project. Research limitations/implications – The limitations include the subjective nature of the Likert scale that was used in answering the questionnaire survey and the limited number of interviews. The effect of existing good relations among stakeholders was not taken into account. Practical implications – Suitable RC practices for adoption by public clients, contractors and consultants in public projects are recommended. These include developing deeper mutual trust and understanding, sharing project information, and having real gain-share/pain-share among contracting parties. Originality/value – RC practices that are significantly associated with relationships among contracting parties in public projects in Singapore are uncovered. Contracting parties may use the recommendations to help enhance their relationships with one another in a public project.
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