13.3 Organizational psychology: the social dimension of work  (Page 3/32)

Job stress affects job satisfaction. Job stress, or job strain, is caused by specific stressors in an occupation. Stress can be an ambigious term as it is used in common language. Stress is the perception and response of an individual to events judged as ovewhelming or threatening to the individual’s well-being (Gyllensten&Palmer, 2005). The events themselves are the stressors. Stress is a result of an employee’s perception that the demands placed on them exceed their ability to meet them (Gyllensten&Palmer, 2005), such as having to fill multiple roles in a job or life in general, workplace role ambiguity, lack of career progress, lack of job security, lack of control over work outcomes, isolation, work overload, discrimination, harrassment, and bullying (Colligan&Higgins, 2005). The stressors are different for women than men and these differences are a significant area of research (Gyllensten&Palmer, 2005). Job stress leads to poor employee health, job performance, and family life (Colligan&Higgins, 2005).

As already mentioned, job insecurity contributes significantly to job stress. Two increasing threats to job security are downsizing events and corporate mergers. Businesses typically involve I-O psychologists in planning for, implementing, and managing these types of organizational change.

Downsizing is an increasingly common response to a business’s pronounced failure to achieve profit goals, and it involves laying off a significant percentage of the company’s employees. Industrial-organizational psychologists may be involved in all aspects of downsizing: how the news is delivered to employees (both those being let go and those staying), how laid-off employees are supported (e.g., separation packages), and how retained employees are supported. The latter is important for the organization because downsizing events affect the retained employee’s intent to quit, organizational commitment, and job insecurity (Ugboro, 2006).

In addition to downsizing as a way of responding to outside strains on a business, corporations often grow larger by combining with other businesses. This can be accomplished through a merger (i.e., the joining of two organizations of equal power and status) or an acquisition (i.e., one organization purchases the other). In an acquisition, the purchasing organization is usually the more powerful or dominant partner. In both cases, there is usually a duplication of services between the two companies, such as two accounting departments and two sales forces. Both departments must be merged, which commonly involves a reduction of staff ( [link] ). This leads to organizational processes and stresses similar to those that occur in downsizing events. Mergers require determining how the organizational culture will change, to which employees also must adjust (van Knippenberg, van Knippenberg, Monden,&de Lima, 2002). There can be additional stress on workers as they lose their connection to the old organization and try to make connections with the new combined group (Amiot, Terry, Jimmieson,&Callan, 2006). Research in this area focuses on understanding employee reactions and making practical recommendations for managing these organizational changes.