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Corporate restructuring : does damage to institutional trust affect employee engagement?

As a result of global competitiveness and a continuously changing business environment, organisations are constantly seeking for ways and means to enhance their profitability. The current organisational trend for businesses to gain competitive advantage is to restructure them to leaner and more flexible organisations. Businesses are striving to increase shareholder value by increasing performance through corporate restructuring to obtain an increase in efficiency and production. Unfortunately restructuring affects employees and could result in uncertainty with potential side effects in the work environment that could influence the employees‘ trust within the organisation. Damage to institutional trust, or trustworthiness as perceived by employees, could affect how employees engage within the organisation and impact on the profitability of such an organisation. A quantitative research study was conducted to determine if corporate restructuring affects institutional trust. It also investigated the relationship between institutional trust and employee engagement to determine if corporate restructuring affects employee engagement. The main findings of the research are that corporate restructuring has a profound impact on institutional trust and that damage to institutional trust affects how employees engage within the organisation. / Dissertation (MBA)--University of Pretoria, 2012. / Gordon Institute of Business Science (GIBS) / unrestricted

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:up/oai:repository.up.ac.za:2263/26324
Date15 July 2012
CreatorsMarais, Amelia
ContributorsProf K Hofmeyr, ichelp@gibs.co.za
Source SetsSouth African National ETD Portal
Detected LanguageEnglish
TypeDissertation
Rights© 2011, University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria.

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