The Impact of Change Management on Employee Satisfaction and Engagement
The main purpose of this study was to figure out
employees’ attitudes toward the new performance appraisal program
and to examine whether three different types of appraisal processes
differentially affected job satisfaction and employee engagement. The
second purpose of this study was to investigate the relationship
between performance appraisal reform, job satisfaction, and employee
engagement. A large polyester and textile corporation had 2046
non-operational employees in February 2014. The valid participants
were 1474 (72.04%) in this study. Data analysis included descriptive
statistics, one-way ANOVA, one-way MANOVA, Pearson correlation,
Content Validity Index, the exploratory factor analysis, and reliability
analysis. The general results showed that employees who received the
new performance appraisal program evaluated the program more
positively and showed more job satisfaction than those who did not. In
particular, the implementation effects of this new performance
appraisal program were most highly rated by employees who used the
KPI to rate their job performance. Moreover, employees’ attitudes
toward the new performance appraisal program were positively related
to their job satisfaction and employee engagement. Lastly, most
employees regarded themselves as engaged workers. To sum up, the
HR department of this company has made an effective contribution to
performance appraisal reforms.
[1] G. Dessler, Human Resource Management. Taipei: Pearson, 2013, ch. 1.
[2] D. L. Stone, and D. L. Deadrick, “Challenges and opportunities affecting
the future of human resource management,” Human Resource
Management Review, vol. 25, no 2, Jun. 2015, pp. 139–145.
[3] G. Spreitzer, and C. L. Porath, “Creating sustainable performance,”
Harvard Business Review, vol. 90, no. 1-2, Jan.-Feb. 2012, pp. 93–99.
[4] S. M. Kimani, and S. M. Waithaka, “Factors affecting implementation of
talent management in state corporations: A case study of Kenya
broadcasting corporation,” International Journal of Business and Social
Research, vol. 3, no. 4, Apr. 2013, pp. 42–49.
[5] P. Sparrow, E. Farndale, and H. Scullion, “An empirical study of the role
of the corporate HR function in global talent management in professional
and financial service firms in the global financial crisis,” International
Journal of Human Resource Management, vol. 24, no. 9, Apr. 2013, pp.
1777–1798.
[6] F. Tonelli, S. Evans, and P. Taticchi, “Industrial sustainability:
Challenges, perspectives, actions,” International Journal of Business
Innovation and Research, vol. 7, no. 2, Jan. 2013, pp. 143–163.
[7] D. Abdulsalam, and M. A. Mawoli, “Motivation and job performance of
academic staff of state universities in Nigeria: The case of Ibrahim
Badamasi Babangida University Lapai, Niger State”, International
Journal of Business and Management, vol. 7, no. 14, Jul. 2012, pp. 142–
148.
[8] E. Deepa, and S. Kuppusamy, “Impact of performance appraisal system
on job satisfaction, employee engagement, organizational citizenship
behavior and productivity,” Indian Journal of Applied Research, vol. 4,
no. 2, Feb. 2014, pp. 4–6.
[9] E. N. C. Hong, L. Z. Hao, R. Kumar, C. Ramendran, and V. Kadirasan,
“An effectiveness of human resource management practices on employee
retention in institute of higher learning - A regression analysis,”
International Journal of Business Research and Management, vol. 3, no.
2, Apr. 2012, pp. 60–79.
[10] R. Karimi, M. I. Malik, and S. Hussain, “Examining the relationship of
performance appraisal system and employee satisfaction,” International
Journal of Business and Social Science, vol. 2, no. 22, Dec. 2011, pp.
243–247. [11] J. A. Gruman, and A. M. Saks, “Performance management and employee
engagement,” Human Resource Management Review, vol. 21, no. 2, Jun.
2011, pp. 123–136.
[12] V. Gupta, and S. Kumar, “Impact of performance appraisal justice on
employee engagement: a study of Indian professionals,” Employee
Relations: The International Journal, vol. 35, no. 1, 2013, pp. 61–78.
[13] E. D. Pulakos, Performance management: A new approach for driving
business results. MA: Wiley-Blackwell, 2009, pp. 1–214.
[14] R. Hoppock, Job satisfaction. New York: Harper and Brothers, 1935, p.
47.
[15] E. A. Locke, The nature and causes of job satisfaction. In M. D. Dunnette
(Ed.), Handbook of industrial and organizational psychology. Chicago:
Rand McNally, 1976, pp. 1297–1343.
[16] S. Suma, and J. Lesha, “Job satisfaction and organizational commitment:
The case of Shkodra municipality,” European Scientific Journal, vol. 9,
no. 17, Jun. 2013, pp. 41–51.
[17] T. L. Zontek, C. C. DuVernois, and B. R. Ogle, “Job satisfaction and
issues related to the retention of environmental health professionals in
North Carolina,” Journal of Environmental Health, vol. 72, no. 3, Oct.
2009, pp. 10–15.
[18] E. B. Faragher, M. Cass, and C. L. Cooper, “The relationship between job
satisfaction and health: a meta-analysis,” Occupational and
Environmental Medicine, vol. 62, no. 2, Feb. 2005, pp. 105–112.
[19] T. Chen, P. Chang, and C. Yeh, “An investigation of career development
programs, job satisfaction, professional development and productivity:
the case of Taiwan,” Human Resource Development International, vol. 7,
no. 4, 2004, pp. 441–463.
[20] J. Chien, “Examining Herzberg’s two factor theory in a large Chinese
chemical fiber company,” International Science Index, vol. 7, no. 6, Jun.
2013, pp. 1433–1438.
[21] L. Chi, “Performance management: Exploring the status of outcome in
securities industry of Taiwan,” unpublished master’s thesis, National
Taiwan University of Science and Technology, Taipei, 2010.
[22] B. Kuvaas, “Performance appraisal satisfaction and employee outcomes:
mediating and moderating roles of work motivation,” The International
Journal of Human Resource Management, vol. 17, no. 3, Sep. 2006, pp.
504–522.
[23] S. Pandey, and M. S. Khan, “Performance appraisal as a change bringer –
Issues and prospects,” Indian Journal of Applied Research, vol. 5, no. 3,
Mar. 2015, pp. 244–246.
[24] R. S. Ayers, “Building goal alignment in federal agencies’ performance
appraisal programs,” Public Personnel Management, vol. 42, no. 4, Dec.
2013, pp. 495–520.
[25] O. J. Ayanda, and A. D. Sani, “Strategic human resource management and
organizational performance in the Nigerian manufacturing sector: An
empirical investigation,” International Journal of Business and
Management, vol. 6, no. 9, Sep. 2011, pp. 46–56.
[26] M. Brown, and J. S. Heywood, “Performance appraisal systems:
Determinants and change,” British Journal of Industrial Relations, vol.
43, no. 4, Dec. 2005, pp. 659–679.
[27] S. S. Culbertson, J. B. Henning, and S. C. Payne, “Performance appraisal
satisfaction: The role of feedback and goal orientation,” Journal of
Personnel Psychology, vol. 12, no. 4, 2013, pp. 189–195.
[28] S. Mahajan, and S. Raheja, “Examine relationship between employees
satisfaction on performance appraisal system with fairness of the system,”
Asian Journal Management, vol. 5, no. 1, Jan-Mar. 2014, pp. 49–54.
[29] S. R. Moulik, and S. Mazumdar, “Exploring the relationship between
perceived uses of appraisals and performance appraisal satisfaction in
the Indian IT sector: An empirical study,” International Journal of
Business and Social Research, vol. 2, no. 5, 2012, pp. 63–76.
[30] S. Yang, “A study on impact factors of staff performance appraisal in
state-owned enterprise,” unpublished master’s thesis, National Chung
Hsing University, Taichung, 2008.
[31] H. Lin, “A study of the relationship among paternalistic leadership,
performance appraisal and leadership effectiveness: A case in air force
institute of technology,” unpublished master’s thesis, I-Shou University,
Kaohsiung, 2008.
[32] S. Shih, “Evaluation of performance appraisal system--A case study of a
small- medium enterprise,” unpublished master’s thesis, Chung Yuan
Christian University, Taoyuan, 2006.
[33] G. K. Karyeija, “The impact of culture on performance appraisal reforms
in Africa: The case of Uganda’s civil service,” Canadian Center of
Science and Education, vol. 8, no. 4, Apr. 2012, pp. 159–174.
[34] W. H. Macey, and B. Schneider, “The meaning of employee
engagement,” Industrial and Organizational Psychology, vol. 1, no. 1,
Mar. 2008, pp. 3–30.
[35] W. Lin, “The relationship among supervisor support, employee job
engagement and job performance: A multi-level analysis model,”
unpublished master’s thesis, Fu Jen Catholic University, New Taipei City,
2014.
[36] T. J. Kamalanabhan, L. Prakash Sai, and D. Mayuri, “Employee
engagement and job satisfaction in the information technology industry,”
Psychological Reports, vol. 105, no. 3, Dec. 2009, pp. 759–770.
[37] K. Nowack, “Employee engagement, job satisfaction, retention and
stress,” retrieved from: www.envisialearning.com, accessed during Apr.
2014.
[38] A. Orgambidez-Ramos, Y. Borrego-Ales, and I. Mendoza-Sierra, “Role
stress and work engagement as antecedents of job satisfaction in Spanish
workers,” Journal of Industrial Engineering and Management, vol. 7, no.
1, 2014, pp. 360–372.
[39] M. Desai, B. Majumdar, and G. P. Prabhu, “A study on employee
engagement in two Indian businesses,” Asian Journal of Management
Research, vol. 1, no. 1, 2010, pp. 81–97.
[40] D. Ilham, “The other type of employee engagement: Can engagement
happen toward organization as well,” unpublished master’s thesis, Asia
University, Taichung, 2012.
[41] C. P. Cheng, “The effect of organizational climate and job satisfaction on
employee engagement- Case study of a rubber manufacturing company,”
unpublished master’s thesis, Ching Yun University, Taoyuan, 2012.
[42] D. R. Gomes, “Organizational change and job satisfaction: The mediating
role of organizational commitment,” Exedra Journals, vol. 1, 2009, pp.
177–195.
[43] S. Shiao, “A study of the relationships among organizational culture,
organizational change, job satisfaction, and organizational commitment,”
unpublished master’s thesis, Dayah University, Changhua, 2012.
[44] M. Huang, “A study of the relationship model among organizational
change recognition, work attitudes, and job performance - The case of
Taiwan Sugar Company,” unpublished master’s thesis, Chang Jung
Christian University, Tainan, 2006.
[45] R. Vignaswaran, “The relationship between performance appraisal
satisfaction and employee outcomes: a study conducted in Peninsular
Malaysia,” unpublished master’s thesis, University of Malaya, Malaysia,
2008.
[46] C. M. Vance, and Y. Paik, Managing a Global Workforce: Challenges
and Opportunities in International Human Resource management. NY:
Routledge, 2015, p. 337.
[1] G. Dessler, Human Resource Management. Taipei: Pearson, 2013, ch. 1.
[2] D. L. Stone, and D. L. Deadrick, “Challenges and opportunities affecting
the future of human resource management,” Human Resource
Management Review, vol. 25, no 2, Jun. 2015, pp. 139–145.
[3] G. Spreitzer, and C. L. Porath, “Creating sustainable performance,”
Harvard Business Review, vol. 90, no. 1-2, Jan.-Feb. 2012, pp. 93–99.
[4] S. M. Kimani, and S. M. Waithaka, “Factors affecting implementation of
talent management in state corporations: A case study of Kenya
broadcasting corporation,” International Journal of Business and Social
Research, vol. 3, no. 4, Apr. 2013, pp. 42–49.
[5] P. Sparrow, E. Farndale, and H. Scullion, “An empirical study of the role
of the corporate HR function in global talent management in professional
and financial service firms in the global financial crisis,” International
Journal of Human Resource Management, vol. 24, no. 9, Apr. 2013, pp.
1777–1798.
[6] F. Tonelli, S. Evans, and P. Taticchi, “Industrial sustainability:
Challenges, perspectives, actions,” International Journal of Business
Innovation and Research, vol. 7, no. 2, Jan. 2013, pp. 143–163.
[7] D. Abdulsalam, and M. A. Mawoli, “Motivation and job performance of
academic staff of state universities in Nigeria: The case of Ibrahim
Badamasi Babangida University Lapai, Niger State”, International
Journal of Business and Management, vol. 7, no. 14, Jul. 2012, pp. 142–
148.
[8] E. Deepa, and S. Kuppusamy, “Impact of performance appraisal system
on job satisfaction, employee engagement, organizational citizenship
behavior and productivity,” Indian Journal of Applied Research, vol. 4,
no. 2, Feb. 2014, pp. 4–6.
[9] E. N. C. Hong, L. Z. Hao, R. Kumar, C. Ramendran, and V. Kadirasan,
“An effectiveness of human resource management practices on employee
retention in institute of higher learning - A regression analysis,”
International Journal of Business Research and Management, vol. 3, no.
2, Apr. 2012, pp. 60–79.
[10] R. Karimi, M. I. Malik, and S. Hussain, “Examining the relationship of
performance appraisal system and employee satisfaction,” International
Journal of Business and Social Science, vol. 2, no. 22, Dec. 2011, pp.
243–247. [11] J. A. Gruman, and A. M. Saks, “Performance management and employee
engagement,” Human Resource Management Review, vol. 21, no. 2, Jun.
2011, pp. 123–136.
[12] V. Gupta, and S. Kumar, “Impact of performance appraisal justice on
employee engagement: a study of Indian professionals,” Employee
Relations: The International Journal, vol. 35, no. 1, 2013, pp. 61–78.
[13] E. D. Pulakos, Performance management: A new approach for driving
business results. MA: Wiley-Blackwell, 2009, pp. 1–214.
[14] R. Hoppock, Job satisfaction. New York: Harper and Brothers, 1935, p.
47.
[15] E. A. Locke, The nature and causes of job satisfaction. In M. D. Dunnette
(Ed.), Handbook of industrial and organizational psychology. Chicago:
Rand McNally, 1976, pp. 1297–1343.
[16] S. Suma, and J. Lesha, “Job satisfaction and organizational commitment:
The case of Shkodra municipality,” European Scientific Journal, vol. 9,
no. 17, Jun. 2013, pp. 41–51.
[17] T. L. Zontek, C. C. DuVernois, and B. R. Ogle, “Job satisfaction and
issues related to the retention of environmental health professionals in
North Carolina,” Journal of Environmental Health, vol. 72, no. 3, Oct.
2009, pp. 10–15.
[18] E. B. Faragher, M. Cass, and C. L. Cooper, “The relationship between job
satisfaction and health: a meta-analysis,” Occupational and
Environmental Medicine, vol. 62, no. 2, Feb. 2005, pp. 105–112.
[19] T. Chen, P. Chang, and C. Yeh, “An investigation of career development
programs, job satisfaction, professional development and productivity:
the case of Taiwan,” Human Resource Development International, vol. 7,
no. 4, 2004, pp. 441–463.
[20] J. Chien, “Examining Herzberg’s two factor theory in a large Chinese
chemical fiber company,” International Science Index, vol. 7, no. 6, Jun.
2013, pp. 1433–1438.
[21] L. Chi, “Performance management: Exploring the status of outcome in
securities industry of Taiwan,” unpublished master’s thesis, National
Taiwan University of Science and Technology, Taipei, 2010.
[22] B. Kuvaas, “Performance appraisal satisfaction and employee outcomes:
mediating and moderating roles of work motivation,” The International
Journal of Human Resource Management, vol. 17, no. 3, Sep. 2006, pp.
504–522.
[23] S. Pandey, and M. S. Khan, “Performance appraisal as a change bringer –
Issues and prospects,” Indian Journal of Applied Research, vol. 5, no. 3,
Mar. 2015, pp. 244–246.
[24] R. S. Ayers, “Building goal alignment in federal agencies’ performance
appraisal programs,” Public Personnel Management, vol. 42, no. 4, Dec.
2013, pp. 495–520.
[25] O. J. Ayanda, and A. D. Sani, “Strategic human resource management and
organizational performance in the Nigerian manufacturing sector: An
empirical investigation,” International Journal of Business and
Management, vol. 6, no. 9, Sep. 2011, pp. 46–56.
[26] M. Brown, and J. S. Heywood, “Performance appraisal systems:
Determinants and change,” British Journal of Industrial Relations, vol.
43, no. 4, Dec. 2005, pp. 659–679.
[27] S. S. Culbertson, J. B. Henning, and S. C. Payne, “Performance appraisal
satisfaction: The role of feedback and goal orientation,” Journal of
Personnel Psychology, vol. 12, no. 4, 2013, pp. 189–195.
[28] S. Mahajan, and S. Raheja, “Examine relationship between employees
satisfaction on performance appraisal system with fairness of the system,”
Asian Journal Management, vol. 5, no. 1, Jan-Mar. 2014, pp. 49–54.
[29] S. R. Moulik, and S. Mazumdar, “Exploring the relationship between
perceived uses of appraisals and performance appraisal satisfaction in
the Indian IT sector: An empirical study,” International Journal of
Business and Social Research, vol. 2, no. 5, 2012, pp. 63–76.
[30] S. Yang, “A study on impact factors of staff performance appraisal in
state-owned enterprise,” unpublished master’s thesis, National Chung
Hsing University, Taichung, 2008.
[31] H. Lin, “A study of the relationship among paternalistic leadership,
performance appraisal and leadership effectiveness: A case in air force
institute of technology,” unpublished master’s thesis, I-Shou University,
Kaohsiung, 2008.
[32] S. Shih, “Evaluation of performance appraisal system--A case study of a
small- medium enterprise,” unpublished master’s thesis, Chung Yuan
Christian University, Taoyuan, 2006.
[33] G. K. Karyeija, “The impact of culture on performance appraisal reforms
in Africa: The case of Uganda’s civil service,” Canadian Center of
Science and Education, vol. 8, no. 4, Apr. 2012, pp. 159–174.
[34] W. H. Macey, and B. Schneider, “The meaning of employee
engagement,” Industrial and Organizational Psychology, vol. 1, no. 1,
Mar. 2008, pp. 3–30.
[35] W. Lin, “The relationship among supervisor support, employee job
engagement and job performance: A multi-level analysis model,”
unpublished master’s thesis, Fu Jen Catholic University, New Taipei City,
2014.
[36] T. J. Kamalanabhan, L. Prakash Sai, and D. Mayuri, “Employee
engagement and job satisfaction in the information technology industry,”
Psychological Reports, vol. 105, no. 3, Dec. 2009, pp. 759–770.
[37] K. Nowack, “Employee engagement, job satisfaction, retention and
stress,” retrieved from: www.envisialearning.com, accessed during Apr.
2014.
[38] A. Orgambidez-Ramos, Y. Borrego-Ales, and I. Mendoza-Sierra, “Role
stress and work engagement as antecedents of job satisfaction in Spanish
workers,” Journal of Industrial Engineering and Management, vol. 7, no.
1, 2014, pp. 360–372.
[39] M. Desai, B. Majumdar, and G. P. Prabhu, “A study on employee
engagement in two Indian businesses,” Asian Journal of Management
Research, vol. 1, no. 1, 2010, pp. 81–97.
[40] D. Ilham, “The other type of employee engagement: Can engagement
happen toward organization as well,” unpublished master’s thesis, Asia
University, Taichung, 2012.
[41] C. P. Cheng, “The effect of organizational climate and job satisfaction on
employee engagement- Case study of a rubber manufacturing company,”
unpublished master’s thesis, Ching Yun University, Taoyuan, 2012.
[42] D. R. Gomes, “Organizational change and job satisfaction: The mediating
role of organizational commitment,” Exedra Journals, vol. 1, 2009, pp.
177–195.
[43] S. Shiao, “A study of the relationships among organizational culture,
organizational change, job satisfaction, and organizational commitment,”
unpublished master’s thesis, Dayah University, Changhua, 2012.
[44] M. Huang, “A study of the relationship model among organizational
change recognition, work attitudes, and job performance - The case of
Taiwan Sugar Company,” unpublished master’s thesis, Chang Jung
Christian University, Tainan, 2006.
[45] R. Vignaswaran, “The relationship between performance appraisal
satisfaction and employee outcomes: a study conducted in Peninsular
Malaysia,” unpublished master’s thesis, University of Malaya, Malaysia,
2008.
[46] C. M. Vance, and Y. Paik, Managing a Global Workforce: Challenges
and Opportunities in International Human Resource management. NY:
Routledge, 2015, p. 337.
@article{"International Journal of Business, Human and Social Sciences:70125", author = "Ju-Chun Chien", title = "The Impact of Change Management on Employee Satisfaction and Engagement", abstract = "The main purpose of this study was to figure out
employees’ attitudes toward the new performance appraisal program
and to examine whether three different types of appraisal processes
differentially affected job satisfaction and employee engagement. The
second purpose of this study was to investigate the relationship
between performance appraisal reform, job satisfaction, and employee
engagement. A large polyester and textile corporation had 2046
non-operational employees in February 2014. The valid participants
were 1474 (72.04%) in this study. Data analysis included descriptive
statistics, one-way ANOVA, one-way MANOVA, Pearson correlation,
Content Validity Index, the exploratory factor analysis, and reliability
analysis. The general results showed that employees who received the
new performance appraisal program evaluated the program more
positively and showed more job satisfaction than those who did not. In
particular, the implementation effects of this new performance
appraisal program were most highly rated by employees who used the
KPI to rate their job performance. Moreover, employees’ attitudes
toward the new performance appraisal program were positively related
to their job satisfaction and employee engagement. Lastly, most
employees regarded themselves as engaged workers. To sum up, the
HR department of this company has made an effective contribution to
performance appraisal reforms.", keywords = "Change management, Employee engagement, Job
satisfaction, Performance appraisal reform.", volume = "9", number = "5", pages = "1717-6", }
