An exploratory study of the relationship between performing restructuring activities and wellbeing amongst New Zealand human resources practitioners

Abstract

Many organisations in New Zealand have undergone organisational restructuring in recent months, often resulting in job losses. It is generally accepted that organisational restructuring has a negative effect on the well-being of those involved. This is evidenced by a number of studies that have identified poor psychological and physical outcomes reported retrospectively by those who have experienced restructuring activities. Past research has concentrated predominantly on the emotions, experiences and impact of organisational restructuring on the ‘victims’ that lose their jobs (e.g. Burke, 2003; Leana & Feldman, 1992) and the ‘survivors’ that remain within the organisation (e.g. Burke & Greenglass, 2001; Noer, 1993). More recently, research has investigated the challenges and experiences of the managers and leaders who plan and decide restructures (e.g. Clair & Defresne, 2004; Moninsky & Margolis, 2006; Noronha & D’Cruz, 2006). However, there appears to be little published research, and no New Zealand study, that differentiates between those who make the decisions regarding restructures and those who do not make, but must implement, these decisions. Although unlikely to make the business decisions that lead to the necessity for restructuring, HR practitioners have a critical role in conducting restructuring activities, shepherding those made redundant through exit and rehabilitation. Given the differences between the role of the HR practitioners and others involved in restructuring, and differences in legal requirements for restructuring between countries, research into the potential impact on the wellbeing of New Zealand HR personnel involved in implementing restructuring is warranted. This qualitative study aimed to investigate the impact of implementation of restructuring on the wellbeing of HR practitioners in the New Zealand context. Nine HR practitioners participated in hour long semi-structured interviews. Transcripts of interviews were analysed using content analysis techniques, guided by grounded theory. Twenty seven different codes/variables were identified as potentially influencing the relationship between restructuring and well-being and a theoretical model is proposed. Ultimately this research will assist HR practitioners and organisations in developing processes and strategies that ensure the well-being of those that execute restructuring decisions.