Abstract:
Drawing on the job demands-resources (JD-R) model as the theoretical framework, this thesis investigates the effects of lean production on employee wellbeing (measured as work engagement and exhaustion) in a Chinese manufacturer. After qualitative interviews to identify context-specific job characteristics, two sets of survey data were collected from 371 front-line workers and 94 front-line managers respectively, and analysed via structural equation modelling. The results from the worker sample suggest that resources such as relevant training, line-manager support and employee participation in decision-making, along with the challenges posed by problem-solving demands, can enhance employee engagement in the stressful environment of lean production. In contrast, role overload functions as a hindrance demand and poses risks in terms of fostering greater exhaustion and undermining engagement among workers. Two significant interaction effects between job resources and challenge demands are also identified from the worker data in the prediction of work engagement and exhaustion. Similar results emerge from the line manager data in which job resources (training) and job challenges (job complexity) are the main predictors of work engagement whereas job hindrances (role overload) remain the primary determinant of exhaustion. These findings lead to the conclusion that rather than being uniformly positive or negative, the overall impact of lean production on employee wellbeing is likely to depend on the ways in which managers distinguish job challenges from job hindrances and target relevant resources to each of these types of demand. The thesis contributes to the literature by demonstrating how Chinese employees are affected by lean implementation and therefore how managers can enhance employee wellbeing in Chinese enterprises.