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Organizational Change and Employee Stress

Author

Listed:
  • Michael S. Dahl

    () (DRUID, Department of Business Studies, Aalborg University, DK-9220 Aalborg Ø, Denmark)

Abstract

This article analyzes the relationship between organizational change and employee health. It illuminates the potentially negative outcomes of change at the level of the employee. In addition, it relates to the ongoing debate over how employees react to and respond to organizational change. I hypothesize that change increases the risk of negative stress, and I test this hypothesis using a comprehensive panel data set of all stress-related medicine prescriptions for 92,860 employees working in 1,517 of the largest Danish organizations. The findings suggest that the risk of receiving stress-related medication increases significantly for employees at organizations that change, especially those that undergo broad simultaneous changes along several dimensions. Thus, organizational changes are associated with significant risks of employee health problems. These effects are further explored with respect to employees at different hierarchical levels as well as at firms of different sizes and from different sectors. This paper was accepted by Jesper Sørensen, organizations.

Suggested Citation

  • Michael S. Dahl, 2011. "Organizational Change and Employee Stress," Management Science, INFORMS, vol. 57(2), pages 240-256, February.
  • Handle: RePEc:inm:ormnsc:v:57:y:2011:i:2:p:240-256
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    File URL: http://dx.doi.org/10.1287/mnsc.1100.1273
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    References listed on IDEAS

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    1. Alexandre Mas, 2008. "Labour Unrest and the Quality of Production: Evidence from the Construction Equipment Resale Market," Review of Economic Studies, Oxford University Press, vol. 75(1), pages 229-258.
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    3. Alan B. Krueger & Alexandre Mas, 2004. "Strikes, Scabs, and Tread Separations: Labor Strife and the Production of Defective Bridgestone/Firestone Tires," Journal of Political Economy, University of Chicago Press, vol. 112(2), pages 253-289, April.
    4. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2004. "How Much Should We Trust Differences-In-Differences Estimates?," The Quarterly Journal of Economics, Oxford University Press, vol. 119(1), pages 249-275.
    5. John D. Sterman & Nelson P. Repenning & Fred Kofman, 1997. "Unanticipated Side Effects of Successful Quality Programs: Exploring a Paradox of Organizational Improvement," Management Science, INFORMS, vol. 43(4), pages 503-521, April.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Ann-Kathrine Ejsing & Ulrich Kaiser & Hans Christian Kongsted & Keld Laursen, 2013. " The Role of University Scientist Mobility for Industrial Innovation," Working Papers 332, University of Zurich, Department of Business Administration (IBW).
    2. repec:bla:stratm:v:38:y:2017:i:6:p:1287-1304 is not listed on IDEAS
    3. Kuntz, Ludwig & Mennicken, Roman & Scholtes, Stefan, 2011. "Stress on the Ward – An Empirical Study of the Nonlinear Relationship between Organizational Workload and Service Quality," Ruhr Economic Papers 277, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    4. repec:kap:asiapa:v:35:y:2018:i:1:d:10.1007_s10490-017-9520-5 is not listed on IDEAS
    5. Hummels, David & Munch, Jakob & Xiang, Chong, 2015. "No Pain, No Gain: The Effects of Exports on Job Injury and Sickness," Proceedings Issues, 2014: Trade and Societal Well-Being, December 13-15, 2015, Clearwater Beach, Florida 229253, International Agricultural Trade Research Consortium.
    6. repec:eee:respol:v:46:y:2017:i:8:p:1519-1530 is not listed on IDEAS
    7. repec:zbw:rwirep:0277 is not listed on IDEAS
    8. Rahma Daly & Marc-Arthur Diaye, 2017. "Do Performance Appraisals Decrease Employees’ Perception of Their Psychosocial Risks?," Documents de recherche 17-04, Centre d'Études des Politiques Économiques (EPEE), Université d'Evry Val d'Essonne.
    9. Hessels, Jolanda & Rietveld, Cornelius A. & van der Zwan, Peter, 2017. "Self-employment and work-related stress: The mediating role of job control and job demand," Journal of Business Venturing, Elsevier, vol. 32(2), pages 178-196.
    10. Ludwig Kuntz & Roman Mennicken & Stefan Scholtes, 2011. "Stress on the Ward – An Empirical Study of the Nonlinear Relationship between Organizational Workload and Service Quality," Ruhr Economic Papers 0277, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.

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