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Organizational Change and Employee Stress

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  • 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
    DOI: 10.1287/mnsc.1100.1273
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    Cited by:

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    6. 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.
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    13. 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.
    14. Gjerløv-Juel, Pernille & Guenther, Christina, 2019. "Early employment expansion and long-run survival," Journal of Business Venturing, Elsevier, vol. 34(1), pages 80-102.
    15. 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.
    16. Mohammad Abuhashesh & Suleiman Jamal Mohammad & Mohammad Al Khasawneh, 2019. "The attitude of Jordanian customers towards virtual stores," International Journal of Islamic Marketing and Branding, Inderscience Enterprises Ltd, vol. 4(1), pages 59-75.
    17. 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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