Occup. Med. Vol. 48, No. 6, pp. 361-368, 1998
Copyright © 1998 Lippincott Williams & Wilkins lor SOM
Printed in Great Britain. All rights reserved
0962-7480/98
The self-reported well-being of
employees facing organizational
change: effects of an intervention
D. Iwi, J. Watson, P. Barber, N. Kimber and G. Sharman
Division of Psychiatry and Psychology, United Medical School,
Guy's Hospital, London, SE1 9RT, UK
The objective of this study was to investigate the self-reported well-being of employees facing
organizational change, and the effect of an intervention. It was a controlled intervention study.
Subjects were allocated to study and control groups, and brief individual counselling was
offered to the subjects in the study groups. Questionnaire measures were administered before
and after counselling (a 3-month interval), and non-counselled subjects also completed
questionnaires at the same times. The setting was 15 estate offices in an urban local authority
Housing Department. Subjects comprised the total workforce of the Housing Management
division: 193 employees, male and female, aged 22-62 years, facing compulsory competitive
tendering between 1994-97. Main outcome measures were baseline and comparative
measures of psychological morbidity, including the General Health Questionnaire (GHQ) and
the Occupational Stress Indicator (OSI). Questionnaire response rates were 72% and 47% on
first and second occasions respectively. The uptake of counselling was 37%. In comparison
with (1) the UK norms for the OSI and (2) the norms for a similar occupational group, this group
of workers were under more work-related pressure and their self-reported health was markedly
poorer. They were not however at a disadvantage in terms of coping strategies. Those
accepting the offer of counselling were subject to greater levels of work stress, had poorer
self-reported health and markedly lower levels of job satisfaction than those who did not.
Questionnaire scores were not significantly different before and after counselling, giving no
evidence of treatment effects on symptomatology. However, almost all subjects rated
counselling as having been extremely helpful. This study suggests that adverse effects on staff
facing organizational change may be ameliorated by improved management practice.
Key words: Counselling; cognitive analytic therapy; intervention; organizational change;
redundancy; well-being.
Occup. Med. Vol. 48, 361-368, 1998
Received 8 December 1997; accepted in final form 9 March 1998.
INTRODUCTION
The association of unemployment with ill-health is
a major concern for society, reflected increasingly in
the media and in the literature on occupational stress,
occurring against the background of widespread unem-
ployment in the UK and elsewhere, under market and
political influences which affect both private and public
enterprises. As part of this picture, local authorities
throughout Britain have followed a comprehensive
This work was presented in a dissertation accepted for the first author's
membership of the Faculty of Occupational Medicine of the Royal College
of Physicians of London.
Correspondence and reprint requests to: J. Watson, Division of Psychiatry
and Psychology, United Medical School, Guy's Hospital, London,
SE1 9RT, UK. Tel: (+44) 171 955 4247; Fax: (+44) 171 955 2976.
programme of compulsory competitive tendering (CCT)
of their services, with resultant job insecurity and pro-
longed periods of uncertainty for their employees.
Meeting employees' needs in this situation provides
a challenge to occupational health practitioners, whose
responsibilities extend to employees who are at risk of
losing their jobs.
1
Previous research
2
'
3
has demonstrated
a higher morbidity in the unemployed but few studies
have determined measures of health and well-being in
those who are threatened with redundancy. This study
addresses the problems of employees facing organiza-
tional change and job insecurity associated with CCT.
The paper is concerned solely with medical and psychosocial
effects of the downsizing process and their management; or-
ganizational and political considerations are outside its scope.
Job insecurity and resultant employee stress pose a
serious problem for organizations in a world of rapid
and difficult change. In the UK, time off work due to
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