THE EFFECTS OF ORGANIZATIONAL STRUCTURE · PDF fileThe Effects of Organizational Structure on...
Transcript of THE EFFECTS OF ORGANIZATIONAL STRUCTURE · PDF fileThe Effects of Organizational Structure on...
THE EFFECTS OF ORGANIZATIONAL STRUCTURE ON
EMPLOYEE TRUST AND JOB SATISFACTION
by
Kelli J. Dammen
A Research Paper
Submitted in Partial Fulfillment of the Requirement for the
Master of Science Degree in Training and Development
Approved for Completion of 4 Semester Credits TRHRD-735 Field Problem in Training and Development
Joseph A. Benkowski, Research Advisor
The Graduate School University of Wisconsin-Stout
May 2001
The Graduate College
University of Wisconsin-Stout
Menomonie, WI 54751
ABSTRACT
Dammen Kelli J (Writer) (Last Name) (First) (Initial) The Effects of Organizational Structure on Employee Trust and Job Satisfaction (Title) Training and Development Joseph A. Benkowski 5/2001 61 (Graduate Major) (Research Advisor) (Month/Year) (No. of Pages)
American Psychological Association (A.P.A) Style (Name of Style Manual Used in this Study)
Keywords: organizational trust, job satisfaction, high performance organization, and traditional organization.
Employees in all organizations want to work in an environment of trust and
respect where they feel they are making a real contribution to organizational goals and
objectives. They want to be able to have the opportunity to show management that they
can accomplish a task with the creativity obtained from working in teams.
There is a consensus in the literature reviewed that trust and job satisfaction are
essential elements to an organizations success. Cook and Wall (1980) conclude that trust
between individuals and groups within organizations is a highly important ingredient in
the long-term stability of the organization and the well-being of its members (39). By
examining the relationship between trust in management and employee job satisfaction,
corporations will have the knowledge necessary to assess their current culture and, if
ii
needed, develop a culture that allows for growth of its employees through high levels of
trust.
The purpose of this study was to research the possible relationship that exists
between the individuals level of organizational trust and the individuals job satisfaction.
Also examined was the influence the organizational culture (high performance vs.
traditional hierarchical organization) had on the individuals level of trust and job
satisfaction.
To examine this relationship, three hypotheses were tested using a survey that
examined organizational trust and job satisfaction. Organizational trust was measured by
four dimensions (openness/honesty, reliability, concern for employees and identification).
Four organizations agreed to participate in the study. Each organization was sent 25
surveys to distribute to personnel. Two of the organizations were, by definition,
traditional hierarchical organizations and the other two were high performance
organizations. Out of the 100 surveys distributed, 84 completed and valid surveys were
returned. Therefore, the overall response rate was 84 percent.
The findings of this study indicate that a relationship does exist between an
individuals level of organizational trust and his/her overall job satisfaction. The study
also indicated that a significant relationship exists between the structures of the
organization and overall levels of both trust and job satisfaction.
iii
TABLE OF CONTENTS
Page
LIST OF TABLES.. viii
LIST OF FIGURES ix
ACKNOWLEDGEMENTS x
CHAPTER ONE: INTRODUCTION
Background...
Purpose of Study...
Research Objectives..
Significance of Study
Limitations
Assumptions.
Methodology Overview
Summary of Research Paper
Key Terms
1
2
3
3
3
4
4
4
5
CHAPTER TWO: REVIEW OF LITERATURE
Introduction...
Organizational Trust.
According to Theorists..
According to Management Consultants
Dimensions of Organizational Trust.
Job Satisfaction.
Components of Job Satisfaction...
Comparison of Low Trust Organizations to High Trust Organizations.
High Performance Organizations vs. Traditional Hierarchical Organizations..
Summary
6
6
7
8
9
10
11
12
17
19
CHAPTER THREE: RESEARCH METHODOLOGY
Research Design
20
iv
Research Model.
Hypotheses
Hypothesis 1...
Hypothesis 2...
Hypothesis 3...
Instrumentation.
Data Analysis
Summary...
21
22
22
23
23
23
24
25
CHAPTER FOUR: RESULTS
Overview...
Response Rate..
Respondents Profile
Organizational Trust Dimension Relationships
Hypothesis Testing
Hypothesis 1
Hypothesis 2
Hypothesis 3
26
27
27
30
31
31
36
40
CHAPTER FIVE: SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Introduction...
Purpose of Study...
Summary of Procedures
Sample Populations
Instrumentation..
Data Collection..
Survey Response Rate
Hypotheses.
Hypothesis 1...
Hypothesis 2...
Hypothesis 3
Conclusions...
Recommendations for Traditional Hierarchical Organizations.
41
41
41
41
42
42
43
44
44
45
45
46
47
v
Recommendations for High Performance Organizations..
Recommendations for Future Research.
47
48
REFERENCES 49
APPENDIX A: First Letter to Organization Presidents.. 52
APPENDIX B: Second Letter to Participating Organization Presidents. 54
APPENDIX C: Cover Letter... 56
APPENDIX D: Organizational Trust and Job Satisfaction Survey. 58
vi
LIST OF TABLES
Page
Table 1. Response rates... 27
Table 2. Respondents Profile. 28
Table 3. Percentages of years with organization. 29
Table 4. Percentages of organizations industry. 30
Table 5. Percentages of organizations size 30
Table 6. Openness/honesty dimension 32
Table 7. Reliability dimension 33
Table 8. Concern for employees dimension 34
Table 9. Identification dimension... 35
Table 10. Relationship between organizational trust and organizational structure 36
Table 11. Components of job satisfaction... 37
Table 12. Relationship between job satisfaction and organizational structure... 39
Table 13. Relationship between overall organizational trust and job satisfaction.. 40
vii
LIST OF FIGURES
Page
Figure 2.1: Factors influencing employee satisfaction and dissatisfaction. 11
Figure 2.2: Values associated with maintaining (or building) trust 16
Figure 3.1: Organizational trust, job satisfaction and culture. 21
Figure 4.1: Model for relationships among organizational trust dimensions. 31
viii
ACKNOWLEDGEMENTS
Looking back on my graduate studies, I would like to thank those individuals who
have supported me and helped me throughout the entire process. This would not have
been possible without the love and understanding of my family, professors and
classmates.
Dr. Joe Benkowski, my advisorwho has shared his knowledge and experience
with me. You have been a true inspiration to me to keep going and stop at nothing less
than the best. Thank you for your constant encouragement and support, without it I
probably would not be where I am. Thank you for all your help and advice throughout the
writing of my research paper.
To my friends and classmates for your support, help and fun times we had.
To my parents, Cindy and Lee Dammenthank you for your constant questions
and persistence that pushed me to work harder and become the person I am today. Thank
you for instilling in me an appreciation for education and instilling its value in me. Most
of all, thank you for letting me know that when I put my mind to it, theres nothing I
cannot achieve.
And finally, to my fianc, Jim thank you for being tolerant and patient
throughout this study. Most of all, thank you for always being there to show your support
and encouragement and for always being around to make me smile.
ix
Chapter One
INTRODUCTION
Background
In recent years, there have been many companies that are downsizing due to slow
periods (Caudron, 1996). Typically, those workers that were laid off tend not to be
rehired with the same company, leaving them with no option but to start all over. This
type of company tends not to see the valu