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JCHRM
3,2 Intra-department communication
and employees’ reaction to
organizational change
100
The moderating effect of emotional
intelligence
Chaoying Tang and Yunxia Gao
Management School of Graduate University, Chinese Academy of Sciences,
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Beijing, China
Abstract
Purpose – The purpose of this paper is to investigate the moderating effect of employee emotional
intelligence on the relationship of intra-department communications and employee’s reaction to
organizational change in China.
Design/methodology/approach – Based on the literatures in organizational change,
organizational communications and emotional intelligence, the authors derived three hypotheses
which were tested with data collected in a large state-owned enterprise (SOE) in the telecommunication
industry. Factor analysis and regression analysis were combined for the hypothesis tests.
Findings – It was found that intra-department communications positively influenced employee’s
reaction to organizational change with employees’ emotional intelligence moderating the relationship.
When employee’s emotional intelligence is higher, intra-department communication has greater
positive effect on employee’s reaction to change.
Research limitations/implications – With the adopted western measurement scales, this study
was unable to reveal the Chinese contextual aspect of organizational communications. As the data
were self-reported, they may have common source deviation.
Practical implications – To foster and maintain employees’ positive reactions to change, managers
and organizations may consider developing strategies to improve employees’ emotional intelligence,
so as to embrace future changes.
Originality/value – This is an initial effort in examining the joint effect of intra-department
communications and employee’s emotional intelligence on employee’s reaction to organizational
change. It may lead to additional research on organizational change management.
Keywords China, Organizational change, Change management, Employees behaviour,
Human resource management, Intra-department communication, Emotional intelligence
Paper type Research paper
Introduction
In today’s business world, change has become a constant. Facing fierce market
competitions, organizational change is the only way to survive and grow. Organizational
change is coupled with uncertainty, challenges and stress (Daft and Steers, 1986;
Journal of Chinese Human Resource Rafferty and Griffin, 2006). The resistance to organizational change from employees
Management has been recognized as an important area in change management (Duck, 1993). As such,
Vol. 3 No. 2, 2012
pp. 100-117
q Emerald Group Publishing Limited
2040-8005
The study is supported by the China National Science Foundation under the agreement
DOI 10.1108/20408001211279210 No. 71173214.
successfully managing employees’ reaction to organizational change becomes a critical Intra-department
human resources management (HRM) function and a key requirement for leaders communication
involved in facilitating organizational change (Waddell and Sohal, 1998).
Studies have found that organizational communications are an effective way to
manage employees’ resistance during change (Frahm and Brown, 2007). Particularly,
communications help establish organizational interactive fairness (Morrison and
Robinson, 1997) and improve the employees’ reaction to organizational change 101
(Kotter and Schilesinger, 2008). Yet, during a change process, uncertainty and employee
perceived unfairness tend to put the employee into negative emotion (Huy, 2002; Morrison
and Robinson, 1997), often coupled with fear, anger, and frustration (Fugate et al., 2002;
Bartunek, 1984). Negative emotions in turn affect employees’ reaction toward the change
process. In other words, without appropriate emotion management, organizational
communications may even contribute to increased employee resistance.
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Literature review
Employees’ reaction to organizational change
Successful organizational change management must gain the hearts and minds of the
involved employees (Duck, 1993). Nadler (1981) has described three employee’s reactions
to organizational change: positive support, neutral, and resistance. During the process of
organizational change, employees often feel uncertain, thus are unable to anticipate
the likelihood of the outcomes, especially when there is a lack of information about
a cause-effect relationship (Milliken, 1987). In the meantime, new organizational strategy,
new structure and work procedures during a change process often make employees’
routines disrupted, and induce more challenging work and requirements for new
competences (Oreg et al., 2011; Porras and Silvers, 1991). Therefore, employees often
experience role-conflict, work-related stress and concerns for job security (Hui and Lee,
2000). Particularly, they often reevaluate their organizational status and related
treatments in relation to the changing organizational policies, management actions, and
organizational values (Kiefer, 2005), When the employees believe that they are adversely
treated with unfair, unsupportive or unappreciated management behaviors or attitudes,
they are more likely to resist the change (Kiefer, 2005; Hellgren and Sverke, 2003;
Conlon and Shapiro, 2002).
JCHRM A majority of qualitative and quantitative studies on the outcomes of organizational
3,2 change have found employees’ emotions induced by change are mainly negative, often
associated with anger, anxiety and frustration (Huy, 2002; Fugate et al., 2002; Bartunek,
1984). As a result, such negative reactions reduce the employee’s commitment and
motivation, hurt organizational trust, and increase employees’ withdrawing behaviors
with a lower level of performance (Rusbult et al., 1988). Therefore, employees’ reaction
102 to change is a critical and significant element in organizational change management
(Ettlie and Reza, 1992).
Psychologically, employees’ reaction to change is based on a cognitive appraisal process.
The literature has revealed two aspects of cognitive appraisal (Lazarus, 2006; Zabid et al.,
2004). One is primary appraisal, including the appraisal of the meaning and consequence of
the change to themselves. An associated aspect is the employee’s assessment on whether
they are able to handle the change and the approaches to coping with the change. The
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of, and participation in the change (Green, 2004). Finally, department members share and
exchange knowledge, information and opinions.
Based on the above analysis, we derive the following hypothesis:
H1. Intra-department communications create positive effect on employee’s
reaction to organizational change.
potential impact of corresponding behaviors on one’s peers and managers (Jordan et al.,
2002). Thus, the reactions of the individual to the affective event will be more positive
(Kafetsiosa and Zampetakis, 2008).
Organizational communication is necessary for establishing organizational fairness
and promoting employee respect, yet its major focus is on facilitating the flows of
information, knowledge, and perceptions (Kickul et al., 2002). It may help individuals
build positive emotions (Cremer et al., 2005). However, during communications, negative
emotional expression needs to be controlled (Kramer and Hess, 2002). If employees have
high emotional intelligence, they will be more capable of maintaining positive emotions
and take advantage of the intra-department communications in coping with change
(Wong and Law, 2004). As such, we hypothesize:
H2. Employees’ EI positively affects their reactions to organizational change.
H3. Employees’ EI moderates intra-department communications and their reaction
to change such that higher EI improves intra-department communication’s
positive effect on employee’s reaction.
We present the hypothesized relationships for this study in Figure 1.
Method
Samples
We selected a large state-owned enterprise (SOE) in the telecommunication industry in
China to collect the data for this study. At the time of the data collection in June 2010,
this large SOE was experiencing a large-scale organizational change. It was a new
Employee’s Emotional
Intelligence (EI) H2
Intra-department Employee’s
Communication, emotional
Coordination, H3 reaction to
Participation, and organizationa
Expression l change
Figure 1. Communication.
H1
Hypothesized framework
organization merging two formerly already large SOEs in the telecommunications Intra-department
market. During the change, new departments were created and new managers were
appointed while the employees were kept the same on similar job functions and
communication
responsibilities. We consider this organization an appropriate site for this study. We
invited 312 employees in the newly formed organization to participate in the study
through a random selection process. We received 290 returned responses, which resulted
in 277 effective responses. The response rate was 88.7 percent. 105
Measure
Emotional intelligence. We used the 16-item scale by Wong and Law (2004) to measure
emotional intelligence. This scale has been validated in a study in China (Law et al., 2008).
The items covered four dimensions of EI: “self-emotions appraisal”, “others-emotions
appraisal”, “use of emotions” and “regulation of emotions”. The Cronbach’s as for the four
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dimensions were 0.775, 0.815, 0.824, and 0.823, respectively. The Cronbach’s a for
the overall measure in this study was 0.816. The complete items used can be found in the
Appendix.
Employee’s reaction to organizational change. For this measure, we adopted the
27-item scale by Piderit (1999, 2000). It included five dimensions: positive emotional
reaction, negative emotional reaction, positive attitude, negative attitude, and cognitive
reaction. The Cronbach’s a for the five dimensions were 0.748, 0.851, 0.887, 0.774,
and 0.783, respectively. The overall Cronbach’s a for the measure was 0.785 in this
study.
Intra-department communication. We combined the communication scale
(Cristina and Freek, 2003) and the department communication scale (Hatfield and
Huseman, 1982) into a 17-item intra-department communication measure. It included
four dimensions: coordination, participation, expression, and communication. During
the change period, leaders are often cautious about encouraging employees to express
their feelings (Frost, 2003). For this reason, this study did not include variables on
employee’s expression of their feelings in the intra-department communication. As listed
in the 17 items (Appendix), perceived higher degree of coordination implies that the
department leaders seek to explain or communicate with subordinates on situations in
the organization and offer feedback on one’s job performance. Higher levels of
participation indicates that department members can challenge the leaders on work
style for being actively involved in the daily operations. Expression suggests that,
during the organizational management process, department leaders are expressive
about the subordinate’s job performance and personal life. Communication means that
department members are able to share and exchange task information and related ideas
during the operation process. The Cronbach’s as for the four dimension were 0.816,
0.794, 0.803 and 0.821, respectively. The overall Cronbach’s a for this measure was 0.798
in this study. Detailed items are listed in Appendix.
Control variables. We included control variables for this study. They include gender,
age, marriage status, education background, job category, job tenure with the
organization, and job function. We report the descriptions of the samples in Table I.
Because all items adopted in this study were originally developed in the English
language, we adopted a forward-back translation approach to ensure the accuracy of the
measures. We first translated all items into Chinese, and then back-translated into
English by an independent bilingual scholar. Through comparison, potential
inconsistencies of the Chinese translation from the original items were reevaluated and
JCHRM
Variable Attribute n %
3,2
Gender Male 156 56.3
Female 121 43.7
Marriage status Single 58 20.94
Married 213 76.90
106 Divorced 6 2.17
Education background Under-graduate 177 63.90
Graduate 15 5.42
Others 85 30.69
Age 20-25 years old 6 2.17
26-35 years old 126 45.49
36-45 years old 80 28.88
46-55 years old 43 15.16
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revised accordingly before the items were compiled into the survey. All items were rated
on the Likert scale from 1 to 7, with 7 as strongly agree, and 1 being strongly disagree. We
analyzed the data using SPSS 13.0 and AMOS 7.0.
Results
Data validation
As the data was collected from the same source, we first conducted a confirmatory factor
analysis (CFA) to determine if common method variance (CMV) presented a problem for
the analysis (Podsakoff and Organ, 1986). We compared a single latent factor to all
manifest variables with the measurement model (Podsakoff and Organ, 1986). The
one-factor model yielded a x 2 of 579.92 (df ¼ 105) compared to x 2 of 425.81 (df ¼ 98) for
the measurement model. The fit for the one-factor model is substantially worse than the
measurement model, suggesting that CMV bias did not constitute a serious threat.
Additionally, to examine potential problem of multicollinearity, we calculated variance
inflation factors (VIF). The maximum VIF within the models was less than 2.0, which
was well below the rule-of-thumb cut-off of 10 (Neter et al., 1990).
To test the construct validity, we used CFA. The results of CFA showed that the
three variables have acceptable construct validity as reported in Table II.
Hypothesis test
We report descriptive statistics including means, Pearson’s correlation coefficients, and
standard deviations of variables in Table III. As can be seen, all three variables were
positively correlated with each other. The highest correlation was between employee’s Intra-department
emotional intelligence and intra-department communication (r ¼ 0.419, p , 0.01). communication
In the subsequent regression analysis reported in Table IV, we found that
intra-department communication significantly and positively affected employee reaction
to organizational change (b ¼ 0.313, p , 0.01). Intra-department communication
significantly and positively affected the “positive emotional reaction”, “positive
intention” and “cognitive reaction” (b ¼ 0.161, p , 0.01; b ¼ 0.257, p , 0.01; b ¼ 0.384, 107
p , 0.01). This suggests that intra-department communication helps increase positive
reaction to organizational change. Meanwhile, intra-department communication
significantly and negatively associated with the “negative emotional reaction” and
“negative intention” (b ¼ 20.096, p , 0.05; b ¼ 20.121, p , 0.05). This indicated that
intra-department communication helps reduce negative reaction to organizational change.
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Furthermore, its effects on positive reactions are stronger than the effects on negative
reactions. Hence, H1 is supported.
The moderating effect. After centering the independent and dependent variables based
on the recommendation by Kreft and de Leeuw (1998), we used linear regression to explore
the moderating role of emotional intelligence on employee’s reaction to organizational
change. In the analysis, we first included control variables only in the model. We then
Intra-department communication (IDC) 542.41 105 3.20 0.08 0.86 0.84 0.80 0.78
Employee’s emotional intelligence (EI) 425.81 98 2.20 0.08 0.89 0.88 0.89 0.79
Reaction to organizational change (ROC) 768.45 187 2.20 0.08 0.90 0.88 0.89 0.88 Table II.
Confirmatory factor
Note: n ¼ 277 analyses
Intra-department communication
Dependent variables b R2 DR 2 F
3.30 employee's
emotional 109
intelligence
3.20 low
high
3.10
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3.00 Figure 2.
The interactive effect
Low High
of emotional labor
Intra-department communication
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Intra-department communication
Coordination
(1) My supervisor asks me for suggestions about how work should be done.
(2) My supervisor informs me about company rules and regulations.
(3) My supervisor informs me about company plans for the future.
(4) My supervisor lets me know when I have done a good job.
(5) My supervisor lets me know when I have not done a good job.
(6) My supervisor explains company problems to me.
(7) My supervisor tells me why changes are made in work assignments.
(8) My supervisor explains his/her way of doing work.
Participation
(1) I question my supervisor’s instructions when I don’t understand them.
(2) I question my supervisor’s instructions when I think they are wrong.
(3) I tell my supervisor when I think things are being done wrong.
Expression
(1) My supervisor criticizes my work in front of others.
(2) My supervisor ridicules or makes fun of me.
(3) My supervisor expresses sympathy to me when something unfortunate happens in my
personal life.
Communication
(1) There is open communication in this department.
(2) Everyone has a chance to express their opinions.
(3) Department members maintain a high degree of idea exchange.
Employee’s reaction to organizational change Intra-department
Positive emotional reaction
communication
(1)-(4) The organizational change makes me feel: happy, excited, relieved and hopeful.
Negative emotional reaction
(1)-(4) The organizational change makes me feel: sad, angry, frustrated frightened and
disgusted. 117
Positive intention
(1) I encourage others to help make this change effective.
(2) I suggest ways in which to carry out this change.
(3) I speak up about the advantages of this change.
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