Academic journal article Indian Journal of Positive Psychology

Organizational Ownership Structure and Employee Perceptions

Academic journal article Indian Journal of Positive Psychology

Organizational Ownership Structure and Employee Perceptions

Article excerpt

Organizations in the present day endure dynamic volatile environment in terms of socio-political-economic environment and a changing value system such as relationship with external organization, economic conditions of the market, Socio-political context, labour market, distribution networks, environmental sources of risk, uncertainty and opportunity, the instability of consumer tastes, trades unions and diversified workforce (Sheaff, Schofield, Mannion, Dowling, Marshall, & McNally, 2003). These factors play a key role in an organization's structure, process and outcomes. The ownership is the fundamental structural characteristic that determines how organization fine-tune their other structural characteristics such as hierarchies, division of labour in response to their environmental circumstances.

Organizational structure in India

Organizational structure particularly in India can be classified in terms of ownership control- Government owned Public sector undertaking, Private owned firms and Entrepreneurial Ventures. Though the employees and labourer in both the firms are under the ambit of the same labour laws, in Indian context it has been observed that there have always been differences in the three organizational structures in various ways such as organizational mission, values, goals, climate, culture, and Human Resource practices in these firms.

Especially HR practices such as recruitment and selection, training and development, career advancement, wages and allowances, promotion, working condition, level of workers participation, collective bargaining, standard of safety, performance appraisal, style of leadership, work load, communication facilities, recognition of merit, authority and responsibilities, grievances handling differ considerably. The primary reason that can attributed is the organizational climate as a result of ownership control that differs among the firms (Murty, Khan, & Abhinov, 2011).

The government-owned corporation which is termed as a Public Sector Undertaking (PSU), the ownership control vests with the Government. In private sector undertakings also, there are departments with various work structures. They operate on different functions and cannot override each other's functions. The third type of organizations that exist in terms of Organizational Structure is the Entrepreneurial firms. The firm is an entity primarily shaped by an entrepreneur's visions and goals. Entrepreneurs motivate their employees either extrinsically, by relying on instructions, incentives, and monitoring mechanisms, or intrinsically by achieving a commonly shared understanding of the company's goals and procedures among the firm's employees.

Several research works on management have focussed on how organizational techniques can improve core working practices, profits, and numerical outputs which are labelled as "organizational outcomes". However, few researches have tried to deliberate on the role of what is termed as "second order organizational processes" namely organizational processes such as leadership styles, stress, organizational commitment and group personality dispositions which contribute to the core working processes indirectly. The present study aims at understanding the psychological variables of Organizational Commitment, Leadership Perceptions, Stress, and Personality Dispositions differ in varied ownership and structural characteristics of an organization.

Organizational commitment and organizational structure

Organizational commitment, which, is defined as the relative strength of an employee's attachment or involvement with the organization (Porter, 1974), is a "multidimensional construct" that has the potential to predict organizational outcomes such as performance, turnover, absenteeism, tenure, and organizational goals (Morrow, 1993; Meyer & Allen, 1997). Accroding to Becker (I960), commitment involves the perceived 'gains and costs' associated with membership of an organization internalization of the goals and values of the organisation (Hall & Schneider, 1972), organizationaljustice (Konovsky & Cropanzano, 1991). …

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