Rationalization as a key stressor for public sector employees: An organizational case study

Public sector organizations throughout Europe have been subject to cuts in Government spending, allied to demands for enhanced efficiency and effectiveness. Consequently, many have embarked upon radical programmes of change which potentially have an adverse effect upon the psychological well-being of employees. This study aimed to assess linkages between organization change and the psychological well-being of employees within the Swedish social insurance organization Försäkringskassan. A case study approach was adopted for the investigation which was carried out within the Halland region between February and June 1995. A questionnaire which included the Cultural Audit and the General Well Being Questionnaire was distributed to the organization's 456 employees in Halland. Questionnaire were returned by 246 employees (54.6%), reflecting the employment structure of the organization. The findings revealed that many issues associated with the process of rationalization and change were of concern to employees. Statistical analyses revealed that these were linked to their relatively high levels of 'anxiety' and their symptoms of being 'worn out'. This study indicates that the process of organization change is stressful for employees within Försäkringskassan. As public sector organizations throughout Europe are subject to similar pressure and are being forced to embark upon change programmes, it is suggested that they take cognizance of the findings of this investigation when making decisions regarding the planning and implementation of organization change.