Organisational climate change and employee engagement: a longitudinal study

Originality/Purpose: The study demonstrates how organisational climate changes and the influence on employee engagement using the structural approach. The study aims to address the gap in literature particularly the paucity of research work demonstrating the process by which organisational climate changes (Kuenzi and Schminke, 2009). Key literature/theoretical perspective: The study used the structural approach as a theoretical explanation for the emergence and change of organisational climate. The structural approach posits that change in organisational structures, settings, practices, and processes can influence organisational member’s values, beliefs, and perceptions of organisational events (Schneider and Reichers, 1983). Design/methodology/approach: The study used the longitudinal design to demonstrate changes in organisational climate and employee engagement. Quantitative and qualitative data were collected in two companies in the Philippines. Data were collected twice (with a 12-month interval). The 7Ps model of work practices and outcomes (Langford, 2009) was used as a framework in analysing the data. Findings: Results demonstrated that changes in organisational structures and settings significantly influenced and changed organisational climate in both companies. Interestingly, the scope and magnitude of change were different. Company A demonstrated a significant and positive change in one work practice (property). Company B, on the other hand, demonstrated significant and positive changes not only in property but also in terms of participation and employee engagement (passion). Research/Practical Implications: The findings suggest that improving organisational structures and properties alone cannot guarantee an increase in employee engagement. In order to fully engage employees, improvements in the organisational structures and properties have to be coupled with an increase in participation and involvement within the organisation.