International Conference on Economics, Finance & Business, Lisbon

FACTORS AFFECTING EMPLOYEE WELL-BEING AND BEHAVIOURS UNDER THE INFLUENCE OF COMPANY RELOCATION (CASE VOLVO CONSTRUCTION EQUIPMENT ).

IRINA SIDORCUKA

Abstract:

Contemporary companies have been undergoing profound organizational transformations, taking various forms such as mergers, privatisations, acquisitions or reorganizations. Organizational change and the management of this process are today considered as major strategic issues for organizations operating in a complex and turbulent environment. Organizational change can negatively impact employee well-being and efficiency if employee’s emotions and psychosocial risks are not considered. This research is focused on the specific change: the relocation of the Volvo Construction Equipment (VCE) headquarters from Belgium (Brussels) to Sweden initiated in 2020. It provides an in-depth analysis of the impact of the change as well as the different mechanisms affecting employee emotional well-being and efficiency. The research uses both quantitative and qualitative analysis that aims to understand employee emotions and the psychosocial risks caused by VCE Headquarters relocation as well as the factors affecting their behaviours. The sample size is constituted of almost all the population size (56 individuals), the response rate is: 75% (42 employees)for the survey. Additionally 9 in-depth interviews ( 8 employees and 1 manager)were carried out. The goal of the author is to bring a detailed description of the emotions felt, and staff behaviours observed by the managers. The research purpose therefore is descriptive. Research findings include the following : 75 % of the employees stated feeling negative towards the change , among the most strong emotions they stated anxiety, stress, sadness, disappointment, deception. Psychological risks included : deterioration of social and work environment, value conflict, lack of autonomy, job insecurity, increased work demand and emotional demand. The impact of negative emotions on staff efficiency was measured through the behaviours , such as employee lack of concentration, loss of motivation, difficulties in making decisions, etc.) but also the behaviours resulting from the resistance to change (lateness, isolation, confusion, etc.) The major recommendation for the management include the elaboration of the communication system , consultation with the staff and staff psychometric monitoring.

Keywords: Key words: organisational change, company relocation, employee well-being, staff emotions, motivation