Managing Affective Commitment to Change in Public Sector Organization of Pakistan: A Social Exchange Perspective

Abstract

       Literature on organizational development is well-stocked with researches advocating change as a universal remedy for organizational survival and success. However, the importance of eliciting positive employees’ response during change lacks attention. Considering the crucial role of managing employees’ positive change reactions in public sector organizations, the current study highlights the role of High Performance Work Systems (HPWS) in fostering affective commitment to change (ACTC) in culturally diverse employees’ along with its interlinking mechanisms. Based on Social Exchange perspective, we hypothesized that employees’ perceptions of the nature of exchange mediates the relationship between HPWS-Affective commitment to change. More specifically, we proposed a moderating mediation model outlining how individual’s cultural orientation might play a significant role in influencing the nature of exchange which in turn may predict the dynamics of HPWS-employees’ affective commitment to change relationship. A sample of 591 full-time employees from the largest public-sector bank of Pakistan undergoing Privatization were surveyed. The results reveal the positive impact of High performance work systems on affective commitment to change. Moreover, employees’ perceptions of social exchange mediate the positive relationship between HPWS and Affective CTC. However, this underpinning mechanism is stronger for employees scoring high collectivism and low power distance orientation and vice versa. The study contributes to the literature through examining the intermediatory mechanism and boundary conditions under which the positive impact of HPWS- Affective CTC might prove to be more effective. Finally, both practical and theoretical implications are discussed in the light of results obtained followed by future directions.