Commenced in January 2007
Frequency: Monthly
Edition: International
Paper Count: 30172
The Impact of Change Management on Employee Satisfaction and Engagement

Authors: Ju-Chun Chien


The main purpose of this study was to figure out employees’ attitudes toward the new performance appraisal program and to examine whether three different types of appraisal processes differentially affected job satisfaction and employee engagement. The second purpose of this study was to investigate the relationship between performance appraisal reform, job satisfaction, and employee engagement. A large polyester and textile corporation had 2046 non-operational employees in February 2014. The valid participants were 1474 (72.04%) in this study. Data analysis included descriptive statistics, one-way ANOVA, one-way MANOVA, Pearson correlation, Content Validity Index, the exploratory factor analysis, and reliability analysis. The general results showed that employees who received the new performance appraisal program evaluated the program more positively and showed more job satisfaction than those who did not. In particular, the implementation effects of this new performance appraisal program were most highly rated by employees who used the KPI to rate their job performance. Moreover, employees’ attitudes toward the new performance appraisal program were positively related to their job satisfaction and employee engagement. Lastly, most employees regarded themselves as engaged workers. To sum up, the HR department of this company has made an effective contribution to performance appraisal reforms.

Keywords: Change management, Employee engagement, Job satisfaction, Performance appraisal reform.

Digital Object Identifier (DOI):

Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 2891


[1] G. Dessler, Human Resource Management. Taipei: Pearson, 2013, ch. 1.
[2] D. L. Stone, and D. L. Deadrick, “Challenges and opportunities affecting the future of human resource management,” Human Resource Management Review, vol. 25, no 2, Jun. 2015, pp. 139–145.
[3] G. Spreitzer, and C. L. Porath, “Creating sustainable performance,” Harvard Business Review, vol. 90, no. 1-2, Jan.-Feb. 2012, pp. 93–99.
[4] S. M. Kimani, and S. M. Waithaka, “Factors affecting implementation of talent management in state corporations: A case study of Kenya broadcasting corporation,” International Journal of Business and Social Research, vol. 3, no. 4, Apr. 2013, pp. 42–49.
[5] P. Sparrow, E. Farndale, and H. Scullion, “An empirical study of the role of the corporate HR function in global talent management in professional and financial service firms in the global financial crisis,” International Journal of Human Resource Management, vol. 24, no. 9, Apr. 2013, pp. 1777–1798.
[6] F. Tonelli, S. Evans, and P. Taticchi, “Industrial sustainability: Challenges, perspectives, actions,” International Journal of Business Innovation and Research, vol. 7, no. 2, Jan. 2013, pp. 143–163.
[7] D. Abdulsalam, and M. A. Mawoli, “Motivation and job performance of academic staff of state universities in Nigeria: The case of Ibrahim Badamasi Babangida University Lapai, Niger State”, International Journal of Business and Management, vol. 7, no. 14, Jul. 2012, pp. 142– 148.
[8] E. Deepa, and S. Kuppusamy, “Impact of performance appraisal system on job satisfaction, employee engagement, organizational citizenship behavior and productivity,” Indian Journal of Applied Research, vol. 4, no. 2, Feb. 2014, pp. 4–6.
[9] E. N. C. Hong, L. Z. Hao, R. Kumar, C. Ramendran, and V. Kadirasan, “An effectiveness of human resource management practices on employee retention in institute of higher learning - A regression analysis,” International Journal of Business Research and Management, vol. 3, no. 2, Apr. 2012, pp. 60–79.
[10] R. Karimi, M. I. Malik, and S. Hussain, “Examining the relationship of performance appraisal system and employee satisfaction,” International Journal of Business and Social Science, vol. 2, no. 22, Dec. 2011, pp. 243–247.
[11] J. A. Gruman, and A. M. Saks, “Performance management and employee engagement,” Human Resource Management Review, vol. 21, no. 2, Jun. 2011, pp. 123–136.
[12] V. Gupta, and S. Kumar, “Impact of performance appraisal justice on employee engagement: a study of Indian professionals,” Employee Relations: The International Journal, vol. 35, no. 1, 2013, pp. 61–78.
[13] E. D. Pulakos, Performance management: A new approach for driving business results. MA: Wiley-Blackwell, 2009, pp. 1–214.
[14] R. Hoppock, Job satisfaction. New York: Harper and Brothers, 1935, p. 47.
[15] E. A. Locke, The nature and causes of job satisfaction. In M. D. Dunnette (Ed.), Handbook of industrial and organizational psychology. Chicago: Rand McNally, 1976, pp. 1297–1343.
[16] S. Suma, and J. Lesha, “Job satisfaction and organizational commitment: The case of Shkodra municipality,” European Scientific Journal, vol. 9, no. 17, Jun. 2013, pp. 41–51.
[17] T. L. Zontek, C. C. DuVernois, and B. R. Ogle, “Job satisfaction and issues related to the retention of environmental health professionals in North Carolina,” Journal of Environmental Health, vol. 72, no. 3, Oct. 2009, pp. 10–15.
[18] E. B. Faragher, M. Cass, and C. L. Cooper, “The relationship between job satisfaction and health: a meta-analysis,” Occupational and Environmental Medicine, vol. 62, no. 2, Feb. 2005, pp. 105–112.
[19] T. Chen, P. Chang, and C. Yeh, “An investigation of career development programs, job satisfaction, professional development and productivity: the case of Taiwan,” Human Resource Development International, vol. 7, no. 4, 2004, pp. 441–463.
[20] J. Chien, “Examining Herzberg’s two factor theory in a large Chinese chemical fiber company,” International Science Index, vol. 7, no. 6, Jun. 2013, pp. 1433–1438.
[21] L. Chi, “Performance management: Exploring the status of outcome in securities industry of Taiwan,” unpublished master’s thesis, National Taiwan University of Science and Technology, Taipei, 2010.
[22] B. Kuvaas, “Performance appraisal satisfaction and employee outcomes: mediating and moderating roles of work motivation,” The International Journal of Human Resource Management, vol. 17, no. 3, Sep. 2006, pp. 504–522.
[23] S. Pandey, and M. S. Khan, “Performance appraisal as a change bringer – Issues and prospects,” Indian Journal of Applied Research, vol. 5, no. 3, Mar. 2015, pp. 244–246.
[24] R. S. Ayers, “Building goal alignment in federal agencies’ performance appraisal programs,” Public Personnel Management, vol. 42, no. 4, Dec. 2013, pp. 495–520.
[25] O. J. Ayanda, and A. D. Sani, “Strategic human resource management and organizational performance in the Nigerian manufacturing sector: An empirical investigation,” International Journal of Business and Management, vol. 6, no. 9, Sep. 2011, pp. 46–56.
[26] M. Brown, and J. S. Heywood, “Performance appraisal systems: Determinants and change,” British Journal of Industrial Relations, vol. 43, no. 4, Dec. 2005, pp. 659–679.
[27] S. S. Culbertson, J. B. Henning, and S. C. Payne, “Performance appraisal satisfaction: The role of feedback and goal orientation,” Journal of Personnel Psychology, vol. 12, no. 4, 2013, pp. 189–195.
[28] S. Mahajan, and S. Raheja, “Examine relationship between employees satisfaction on performance appraisal system with fairness of the system,” Asian Journal Management, vol. 5, no. 1, Jan-Mar. 2014, pp. 49–54.
[29] S. R. Moulik, and S. Mazumdar, “Exploring the relationship between perceived uses of appraisals and performance appraisal satisfaction in the Indian IT sector: An empirical study,” International Journal of Business and Social Research, vol. 2, no. 5, 2012, pp. 63–76.
[30] S. Yang, “A study on impact factors of staff performance appraisal in state-owned enterprise,” unpublished master’s thesis, National Chung Hsing University, Taichung, 2008.
[31] H. Lin, “A study of the relationship among paternalistic leadership, performance appraisal and leadership effectiveness: A case in air force institute of technology,” unpublished master’s thesis, I-Shou University, Kaohsiung, 2008.
[32] S. Shih, “Evaluation of performance appraisal system--A case study of a small- medium enterprise,” unpublished master’s thesis, Chung Yuan Christian University, Taoyuan, 2006.
[33] G. K. Karyeija, “The impact of culture on performance appraisal reforms in Africa: The case of Uganda’s civil service,” Canadian Center of Science and Education, vol. 8, no. 4, Apr. 2012, pp. 159–174.
[34] W. H. Macey, and B. Schneider, “The meaning of employee engagement,” Industrial and Organizational Psychology, vol. 1, no. 1, Mar. 2008, pp. 3–30.
[35] W. Lin, “The relationship among supervisor support, employee job engagement and job performance: A multi-level analysis model,” unpublished master’s thesis, Fu Jen Catholic University, New Taipei City, 2014.
[36] T. J. Kamalanabhan, L. Prakash Sai, and D. Mayuri, “Employee engagement and job satisfaction in the information technology industry,” Psychological Reports, vol. 105, no. 3, Dec. 2009, pp. 759–770.
[37] K. Nowack, “Employee engagement, job satisfaction, retention and stress,” retrieved from:, accessed during Apr. 2014.
[38] A. Orgambidez-Ramos, Y. Borrego-Ales, and I. Mendoza-Sierra, “Role stress and work engagement as antecedents of job satisfaction in Spanish workers,” Journal of Industrial Engineering and Management, vol. 7, no. 1, 2014, pp. 360–372.
[39] M. Desai, B. Majumdar, and G. P. Prabhu, “A study on employee engagement in two Indian businesses,” Asian Journal of Management Research, vol. 1, no. 1, 2010, pp. 81–97.
[40] D. Ilham, “The other type of employee engagement: Can engagement happen toward organization as well,” unpublished master’s thesis, Asia University, Taichung, 2012.
[41] C. P. Cheng, “The effect of organizational climate and job satisfaction on employee engagement- Case study of a rubber manufacturing company,” unpublished master’s thesis, Ching Yun University, Taoyuan, 2012.
[42] D. R. Gomes, “Organizational change and job satisfaction: The mediating role of organizational commitment,” Exedra Journals, vol. 1, 2009, pp. 177–195.
[43] S. Shiao, “A study of the relationships among organizational culture, organizational change, job satisfaction, and organizational commitment,” unpublished master’s thesis, Dayah University, Changhua, 2012.
[44] M. Huang, “A study of the relationship model among organizational change recognition, work attitudes, and job performance - The case of Taiwan Sugar Company,” unpublished master’s thesis, Chang Jung Christian University, Tainan, 2006.
[45] R. Vignaswaran, “The relationship between performance appraisal satisfaction and employee outcomes: a study conducted in Peninsular Malaysia,” unpublished master’s thesis, University of Malaya, Malaysia, 2008.
[46] C. M. Vance, and Y. Paik, Managing a Global Workforce: Challenges and Opportunities in International Human Resource management. NY: Routledge, 2015, p. 337.