ABSTRACT

Many firms experience fundamental organizational restructuring which can affect the welfare of employees. In spite of the number of studies endorsing the negative influence of organizational restructuring on employee’s well-being, little is known in Ghana. Using Denmark embassy as a case, the study explored how organizational restructuring induces job stress. This study specifically examines factors that induce stress at Denmark embassy in Ghana. Using a logit model, the study found that among the variables included in the study, organizational restructuring, job insecurity, positive affectivity and flexibility practice have significant influence on the likelihood that employee will be stressed at the embassy. Work control, job satisfaction, restructuring process and negative affectivity have no significant influence on the likelihood of employees’ stress. Additionally, the study found that organizational restructuring and job insecurity significantly increases the likelihood of job stress whiles flexibility practices and positive affectivity significantly reduces job stress. In order to minimize stress due to restructuring, it is suggested that employees should be provided with accurate information regarding restructuring and avoid speculations. Giving them accurate information will provide less time for the mind to worry about future uncertainties regarding restructuring and this will help reduce employee stress.