Organisational Structure and Work Related Attitude: Mediating Role of Psychological Empowerment

Abstract

The present study examines the role of psychological empowerment (PE) in mediating the relationship between organisational structure and work related attitude. Through a sample of 324 middle and senior level executives working in India using a self-report questionnaire, the study established the linkage between organisational structure, psychological empowerment, and work related attitude thus extended the psychological empowerment theory. It was found that employee perceptions of the organisation structure they work in, directly influence their perceptions of empowerment, which, in turn, influence their work outcomes like job satisfaction, commitment and turnover intention. As per the findings, formalisation and participation in decision-making characteristics of organisation structure were found to be critical in enhancing psychological empowerment. Hierarchy of authority was found to negatively co-vary with psychological empowerment indicating that the more centralised the structure is, the lesser the feeling of empowerment experienced by the employees. The findings will facilitate managers to analyse their organisations with respect to centralisation and formalisation variables and assess to what extent they are matching with their goals of organisation to ascertain positive work outcomes.

Keywords: Organisational Structure, Psychological Empowerment, Turnover Intentions, Job Satisfaction, Commitment, India

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