The Impact of Change Management on Employee Satisfaction and Engagement

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.