The Importance of Organisational Commitment in Managing Change in the Bus Industry in Australia

Abstract

In Australia there is a continuing trend in the transport sector towards corporatisation, privatisation, competitive regulation (ie tendering) and deregulation. With the implementation of the 1990 Passenger Transport Act in New South Wales, the urban bus industry has moved from a rigid system of licensing towards one of performance-based contracts. The new focus arising out of the legislation has centred on the quality of service delivery with pressing managerial implications. To date, little attention has been paid to the effects of organisational change on the role of middle management in the transport sector. While the current perception may be that the position of middle management is largely irrelevant following industry downsizing, it is contended that the role of the middle manager is reaffirmed at the centre of organisational change. This paper identifies the relationship between perceived satisfaction with the outcomes of change and organisational commitment and structure. Study findings demonstrate that organisational structure is important in the development of organisational commitment which in turn is vital in the effective implementation of organisational change.