The effect of privatisation on front line employees in a service organisation

Abstract

A government organisation in the water supply business was faced with the challenge of changing their traditional way of doing business to operate as a profit driven entity. This research focuses on how privatisation has affected front-line service employees. Both the front-line service employees and management were interviewed and included as cases to investigate changes that have occurred as a result of privatisation. These cases revealed that after privatisation front line service employees have received better training, appreciated a better system of communication, experienced a higher degree of empowerment and enjoyed an organisational culture that is more customer focused. The research, however, indicated lower levels of motivation, that employees do not appreciate an improvement in their reward system neither do they get feedback regarding their achievements and that they experience little job security.