Correlation analysis between restructuring and employee’s loyalty in Petronas Dagangan Berhad (PDB) / Mohd Nazree Joblee and Fadhillah Arif Ghazi

Purpose – This research was conducted with the purpose of analyzing the correlations that exists between restructuring and employee loyalty. Restructuring is one of the accepted strategy done by an organization in order to react with the declining profit and increase in operational costs that usually caused by an unfavorable economic situation. Loyalty is the psychological state of an employee towards their feeling of attachment and commitment towards the organization and its improvement. Therefore, we want to prove that whether there is any relationship that occurs between restructuring and employee loyalty.

Design/methodology/approach – We have distributed 234 questionnaires to PETRONAS Dagangan Berhad (PDB)’s staff and we used the data provided by them in order to prove the relationship between restructuring and employee loyalty. Our sampling size is determined by referring to the Krejcie & Morgan’s sample size table.

Findings – Based on our finding, there is a significant and positive relationship that occurs between restructuring and employee loyalty. The positive relationship occurs due to the high extent of the loyalty feeling among the respondent. The higher the extent of the restructuring process will affect their loyalty positively as they are willing to help the organization to achieve the stability in their business condition.

Practical Implications – Difficulties in distributing the questionnaires because of the respondent’s unavailability due to their work demand. They might be located at PETRONAS Twin Towers, but they are temporarily outstation due to work assignment that was assigned to them. Therefore it took a long time to distribute the questionnaire and delayed the data analysis process.

Originality/value – This research revealed the relationship between restructuring and employee loyalty. Employer must acknowledge that there is a relationship occurs thus tried to reduce the impact that might occurs when they implementing the restructuring strategy for the benefits of both employer and the employee.