The importance of organisational commitment in managing change: Experience of the NSW private bus industry

With the implementation of the 1990 Passenger Transport Act in New South Wales, Australia, the urban bus industry moved from a rigid system of licensing towards performance-based contracts. The new focus, arising out of the legislation centred on the quality of service delivery, presented challenges for management in motivating its staff to comply with the new ideals of serving passengers. To date, little attention has been paid to the effects of organisational change on the role of middle management, a key player in the transport sector. While the current perception may be that the position of middle manager has been eroded due to the wide-scale downsizing of middle management ranks across many industries, it is contended that the role of middle manager is reaffirmed particularly during organisational change. This paper identifies the interaction of perceived satisfaction with the outcomes of change, organisational commitment and structure. When change is thrust upon organisations, the commitment of the middle manager is vital.