Change has influenced all spheres of organisations, which are currently defined by volatility and turbulence, requiring them to adapt to function in the current business environment (Birshan et al., 2022; Cummings et al., 2019). Organisations have been forced to address changes to embrace the impact thereof included reshaping their strategies, scope and structure, as failure to make the necessary changes may incapacitate them from competing within their industry, leading to their demise (Yoon & Mormont, 2023). As the global work environment continues to change swiftly, the effectiveness of organisations has become increasingly vital, and most organisations place a high value on effectiveness, as it paves the way for profitability, fosters growth and promotes long-term sustainability (Cooks-Campbell, 2022; Iwu et al., 2015). Organisational effectiveness (OE) research has typically focused on various organisational factors that can contribute to their improved performance (Birshan et al., 2022; WalkMe Team, 2023). However, the level of effectiveness achieved by organisations is largely influenced by and depends on their human capital, as employees play a vital role in their ability to achieve and maintain a competitive advantage (Guest, 2017).

The mutual gains perspective proposes that the application of human resource management (HRM) strategies establishes an environment where employees are seen as valuable resources that can be utilised to boost the performance of the organisation. Consequently, it is believed that HRM strategies positively influence both the human capital of an organisation and its overall performance (Jo et al., 2020). However, despite the fact that this perspective sees the relationship between an organisation and its employees as interdependent and mutually beneficial, employers are often torn between business strategies that promote organisational performance (OP) versus those that are favourable for employee well-being (EWB) (Ogbonnaya & Aryee, 2020). Although organisations need to focus on how performance can be improved to ensure their competitiveness and sustainability (Indeed Editorial Team, 2023), the implementation of certain OE practices can be exploitative, which result in employees suffering increased work demands and stress (Ogbonnaya & Aryee, 2020). This has led to an increase in the attention given to interventions that can increase EWB (Franco-Santos et al., 2022; Haddon, 2018; Sieberhagen et al., 2011).

Research relating to employee and organisational wellness experienced a rapid increase from the 1990s onwards (Schreuder & Coetzee, 2010). The surge in this research is linked to the global labour markets experiencing a significant paradigm shift because of major global trends such as digital transformation, climate change, coronavirus disease 2019 (COVID-19), migration and demographic changes (Rasool, 2021). These trends are drastically reshaping the way we work and live, as alterations in the scope, nature, task requirements, skill demands of jobs and the structure of work are transforming existing job roles and giving rise to new industries and professions (Rasool, 2021). As a result of these changes, employees are facing heightened job pressures and stress (Ogbonnaya & Aryee, 2020). Therefore, managing EWB has become crucial, as the success and competitive edge of organisations rely heavily on their employees’ well-being and efficient performance (Guest, 2017). Through researching and understanding EWB, organisations may become more aware of the implications thereof on OE and understand how it can be addressed, which would be beneficial to both the individual employee and the organisation. Furthermore, organisations should regularly monitor the state of their employees’ wellness in order to manage it effectively (Sieberhagen et al., 2011).

According to Property360 (2021), there is huge demand for property in South Africa, especially in the lower-to-middle markets, and first-time buyers make up 48% of all home buyers.The South African government has also implemented various policies and programmes to improve the access and affordability of housing for low-income and vulnerable groups (Department of Human Settlements, 2021). The real estate market also mirrors the economic and social trends and conditions in the country, such as inflation, interest rates, consumer confidence, migration patterns, urbanisation, demographic changes and environmental issues (Ooba Home Loans, 2023). These factors have resulted in the South African real estate market experiencing a significant increase in bonded properties over the past few years, resulting in an increased need for bond origination and the work of bond originator companies (Fourie, 2020). Bond origination came to South Africa in the late 1990s, with bond originators acting as intermediary between the buyer and the bank, submitting one application to multiple banks to secure the best possible interest rate for a borrower (Property360, 2021). While consumers were originally hesitant to use a bond originator, by 2007, a total of 60% of all home loan applications were sourced through originators (Property360, 2021). The increased need for bond origination services in South Africa, coupled with the changing real estate market and shifts in technology that bond originators face, has amplified the pressure on bond originator companies to provide an efficient service that benefited customers (Fourie, 2020). Companies providing bond origination services thus need to become and remain effective to be competitive in the real estate bond market while also ensuring the well-being of its employees who are under pressure to deliver this competitive service to clients while complying with relevant comprehensive financial legislation and regulations (Fourie, 2020; Van Deventer, 2023).

Although well-being on its own is a thoroughly researched topic, available EWB studies have mainly focused on the relationship between EWB and individual organisational variables. Some of the individual organisational variables that have been studied alongside EWB include performance in the workplace (Haddon, 2018), performance management (Franco-Santos et al., 2022), perceived organisational support (Roemer & Harris, 2018; Wattoo et al., 2018) and HRM (Zhang et al., 2020). However, the literature is devoid of research reporting on the relationship between EWB and the effective functioning of the entire organisation, which was identified as an important research need. Furthermore, no research is available on the role that EWB plays in ensuring the OE of bond origination companies in the South African environment, which makes this study unique.

The aim of this study is to determine the relationship between EWB and OE within a bond originating company in South Africa.

In the next section EWB, its four constructs, OE, seven approaches to OE as well as the relationship between EWB and OE are discussed.

Bakker and Oerlemans (2011) and Mazzetti et al. (2018) state that EWB is a multidimensional phenomenon that focuses on an individual’s optimal functioning and experience. This view is supported by Waida (2021) who defined EWB as the overall mental, physical, emotional and economic health of employees. Although several models related to EWB exist, this study is based on the Circumplex Model of Affect developed by Russel (1980), which is accepted by various authors as being the most comprehensive in explaining EWB (Bakker & Oerlemans, 2011; Hakanen et al., 2017; Mazzetti et al. (2018). While the other models of EWB only address one or two types of well-being, the Circumplex Model of Affect, which was adapted by Bakker and Oerlemans (2011), is more comprehensive, as it operationalises the concept of EWB as consisting of four constructs, namely (1) job satisfaction, (2) work engagement, (3) burnout and (4) workaholism. Job satisfaction and work engagement are deemed pleasant forms of well-being, whereas burnout and workaholism are classified as unpleasant forms of well-being (Bakker & Oerlemans, 2011; Mazzetti et al., 2018).

The Circumplex Model of Affect (Bakker & Oerlemans, 2011) operationalises the concept of EWB as consisting of the following four constructs.

In the complex business world, effectiveness has become central to organisations (Fedyk et al., 2021). Little wonder then that the concept of OE has been one of the most prominent research topics in organisational theory and has attracted scholarly attention for decades (Dhoopar et al., 2023; Gomide Júnior et al., 2022). Despite this attention, there is still no consensus on a definition of the term nor on what constructs should be measured (Balduck & Buelens, 2008; Cameron, 2015; Cummings et al., 2019; Dhoopar et al., 2023; Van Vulpen, 2023). One of the reasons for the aforementioned is that OE is multidimensional (Fedyk et al., 2021; Gomide Júnior et al., 2022; Mikelsone & Leila, 2019) and grounded in the values and preferences of evaluators (Cameron, 2015; Dhoopar et al., 2023). The influence of globalisation further complicated the understanding of OE and agreeing on a universal definition thereof (Titus & Hoole, 2021). However, the common thread among all definitions is that to be successful, organisations should change with changing situations and definitions of OE, constituents of OE and methods to attain OE must also evolve (Holbeche, 2018). Despite the lack of a universally acceptable definition of OE, researchers have developed seven approaches to OE (Van Vulpen, 2023).

The goal approach is one of the most common approaches to OE and is also referred to as the Goal Attainment Model (Mikelsone & Leila, 2019). This model focused on the output of organisations, such as profit, quality of products and modernisation (Ashraf & Kadir, 2012; Cummings et al., 2019). This approach is of the view that the extent to which an organisation sets and achieves its goals will determine its effectiveness (Van Vulpen, 2023). The advantage of this approach is that it is clear and objective, but the disadvantages are that it is difficult to identify the real goal and not the ideal goal while it also does not consider other aspects of OE, such as internal processes or stakeholder needs (Bhasin, 2023).

This approach to OE emphasises an organisation’s input(s) and the external environment in which it operates (Ashraf & Kadir, 2012). An organisation is deemed more effective if it can secure resources it requires and can utilise them to create a competitive advantage over other entities (Cummings et al., 2019). This approach is valid when there is a relationship between the resources an organisation uses and the product or service it offers (Dimitrov, 2020). The advantage of this approach is that it considers the external environment and the constraints faced by the organisation, but the disadvantage is that it may not reflect the actual results or outcomes of the organisation (Bhasin, 2023).

This approach does not focus on the organisation’s outcomes, but on what happens inside the organisation (Van Vulpen, 2023). Should top management lead and manage employees effectively (Ashraf & Kadir, 2012), it will lead to specific behaviours, such as communication and a positive work climate, which is deemed to increased effectiveness. Organisations will be effective should their members not experience stress or strain because of the efficient processes of the company (Ashraf & Kadir, 2012). The advantage of this approach is that it considers the internal human and social aspects of organisational effectiveness, but the disadvantages are that it does not consider the external environment or the goals of the organisation (Bhasin, 2023).

This approach assesses effectiveness by measuring the degree to which it satisfies those in the environment who can threaten the organisation’s survival – that is, its strategic constituencies or interest groups (Van Vulpen, 2023). As the various stakeholders may have different or conflicting interests, balancing these may be challenging and is a disadvantage of this approach (Van Vulpen, 2023). However, these challenges can be overcome by providing each stakeholder with as much as possible, satisfying the expectations of the highest stakeholder first, attending to the stakeholders who are likely to be harmed as they are least favoured and responding to changing demand in a flexible and adaptable way (Van Vulpen, 2023). An advantage of this approach is that it has increased our knowledge regarding the complexity of assessing OE (Cameron, 2015).

This approach includes focusing on the interests of strategic constituencies but also on those who are indirectly affected by the organisation but that may not have power over it (Van Vulpen, 2023). These include the families of workers, activists and communities. The advantage of this approach is that it considers the multiple and diverse perspectives of OE, but the disadvantage is that it may be difficult to measure and compare across different stakeholder groups (Bhasin, 2023).

This approach assesses OE by the ability of the organisation to simultaneously promote competing values (Van Vulpen, 2023). There are two principles that are central to this approach: (1) there are several diverging criteria associated with assessing OE and (2) different stakeholders will have different priorities based on their values (Cameron, 2015). The ability of an organisation to reconcile these competing values is seen as the key to OE (Van Vulpen, 2023).

The abundance approach considers OE as the unlocking of the best possibilities of human systems (Van Vulpen, 2023). This means bringing out positive values and goodness or virtuousness (Cameron, 2015). To do this effectively, there has to be a balance between positive and negative values. For example, excellence and flourishing need difficult challenges that involve both positive and negative aspects and emotions to enhance the potential of human systems (Van Vulpen, 2023).

Research by Van de Voorde et al. (2012) found a positive relationship between EWB and OE, while job satisfaction, a construct of EWB, was found to positively affect OE (Bakotić, 2016; Sibhoko, 2017). Sundaray (2011) found a relationship between employee engagement and OE, while Xu et al. (2021) found a relationship between workaholism and performance. Research pertaining specifically to burnout and OE was not evident and highlighted as future research areas.

From the literature review, the aim of this study and based on the Circumplex Model of Affect (Bakker & Oerlemans, 2011), the following research hypotheses were formulated:

This study followed a quantitative methodology, which is based on the positivist research philosophy. A cross-sectional survey approach was utilised to gather data being the most suited for research when an overall picture of phenomena at a particular point in time is important and when data are required for exploring relationships between variables and testing hypotheses (Pallant, 2020). Epistemology wise the research followed a constructionism approach, which refers to the meaning that comes into existence in and out of human engagement with the realities in the world (Al-Ababneh, 2020), such as the one respondents in this research were exposed to.

Written permission to conduct the study within the relevant organisation was obtained from the Head of Human Resources (HR). Thereafter, ethical clearance was obtained from the Ethics Committee of the Department of Industrial and Organisational Psychology (IOP) at the University of South Africa (UNISA). Once ethical clearance for the study had been received, data collection commenced.

The Head of HR provided the researcher with a list of the company’s 388 employees operating in all provinces in South Africa, which included their names and email addresses. An email explaining the research as well as their expected role was sent to all employees included on the list. The email contained a link that took the employees to an informed consent form and the five questionnaires. Those who agreed to partake in the study completed the informed consent form and all the questionnaires online, and these data were stored electronically on a central server and remained confidential at all times. A total of 203 employees were willing to participate in the study and completed the questionnaires and these data were downloaded onto the researcher’s computer, which was then cleaned and analysed accordingly.

All data were analysed using the Statistical Package for Social Sciences version 29 (Garcia, 2022). Descriptive statistics were used to calculate the mean, standard deviation and frequencies of responses. For the JSQ, which used a 1–5 rating scale, the mean cut-off score of 3.2 was used to differentiate between potential positive and negative responses, with scores of 3.2 and above indicating a positive perception and scores below 3.2 indicating a negative perception of that dimension, as recommended by the Human Sciences Research Council (HSRC) (Castro & Martins, 2010).

Cronbach’s alpha coefficients were calculated to determine the internal consistency of all five measuring instruments. Reliability was accepted as satisfactory if scores were 0.70 and above (Pallant, 2020). Correlation coefficients were calculated to determine the statistical relationship between the four EWB constructs, and a composite OE score and the cut-off point to determine statistical significance was set at p ≤ 0.05 (Pallant, 2020). Effect sizes were used to determine the practical significance of the correlations. Pallant’s (2020) classification for practical effect was used where r ≤ 0.10 (small practical effect), r > 0.10 but ≤ 0.29 (low practical effect), r ≥ 0.30 ≤ 0.49 (medium practical effect) and r ≥ 0.50 (large practical effect).

Ethical clearance for the study was obtained from the Research Committee of the Department of IOP at UNISA. The approval number was 2019_CEMS/IOP_008. Written informed consent was obtained from participants before proceeding with the research, and this included their right to withdraw from the study at any time. Confidentiality and privacy of the participants were maintained at all times as the questionnaires were anonymously stored on a central server to protect the identity of participants.

Descriptive and reliability statistics were calculated for all five measurement instruments. A level of internal reliability of 0.70 and above was considered acceptable, as suggested by Pallant (2020).

The intercorrelations between the four underlying constructs of EWB and a composite OE score are indicated in Table 6.

Table 6 indicates that there is a statistically significant relationship between both job satisfaction and work engagement and a composite OE score (job satisfaction: r = 0.667; large practical effect; p ≤ 0.01; work engagement: r = 0.587; large practical effect; p ≤ 0.01). This implies that when job satisfaction and work engagement increases, so does the organisation’s effectiveness. Table 6 also indicates that there is a statistically insignificant and negative relationship between workaholism and a composite OE score (r = −0.060; low practical effect; p = 0.394), indicating that workaholism has no effect on OE. Burnout and a composite OE score have a statistically significant but negative relationship (r = −0.452; medium practical effect; p ≤ 0.01), indicating that as individuals experience increased burnout, the organisation’s effectiveness is reduced (Pallant, 2020).

The purpose of this study was to investigate the relationship between the concept of EWB as operationalised by its four constructs of: (1) job satisfaction, (2) work engagement, (3) workaholism and (4) burnout and the concept of OE, operationalised by a composite OE score.

The results indicate that all five instruments used in the study have acceptable levels of internal consistency within a South African bond-originating company. The results also indicate that three of the four constructs of EWB, namely job satisfaction (r = 0.667; p ≤ 0.001), work engagement (r = 0.587; p ≤ 0.001) and burnout (r = −0.452; p ≤ 0.001) were found to be statistically significantly related to a composite OE score. The negative but statistically significant relationship between the construct of burnout and a composite OE score indicates that as individuals experienced increased burnout, their effectiveness was reduced. H1, H2 and H4 were thus accepted. The construct of workaholism and a composite OE score (r = −0.060, p = 0.394) were not statistically significantly related (H3 rejected).

The significant relationship between job satisfaction and OE reported in this study (H1 accepted) is consistent with the findings reported by Mishra (2013), Latif et al. (2013), Sibhoko (2017), Miah (2018) and Pang and Lu (2018). This positive relationship can be explained by studies that found that satisfied employees have a positive attitude towards their job, are willing to commit to their organisations and extend more effort to their jobs, thus increasing the organisation’s effectiveness (Latif et al., 2013; Miah, 2018; Sibhoko, 2017; Wu et al., 2013). This is consistent with the finding of Pang and Lu (2018), who found that when employees experienced a high level of job satisfaction, their work attitudes improved and they were able to complete more tasks, thus improving OP.

The significant relationship between work engagement and OE reported in this study (H2 accepted) is supported by the results of a meta-analysis in 36 companies conducted by Harter et al. (2002), who found generalisable relationships large enough to have a substantial practical value between engagement and business outcomes (r = 0.380). These results are consistent with the findings reported by Baumruk (2004), Hoole and Bonnema (2015) and Diogene (2017) who found that work engagement led to an increase in OP. The relationship between work engagement and OE is supported by research which indicated that a highly engaged employee will consistently deliver beyond expectations, which subsequently improves OP (Baumruk, 2004; Diogene, 2017; Harter et al., 2002). An employee who feels valued and sees themself as an integral part of the organisation is the one that is more likely to contribute towards the success of that organisation (Hoole & Bonnema, 2015). In a study of IT employee in the Jordanian banking sector, it was found that work engagement increased productivity, created a better and more productive work environment, reduced non-attendance and turnover and increased OP (Al-Dalahmeh et al., 2018).

The negative but significant relationship between Burnout and OE reported in the current study (H4 accepted), implies that a decrease in burnout experienced by employees will lead to an increase in OE. This result could not be compared to previous research as none could be found which studied the relationship between these two variables. Although it has been argued that burnout can have negative consequences for the entire organisation (Maricutoiu et al., 2017; Taris, 2006), there are no research results available to support this argument, as the focus of burnout research has been on the relationship between burnout and individual performance and not the organisation’s performance. The assumption is made that burnout has negative consequences for individuals such as very low levels of energy, increased absenteeism, job dissatisfaction, depression and diseases, which in turn affect OE (Maricutoiu et al., 2017; Taris, 2006). For this reason, Xu et al. (2021) made a plea for more research regarding burnout and its relationship to OE and the current study provides more insight into this relationship with its emphasis on OE.

The research on burnout and individual performance has reported mixed results. Taris (2006), in a meta-analysis involving 16 studies dealing with the burnout-individual performance relationship, found that the evidence for the relationships was inconclusive. Maslach and Leiter (2016) found that high levels of burnout among employees are associated with reduced job performance, higher absenteeism and increased turnover, while Pan (2017) found that burnout has a significant negative impact on job performance.

The insignificant relationship between workaholism and OE reported in this study (H3 rejected) is consistent with the results obtained by Gorgievski et al. (2014), who found that workaholism did not relate significantly to business performance. She et al. (2021) also found that the relationship between workaholism and firm performance was non-significant. The insignificant relationship between workaholism and OP reported on in research could be because of the fact that this relationship is complex and moderated by various factors, such as workload, perfectionism, work engagement, affect and power distance (Gorgievski et al., 2014; She et al., 2021; Spagnoli et al., 2020).

This study provides managers with an understanding of how the performance of their organisations can be improved by managing the well-being of their employees. The implementation of appropriate interventions to increase the job satisfaction and engagement of their employees will contribute to an increase in OE, as will the elimination of conditions that lead to the burnout of their employees.

This study had several limitations. Firstly, a large body of the available literature regarding OE and the approaches to OE are outdated, and more recent research could not be consulted. Secondly, the study was conducted in a South African bond origination company, and the results are not generalisable to other industries in South Africa. Thirdly, a convenience sample was used for this study, and such a sample cannot be claimed to be representative of the population.

Firstly, the recommendation for future research is to investigate the relationship between the constructs of EWB and OE in other organisations besides the bond origination industry, including the public sector. Secondly, research pertaining to workaholism and its relationship to other variables should be conducted to expand on both the theoretical and empirical research aspects of this variable. Thirdly, the moderating effect of biographical variables such as gender, age, educational level and years of service, which could affect the strength of the relationship between EWB and OE, should be investigated.