Balancing Digital Transformation and Employee Well-being The Role of Managerial Decision-making in Swedish Organizations

Sammanfattning

Digital transformation is reshaping organizational conditions and altering how managerial decision-making is carried out. This study investigates how managerial decision-making during digital transformation affects employee well-being with a focus on employee motivation, job satisfaction, and performance, in Swedish organizations. Theories about decision-making, digital transformation, and employee well-being acted as central frameworks in this study to gather an increased understanding of how the components relate to each other. This study used a qualitative research design with semi- structured interviews, where nine interviews was conducted with perspectives from experts, managers, and employees from five large organizations within the business sector to further explore how digitalization is implemented in practice and how these dimensions influence employee well-being. The material was analyzed using a thematic analysis to capture how digitalization is implemented in practice and how managerial choices shape employee experiences of the transformation. The findings indicate that digital transformation is not merely a technological shift but a thorough process that requires evaluated implementation strategy that is continuously revised to align with the organizational goals and maintain employee well-being. Factors as communication, proper training, and guidance help increase successful digitalized implementation. Managers act as intermediaries, shaping the acceptance of digital tools and helping maintain employee well-being. Employee motivation, job satisfaction, and ultimately employee performance was found to increase when employees perceived adequate support, competence development, and opportunities to learn. This study contributes to the literature by demonstrating that managerial decision-making functions as a mechanism through which digital transformation affects employee well-being. It provides empirical insights in the Swedish organizational context, addressing a current gap in previous research. Finally, the study provides practical and theoretical insights into how digital transformation can be implemented in ways that improve employee well- being whilst ensuring a successful and effective implementation strategy process. Lastly, a recommendation for future research is highlighted as this study gives an academic contribution in which future research can develop further.