Organizational Change and Transformation

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Table of Contents

Introduction
Success Drivers
Case Study
Additional Reasons for Failures to Change
Recommendations
Conclusion
References

Introduction

Organizations are to exemplify a variety of qualities through decision-making processes and market positioning that would suggest their success. For example, profitability, trend assessment, customer analysis, and competitiveness are factors that highlight effectiveness and efficiency. Nonetheless, it is important to highlight the vitality of the ability to transform and adapt as the market itself, rivals, and consumers are dynamic in their behavior, actions, and preferences. In this paper, resilience will be exemplified from the perspectives of factors that hinder it as well as maximize it. Based on the analysis of the topic, it can be stated that companies that only focus on short-term planning and do not engage in frequent market analysis lack adaptability within the external environment. Similarly, failing to motivate employees and increase job satisfaction as well as address the work environment barriers generate low internal resilience.

Success Drivers

Depending on the industry and the products a company offers, including price, quantity, and quality-wise, an organization may exemplify success or lack thereof. Nonetheless, it is important to acknowledge the differences in factors that are to be assessed depending on the industry in which an entity operates. For example, the market for office supplies appears to be a relatively common one due to the seeming lack of need for innovation, in-depth analysis, and competition-enhancing strategies. At the same time, certain office supply companies manage to reach major successes both in their internal environment as well as the external one. However, this outcome requires extensive decision-making processes based on specific traits and qualities correlating with positive organizational changes.

Similarly to success factors in most industries with very few exceptions, the office supply industry partly depends on marketing. Thus, one of the elements that generate success is effective publicity and positioning. Similarly, suppliers are important for reducing costs and ensuring the high quality of the products, hence, the satisfaction of the consumers. It is also vital to acknowledge the importance of leadership. Namely, certain managerial strategies can either correlate with business success or failure (Ünal et al., 2019). Effective leadership will not only ensure that the workplace environment is satisfactory but also address potential barriers within the external environment. Leaders who implement transformational traits are able to reach high levels of innovation as well as increase job satisfaction among employees, which directly addresses productivity.

One of the findings that the researchers mention is the importance of planning. However, a distinction is made in regard to short-term planning and long-term one. Short-term planning is associated with a loss of customers (Butt & Ivanov, 2017). Needless to say, the assessment does not apply to the general notion of goals that are to be accomplished in the nearest future, as they are important for all business entities. However, such objectives are to be supplementary to the ones that can be considered long-term. Long-term goals encompass the values, culture, and mission that a business has set for itself. They correlate with the definition of overall success and purpose. Companies that do not put an emphasis on the importance of long-term planning fail to have longevity on the market as they are not resilient. As a result, while an entity may be able to achieve its economic success month after month, it will fail to be competitive and adapt to the dynamic market that requires constant change and alterations.

The factors that researchers also associate with success in innovation. Specifically, the authors of the aforementioned article highlight that innovation is the tool applied to exemplify long-term planning (Butt & Ivanov, 2017). According to the researchers, innovative products and services formulated and designed as a result of long-term planning are associated with higher turnover and consumer loyalty. Thus, an organization that examines the market and its customers, as well as considers longevity as one of the main elements, is more likely to inspire individuals to invest in its products. Innovation allows competitiveness to be maximized as well as facilitates high maintenance of consumer interest in the products. Unique goods are difficult to acquire, so in case an organization implements long-term planning exemplified through innovation, customers will be inclined to keep investing in said services.

Case Study

Existing literature, indeed, highlights factors associated with success in large office supply companies. Namely, Butt and Ivanov (2017) have evaluated the US-based company based on the organizational framework developed by Deming. The researchers have assessed multiple elements correlating with the entity that was being examined. Thus, the company’s culture, values, structure, goals, and operations were exemplified. Additionally, employees were surveyed in regard to potential factors they associate with the success of the workplace where they operate.

The goal of the examination was to determine how good companies go out of business. Specifically, the authors have reflected on circumstances in which organizations with seemingly high potential and low-risk factors manage to lose their profitability and competitive advantages. According to the findings and as mentioned previously, the reason for failure was determined to be the lack of long-term planning. The finding is, indeed, consistent with Shein’s phases of decline (Shein, 2011). Namely, the author mentions such elements as scarcity of knowledge and risk as well as analytical needs. A lack of examination of the internal and external environment generates a gap in the understanding of decision-making practices that can benefit the longevity of the organization.

Additional Reasons for Failures to Change

In regards to the previously mentioned office supply company, the lack of long-term planning and innovation has led to the downfall of the organization as it did not manage to adapt to market changes. However, multiple reasons correlate with the failure to change. Companies that do not exemplify resilience employ decision-making elements that do not benefit the organization in terms of its readiness to alter and take on a different role. The first aspect that has been identified as correlating with failure to change is the workforce. Namely, the people who work for a business are the main component linked to the profitability and efficiency of the company. On the other hand, a lack of motivation may generate the opposite results.

In a company in which employees are confronted with challenges, it is to be expected that results will be lower than expected. Researchers mentioned resistance to change as a characteristic of the workforce that acts as a barrier between the current state of a company and its changed, improved version (Khaw et al., 2022). Resistance to change may correlate with multiple elements. For example, employees who are to learn new software to operate on the platform of their companies are intimidated by the new initiative and may have problems accepting it. On the other hand, an organization implementing a code of conduct may face repercussions as certain team members may not agree with the internal change. In the case of the Fortune 500 company, employees are not given a direct objective correlating with the long-term life of the organization where they operate. Since the main focus is the instant gratification of selling enough to close a quarter or a year’s plan, employees do not direct their attention towards greater goals. As a result, motivation decreases, and the workforce loses interest in being a part of the company’s future.

Another factor that is to be considered when exemplifying failure to change is leadership. Leadership impacts multiple organizational aspects, including employee morale, the work environment, and motivation. However, it is crucial to highlight the link between management and resilience and corporate adaptation to internal and external changes. The case study highlights the circumstance in which employees mainly work for monetary bonuses. Thus, they are not truly motivated to generate profitability because of the loyalty they have for the organization. Leaders, on the other hand, can address the lack of connection between the workforce and the corporation. Through effective leadership, the company is resilient and ready to implement changes practically (By, 2020). For example, in order for the workforce to be motivated to employ organizational alterations. Leaders can maximize the concept of loyalty towards the company. Generating a more welcoming workplace is the equivalent of letting employees know that the company represents more than economic value to them. As a result, the management will address the current barriers that may directly or indirectly impact willingness to change.

Employee motivation remains a challenge also due to the current ranking system highlighted in company operations. Namely, currently, the management divides the workforce into top performers and others (Butt & Ivanov, 2017). Such a division facilitates a lack of motivation for one group and economic motivation for another group. However, as exemplified prior, the company’s focus on short-term profitability goals is one of the main reasons why it fails to adapt to the challenges of the market. Instead, focusing on employee training to address potential gaps in knowledge and motivating through other ways as opposed to financial bonuses would minimize the risks correlating with the current state of the work environment.

Recommendations

As mentioned prior, leaders have the power to positively impact the organizations they operate both directly and indirectly. In this case, the Fortune 500 company has implemented certain decisions that negatively impact the corporation’s ability to maintain resilience and success. Nonetheless, by employing a set of strategies aimed at maximizing efficiency and adaptability, the organization can become less prone to failure, more competitive, and generate a welcoming work environment for its employees. As established previously, effective management is one of the main elements that constitute organizational change (By, 2020). Thus, leaders can employ a style that has been linked to positive results in regard to corporate adaptability. For example, transformational leaders can address current problems, such as the lack of motivation for employees that do not qualify as top performers.

Another recommendation is for leaders to focus on long-term planning and implement a well-defined mission and vision statement. As a result, the employees will be aware of the greater goals they are to strive for as a team and see a long-term career associated with the company. Currently, leaders focus on short-term financial goals, implying that each month or quarter, the firm is to sell and produce a certain amount of goods (Butt & Ivanov, 2017). However, this is merely enough for a truly successful corporation that aims to maintain a leading position in the office supply industry and remain competitive. On the other hand, formulating long-term goals, such as where the company strives to be in 10 or 20 years, will generate a more clear and more well-defined path that the team will take toward their mission.

An additional recommendation correlates with the overall workplace. Currently, the employees are divided into top performers and bottom performers (Butt & Ivanov, 2017). The top performers are the ones who are motivated to work hard to receive a monthly bonus. The bottom ones’ on the other hand, experience a lack of motivation or desire to improve their skills and experiences. The recommendation is to implement techniques that can address the unspoken division among team members. Namely, leaders can employ training and additional learning materials to address a potential gap in knowledge. Moreover, employees, rather than working individually, can be divided into teams. The more productive workers paired with, the less productive ones will form teams that will compete based on their efficiency. As a result, the bottom performers will not only gain experience but also directly operate to improve their status and receive a first-hand example of how to become successful within the organization.

Last but not least, another recommendation correlating with both the internal and external environment is the implementation of certain corporate values and a well-defined culture. Currently, employees view their workplace purely from a financial standpoint. As a result, they are not resilient and are ready to change workplaces easily in case of crisis situations occur (Duchek, 2019). The phenomenon is associated with the lack of loyalty that can be observed within the case study. On the other hand, leaders can employ measures to engage workers and generate satisfaction with the workplace. As a result, resilience is maximized, and together with the concept of well-being, they facilitate efficiency and productivity (Wut et al., 2022). Thus, leaders can improve the workplace design, add extracurricular activities for team members, ensure psychological needs and fulfilled, and acknowledge employees for their hard work.

Conclusion

It is certain that the case study has exemplified the importance of organizational resilience and adaptability. Namely, the ability to adequately and timely respond to changes in the internal and external environment is a sign of stability, prosperity, and success. On the other hand, a form that remains stagnant fails to adequately fulfill market demands. One of the reasons why organizations lack adaptability is the focus on short-term goals only. Thus, employees do not have a common denominator and are purely operating based on their monthly, weekly, and daily duties. Long-term planning, on the other hand, takes into consideration analytical data of the market, consumers, trends, competitors, and goods. Similarly, it has been established that employees are major drivers of change, as well as their leaders. On the one hand, employees are more likely to be resistant to change in stagnant workplaces in which they are not motivated to grow. Similarly, team members may not have the desire to advance due to inappropriate praise for hard work.

On the other hand, leaders who fail to establish welcoming workplaces, communicate openly, and lead through example, are just as damaging to resilience. Based on the aforementioned information, recommendations have been formulated in relation to improving corporate adaptability. It has been established that long-term planning and missions, employee motivation, and transformational leadership are among the most important factors that can maximize corporate success. By employing these techniques, companies can ensure that the teams and managers will be able to adapt quickly and effectively as soon as the external or internal environment requires it.

References

Butt, J., & Ivanov, S. (2017). Study of a large office supply retail organization: How good companies slowly go out of business. International Journal of Organizational Innovation, 9(4), 100–116.

By, R. T. (2020). Organizational change and leadership: Out of the quagmire. Journal of Change Management, 20(1), 1–6. Web.

Duchek, S. (2019). Organizational resilience: A capability-based conceptualization. Business Research, 13(1), 215–246. Web.

Khaw, K. W., Alnoor, A., AL-Abrrow, H., Tiberius, V., Ganesan, Y., & Atshan, N. A. (2022). Reactions towards organizational change: A systematic literature review. Current Psychology. Web.

Shein, J. B. (2011). Reversing the slide. A strategic guide to turnarounds and corporate renewal. Jossey-Bass.

Wut, T. M., Lee, S. W., & Xu, J. B. (2022). Role of organizational resilience and psychological resilience in the workplace—internal stakeholder perspective. International Journal of Environmental Research and Public Health, 19(18), 11799. Web.

Ünal, E., Urbinati, A., & Chiaroni, D. (2019). Managerial practices for designing circular economy business models. Journal of Manufacturing Technology Management, 30(3), 561–589. Web.

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