Organizational change in any business organisation is predominantly influenced by two forces called internal drivers and external drivers. Both can cause favourable as well as unfavourable impacts on organisational change. However, this essay will argue that it is more beneficial for the organisations to introduce changes based on its internal drivers because they are within the organisation and control of the management in bringing the change. Where as the external drivers are beyond the control of the organisation.
In this intensely competitive and globalised world ( Mdletye, Coetzee and Ukpere 2014) of business and management organisational change is very critical and indispensable for numerous competitive advantages. Therefore, companies of all kinds must either initiate change or if not face the natural death (Kotter and Cohen 2008). Hence, although change is task fraught with complexity and challenge (Graetz et al. 2011, p.2) it has become the inevitable phenomena for the successful survival of organization in this modern world.
Organisational change is the continuous process of renewing the firm direction, structure, capabilities, operations, systems and processes to meet the ever-changing needs of external and internal customers (Soosay and Sloan 2005 p.10). It is the movement of an organization away from its present state of status quo (Smith 2005) toward some desired future state to increase its effectiveness (Lunenburg 2010). Nevertheless, as most researchers have found out that, in reality, adopting new changes in the organisation is very difficult and doubtful of success (Robbins 2003 and Raftery 2009 as cited in Beshtawi and Jaaron,2014; p.129) and often land up with failure (Olaghere,n.d p.1; Gilaninia, Ganjinia and Mahdikhanmahaleh 2013). Therefore, in this increasingly uncertain and risky environment (Zhou, Tse and Li, 2006, p.248) it is very crucial to know how to adapt and change according to the environment and to change successfully has become a critical and timeless challenge for any organization ( Feldman, 2004; Pettigrew et al., 2001; Piderit, 2000) for continuous survival and success.
Organisational Change in an organisation is influenced dominantly by two factors called internal factors or internal drivers and external factors or external drivers (Esparcia and Argente (n.d) and Olaghere n.d, p.1).These factors are responsible for triggering the change in the system, policies, product, structures, services, management, performance among many other areas in the organisation (Senior 2002) (as cited in McGuire and Hutchings 2006). Ivancevich and Matteson (2002) consider technology, economic forces and socio-political and legal factors as important external drivers that cause organisational change. However, they argue that these external drivers of change are beyond management’s control and cause a significant impact compelling the organisation to adjust internal processes and systems (McGuire and Hutchings 2006). Conversely, internal drivers are those forces existed within the organisation that influence changes. They are system, structure, management style, leadership, resources, processes, products of the organisation (Esparcia and Argente, n.d).
However, internal factors are more critical to driving organisational change. Ivancevich and Matteson (2002) maintain that human resource issues and process considerations are the most common forces for change within the organisation. They argue that internal factors are generally within the control of management, although sometimes be more difficult to recognise and diagnose than external factors (McGuire and Hutchings 2006).
The external factors are more diversified and intractable compare to internal drivers (Yu and Zhang, 2010, p.3). The internal divers of change are easily influenced by external environments like politics, economy, technology, legal and society.
The external factors helps to determine the opportunities and threats that the company would face, but the internal factors help the company to identify its strengths and weaknesses (Ibrahim and Primiana, 2015, p.285) . Marcus (2005) (as cited in Ibrahim and Primiana, 2015, p.285) noted that organisations should be aware of its strengths and weaknesses and analyzed the extent to which companies can accommodate the opportunities and threats existed in its the external environment.
Anderson and Anderson (n.d) asserted that the most common reason for the failure of managing change with the organizations is the inadequate attention to the less tangible, yet very important, internal drivers such as culture, leader and employee behaviour and their mindset. So, it is very much evident the benefits of concentrating of internal drivers rather than external drivers. This is supported by Kotter and Cohen (2008; p.61) that managers must instigate change by creating the sense of urgency by touching the emotions of employees instead of reasons based on facts and figures. This is possible only through change in internal factors of business enterprise.
Many scholars have consented that internal factors are the key determinants of an organization’s performance (Kinyua-Njuguna, Munyok and Kibera 2014, p. 289) as they provide enabling environment to achieve its goals and objectives. Internal environmental forces provide strengths and weaknesses to the business (Tolbert & Hall, 2009) (cited in (Kinyua-Njuguna, Munyok and Kiber 2014, p.) Fr example, from their study on the effect of internal drivers on community-based HIV and AIDS organizations in Nairobi County, Kenya, Kinyua-Njuguna, Munyok and Kiber (2014) found out that the internal drivers such as organisational structure, strategy, skills, staff, shared values as well as systems helping the organisation to achieve their objective. As a result enhanced the employee performance.
The Resource-based view (RBV) theory, propounded by Penrose (1959) ( as cited in Kute & Upadhyay, 2014,p.68) supported that organizations can gain competitive advantage by concentrating on their internal factors such as abilities, skills, knowledge, capabilities and competencies with reference to technological changes. This is because of strengths and weakness in these areas can be managed and thus the need of enhancing these qualities within the employees can be determined and can be enhanced through continuous organizational learning culture. Furthermore, the following factors such as mission and goals, leadership quality, organisational structure, human resources, technology capacity, organisation culture, employees behaviours and attitude, and organisational performance has to be considered while introducing change in the organisation.
Organisation Vison, Mision, Goals and objectives
Every business organisation is being guided by its mission, goals and objectives pertaining to development philosophy and direction, planning, prioritizing programs, policies, management, organisational structures and everyday responsibilities (Emeka and Eyuche 2014). In nutshell the performance of the company depends on the mission, goals and objectives. Therefore, change in these domains would compel the firm to undertake organisational change to achieve their mission and objectives.
Leadership
Leadership is one of the very important internal factors in an organisation change (Lunenburg 2010). The leaders have the important role in maintaining the measure of control over the environment of the organisation (McGuire and Hutchings 2006, p.197). The sixteenth century political scientist, Niccolo Machiavelli, stressed that the leader’s vision and future plans are critical in determining the shape and structure of the organisation (McGuire and Hutchings 2006, p.198). According to the organisational change models Cummings and Worley (1993) further recognizes that any change can be implemented successfully only by strong leadership who can garner commitment and readiness to change within the employees through shared vision and strategies to achieve the proposed new change and outcome. The way the managers or leaders establish the internal working structure and systems has influence on the performance of the organisation (Kinyua-Njuguna, Munyok and Kiber 2014, p.285).It means the structures and systems should be very favourable for the employees to work collaboratively everyday towards the shared goals of the organisation. Conversely, poor leadership and management would result in the failure of enterprise in the implementation of change processes and risking the orgainsation to disastrous consequences (Shiamwama, Ombayo and Mukolwe 2014, p.148). Effective leaders help organisations to surpass any internal obstacles and bring changes through envisioning the desired goals and objectives, energizing the employees, and enabling the resources and conditions (Zhou, Tse and Li 2006, p.253) which are paramount to overcome any external inhibitors of change and improve performance.
For instance, Steve Jobs, the founder of APPLE Computers, was eased out of the business because of poor management. He later went back into the business and was absorbed as a mere employee just to tap his original idea (Cole, 2004). in (Shiamwama, Ombayo and Mukolwe (2014)
Organisation Structure
Change in organizational structure involves redefining and regulating the organizational roles and relations by expanding or reducing audition, determining the decision making authority, selecting decentralised or central management type, regulating communication channels within the organisation ( İkinci, S.S.2014,p.123).It is another internal factor that act as driver of change. It is the way how jobs are allocated, coordinated and supervised through the system that facilitates communication and efficient work processes among the employees in the organisation (Elsaid, Okasha and Abdelghaly, 2013, p.1). In fact the successful execution and implementation of any plans and programs depends on it. The flat bureaucratic structure with decentralised decision-making system and horizontal reporting system among the teams and various managers are more preferred by the employees (Ohlson, 2007).This fosters faster and effective decision and action thus enhancing the efficiency and productivity of the employees and organisation as whole. The tall hierarchical system of organisation characterised by long bureaucratic steps to follow in execution and communication is rather a hindrance to the effectiveness of the performance (p.23). Decentralised administrative structures and processes thus enable a firm to better meet the new environmental conditions and effectively handle environmental turbulence (Damanpour and Evan, 1984)
Human resources
Human resource in the organisation consists of the knowledge, skills, competencies, attitude and behaviours the workers possess ( İkinci, S.S.2014, p.123). Nurturing theses aspect of human resources will lead to personal growth and development which can alter an individual’s perceptions of organisational change, reducing the level of resistance (Bovey and Hede, 2001, p.546). It is the very critical asset that helps organisation to gain competitive advantage (Husso and Nybakk, nd, p.9).This is because they have the capacity to operate all the activities and in turn help to achieve the aims and objective (Mdletye, Coetzee, and Ukpere (2014) which otherwise would not be able to function at all. The researchers emphasized that human resource is the most important aspect, indeed the backbone of every organization and it is also the main source of resource for the effective function of the organization ( Wanza and Nkuraru,2016; p.192) and main strategic resource to gain sustainable competitive advantage in this age of globalization(Kute & Upadhyay, 2014). For example, the management’s emphasis on the human resource management such as employing highly skilled and educated people, providing professional training and encouraging learning from advanced technologies and skills made the employees more competent to achieve Huawei’s internationalization process more successful ( Yu and Zhang, 2010, p.23) .
Organisational culture
Organisational culture is defined as the values, beliefs, norms, customs and behaviours that guide the employees towards the common goals (Awadh & Saad, 2013,) and that set the rule of decision making processes, structure and power (Wambugu, 2014, p. 80). Wambugu (2014) further noted that organisational culture empower the employees to do thing which deemed right and rewarding both at personal and organisational level. According to Wanza and Nkuraru ( 2016, p.195) and Awadh & Saad, (2013, p.168 ) organisational culture has strong bearing on the performance of the employees which is considered as the backbone of development of the organisation. The culture established as system in the organisation enhances employees’ commitment thus improves their input eventually achieving the desired productivity and profitability (Wanza and Nkuraru, 2016, p.193). They concluded from their research that a strong organizational culture acts as the source of synergy and momentum for teamwork and uplift employee performance (p.197).Thus it is worthy of developing organizational culture for sustainable future. For example, one of the internal factor that drive Huawei Technologies Company, a very small local IT company of China, to very successful internationalisation was the corporate culture, such as team work, adaptation, learning and customer-oriented service, being embedded in the behaviours of the Huawei’s employees ( Yu and Zhang, 2010, p.23)
Innovation culture
Innovation is the main strategy to adapt to change, overcome organisational weaknesses, and add value to organization’s products and services in the ever-changing business environment (Sund 2008, p. 2). Being entrepreneurial with creativity and innovation helps organisation to gain competitive advantage (Ireland et al. 2003). Abdelgawad et al. (2013) proposed that entrepreneurial capability is instrumental for realizing a firm’s game-changing strategies for sustainable success in future. For example, Google, Amazon and Apple companies were once just start-ups grown to attract global market through their innovation (EBRD, 2014; p.1). Internal organizational drivers such as resources, experimentation, collaboration, administrative support play a significant role during this innovation process (Agolla and Van-Lill, 2013). So, establishing innovative culture in an organisation will drive the organisation towards favorable and successful change.
Attitude and Commitment
Most of the researches have shown that employees need to develop their attitude and behaviours for successful organizational performance (Bernerth, 2004). Therefore, it is indispensable for the organizational managers to develop and nurture employees’ commitment towards embracing change by bringing positive change in their attitude and behaviour. However, Anderson and Anderson (n.d) stressed that employees’ mindset, which is the root cause of one’s feelings, decisions and actions, has to be changed to bring organizational change. When introducing change people aspect is more critical than just about changes in systems and processes. Rather it is about people believing in change and wanting it to happen (Soosay and Sloan (2005 p.4). Since organisational change requires the participation of people, those involved must first undergo personal change for the success of organisational change (Evans, 1994).
Organisation Performance as drivers
Both the present and past performance are also drivers of organisational change. Some earlier researchers have pointed out that poor performance, that creates the gap between managerial aspirations and achievements, is an extra impetus for the firms to improve further (Greve, 1998; Tushman and Romanelli, 1985). On the other hand some researchers argue that successful companies continuously draw motivation from their success to improve and perform better for sustainable future, especially they face an uncertain environments ( Feldman, 2004; Tsoukas and Chia, 2002).in (Zhou, Tse and Li, 2006). The better a firm performs, the more likely it will invest in new product development and technology advancement to achieve a sustainable competitive advantage (Zhou, Tse and Li, 2006; p.251). As Brown and Eisenhardt (1997) observe, many successful firms, such as Intel, 3M, Hewlett-Packard, and Gillette, have undertaken constant, rapid changes, particularly in their new product development. For example companies like Apple, Microsoft and Samsung companies have undergone continuous rapid changes in development of new product.
Conclusion
The main purpose of this essay was to prove the advantages of responding to internal drivers than to external drivers while introducing change in the organisation. From this study it was found out that internal drivers are within the organisation that has direct impact on its everyday performance. Therefore, they are within the control and management capacity of the organization. If the internal performance, system, culture and resources of an organisation are excellent it is certain that any obstacles posed from the external environments can be nullified leading to very successful organizational change. Whereas external drivers are existed in the external environment of the firm and those are beyond the control and reach of the organisation. Yet, they can affect the internal functions of the organisation causing instability. Hence the external drivers are not to be undermined rather internal drivers must be activated towards meeting change in line with external drivers.
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