Organisational change

In today’s ever changing and diverse organisations, not to mention the changing financial climate due to the recent global financial crises, organisational change and restructure has become common place.  Both managers and employees need to be able to adjust to frequent change by being flexible and adaptable.  A lot of businesses have been forced to adapt to their changing financial situation in order to maintain or create a competitive advantage, often resulting in more streamlined processes with the aim to reduce costs.  How an organisation implements these changes has a great effect on its employees resulting in either positive or negative attitudes or behaviours, this is often reflected in the culture of the organisation.  The ideal would be to create a culture that not only easily overcomes resistance to change but which thrives on change.

If change is required, successful implementation of the changed processes and procedures will be greater if staff feel they are involved in the decision making process and that they can have an impact on the workplace changes.  Organisational decision making involves either a participative or autocratic decision making approach and either one have its place depending on the situation.  Research suggests that leaders who engage in participative decision making help to cultivate a more positive organisational culture.  Communication is a cornerstone to organisational sustainability.  The ability to communicate and maintain effective working relationships is invaluable in achieving results.

Change can include innovation to remain competitive and innovation is not necessarily the development of new products and can include updating and streamlining of processes to become more efficient.  Human capital can be the key to creating innovation or the major stumbling block in hindering innovation.

Everyone has different personality traits, values and abilities to do their job.  Understanding these differences and being able to make the most of this information to allow staff to perform to the best of their ability is key.  Organisational success comes from having the right people in the right job, frequently denoted as ability-job fit.  High ability-job fit refers to matching a person’s abilities with the skills required to successfully do the job.  Poor job fit will lead to employee dissatisfaction and result in the employee leaving, irrespective of a positive attitude.  However, as literature suggests people should be matched to the organisation and organisational culture as well as the role, this is called person-organisation fit.  Both of the aforementioned will greatly contribute to a positive organisational culture as employee personality traits have been found to have an impact on organisational culture.  Research suggests that a positive organisational culture will lead to the organisation being able to more easily attract a high calibre of potential employees due to the organisation having a positive reputation in the marketplace.

Team dynamics are also affected by the different personalities and attributes of each team member.  Shared experiences and team / group building exercises help in the development of teams further advancing the organisational culture.  Positive organisational culture creates a desire for employees to share knowledge resulting in greater innovation and competitive advantage.

Employees need growth and development as well as inspiring mentors and managers to remain focused and satisfied in their role.  This, in turn, will lead to organisational success, competitiveness and sustainability.  By employing the right staff for the right roles, companies are able to utilise their human capital to give them a positive organisational culture and the edge over their competition.