Employee Perception towards Organizational Change- A Review
Anuradha B. Patil
School of Commerce & Management,
Sanjay Ghodawat University,
[email protected]
Abstract
This paper presents a critical review of literature based on organization change management. It is
an effort to gather relevant research findings together to create a conceptual framework. Change
management is the formal process for organizational change, including a systematic approach and
application of knowledge. Change management means defining and adopting corporate strategies,
structures, procedures, and technologies to deal with change stemming from internal and external
conditions (2007 Change Management Survey Report).
Keywords- Organizational Change, Change Management, Employee Perception
Introduction
Organizations strive in an ever changing dynamic environment. This dynamic environment
compels the organizations to keep updating their strategies and make integral changes. Change
may affect the strategies an organization uses to carry out its mission, the processes for
implementing those strategies, the tasks and functions performed by the people in the organization,
and the relationships between those people. (Anne Wanjiku Karanja, 2015)
Organizational change can have various impact on employee performances. If the change is
properly communicated and implemented, the performance of employees can actually improve.
There are three main categories of change: Business process re-engineering, Technological
change, and Incremental change.
Business Process Re-Engineering:
1. Business process re-engineering (BPR) is a business management strategy first pioneered in the
International Academic Journal of Organizational Behavior and Human Resource management,
early 1990s that focuses on the analysis and design of workflows and processes within an
organization. BPR aims to help organizations fundamentally rethink how they do their work in
order to dramatically improve customer service, cut operational costs, and become world-class
competitors. Business process re-engineering is also known as business process redesign, business
transformation, and business process change management. (Patel Prinjal Amit, 2018)
Incremental Change:
2. Incremental change is a method of introducing many small, gradual (and often unplanned)
changes to a project instead of a few large, rapid (and extensively planned) changes. A good
example of incremental change is a manufacturing company making hundreds of small
components that go into a larger product, like a car. Improving the manufacturing process of each
of these integral components one at a time to cut costs and improve process efficiency overall is
incremental change. (Patel Prinjal Amit, 2018)
Technological Change:
3. Technological change (TC) describes the overall process of invention, innovation, and diffusion
of technology or processes. In essence, TC is the invention of a technology (or process), the
continuous process of improving a technology (which often makes it cheaper), and its diffusion
throughout industry or society. In short, technological change is based on both better and more
technology integrated into the framework of existing operational processes. (Patel Prinjal Amit,
2018)
Discussion
Various studies have been conducted to measure the impact of change on the employee’s
performance and their perception towards change. The study conducted by Lam Wai Fong (2011)
provides a review of organizational change towards employee‘s performance in banking industry.
The locations for this survey will be conduct in 4 places which is Kuala Lumpur, Penang, Johor
Bahru and Selangor. The study focused on five independent variables viz, Communication,
employee development, tolerance to change, leadership and procedural justice. 200 respondents
were chosen for the study. Result shown in correlation coefficient, there is a positive significant
relationship between tolerances to change toward employee‘s performance in banking industry.
This illustrates that company should concern more on the level of tolerance that employee possess
to improve their willingness to change. In order to potentially increase the employee‘s motivation
and adapt to the change process, organization need to establish stress management practice to help
employees cope with the changes. When employees feel that organization is concerned for their
future, employees will more likely to be high tolerance to change and increase their change level.
According to the study conducted by Anne Wanjiku Karanja (2015) the technological changes in
the organisations have a greater impact on the perception of employees towards change. The study
was based on Postal Corporation of Kenya, wherein 61 staff members were considered. According
to the results, The aspect that has changed the most in the organization is technology with 31%
respondents. Majority of the employees felt that the technological changes have affected them and
their job positively. The change has improved the performance of these employees. It was also
found that due to new changes in the organization, new duties and responsibilities have been
identified and the employee are been trained by the management experts to occupy these new
responsibilities effectively. This effort of management has shown a positive impact on the
employee’s perception towards change.
Regular, effective and transparent communication also has positive impact on the perception of
employees. It can be said that communication is a prerequisite to any organizational change to be
introduced among the employees. Communication makes the change less unknown. Knowing and
understanding the expected change through communication helps the employees understand their
stake in the transition. According to the study conducted by Rezarta Hasanaj (2017) in a public
sector with the help of interviews, the interviewees stressed more on open and honest
communication. According to them open, honest and continuous communication is the only
solution overcome the rumors and misunderstandings.
Figure 1 (Zareen Husain 2013) illustrates the importance and impact of communication on change.
When change is communicated with employees their queries are effectively solved. They are in a
position to make informed decisions. Communication creates a mutual trust among the employees
and management and creates a community spirit among the employees which is supported by trust
and commitment of employees to the organization. Availability of information with the employees
increases their job satisfaction and ultimately their motivation is uplifted. Communication clears
all the confusion among employees and in turn gives them the ability to make decisions during
change phase, which results into higher commitment to organization. Effective communication
will reduce the uncertainty among employees and provide them better job security with the help
of continuous feedback from management defining their expectations.
Figure 1: Change communication model
(Source- Zareen Husain, “Effective communication brings successful organizational change” 2013)
Conclusion
Managing change is a critical component of any major transformation. It is a necessary process
that helps companies successfully implement new strategies. Employees are the change
riders/implementers. Success or failure of any organizational change process is severely affected
by how the employees perceive this change. Management commitment and their concern for the
employee’s future definitely makes the employees perception positive towards change. Effective
open and honest communication prepares the employees for the upcoming change. And when the
employees are enthusiastically equipped for the change there is less possibility of change
resistance.
References
Anne Wanjiku Karanja; (2015), Organizational Change and Employee Performance: A Case
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Lam Wai Fong, Lau Wai Ting, Ng Mei Hui, Shua Hui Ying, Teh Soo Ee,(2011), The Impacts
Of Organizational Change Towards Employees‘ Performance In Banking Industry, Universiti
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