"Progress that meets the needs of the present without compromising the ability of future generations to meet their own needs”. This is how the World Commission on Environment and Development defines sustainable development in 1987 Report cited by Millar & Hind, 2012. Business leaders believes that sustainability is one of the keystone of competition within their sector, and is causing both opportunity for, and risk to, long term competitive advantage. They also recognize the importance of implementation and organisational change as the major issues in sustainability for the future of their company (Lubin and Esty, 2010 cited in Millar & Hind, 2012).
The issue on sustainability made changes, normal in the business life. The challenges is on how successful will it be. Why managing organisational change so difficult? There are a lot of studies introducing different theories, approaches and structures to change however most of it still fail. Many studies show that change can fail as a consequence of lack of commitment of an employee to the organisation (Graetz, Rimmer, Lawrence & Smith, 2006).This literature review will concentrate on organisation’s people commitment as antecedent to successful change initiative, to show evidence to support the statement that developing organisational commitment helps people to cope in time of the change in an organisation.
Several studies agreed that employees’ commitment is an important factor in the change initiative taking place in an organisation (e.g., Cunningham, 2007; Herscovitch & Meyer, 2002; Madsen et al., 2005; Parish et al., 2008; Santhidran et al., 2013; Shum et al., 2008). Undoubtedly Cunningham, (2007) and Herscovitch & Meyer, (2002) cited Conner (1992) description of commitment to ...
... middle of paper ...
... Management, 21(1), 32-52. doi: 10.1108/09534810810847020
Samson, D., & Daft, R. L. (2012). Management. Asia Pacific Edition (4th ed.). Victoria, Australia: Cengage
Santhidran, S.; Chandran, V. G. R.; Borromeo, J. (2013). Enabling organizational change- leadership, commitment to change and the mediating role of change readiness, Journal of Business Economics and Management, 14(2), 348-363. doi: 10.3846/16111699.2011.642083
Senior, B., & Swailes, S. (2010). Organizational Change. New York: Financial Times/ Prentice Hall.
Shum, P., Bove, L., & Auh, S. (2008). Employees’ affective commitment to change: The key to successful CRM implementation. European Journal of Marketing, 42(11/12), 1356-1371. doi: 10.1108/03090560810903709
Sirkin, H., Keenan, P., & Jackson, A. (2005). The Hard Side of Change Management. Harvard Business Review, 83(10), 108-118.
Wheelen, T. L., & Hunger, J. D. (2010). In Concepts in Strategic Management and Business Policy Achieving Sustainability, Twelfth Edition. Pearson Education.
... Factors affecting employees’ organizational commitment–a study of banking staff in Ho Chi Minh city, Vietnam. Journal of Advanced Management Science 2(1), 7-11
... Vandenberghe, C. (2004). Employee commitment and motivation: A conceptual analysis and integrative model. Journal of Applied Psychology, 89(6), 991-1007. doi:10.1037/0021-9010.89.6.991
Change management research has largely ignored the effects of organizational change history in shaping employee trust. A history of poor change management result in a loss of faith and low levels of trust in the organization (Bordia, Jimmieson & Irmer, 2007). Employees may have developed skepticism about an organization’s ability to manage change based on experiences of poor change management. Lack of trust in the organization often leads to unwillingness on the part of the employees to place themselves at risk to the actions of the organization. Employee pessimism about change can create a lack of openness toward an organization’s change efforts. Low employee trust is linked to lower job satisfaction, intention to leave, and finally exit from the organization.
This kind of uncertainty always puts employees at risk. Their knowledge and skills might be out of date; their valued work space, or social relationships might be removed and disrupted. Therefore, people resist change out of worry that they cannot adjust to the new work requirements or they will produce unknown costs. Issues such as “fear of the unknown” and “the inability to see the need for change” are common in resistance to change research (Hickins, 1998; Wienbach, 1994). For instance, if change had been poorly implemented during the past and employees have been subject to broken agreements, unfair treatment and poor management decision making, it is unlikely that trust damaged by such actions will be easily restored (Dent and Goldberg, 1999; Ford et al., 2008; Piderit, 2000). Ultimately, employees also would feel bad towards
Newman, J. (2012). An organisational change management framework for sustainability. Greener Management International, 57, 65–75.
Allen,N.J. and Meyer, J.P. (1990) `The measurement and antecedents of affective, continuance and normative commitment to the organization' Journal of occupational Psychology in L. Fulop and S. Linstead, Management: A Critical Text, Macmillan, South Yarra, 1999, pp 259
Change affects more than just a program or a process within an organization, change affects employees, collecting data on employee’s readiness and willingness to accept a change will help leaders know if the organization is socially ready for change (Cole, Harris, and Bernerth, 2006). A change might be positive for an organization but if the employees who will be affect by the change are lost in the process then it could create a greater issue than not making the change. Leadership needs to communicate and inspire the employees to be positive toward the change, seeking to enhance their job satisfaction not make changes that will increase their desire to leave. This data is best collected early in the change initiative allowing leadership to properly cast the vision while addressing concerns. This requires leadership to create platforms for employees to engage in the change initiative freely (Ford, 2006). Employee attitudes can be measured through these dialogues providing leadership with necessary measureable data (Hughes, 2007).
Perhaps the biggest challenge in managing change within the organization is employee resistance to the change. (2) Keith R. Dutton, M.S. an instructor of organizational development manager at Illinois State University says “Change usually brings about the “10/80/10” rule: 10% of employees will actively embrace the change, 80% will be fence-sitters, and 10% will actively fight it. Your job is to recognize this and understand it. The 10% against the change will have the influence and ability to negatively infect the 80%. As such, you need to focus your efforts on influencing the negative 10%”
Implementing change in the workplace is a dynamic process. Although change itself can be controlled and limited to some degree, innovation is substantially even more dynamic. This dynamic, unpredictable process introduces vulnerability, which can lead to employee frustration. Just as the scenario addresses, many individuals become motivated at the thought of change and innovation; however, the change does not occur due to resistance or other obstacles. Much of this resistance arises from the unpredictability and vulnerability of the process. Managers must be able to prevent or manage resistance by using tools and strategies to smooth the process.
Meyer, J. P., & Allen, N. J. (1997). Commitment in the workplace: Theory, research, and application. Thousand Oaks, CA: Sage.
Change in an organization occurs when an organization identifies an area of where necessary change must be undertaken, examines it thoroughly and adapts to it. This may lead to gaps where employees may not adapt to a certain change and therefore it is important that an organization takes into considerati...
The change process within any organization can prove to be difficult and very stressful, not only for the employees but also for the management team. Hayes (2014), highlights seven core activities that must take place in order for change to be effective: recognizing the need for change, diagnosing the change and formulating a future state, planning the desired change, implementing the strategies, sustaining the implemented change, managing all those involved and learning from the change. Individually, these steps are comprised of key actions and decisions that must be properly addressed in order to move on to the next step. This paper is going to examine how change managers manage the implementation of change and strategies used
Organisational change can cause stress for employees at all levels of an organisation, one of the main causes of increased employee stress during organisational change is employees’ perception of organisational change as a threat; many employees feel that there may be a threat to their job security, their status, or their ability to achieve if the conditions of their work are altered (Dahl, 2011). Employees may face changes in their written contracts and also in their implicit psychological contracts during organisational change, the change to these unwritten contracts can result in increased stress due to feelings of anger or betrayal by employees as they feel that they no longer know what to expect from their employer (Robinson & Rousseau, 1994). In addition, if employees do not feel that the organisation acts in a fair and just way they are more likely to
Compare the difference between job satisfaction and organizational commitment. Determine which is more strongly related to performance for your selected company.