Literature Review - Organisational Change

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CHANGE is unavoidable in order to remain competitive in today’s fast-paced market environment. Management guru, Tom Peters puts it that ‘change or die’ has been the bottom line for countless firms (Jick & Peiperl, 2011). Change can be large or small, evolutionary or revolutionary, sought after or resisted (Hayes, 2010) and is a general feature of organisational life, both at an operational and strategic level (Todnem, 2005). Burnes (1992) expressed that ‘change management is not a distinct discipline but rather, the theory and practice of change management draws on a number of social science disciplines and traditions’ (Kitchen & Daly, 2002). It is also defined as ‘the process of continually renewing an organization’s
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Organisation structure can vary along a number of dimensions in the form of bureaucratic, functional, matrix or network structure. The choice of structure is influenced by an organisation’s strategy, its size and the technology used. As an organisation changes its strategy to respond to PEST factors in its external environment, so should its structure change to maintain the strategy-structure relationship (Senior, 2002). To allow organisational survival, organisations tend to favour flatter and more flexible ways of working compared to hierarchical organisational forms and bureaucratic control systems which can be a hindrance to change (Collier & Esteban, 2000).
The drivers of change are the primary determining factor of the type of change an organisation is to lead – developmental, transitional or transformational, presented in Appendix 5 (Dick & Peiperl, 2011). Development change is an improvement in an organisation’s existing way of operating to ensure efficient business (Anderson & Anderson, 2010) It happens when firms continually scan their internal and external environments while avoiding radical, infrequent scale change (Gilley et. al 2009) to increase competitive advantage. Transitional change occurs when a problem is recognised in the current reality that needs to be solved with a new way of operating (Anderson & Anderson, 2010) which represents
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