Essay about Organisation Change: Development & Transformation

1986 Words 8 Pages
Introduction

It is a well-known fact that the strategy of an organisation is mandated by the environment that it operates in. It is also common knowledge that the current environment that organisations function in is far from stable. Organisations and their members are required to go through change if they are to perform at competitive levels in this turbulent environment, and as Robbins and Judge (2012) argue, radical change is sometimes needed. Organisations need to adapt to changing environments and Waddell, Cummings and Worley (2011) put forward that in order to cope with the challenges and opportunities they face, organisations have to confront the challenge of developing a suitable management style and culture that is appropriate for
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2011, p. 71). It is difficult to disagree with this assertion; with researchers also arguing that the challenge for all organisations should be focused on managing current core competencies effectively whilst also striving to concurrently develop new ones (Abell 1999; Leonard-Barton 1995; McGrath, MacMillan & Venkataraman 1995; cited in Hanson et al. 2011, p. 71).

The primary change agents in most organisations are managers (Robbins & Judge 2012, p. 272), but other scholars recognise change is facilitated by a range of frontline employees (Gilley 2005; Kotter 1996, cited in Charles & Dawson 2011, p. 332). This study highlights the importance of organisations developing core competencies and capabilities which supports organisational learning and assists adaptation to changing environmental factors.

The Strategic Organisation

The overarching goal of every organisation is to achieve a competitive advantage which is the result of implementing a strategy that competitors cannot repeat or find it too costly to try and copy (Barney & Mackey 2005; Douglas & Ryman 2003, cited in Hanson et al. 2011, p. 5). The resource-based view of the firm, a theoretical framework formulated by Barney (1991), implicitly assumes that a firm will automatically see which strategies to choose and be able to implement them…