THE MANAGEMENT OF CHANGE AND ITS IMPACT ON ORGANIZATION EFFICIENCY

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CHAPTER ONE

INTRODUCTION

1.1 Background to the Study 

Change management in firms is not just about changing the structural set up through formation of new reporting structure and change of leadership team, but it should be about bringing tangible results in the organizational performance in a company (Council, 1997). Kotter (1995) argues that in recent decades there has been a huge increase in the volume of significant, often traumatic change in organizations. In too many cases, however, the improvements are deceptive and the changes are not as intended (Kotter 1995). The author acknowledged the disadvantage of change and indicated that, when individuals focus on adapting to changing circumstances, agony is constant, and he added that the management and organizations, in their development and implementation of the change, also make mistakes.

According to (Cho, 2010), organizational performance refers to the business ' performance in comparison with its objectives and targets. Additionally (Tomal 2015) defines the performance of the organization as the definite productivity or output of a firm against the envisioned results. Kotter says modern-day organizations are changing with a change in technology, international economic integration and the development of developed country markets leading to slower domestic growth. The changes in technology are characterized by rapid and better communications, faster and better transport, better information networks and the need for global connectivity. Market globalization and competition eventually result in increased competition and the need to increase service delivery speed. 

Change Management 

The management of change refers to the way people, teams and organizations are changed by applying processes to manage resources and activities that restructure a company more effectively (Thompson, 2010). Change management consists of organizational instruments to support individuals in an organization to successfully carry out personal transactions, leading to change being adopted and implemented (National Research Council, 1997). This means that all organizations, including their positions, authorities and accountabilities, people and deliverables and tasks, are optimally aligned. If they are not aligned well, then performance is either very low (1997).

The need for constant change demands a coordinated and progressive capacity for the organizational learning process on a continuing basis (Zorn, 2000). This was widely viewed as a major factor in the capacity of private companies to achieve and maintain a competitive benefit and improve their profitability in the long term. In many dimensions, change can be described. It can be continuous and incremental, radical or planned, catastrophic or evolutionary, strong or weak, slow or fast, stimulated externally or internally (Shivappa, 2015).

Change is influenced mainly by growing demands of globalization, according to (Kotter, 1996), affecting every corner in the context of business and human life. Companies and institutions have been made to accept change as crucial not only in their survival, but in growth, by the concept of borderless business. According to Wiggins (2009), management of change is an integrated normal process for many companies and much more. 

Organizational efficiency

Borman and Schmit (2015) describe organization performance as a multidimensional paradigm on which measurement of several factors is based. Aguinis and Kraiger (2012) define organization performance as the degree to which an organization attains its mission, vision and objectives that is measured in terms of quality service, customer satisfaction and increased profits.  Naranjo Valencia, Jiménez-Jiménez and Sanz-Valle, (2016) grouped organizational performance into the following categories; business performance, financial performance and organizational effectiveness.  According to Koontz and Donnell (2010) performance of an organization is defined as the ability of a firm to realize such mundane goals as high return, increased market share, new product development, good financial results, and achieving long-term sustainability. Moullin (2007) assert that firm performance is a means through which a firm provide value to its stakeholders and therefore is an indication of how well the managers succeed in utilizing firm resources to generate income to the firm.