There exists extensive research and theoretical modelling upon the impact of organizational change. As the pressure for effective change management grows in response to the growth of market competition and increasing environmental pressures for sustainable development frameworks, the research literature organizational change and organizational readiness has responded with a more rapid procession of hypotheses and models that can aid managers in making optimal decisions. It is clear that a corporation’s employees play a fundamental role in enacting such significant organizational changes to the company to accommodate these external forces.
Sustaining motivation and ensuring a positive response to the organizational change is often the deciding factor of whether a project of change is successful or not. Indeed, (Pasmore and Fagans, 1992) argue that organizational development and individual performance are inseparable. With many employees not adequately ready for the participation requirements of organizational change (Pasmore and Fagans, 1992), it is therefore critical that mangers pay attention to employee attitudes and behaviours, and the organizational readiness for change among both the managerial groups and the regular everyday employees. There are multiple possible methods for encouraging new learning developed in business and through recommendation of the management literature, such as group participative discussion (Lewin, 1948), group decision techniques (Coch and French, 1948; Pasmore and Fagans, 1992), action through the creation of inspirational life stories (Arendt, 1958), and psychological preparation through the development of sound judgement and reasoning (Jacques, 1976).
But while these change management techniques have been insightful and effective to an extent, (Shin, Taylor, and Seo, 2012) still reports that 50% of organizational change efforts fail. Clearly, the literature points that more than just collective participation and inspirational self-esteem boosters that will assist in generating positive reactions from employees.The fundamental issue with the interaction of employees and the demand for innovative change is the sheer cost to the employee. Employees must undergo a stressful period of adjusting to new demands and capabilities to fit into the brand-new environment that the organizational change has brought. As a result, employees can have a negative reaction (Kiefer, 2005).
Definitely there exists some employees that will pro-actively embrace the organizational change and believe it as a fresh opportunity, but a substantial proportion of employees generate a routine around the workplace, which is mostly disrupted as a result of the organizational change. This runs in line with the Conservation of Resources Theory, which dictates that the employee will choose the option that uses the least resources. To counterbalance this tendency, a very popular motivation technique is providing organizational inducements. As mentioned above, proactive employees are much more likely to embrace change.
Under organizational orientations theory, this type of employee is known as an upward mobile employee. The other two main types of employee are indifferent and ambivalent orientations. Each orientation is expected to have a different set of employee attitudes and behaviours to the onset of change. Following the reason of the organizational orientations theory, it could be possible that the majority of cases where organizational change had collapsed (such as in Beer and Eisenstadt (1996) is due to the influence of the ambivalent and indifferent types of employee orientation rejecting the flow of new ideas and sustaining the traditional method that is becoming increasing and increasing outdated.
The investigation of separating the different types of employee orientation into each categorising and then subsequently controlling for orientation may bring out some enlightening results about the extent of orientation influence upon the success or failure of organizational change. It is the ambivalent and indifferent types of employees that Petro et al. (2018) describes who seeks to job craft in a way that reduces the demand of work. During their study, the authors interview 368 police officers on a 3-wave longitudinal study. Much in line with the findings of (Linda et al., 2005), employee work engagement and responsiveness are positively associated to upward mobile orientation individuals.
An organization that wishes to change the structure of its organization should ensure that the majority of its staff are upward mobile orientation employees. In regard to tangible and intangible inducements, it is clear that the incentives that managers that deliver their employees counterbalance the earlier incentives of the employee who wishes to minimize its cost. The inductions work in a way to compensate these costs. While there is research on the impact of organizational inducements as a whole (Shin et al., 2012), there is little research relating to the separation of tangible and intangible organizational inducements and the theoretical development of hypotheses and analysis that could evaluate which type of organizational inducement is superior to the one in raising employee motivations and behaviour toward a large change in the organization.
There is also little research on whether employee reaction to organizational change is different depending on the size of the firm. In a smaller firm, perhaps, there may be a greater sense of community. Researchers and practitioners may discern that the greater commitment that the community essence of a small firm delivers could possibly mean that the rate of turnover is lower and consequently means that employee motivation is less vulnerable to descending into an orientation of ambivalence or indifference. Lastly, the separation of analysing whether introverted ambivalent employees may be interesting to see if there are methods and techniques that could assist these types of employees to adopt employee attitudes similar to the upward mobile employee.
While there may be conflict between employee commitment among the ambivalent employee and effective organizational change currently, researching methods for reducing this problem could significantly assist the rate of organizational change success, dramatically improve organizational readiness of the firm and improve prospects for both organizational and individual performance.