Organizational Change over the Years

Organizational Change over the Years

Introduction

Change has become a common concept in the modern-day business field due to the dynamic nature of the business environment. Organizations are embracing change to establish a fit between the internal and external environment. Organizational change occurs when organizations change their strategies, structure, culture, operational methods, and other elements to restructure and reorganize based on internal and external pressures. It focuses on altering the structural relationship and people’s roles in the organization. The changes occur in response to economic and business events and managerial perception processes, actions, and perceptions. Organizational change may be influenced by external or internal forces. External forces include changes in the organization’s external environment, such as changes in the political environment, economic issues, natural disasters, government regulations, technological development, and environmental changes. Organizations are often unable to control external forces and may only respond with appropriate measures when the forces affect organizational effectiveness and performance. On the other hand, internal forces include factors within the organization. They include organizational structure, leadership, strategy, cultural factors, people, and technology. In most instances, the organization may steer the forces in favor of the organization. Over the past years, organizations have embraced various changes to respond to challenges that may limit their performance. This research reviews organizational changes from competition to collaboration and the move towards diversity and inclusion.

Collaboration over Competition

One of the main organizational changes that most organizations have embraced over the years is collaboration. According to Bradbury-Huang (2010), organizational collaboration may be categorized as inter-organizational or intra-organizational collaboration. The inter-organizational collaboration includes partnering or working with other organizations. Organizations may use intra-organizations to access resources they may not have or expand to new markets. The intra-organizational collaboration includes teamwork among employees within an organization. The collaboration may include teamwork among employees from different departments and business units within the same organization. Before recognizing the role of collaboration in improving organizational performance, organizations focused on competing for customers and resources. During the era of organizational competition, the business environment was characterized by stiff competition and monopoly by large organizations that could afford to acquire all the resources required to be successful. Small businesses experienced difficulty expanding their operations and increasing their profitability due to limited access to supplies and a small customer base. However, innovation created an era of collaboration aimed at exchanging ideas on implementing technology to improve business performance and sharing technological resources to improve organizational growth and development.

The concept of collaboration has its roots in biblical teachings, where the scripture encourages people to collaborate to achieve shared goals. For instance, Ecclesiastes 4:9-12 states:” Two are better off than one, because together they can work more effectively. If one of them falls down, the other can help him up. But if someone is alone and falls, it’s just too bad, because there is no one to help him. If it is cold, two can sleep together and stay warm, but how can you keep warm by yourself? Two people can resist an attack that would defeat one person alone. A rope made of three cords is hard to break” (American Bible Society, 2001). This verse demonstrates the power of working together to get a mutually beneficial outcome and the need to support each other rather than focusing on individual interests. Therefore, leaders guided by this verse encourage their followers to work together to complete tasks, share ideas to create a positive outcome and support colleagues who may be experiencing a hard time completing tasks assigned to them. The Bible also demonstrates the strengths of collaborating in Ezra 3:9-10, which states: “The workers at the Temple of God were supervised by Jeshua with his sons and relatives, and Kadmiel and his sons, all descendants of Hodaviah. They were helped in this task by the Levites of the family of Henadad. When the builders completed the foundation of the LORD’s Temple, the priests put on their robes and took their places to blow their trumpets” (American Bible Society, 2001). Leaders guided by this verse consider collaboration as a means to achieving both short-term and long-term organizational goals. Therefore, Biblical teachings influence leaders’ perspectives on collaboration and their emphasis on promoting collaboration within the organization.

The transition from competition to collaboration can also be reviewed based on the Social Interdependence Theory. The theory posits that social interdependence occurs when the achievement of each person’s goals is influenced by another person’s actions (Johnson & Johnson, 2011). Social interdependence can either be negative or positive. Positive interdependence occurs when a person promotes another person’s success, resulting in improved achievement and productivity, well-being and psychological health, and more positive associations among people. Negative interdependence occurs when the view is that if one member achieves their goal, the others cannot fully achieve their goals. Based on these arguments, competition occurs when there is negative interdependence, resulting in organizations obstructing the success of other organizations, resulting in lower productivity and success. The obstruction could include acquiring their customers and purchasing all supplies to create a shortage in the supply chain so that competitors, depending on the supply chain, lack the supplies needed to sustain their business operations. On the other hand, collaboration falls under positive interdependence, whereby collaborating organizations help each other grow by either sharing resources or ideas.

The rise of many organizations providing similar products and services has created a need for collaboration between organizations to create networks and alliances supporting improved organizational performance and growth. According to Roig-Sanz & Subirana (2020), networks are groups of independent organizations connected indirectly or directly through strategic partnerships. Organizations may consider using strategic alliances due to the rise in technological development, demand for individualization, intense competition, and global expansion. Over the years, organizations have expanded their scope of operations to global markets to increase their customer base, revenue generation, and profitability. In most countries, the business environment includes various entry barriers, making it hard for foreign organizations to join the business environment and be successful. Therefore, organizations are focusing on strategic alliances to benefit from the customer base and brand image of organizations that have already established broad brand awareness in the host country. Organizations expanding to global foreign markets also use strategic alliances to learn the host country’s culture and determine whether their business will be successful in the country or not. Therefore, global expansion is among the main forces behind the transition from competition to collaboration.

According to Madden (2017), inter-organizational collaboration is among the most effective strategies organizations use in the modern business world to support internal innovative ideas. It may include access to complementary assets required to enhance innovative projects’ success or collaborate with other organizations to transfer tactics or codified knowledge for mutual benefit. The knowledge is then applied to understand new competencies that can be leveraged for organizational growth. Inter-organizational collaboration is also used to support research and development by sharing the costs incurred in research and development and reducing the risks associated with implementing innovative ideas. Organizations also use inter-organizational collaboration to make research and development agreements to support positioning techniques and long-term success. Organizations also leverage collaboration to benchmark the application of technology in business operations. For instance, before adopting specific technology, the organization may scan similar activities in other organizations through a joint research and development agreement, including strategies that can be used to develop standards, thus being able to handle rapid change. Thus, inter-organizational collaboration plays a significant role in promoting the successful application of technology for improved organizational performance.

Diversity

Globalization has played a significant role in promoting the free movement of people across the world. Many people relocate to various countries in search of better opportunities. Organizations are, on the other hand, focusing on acquiring the best talent by pursuing a workforce that can work in a competitive environment by considering individuals with different human attributes. The emphasis on having a diverse workforce has also emerged due to the need to maintain the most skilled and best available workforce that can meet organizational goals. Before the onset of globalization, organizations focused on hiring individuals from their local environment due to the assumption that such individuals understood the business environment, the culture of the target customers, and the best strategies that could be used to improve the performance of the organization. Most organizations formed partnerships with learning institutions around them to get interns who were later promoted to permanent employees upon graduation based on their performance during the internship program. However, organizations recognized that individuals from other countries might be more qualified than individuals from the local communities. There has also been a move towards embracing gender diversity in the workplace. Initially, organizations had set aside specific roles for a specific gender. For instance, mechanical tasks were meant for men, while non-mechanical tasks such as customer relationship management and human resource management were meant for females. However, equal access to education and laws prohibiting discrimination have created equal opportunities for all genders. Anti-discrimination laws have also promoted the rise of a diverse workforce in organizations.

The origin of diversity may be interpreted based on the biblical teachings against discrimination. For instance, James 2:1-4 states: “My brothers and sisters, believers in our glorious Lord Jesus Christ must not show favoritism. Suppose a man comes into your meeting wearing a gold ring and fine clothes, and a poor man in filthy old clothes also comes in. If you show special attention to the man wearing fine clothes and say, ‘Here’s a good seat for you,’ but say to the poor man, ‘You stand there’ or ‘Sit on the floor by my feet,’ have you not discriminated among yourselves and become judges with evil thoughts?” (American Bible Society, 2001). Based on this verse, leaders may embrace diversity to avoid favoring individuals based on their individual attributes, such as gender, race, color, and ethnic background. Philippians 2:3-4 states:” Do nothing from selfish ambition or conceit, but in humility count others more significant than yourselves. 4 Let each of you look not only to his own interests but also to the interests of others” (American Bible Society, 2001). This verse prohibits putting individual interests first. Therefore, leaders guided by this verse may encourage hiring a diverse workforce to create equal opportunities for all job applicants.

The concept of the rise of diversity in organizations can also be interpreted based on the Strategic Choice Theory. The theory posits that top executives influence an organization by making strategic choices (Tokman et al., 2016). Therefore, leaders may decide to hire a diverse workforce to create a positive outcome. The decision may be influenced by various factors, such as the transformation of the global population due to geopolitical, socioeconomic, technological, and environmental factors. These factors have had a significant impact on the composition of most societies, thus influencing how people work, thus making it important for leaders to explore strategies that can be used to positively exploit the increasing diversity to create a competitive advantage. Organizations are also integrating diversity in their recruitment process to hire the best talent from different parts of the world, creating a diverse workforce. Beham et al. (2012) argue that organizations use diversity to improve openness and creativity in the workplace by promoting the exchange of ideas among individuals from different backgrounds.

Workplace diversity is also becoming common in modern-day organizations due to internationalization. As mentioned earlier, organizations may use strategic alliances to expand to global markets. In the case of acquisitions and mergers, employees from the host country and those from the home country are required to work together. Locals are encouraged to help foreigners learn about the host country’s business culture and practices, thus creating a diverse workforce. Diversity and inclusion have also become an important part of an organization’s image in the modern-day business environment. Therefore, organizations embrace it to create a good image and maintain a competitive advantage. Therefore, hiring a diverse workforce is among the strategic choices organizations should consider to acquire a talented workforce, promote the exchange of ideas that promote organizational growth, and create a good reputation.

Conclusion

Change is an essential part of an organization’s life cycle because it plays a significant role in dictating its future. An organization is likely to fail if it does not embrace the change needed to establish a fit between its external and internal environment. Embracing diversity and transitioning from competition to collaboration are among the organizational changes that modern-day organizations have considered to improve their performance and create a competitive advantage. The two changes are encouraged in the Bible based on biblical changes that indicate their importance and the positive outcome they yield. The changes are also connected to different theories that show the connection between the changes and the anticipated outcome. The transition from competition to collaboration can be interpreted using the social interdependence theory, which posits that social interdependence occurs when another person’s actions influence the achievement of each person’s goals. On the other hand, embracing diversity and inclusion can be interpreted using the strategic choices theory, which posits that top executives influence an organization by making strategic choices. Organizations need to identify factors that could positively or negatively impact the identified changes. For instance, various laws and regulations on equality and anti-discrimination may impact an organization’s move towards diversity, and technological advancement could impact inter-organizational diversity.

References

American Bible Society. (2001). Good news Bible-GNT. Amer Bible Society.

Beham, B., Straub, C., & Schwalbach, J. (2012). Managing diversity in organizations. Managing Diversity in Organizations, 1-2. https://doi.org/10.1007/978-3-8349-3869-5_1

Bradbury-Huang, H. (2010). Sustainability by collaboration. Organizational Dynamics, 39(4), 335-344. https://doi.org/10.1016/j.orgdyn.2010.07.001

Johnson, D. W., & Johnson, R. T. (2011). Social interdependence theory. The Encyclopedia of Peace Psychology. https://doi.org/10.1002/9780470672532.wbepp257

Madden, J. R. (2017). Inter-organizational collaboration by design. https://doi.org/10.4324/9781315468617

Roig-Sanz, D., & Subirana, J. (2020). Cultural organizations, networks and mediators: An introduction. Cultural Organizations, Networks and Mediators in Contemporary Ibero-America, 3-23. https://doi.org/10.4324/9780429299407-2

Tokman, M., Richey, R. G., & Deitz, G. D. (2016). A strategic choice theory taxonomy of retailers’ strategic orientations. Journal of Marketing Theory and Practice, 24(2), 186-208. https://doi.org/10.1080/10696679.2016.1130553

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Title: Organizational Change over the Years

Choose two ways that organizations have changed over the years and provide a past to current summary,

integrating theory and personal perspectives. Your discussion should include any of the previous chapter concepts, including the readings from this week. Must be 2100 words, include 7 sources (plus the Bible), and be in APA format.