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Importance and influence of organizational changes on companies and their employees

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  • Halkos, George

Abstract

The timely and continuing adaptation of companies to the rapid changes in the market is a prerequisite to survival and growth. Simultaneously, the smooth adaptation of employees to changes contributes not only to the improved running of organizations but also to their personal improvement and enhanced satisfaction. The need for change requires the adaptability of organizations and enterprises, the redesigning of the organizational models, continuing reconstruction, learning processes and employees training. In this study we investigate the effects of organizational change, the reactions of employees and the results of change management on productivity. For this purpose a random sample of 355 employees in the private and public sectors and two stage cluster sampling is first used to collect primary data. Logistic Regression is used to explore many useful and supportive elements concerning the function of changes on stress and productivity. We find that change leads to increased stress but when the necessity and utility of change is understood it then leads to increased productivity. The good relations between leadership and employees offer the latter considerable advantages as well as a feeling of security. Once the change is announced, there is a negative effect on productivity and job satisfaction declines. When the change begins to work, we have increased productivity and reduced stress.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 36811.

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Date of creation: Jan 2012
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Handle: RePEc:pra:mprapa:36811

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Keywords: Organizational changes; stress; productivity; logistic regression;

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  1. Oxtoby, Barrie & MGuiness, Tony & Morgan, Robert, 2002. "Developing Organisational Change Capability," European Management Journal, Elsevier, vol. 20(3), pages 310-320, June.
  2. Mariacristina Piva & Enrico Santarelli & Marco Vivarelli, 2006. "Technological and organizational changes as determinants of the skill bias: evidence from the Italian machinery industry," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 27(1), pages 63-73.
  3. Erik Brynjolfsson & Lorin M. Hitt, 2000. "Beyond Computation: Information Technology, Organizational Transformation and Business Performance," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 23-48, Fall.
  4. Sun, Hongyi & Gertsen, Frank, 1995. "Organizational changes related to advanced manufacturing technology in the production area," International Journal of Production Economics, Elsevier, vol. 41(1-3), pages 369-375, October.
  5. Damodaran, Aswath & John, Kose & Liu, Crocker H., 1997. "The determinants of organizational form changes: evidence and implications from real estate," Journal of Financial Economics, Elsevier, vol. 45(2), pages 169-192, August.
  6. Kevin Zheng Zhou & David K Tse & Julie Juan Li, 2006. "Organizational changes in emerging economies: drivers and consequences," Journal of International Business Studies, Palgrave Macmillan, vol. 37(2), pages 248-263, March.
  7. Liberatore, Matthew J. & Hatchuel, Armand & Weil, Benoit & Stylianou, Antonis C., 2000. "An organizational change perspective on the value of modeling," European Journal of Operational Research, Elsevier, vol. 125(1), pages 184-194, August.
  8. Choi, Ty, 1995. "Conceptualizing continuous improvement: Implications for organizational change," Omega, Elsevier, vol. 23(6), pages 607-624, December.
  9. Yvrande-Billon, Anne & Menard, Claude, 2005. "Institutional constraints and organizational changes: the case of the British rail reform," Journal of Economic Behavior & Organization, Elsevier, vol. 56(4), pages 675-699, April.
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