Examining the relationship between organizational change and financial loss

2015 ◽  
Vol 28 (1) ◽  
pp. 59-71 ◽  
Author(s):  
Lars Derek Mellert ◽  
Charles Scherbaum ◽  
Justina Oliveira ◽  
Bernd Wilke
Keyword(s):  
Organizational Change ◽  
Negative Outcomes ◽  
Organizational Changes ◽  
Financial Loss ◽  
Change Initiatives ◽  
Content Type ◽  
Loss Event ◽  
Using Data ◽  
The Relationship ◽  
Financial Losses

Purpose – Research on the effectiveness of organizational change initiatives tends to focus primarily on the positive benefits of organizational change including improved financial performance. Rarely are negative outcomes examined, such as financial losses resulting from change initiatives. However, negative outcomes are possible, common, and understudied. The purpose of this paper is to examine the relationship between organizational change and financial loss. Design/methodology/approach – The research used a database of insurance losses from a global reinsurance company over a 30-year period. Each loss event was examined to determine the cause of the loss, the amount of loss, and type of organizational change if any that preceded the loss. Findings – The results indicate that losses attributed to the organization and its employees are preceded by an organizational change initiative more often than not. In particular, the occurrence of losses attributable to the organization and its employees were preceded more often by organizational changes involving mergers, acquisitions and changes to ownership, changes involving downsizing, changes involving restructuring, but not changes to reporting relationships. Originality/value – This research represents one of the few studies to examine financial loss from a wide variety of different types of organizational change and the only that has examined these questions using data from insurance losses. Findings support the growing theoretical movement focussing on the risks of organizational change.

Permanent tensions in organization

2015 ◽  
Vol 29 (6) ◽  
pp. 654-669 ◽  
Author(s):  
Noora Jansson
Keyword(s):  
Organizational Change ◽  
Planned Change ◽  
University Hospital ◽  
Alternative View ◽  
Change Initiatives ◽  
Content Type ◽  
Paradox Theory ◽  
The Relationship ◽  
Organizational Reality

Purpose – The purpose of this paper is to investigate the relationship between permanent tensions and organizational change. Design/methodology/approach – This study used paradox theory and a case study. The case organization is a public university hospital in Finland involving several stakeholders. Findings – The analysis suggests that the relationship between permanent tensions and organizational change is a paradox that is part of organizational reality. As an organization learns to live with its permanent tensions, the renewal paradox settles into equilibrium. When tensions are provoked, the paradox is disturbed until it finds a new balance. This flexible nature of the paradox is the force that keeps the different stakeholders simultaneously empowered to maintain their unique missions and cohesive in order to benefit from the larger synergy. Practical implications – This research suggests that identification and evaluation of each permanent tension within an organization is important when executing organizational change. The fact that certain tensions are permanent and cannot be solved may have an influence on how planned change initiatives are executed. The results show that permanent tensions may be harnessed for the benefit of an organizational change. Originality/value – This research demonstrates originality by offering an alternative view of tensions, a view which emphasizes not only their permanent and plural nature but their importance for enabling the organization to change at its own, non-disruptive pace. The research also proposes a new concept, the “renewal paradox”, to enhance understanding of the relationship between permanent tensions and organizational change.

Workplace Ostracism and Its Negative Outcomes

2016 ◽  
Vol 15 (4) ◽  
pp. 143-151 ◽  
Author(s):  
Xiaoming Zheng ◽  
Jun Yang ◽  
Hang-Yue Ngo ◽  
Xiao-Yu Liu ◽  
Wengjuan Jiao
Keyword(s):  
Affective Commitment ◽  
Psychological Capital ◽  
Intention To Leave ◽  
Future Research ◽  
Conservation Of Resources ◽  
Negative Consequences ◽  
Negative Outcomes ◽  
Workplace Ostracism ◽  
Using Data ◽  
The Relationship

Abstract. Workplace ostracism, conceived as to being ignored or excluded by others, has attracted the attention of researchers in recent years. One essential topic in this area is how to reduce or even eliminate the negative consequences of workplace ostracism. Based on conservation of resources (COR) theory, the current study assesses the relationship between workplace ostracism and its negative outcomes, as well as the moderating role played by psychological capital, using data collected from 256 employees in three companies in the northern part of China. The study yields two important findings: (1) workplace ostracism is positively related to intention to leave and (2) psychological capital moderates the effect of workplace ostracism on affective commitment and intention to leave. This paper concludes by discussing the implications of these findings for organizations and employees, along with recommendations for future research.

Changes in commitment to change among leaders in home help services

2015 ◽  
Vol 28 (3) ◽  
pp. 216-227 ◽  
Author(s):  
Kristina Westerberg ◽  
Susanne Tafvelin
Keyword(s):  
Organizational Change ◽  
Structured Interviews ◽  
Change Initiatives ◽  
Commitment To Change ◽  
Content Type ◽  
Team Meetings ◽  
Home Help ◽  
Home Help Services ◽  
One Year ◽  
Over Time

Purpose – The purpose of the this study was to explore the development of commitment to change among leaders in the home help services during organizational change and to study this development in relation to workload and stress. During organizational change initiatives, commitment to change among leaders is important to ensure the implementation of the change. However, little is known of development of commitment of change over time. Design/methodology/approach – The study used a qualitative design with semi-structured interviews with ten leaders by the time an organizational change initiative was launched and follow-up one year later. Thematic content analysis was used to analyze the interviews. Findings – Commitment to change is not static, but seems to develop over time and during organizational change. At the first interview, leaders had a varied pattern reflecting different dimensions of commitment to change. One year later, the differences between leaders’ commitment to change was less obvious. Differences in commitment to change had no apparent relationship with workload or stress. Research limitations/implications – The data were collected from one organization, and the number of participants were small which could affect the results on workload and stress in relation to commitment to change. Practical implications – It is important to support leaders during organizational change initiatives to maintain their commitment. One way to accomplish this is to use management team meetings to monitor how leaders perceive their situation. Originality/value – Qualitative, longitudinal and leader studies on commitment to change are all unusual, and taken together, this study shows new aspects of commitment.

scholarly journals THEORATICAL FRAMEWORK TO UNDERSTAND THE ASSOCIATION OF ORGANIZATIONAL CHANGE ON THE ORGANIZATIONAL COMMITMENT

2014 ◽  
Vol 5 (1) ◽  
pp. 618-624
Author(s):  
Kanika Sofat ◽  
Dr.Ravi Kiran
Keyword(s):  
Organizational Change ◽  
Organization Change ◽  
Intangible Asset ◽  
Labor Turnover ◽  
Change Initiatives ◽  
Organization Commitment ◽  
Managing Change ◽  
The People ◽  
New Ideas ◽  
The Relationship

The organization change is defined as the adoption of new ideas or behavior by an organization. The mainobjective of organizational change is to maximize the benefits of the people involved in the process and to minimize the risk involved in the failure of implementing and managing change. Organization commitment of the employees is an intangible asset for an organization so as to derive strategic advantage over competitors. It is a psychological link between the employee and his organization. If the employees lack commitment it willlead to increase in absenteeism and affecting labor turnover. The commitment employees will hence ease stressduring organizational change process and will understand and cope with change so as to make it successful. The paper helps to understand the organizational change initiatives undertaken in the organizations. It further helpsto examine the relationship between change management and organization commitment in organizations.Keywords: Organizational change, Change levers, Organizational change initiatives, organization commitment

Strategic intelligence, organizational development and entrepreneurial behavior

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Keyword(s):  
Organizational Development ◽  
Government Agency ◽  
Underdeveloped Country ◽  
Moderating Effects ◽  
Entrepreneurial Behavior ◽  
Internal Factors ◽  
Content Type ◽  
Strategic Intelligence ◽  
Using Data ◽  
The Relationship

Purpose The purpose of this study is to examine the relationship between manager’s Strategic intelligence, organizational development and entrepreneurial behavior. Design/methodology/approach Data is gathered from the responses of 274 employees from a government agency in an underdeveloped country to three standard questionnaires. Findings The results show significant positive relationships between manager’s SI and OD and manager’s SI and EB but no significant moderating effects of demographic variables with the exception gender which had a significant effect on managers’ SI- EB relationship. Practical implications Therefore to optimize performance and gain a competitive advantage training to improve SI and EB should be provided and consideration should be given to improving internal factors within the organization to promote OD. Originality/value This paper has an original approach by using data collected in a government agency in an underdeveloped country to propose a model of manager’s SI, OD and EB.

Sustainability engagement’s impact on tourism sector performance: linear and nonlinear models

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Amina Buallay ◽  
Jasim Al-Ajmi ◽  
Elisabetta Barone
Keyword(s):  
Significant Relationship ◽  
Linear Models ◽  
Performance Indicator ◽  
Nonlinear Models ◽  
Sustainability Reporting ◽  
Analytical Framework ◽  
Content Type ◽  
Return On Equity ◽  
Using Data ◽  
The Relationship

PurposeThis study aims to investigate the relationship between the level of sustainability reporting and tourism sector’s performance (operational, financial and market).Design/methodology/approachUsing data culled from 1,375 observations from 37 different countries for ten years (2008–2017), an independent variable derived from the environmental, social and governance (ESG score) is regressed against dependent performance indicator variables (return on assets (ROA), return on equity (ROE) and Tobin's Q (TQ)). Two types of control variables complete the regression analysis in this study: firm-specific and macroeconomic.FindingsThe findings elicited from the empirical results of the linear models demonstrate that there is a significant relationship between ESG and operational performance (ROA) and market performance (TQ). However, there is no significant relationship between ESG and financial performance (ROE). Furthermore, the results of the nonlinear models suggest that the relationship between sustainability performance and firm's profitability and valuation is nonlinear (inverted U-shape).Originality/valueThe models in this study presents a valuable analytical framework for exploring sustainability reporting as a driver of performance in the tourism sector's economies. In addition, this study highlights the tourism sector's management lacunae manifesting in terms of the weak nexus between each component of ESG and tourism sector's performance.

Volunteering drivers and continuation will: the role of engagement

2019 ◽  
Vol 38 (5) ◽  
pp. 405-420 ◽  
Author(s):  
Mohammed Aboramadan ◽  
Abderrahman Hassi ◽  
Hatem Jamil Alharazin ◽  
Khalid Abed Dahleez ◽  
Belal Albashiti
Keyword(s):  
Nonprofit Organizations ◽  
Work Engagement ◽  
Structural Equations ◽  
Content Type ◽  
Theoretical Perspectives ◽  
Using Data ◽  
The Relationship ◽  
And Training ◽  
Practical Implications

Purpose As volunteering research in nonprofit organizations is growing significantly, the purpose of this paper is to examine the effects of volunteering drivers and work engagement on volunteer continuation will. Design/methodology/approach Building on empirical and theoretical perspectives, the authors hypothesized that work engagement mediates the relationship between volunteering drivers and volunteer continuation will. To verify our hypotheses, we examined data collected from 372 active volunteers from Palestinian nonprofit organizations. The authors conducted structural equations modeling (SEM) analyses using the AMOS 24 platform to investigate direct and indirect effects. Findings The results of the study show that work engagement is a significant predictor of volunteer continuation will; mediates the relationship between career driver of volunteering and volunteer continuation will; and mediates the relationship between the protective driver of volunteering and volunteer continuation will. Research limitations/implications The research design limits establishing cause and effect relationships among the examined variables. Practical implications The results of the current study may be of use for nonprofit organizations managers formulating effective recruitment and training policies to retain their volunteers. Originality/value The paper contributes to the limited empirical body of the volunteering research. The study is novel as it is one of the few studies conducted using data coming from a non-western context.

Ideological tensions amidst rapid and continuous organizational change in healthcare

2020 ◽  
Vol 33 (6) ◽  
pp. 1029-1039
Author(s):  
Kim McMillan ◽  
Amélie Perron
Keyword(s):  
Organizational Change ◽  
Moral Distress ◽  
Cost Savings ◽  
Qualitative Inquiry ◽  
Change Initiatives ◽  
Content Type ◽  
Culture Of Care ◽  
The Many ◽  
Ideological Tensions ◽  
Safe Care

PurposeThe aim of this study was to explore the nature of frontline nurses' experiences of living with rapid and continuous organizational change.Design/methodology/approachA critical hermeneutic approach was utilized. This was a qualitative inquiry theoretically guided by critical management studies.FindingsParticipants recognized that many change initiatives reflected an ideological shift in healthcare that supported a culture of service, whilst sacrificing a culture of care. A culture of service prioritized cost-savings and efficiency, which saw nurses lose the time and resources required to provide quality, safe care.Practical implicationsNurses felt morally responsible to uphold a culture of care, which proved challenging and at times unobtainable. The inability to provide quality, safe care in light of organizational changes resulted in a multitude of negative emotional repercussions, which fostered moral distress.Originality/valueThe findings from this study bring to light ideological tensions that negatively impact nurses. This study supports the conclusion that the planning, implementation and evaluation of organizational change initiatives must reflect a culture of care in order to alleviate the many negative experiences of organizational change noted in this study.

The influence of unilateral supplier transaction-specific investments on international buyer opportunism: empirical findings from local suppliers in China

2020 ◽  
Vol 37 (2) ◽  
pp. 213-239 ◽  
Author(s):  
Lei Wang ◽  
Chun Zhang ◽  
Jun Li ◽  
Dong Huo ◽  
Xing Fan
Keyword(s):  
Emerging Market ◽  
Multiple Informants ◽  
Supplier Relationships ◽  
Content Type ◽  
Relationship Length ◽  
Cross Border ◽  
Specific Investments ◽  
Using Data ◽  
The Relationship

PurposeThis study examines how unilateral supplier transaction-specific investments (TSIs), directly and indirectly, influence international buyer opportunism and the extent to which detailed contracts enable suppliers to safeguard against international buyer opportunism. The study also examines whether relationship length affects the efficacy of detailed contracts in cross-border outsourcing relationships.Design/methodology/approachThe hypotheses are tested by using data collected from multiple informants working for 229 manufacturing suppliers in China. Multiple regression with a three-way interaction is used to test the hypotheses.FindingsUnilateral supplier TSIs encourage international buyer opportunism through increased supplier dependence. Contract specificity negatively moderates the effect of supplier dependence on international buyer opportunism. This moderating effect is stronger in long-term cross-border buyer–supplier relationships than in short-term ones.Originality/valueThe current study extends the cross-border outsourcing literature by examining how emerging-market suppliers in a weak power position can proactively safeguard against international buyer opportunism by using detailed contracts. Our findings show that supplier dependence mediates the relationship between unilateral supplier TSIs and international buyer opportunism; detailed contracts, however, can help dependent suppliers safeguard against international buyer opportunism. In particular, the findings highlight the importance of long-term buyer–supplier relationships that enhance the efficacy of detailed contracts.

Business strategy and tax aggressiveness in Brazil

2019 ◽  
Vol 12 (4) ◽  
pp. 522-535
Author(s):  
Antonio Lopo Martinez ◽  
Bruno Afonso Ferreira
Keyword(s):  
Business Strategy ◽  
Stock Exchange ◽  
Content Type ◽  
Tax Aggressiveness ◽  
Strategy Type ◽  
Clear Result ◽  
The Usa ◽  
Reactor Types ◽  
Using Data ◽  
The Relationship

Purpose The purpose of this paper is to analyse the relationships between company business strategy type and tax aggressiveness for companies listed on the Brazilian Bovespa stock exchange. Design/methodology/approach Following the concepts of Miles and Snow (1978, 2003), we classified company strategies into four types, analyser, defender, prospector and reactor, using data from 2012 to 2016. The authors excluded financial companies due to a differential tax regime. Next, prospector and defender companies were identified, and the relationship of these strategies with tax aggressiveness assessed using regression analysis; analyser and reactor types were not included as these are defined as a combination of the prospector and defender type, or non-strategic, respectively. To assess aggressiveness, the authors used effective tax rates on corporate profits, as well as a metric that captures tax burden in terms of all taxes paid by a company. Findings Most Brazilian companies were analysers (76.66 per cent), with prospector companies being a minority, and defenders representing a little over 21 per cent. Unlike the findings of Higgins et al. (2015), the authors found that defender companies also have a tendency to practice aggressive tax planning. Practical implications The authors found the Brazilian defender companies similar to prospectors, tended to be more tax aggressive or to take higher tax risks. Thus, findings in economies such as the USA may not be generalizable to other countries, such as Brazil, Russia, India or China (i.e. the BRICs), for example. The particularities of each country, such as ease of access to the capital market, tax deductibility of investment in research and development and legal issues must be considered before applying generalized prognostics. Originality/value This paper offers original empirical evidence from Brazil of the relationship between company strategy type and the tax aggressiveness, offering a clear result that differs in part from results from American companies. It therefore encourages further studies on this topic.

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