Munich Personal RePEc Archive

Importance and influence of organizational changes on companies and their employees

Halkos, George (2012): Importance and influence of organizational changes on companies and their employees.

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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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