Application of Neo-institutional and Practice Theory to Fuji Xerox - Essay Example

In the 1990s organizational change and the need for adaptation appeared as a core issue in organizations due to complexity in the political, regulatory, and technological environment (Greenwood and Hinings 1996).  This ability to embrace change and adapt to it has become a key factor in an organization’s survival and retaining a competitive edge. Minor(2007, p351) describes institutionalization as a process by which specific behaviors or activities are cognitively and normatively applied in an organization so that it is taken for granted that they are lawful. The institutional theory thereby does not focus on organizational change but on the isomorphism and stability of an organization (Greenwood and Hinings 1996). Fuji Xerox executive Mr. Gorrie explained the organizational design as a process by which FX aligns their business processes for creating an efficient decision-making process workflow. Furthermore, they have a reward system to motivate employees to engage in behavior that is congruent with their environmental conservation goals.  

Situation Analysis

Application of Neo- Institutional Theory

 Initially, it was considered that perhaps institutionalization could be detrimental to an organization’s ability to embrace change. This concept was replaced by a newer one that proposed that institutionalization could actually serve as an excellent basis to propagate change (Greenwood and Hinings, 1996).  Recent developments in Neo-institutional theory have highlighted the capacity of various organizational factors to function as agents of institutional change. This concept can be extrapolated to the concept of institutional entrepreneurship, which implies that organizations develop and manipulate structures to work toward their strategic objectives (Nelson, Neri, and Paul, 2007).

Mr. Gorrie suggested a practical example of change management that was supported through institutionalization. He suggested that when FE was awarded the contract for New South Whales Government worth $300 million. 

The contract required FE to supply multi-function devices to all higher educational institutions under the umbrella of NSW.  The project was huge and the organization was under a great deal of pressure about its capability to meet such a massive demand. That required extensive change management, which required a massive expansion to deliver the order and manage their daily operations. So in light of institutionalization, the change was communicated through top management and intranet throughout the organization. Furthermore, a senior manager was appointed to ensure that the change was properly communicated and implemented.

Application of Practice Theory

The main concerns for practice theory are the dynamics of action and the social environment in which the action takes place. According to Feldman and Orlikowski (2011), Practice theory can be applied to an organization in three ways: Firstly the Empirical focus that deals with how people act in the context of the organization, secondly the Theoretical focus which relates the actions of employees to that on the social structures of life, and thirdly the Philosophical focus that addresses the constructive role that organizational practices play in the creation of social reality.

Mr. Rodney Gorrie elaborated further on the change management capabilities that needed to be addressed following their NSW Government contract of $300,000,000. The contract management team required them to increase their support team by twice their capacity in less than a year. In order to accommodate the added human resource, Fuji Xerox needed additional space. This meant that they needed to relocate the significant business from Mascot Center to the more spacious Parramatta. So in light of the Practice theory, they had to have a theoretical focus so they could evaluate the employee behavior in light of their social constructs. The relocation posed a lot of problems not only in terms of a long commute for some employees from Eastern suburbs but also there was a lack of reliable transportation available. Both these factors affected the employees’ lifestyle as well as work and life balance, so this relocation was not greeted with enthusiasm in the organization. So in order to address this problem, the organization needed to have a philosophical focus and take into account the employees’ social needs before implementing the change objectives.

Recommendations

Effective Change management can be a critical surviving factor for an organization in this rapidly changing environment. Change too needs proper planning and implementation strategies like other functions of management. Every organization needs to undergo new learning cycles, which would prepare them to face competition and equip themselves to maintain competitiveness (Clark and Gottfredson, 2008).  Planning for change involves forecasting, for instance, Fuji Xerox could have predicted employee response to relocation prior to their expansions plans are implemented a strategy accordingly. By addressing the need for change management at the implementation stage makes it difficult. So most managers are usually working backward and repairing the damage done by Disruptive Change, instead of investing their time in the present.

Change is implemented from the top but has a significant impact on the bottom of the hierarchy. This is so because the maximum changes are seen in the day-to-day activities of people. In the case of Fuji Xerox, the employees at the bottom of the hierarchy need to have a trust-based relationship with the senior management, that can assure them that how change can be beneficial to the organization as well as the personal objectives of an employee.