Impact of Change in Management on Business Performance - Research Paper Example

Impact of Change in Management on Business Performance Contents Introduction 3 Objectives of the Research 3 Literature Review 3 Methodology 4 Research Philosophy 4 Research Approach 5 Research Strategy 5 Research Method 5 Qualitative Analysis Tools 6 Quantitative Analysis Tools 6 Sampling and Data Collection Method 6 Limitations of the Methodology 6 Ethical Considerations 7 Analysis and Findings 7 Validity and Reliability 13 Conclusion 13 References 15 Appendix 16 Introduction The contemporary business world is dynamic and this has enhanced the level of commercial complexities. The commercial activities and performances of business firms constantly change to adopt complexities in the external business world (Besanko and Braeutigam, 2010). However, it should be noted that modifications in management patterns substantially influence business performances of commercial firms (Rothaermel, 2013). Objectives of the Research The research aims to analyze the impact of change in management on business performance. Literature Review The concept of performance management has become popular in the current epoch. It is claimed by researchers that organizational opportunities and risks cannot be optimally tackled without the essence of superior performance management (Sumlin, 2000). The study claims that management changes substantially influence performance of commercial firms. Aspects of financial returns, organizational productivity, employee satisfaction, customers’ contentment and product efficiency determine quality of management in a business firm. It is found that most popular multinational companies attempt to improve their management quality for achieving higher economic and social prosperity. Many researchers believe that business, corporate and global level strategies of a company are stimulated and conducted effectively through efficient management system (Nickell, et al., 1998). Researchers claim that certain aspects of management such as, non-manager training, quality control, appraiser accountability and entrepreneurship, highly affect long run success of an organization (Simons, 2013). The result of a research conducted on CEOs of 80 different companies indicated that 63% respondents perceived that management changes of an organization considerably influence its performance. This is because all productive factor resources of a company like, land, labor, capital and entrepreneurship, are coordinated by organizational entrepreneurs. Entrepreneurship is considered to be the most strategic resource of a company. Entrepreneurial or leadership capability of a company portrays its management quality (Rothaermel, 2013). Hence, management changes bring about indispensible modifications to performance of a concern. The management authorities of a firm realize that significant distinction between failure and success can be made by the human workforce and resources. The organizational involvement, engagement, management and development highly influence willingness of the labor force towards work. Finally, motivation provided to workers in a company is reflected in operational performance. Management practices and styles establish changes in the utility enjoyed by firm stakeholders (Jeston and Nelis, 2014). Thus, from the above literature review, it is proved that management efficiency and associated changes highly manipulate business performance of a company. Methodology Research Philosophy The structure of the research work is determined by research philosophy. Relevant information is gathered and used in the research, on the basis of research philosophy. This research was based on positivist pattern. This is because outcomes of the research were obtained in quantitative terms. The research aims to find ways whereby the management of a company assesses commercial performance. Quality of company performance was judged in quantitative terms (Singh and Bajpai, 2008). Research Approach The research work was conducted as per inductive research approach. Under this regime, valuable theories and results were proved, after analyzing a wide base of useful information and data. Research Strategy The research strategy of the paper was devised on the basis of certain exogenous factors that could influence the findings. It was assumed that all data and information were conveniently available. It was also assumed that the researcher and respondents had strictly abided by required ethical and moral norms while conducting the research (Hatch, 2002). Research Method The research work was conducted with the help of qualitative as well as qualitative analysis tools. The qualitative analysis was a naturalistic method of research, under which the researcher collected secondary data and information and analyze them with his interpretive skills. On the other hand, quantitative analysis was a mathematical analysis method. It statistically interpreted quantitative data. The results of quantitative analysis helped to strengthen inferences drawn from the qualitative analysis (Nykiel, 2007). The data for quantitative analysis were obtained from primary sources. Both quantitative and qualitative analyses were performed with cross-sectional perspective (Carter, et al., 2013). Qualitative Analysis Tools The qualitative analysis was conducted on grounds of literature review and focus group interview. Quantitative Analysis Tools The quantitative analysis was accomplished with the help of a close-ended questionnaire survey. Descriptive statistical tools were utilized for analyzing results of the survey. The survey contained eight close-ended questions relating to subject matter and the results were graphically elaborated through pie charts and bar diagrams (Peck, Olsen and Devore, 2011). Sampling and Data Collection Method The suitable population of the research is commercial firms in the market. Even so, it is difficult to conduct analysis on the basis of entire population. Hence, the researcher selected an appropriate sample on the basis of random sampling method (Owen, 2002). Under his process, the close-ended questionnaire survey was given to one senior executive manager from 60 popular companies in U.K. The size of the sample was 60 (1X60). Each survey session had eight questions and was conducted for 10 minutes. The focus group interview included a random sample of 20 officials, selected from 60 respondents of the close-ended survey. The focus group interview included similar questions as that of the survey. Each interview session was conducted over 10 minutes (Pannerselvam, 2004). Limitations of the Methodology The analysis included primary data only for a close-ended questionnaire survey. A close-ended survey effectively contributed to cost and time convenience. However, in reality, detailed information could not be collected through a close-ended questionnaire survey. Data collected on longitudinal basis would prove to be more robust for the analysis (Saunders, Lewis and Thornhil, 2009). Ethical Considerations All ethical aspects were considered during the research work. The researcher used data and information that were closely related to the research topic. The conclusions from the literature review had not directly influenced results of the analysis. Moreover, personal information and findings provided by each respondent were not disclosed during or after the research (Somekh and Lewin, 2004). Analysis and Findings In this section, results of the close-ended questionnaire survey are represented with graphs and analysis is done based on findings of the focus group and survey collectively. Answer 1 (Source: Author’s Creation) From the above graph, it is found that officials majorly believe that employees attitude in the workplace are highly influenced by organizational management. There lies a difference between ability and willingness to work. This gap is bridged by providing motivation to the workforce. The management authorities of a company allocate work to employees. Other aspects of employment, such as salary and incentives are also determined by management authorities of a company. If these aspects in an organization are sound, then the workers are likely to be more productive. Profit and revenue earned by a concern can rise with the essence of greater workforce productivity (Rothaermel, 2013). Answer 2 (Source: Author’s Creation) Most respondents claimed that work culture is greatly influenced by organizational management changes. In the contemporary world, management authorities of corporate companies aim to enhance workplace diversity. They try to eliminate factors relating to caste, creed, religion and gender discrepancies within workplace. All such factors collectively form the organizational culture. Therefore, any change introduced by management officials regarding workforce diversity or discrimination are bound to affect the organizational culture (Rothaermel, 2013). Answer 3 (Source: Author’s Creation) From the above graph, it is seen that 92% respondents believe that productivity and profit of their companies are dependent on management changes. From the above context, it is proved that employees’ working efficiency and organizational culture are influenced by modifications in management structure. If these changes generate positive results, then company’s productivity and profit are bound to improve. Better resource allocation, superior financial accountability and good strategy formulation are various approaches through which workers within a company can yield better profit and productivity (Rothaermel, 2013). Answer 4 (Source: Author’s Creation) From the above graph, it can be claimed that 50% of the officials perceive that participatory management style yields the best organizational performance outcome. Nonetheless, it should be noted that almost 30% respondents consider liberal working atmosphere to be apt for a company’s working. If the officials encourage participatory atmosphere in workplace, then employees’ interest in job is heightened, thereby improving overall knowledge base within the organization. Extensive liberal or democratic principles cannot proficiently regulate activities of a formal business organization (Rothaermel, 2013). Answer 5 (Source: Author’s Creation) Almost 75% respondents confirmed that if management quality of a company is not as desired, then it might incur huge losses from operations in the long run. Poor entrepreneurship leads to inefficient allocation of resources as well as bad quality of workforce management. All such factors lower core competencies of organization, which increases probability of experiencing loss (Rothaermel, 2013). Answer 6 (Source: Author’s Creation) The above graph indicates that changing management styles frequently is not considered effective by most professionals. If the management structure of an organization is often changed, then this entails constant variations within business, corporate and global level strategies followed. Under such circumstances, stakeholders would lose confidence over the company as its operations in the market would be highly volatile (Rothaermel, 2013). Answer 7 (Source: Author’s Creation) The results of the above question prove that buyers’ loyalty towards a company is significantly dependent on its management stability. This is because required amount of innovation activities pertaining to product, process, organization and marketing can be successfully conducted with the essence of superior management. All such factors would improve overall quality of goods or services provided by a company, thereby augmenting utility of the consumers. Thus, management stability influences buyers’ utility and loyalty (Rothaermel, 2013). Answer 8 (Source: Author’s Creation) The pie chart above shows that majority of the officials within the sample consider that change in management brings about variations in a firm’s overall performance. Validity and Reliability It is assumed that answers provided respondents of the focus group and questionnaire survey are correct. The analysis made in the research is based on valid and reliable outcomes. Since the sample selection process was random (not biased), probability of selecting each company was equal (0.5) (Neergaard and Ulhři, 2007). Hence, results obtained are not ad-hoc and the research is valid as well as reliable. Conclusion From the research conducted in this study, it would be appropriate to claim that an organization’s performance can substantially change due to variations in management pattern. This is because internal resources of a company are governed by its management authorities. The survey and questionnaire conducted has sufficed the aim of the research work. It is proved that employee satisfaction, work culture, profit and productivity, management strategy and style and customer’s loyalty depends on efficient management of an organization. Thus, any change in the management pattern influences such crucial internal factors of a company (Rothaermel, 2013). However, frequent management alteration lowers the operational stability of an organization and reduces its brand value in the market. References Besanko, D. and Braeutigam, R., 2010 Microeconomics. New York City: John Wiley & Sons. Carter, M. Z., Armenakis, A. A., Feild, H. S. and Mossholder, K. W., 2013. Transformational leadership, relationship quality, and employee performance during continuous incremental organizational change. Journal of Organizational Behavior, 34(7), pp. 942-958. Hatch, J. A., 2002. Doing Qualitative Research in Education Settings. New York: SUNY Press. Jeston, J. and Nelis, J., 2014. Business process management. London: Routledge. Neergaard, H. and Ulhři, J. P., 2007. Handbook of qualitative research methods in entrepreneurship. Massachusetts: Edward Elgar Publishing. Nickell, S., Lawthom, R., West, M. A. and Patterson, M. G., 1998. Impact of people management practices on business performance. [pdf] Available at: [Accessed 2 June 2014]. Nykiel, R. A., 2007. Handbook of marketing research methodologies for hospitality and tourism. New York: Routledge. Owen, M., 2002. Developing Brands with Qualitative Market Research. London: SAGE. Pannerselvam, R., 2004. Research methodology. New Delhi: PHI Learning Pvt. Ltd. Peck, R., Olsen, C. and Devore, J. L., 2011. Introduction to Statistics and Data Analysis. Connecticut: Cengage Learning. Rothaermel, F. T., 2013. Strategic management: Concepts. New York: McGraw-Hill Irwin. Saunders, M., Lewis, P. and Thornhil, A., 2009. Research methods for business students. New Jersey: Pearson Education. Simons, R., 2013. Levers of organization design: how managers use accountability systems for greater performance and commitment. Harvard: Harvard Business Press. Singh, Y. K. and Bajpai, R. B., 2008. Research methodology: Techniques and trends. New Delhi: APH Publishing. Somekh, B. and Lewin, C., 2004. Research Methods in the Social Sciences. London: SAGE. Sumlin, R., 2000. White paper. [pdf] DDI. Available at: [Accessed 2 June 2014]. Appendix Q1. Does organizational management influence employee attitude? (a) Yes (b) No (c) Not Sure Q2. Does organizational management influence the work culture? (a) Yes (b) No (c) Not Sure Q3. Does change in management bring about changes in a company’s profit and productivity? (a) Yes (b) No (c) Not Sure Q4.Which one according to you is the most important managerial practice influencing organizational performance? (a) Autonomy (b) Liberal (c) Democracy (d) Participative (e) Not Sure Q5. Do you feel company’s loss is primarily responsible for poor management? (a) Yes (b) No (c) Not Sure Q6. It is correct to frequently change management style? (a) Yes (b) No (c) Not Sure Q7. Buyer’s loyalty towards a company depends on its management stability? (a) Yes (b) No (c) Not Sure Q8. Does change in management impact business performance on the whole? (d) Yes (e) No (f) Not Sure Read More