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Organizational and employee efficiency transformation has become relevant in the current competitive scenario as the market is very vulnerable to change, and to be able to cope with those changes, it becomes important for organizations to bring about transformation in their operations and within the effectiveness of their employees. Organizational transformation is basically the transformation of an organization's functioning processes with respect to where it stands in the present to where it wants to stand in the future (Wessel et al., 2021). Organizational transformation helps a company to attain the requirements of operating in a manner that it can still stay relevant in a competitive market scenario. The transformation happens when the company does assess its functioning and comes to know about the hurdles it is facing in the process of efficiency; those hurdles and problems within the organization are further altered and changed so that the company achieves quality (vom Brocke et al., 2020). Employee efficiency is also required for a company to remain competitive as it is the workforce that helps a company function; the workforce is like the internal machinery of a large body that helps it function, and a body cannot function properly in a competitive environment if the internal machinery is not working efficiently.
Organizational transformation is the process, in simple words, which helps a company to travel the distance it needs to go in order to reach where it wants to stand in the future (Kurtmollaeiv et al., 2018). Organizational transformation and employee transformation happen through a strategy, plan, or a method and help the company to assess its present circumstances and standing in order to find the faults which can be rectified and altered for the sake of remaining relevant and competitive in the market. Maintaining a sense of competition is a necessary facet that helps a company thrive and achieve what it wants to achieve; without a competitive force or motivation, the company loses its spark and is then unable to stand firm in front of the competitors. In this competitive economy and market, it becomes absolutely necessary for companies to maintain their competitive spark if they even want to survive, let alone succeed. The present world is the survival of the fittest, and organizational and employee transformation helps the employees and organization to be as fit to survive in the face of overwhelming competition. Remaining static destroys the internal and external functioning of an organization; therefore, it needs to evolve. To evolve is a process of change that is possible only through a transformation; transformation of the operations, transformations in the overall attitude of the organization, and that of the workforce are all important parts of organizational transformation (Mikalef, Wetering, and Krogstie, 2018).
The foremost step of organizational transformation is to accept the fact that a change is necessary; without admitting that the organization actually requires a change, the process of transformation can never be initiated. It happens that many times, senior executives and leaders do not even wish to recognize that a change is necessary within the organization, and without adopting that change, the company would keep losing its relevance and continue to go downhill. The conservative and stubborn thinking of the seniors makes it difficult for an organization to undergo the process of transformation and stay competitive enough in front of the other competitors in a market (Tim et al., 2020).
An organization and people related to it would feel certain symptoms that an organization needs transformation; therefore, it is important to know those symptoms in order to identify them and work towards getting away with them.
Businesses face a lot of challenges every day, and any functional organization would naturally face challenges, but there are certain particular symptoms that make it necessary for the organization to indulge in organizational transformation.
Two major symptoms include:-
If the executives and leaders of the organization are able to sense any of these symptoms, it becomes obligatory for them to initiate organizational and employee transformation so that the company can be saved from the disease of being static and having a lack of competitive drive. Organizational transformation helps bring about the change which is required within the organization so that it can function in a suitable manner and reach where it aims to reach in the future. Organizational transformation can be initiated by taking help from a group of ORG experts who know the techniques and methodology of proper transformation (Fredberg and Pregmark, 2022).
Research Philosophy: The research would use the interpretative philosophy as a guide as the main source of information used for the study are secondary in nature. The interpretative philosophy is helpful in properly analyzing secondary data as it has a quality of interpretation to it; secondary data usually need a lot of interpretation through proper analysis, so this approach would be useful for the overall study. Interpretative philosophy helps interpret the gathered data in an efficient manner to understand the subject properly.
Research Approach: The research would use a qualitative approach strategy as that approach is helpful in the context of secondary data. Qualitative approach analyses and helps in understanding secondary data in a proper manner.
Research Design: The inductive approach will be used in this regard. In inductive reasoning, the research begins by formulating hypotheses to properly develop the observation towards the end. An inductive approach is used to find commonalities so that proper theories can be constructed. During the formulation of research questions, the inductive approach does not encourage abandoning theories.
Data Collection: In order to gather data that is of a secondary nature, the researcher usually relies a lot upon online material found through platforms such as Google Scholar, Refworks, Explore, etc. The researcher would simply put in the keywords related to the subject of his or her study to get the results that would be useful for the entire cause (Pana and Kreye, 2021).
Data Analysis: When secondary data needs to be analyzed, researchers usually prefer the narrative analysis model to bring about an element of logic. The interpretative philosophy says that the collected data would be analyzed so that a certain topic of research can be reached.
Ethical Consideration: Ethical consideration is an important facet of research, and with so much secondary data, it becomes important that the researcher does not indulge in plagiarism and also the credits be properly given to the studies which the researcher would refer to during the research. Also, it is only the researcher who is responsible for any consequences arising from the research they have undertaken (Gallego and Hernandez, 2021).
In this competitive market economy, it becomes necessary for companies to identify any symptoms of lag that they might be facing; identifying the lag would help them initiate the process of operations and employee efficiency transformation. Operations transformation helps the company in bringing about a change within their working so that can they rectify their present style of working and transform to reach the position they aspire to reach in the future (DARYONO, WAHYUDI, and SUHARNOMO, 2021). Therefore research on the nature of operations transformation and its need within organizations is necessary. The primary step of operations transformation is to identify the symptoms that might require change.
Every business in this world has to go through several competitive factors. To sustain this increasing competitiveness, the company must focus on transforming its organization and employees. The businesses face various struggles while changing according to the competitiveness. The type of transformation always depends on organizational factors such as the brand's market value, sales, etc. Proper organizational transformation can be very effective for a business and can directly have a positive impact on its business operations. There are three main types of organizational change. These are Technological transformation, Cultural transformation, and Structural transformation. However, there are many other ways of implementing effective organizational transformation that can give the firms a competitive edge and minimize the risks in the market.
Furthermore, a business must keep on implementing organizational transformations to cope with the market and corporate environment changes. It has been observed that the business size plays a crucial role in implementing organizational transformations. Large-scale businesses can implement high-cost processes in the transformation process compared for small-scale enterprises. Although it has been accepted that the size of the company is the main factor in implementing organizational transformations, it can still not be confirmed that it will give the firm a competitive edge.
To stay competitive in the market, the businesses need to implement constant organizational transformation processes. Applying the transformation processes can sometimes be very difficult, and people may try to resist it. The companies should develop proper systematic frameworks that can help the firm manage the transformation processes. The company can also hire transformation experts who can help the firm carry out these changes. The top authorities of a firm must identify the potential risks to the company and should immediately implement proper transformation practices. The active foremost authorities of a firm are the people who divide a high-performing firm from a low-performing firm. It has been observed that companies that have a stronger grip on the market have more agile top-level personnel who are always ready to adapt to changes according to the situation. In recent times, organizational transformation changes have increased rapidly due to the covid-19 pandemic. The covid-19 pandemic has changed the whole business scenarios of the firms, which has led most business organizations to implement immediate transformations in the firms.
The H.R. of an organization plays an important role in carrying out the transformation processes. Once the firm identifies the ideal transformation processes, the H.R. is directed to implement the strategies all over the company. This means the H.R. of an organization can directly impact the quality of new changes brought within the company. Proper transformation within the firm can impact all levels of the organization. Several business experts have also mentioned that identifying the right change is crucial for the firm. Implementing changes that cause dissatisfaction among the employees can make the employees less productive, thus resulting in a loss for the company.
This project work has helped understand the various aspects and the need for transformation in an organization. The research process used design, philosophy, strategy, and approach techniques. This methodology will help understand why, where, what and how the data used in this research is collected. Not only the research method, but this research also put a lot of focus on the importance of using secondary data that has been used to understand the various dimensions of transformation processes in an organization. The research method used here also focuses on answering the questions that have been raised while studying the research topic (Bright, 2022).
Every key factor and challenge has been identified and discussed thoroughly with the help of a proper study method. The researchers have also shown the reason for the organizational transformation rate in various firms. The methodology process will also help to compare the findings found in the study and how the findings can help the businesses develop effective transformational strategies. This study can help various businesses to understand the importance of organizational changes and effective ways of implementing these changes in a firm.
This research aims to understand the various aspects of organizational transformations and find how the transformation can give the firms a competitive edge in the market (Haynes et al., 2018). The research also aims to understand the various challenges that the company can face while implementing transformational strategies and the negative impact of poor transformational strategies. The main moto of the researcher is to find the various questions regarding the research topic and answer every question with proper evidence.
Before conducting research, it is very crucial to gain a proper understanding of the research philosophy used during the work. Research philosophy helps to gain a thorough understanding of the research topic. The research philosophy used in this work makes several assumptions that are very crucial in answering the raised questions. Epistemology is the type of knowledge on which the total philosophy of the research depends. Epistemology helps keep a positive approach towards the research besides an interpretivism approach. Interpretivism and Epistemology have helped the researcher gain a detailed understanding of reality (ukauskas, Vveinhardt, and Andriukaitien?, 2018). Since the topic of the research is the importance of organizational transformation within a firm and how it gives the firm a competitive edge, the interpretivism approach will help explain the topic thoroughly. This research is mostly based on positivist philosophy that mainly focuses on taking out the best reliable data from the internet. Many influential components have also been used during the whole research process, which helped understand the research topic. The use of secondary data has also helped understand the various situations that the firms might face while implementing organizational transformation practices.
A researcher mainly uses two types of research approaches to carry out research these are the inductive approach and the deductive approach. The research is conducted to observe the various factors involved in the various transformation strategies conducted within the firm. The deductive approach can help the researcher to understand the various theories that have been found for the research. On the other hand, the inductive approach helps to investigate in a "bottom-up’’ manner. This is done through a set of frameworks that helps to thoroughly investigate the theories. After observing the various factors regarding the implementation of organizational transformation, the deductive approach of research has been found the most suitable (Tu, 2018). The deductive approach has also helped discover various dimensions that can help in further study on this topic and would help find effective ideas that can help companies implement organizational transformation practices efficiently.
Research design is the framework used to execute the whole research, and it helps to find ways in which the required information regarding the project topic would be gathered. The research design also plays a crucial part in supporting the facts used during the work and implementing strategies that would be useful in finding the data regarding the research work. In other words, the research design is the process that helps to find the perfect way in which the data analysis process would take place. It has been seen that the quantitative approach used in this research has made it easy to understand the effects that the companies can face after implementing organizational transformation strategies. The quantitative approach has also balanced the quantitative data and the secondary data such as websites, journals, and magazines used in this research.
The quantitative search has also helped carry out the whole process of investigation and research carried out in this work. Several comparisons were also taken place to find the depth of the data and the effectiveness of strategies on the problems. The research design used in the research has enabled the researcher to make recommendations that can help firms implement organizational transformation strategies effectively. According to the research strategy, the secondary data that has been used during the research has been considered quantitative.
Most of the data that has been used to gather information for research is already done researches. Also, the information taken from newspapers was published long ago and was written according to the situation back then. These can act as limitations of secondary data usage. Most of the secondary data available are based on information from long ago. This instructs the researchers to compare the secondary data with the current situation of the respective industry and then come up with new information. For this reason, the secondary data resources used in this research work were most relevant to the given topic. It has also been kept in mind that the data are helping to answer the various questions raised during the research work (Knight, Daymond, and Paroutis, 2020).
The type of data that has been used for completing the project is secondary data. The decision to use secondary data in the research has been made to gain in-depth knowledge on the research topic. Using secondary data is a great way to gain useful information at a low cost. This is because most of the secondary data available can be found on the internet, just a few clicks away.
Types of Secondary Data
Source: (Bright, 2022)
The above image shows the various types of secondary data. Expressions and statistics from some reliable sources can be used as evidence. The data gathered from several websites will help gain knowledge on various factors of implementing transformational strategies within a company. It can also help find several financial and marketing data of the firms. Keeping an eye on the latest news regarding the research topic can help the researcher understand various problems (Mkandawire, 2019). The secondary data can also help find several effects and causes on the project topic. The research strategy was built to explore the various answers to the questions and focus on the different aims and objectives. Articles regarding the various perspectives of the research topic played a crucial role in completing the work. All the data collected were discussed and explained thoroughly to get the desired outcomes that helped make the research a perfect one.
The whole research process was conducted keeping the various ethical considerations in mind. The purpose of proper ethical considerations is to protect the data obtained from the internet (Brittain et al., 2020). The purpose of this is to restrict access to primary data. The research was made to make it reliable for the information regarding the topic. The research has also covered a vast topic: a transformation in organizations. With the help of this research, other researchers can expand the topic even more. During the research, several social ethics, factors of collaboration, and complaints were kept in mind. Also, all the websites and journals that have been used for gathering information have been given proper credits. This is an original work, and no data were taken without providing proper credit.
Though the research was done to extend the information regarding the research topic, some limitations can still be found in work. It has been observed that the type of data used in this research, i.e., the secondary data has some limitations. This is because most of the secondary data used here are collected from primary data from other researchers. Some of the topics were also not covered well since the secondary data had some information limitations and some sources had unverified and incomplete data (Kumara, 2022). Another reason for the incomplete research on some aspects is the biased data available from some sources. These biased data can cause misconceptions regarding the project topic.
The transformation of an organization is a method used to understand the current and future desires of any company. These necessary changes in an organization are very useful and are created by the efforts of organization management based on the performances of its employees. According to Kavita et al. (2019), organizational transformation is when a particular organization takes the initiative to make a huge turnover from its present desire to its future willingness to make the company more profitable. The technology and business market are changing rapidly, which creates huge competition between many organizations. For that reason, creating a sustainable transformation in an organization is necessary to follow the market trends. Oreg et al. (2020), said that making some changes in an organization is important because this process is connected with the employees of the organization. They directly take benefits from these huge changes. These changes create a positive environment in workplaces and decrease the chances of negativity. To support this statement, Abrrow et al., (2018), said that organizational changes make positive behavioral changes in employees, which is beneficial for the organization too because employees' productivity increases the chances of growth and development of the organization. Moreover, these transformations create better communication between employees and make the employees more effective and efficient at their work, decreasing the workload. Lastly, it affects the whole organization to make its management system more sustainable.
There are uncountable reasons to make changes in an organization to create an efficient transformation in the performance of employees. The most important reason for organizational changes is to improve its employees' performance according to the organization's needs. According to Shura et al., (2020), every business organization is run through the various processes of growth and development. For that reason, it is a huge opportunity for the organization to examine, analyze, and prepare for future strategic plans. Moreover, it is important to understand the market position and the impact on the organization's employees. Lewin et al., (2020), said that employee efficiency is an important part of any organization because employees are the pillars of any organization to run the business. To create a transformation and measure the growth of employees is to help the employees to see their development and keep them always more energetic and motivated.
Moreover, it is to help the employees reduce the negativity in their workplace and help to create the transformation in their performance, and help find a good communicative team. The business owners want their employees to become more efficient in their performance because the complete success of any organization is majorly dependent on the employees. In support of this statement, Beare et al., (2019), said that helping the employees to examine their strengths and weaknesses is one of the important duties of an organization to make them more effective and efficient.
Showing the strategies of organizational transformation
Source: (Kupa et al., 2021)
Impact of Organization and Employee Efficiency Transformation on Current Market
The huge changes in the organization and the performances of employees provide huge opportunities to the organization, which positively impacts the current market trend. Firstly the transformation helps the organization follow the current demand of its consumers and helps to stay with the current trend. According to Kotter et al ., (2020), remaining in the market trends will help the organization attract more consumers towards them because if one of the competitors of the company launches a similar product like them, there is not even a single chance to decrease the market trend of the organization because of the customer's value of it. Moreover, staying in the market trends open the way for lots of business opportunities for the organization. Bridges et al.,( 2020), said that the adaptability of market trends helps to enhance business opportunities. These possibilities help the organization in its future growth and promotion. It has helped to improve the personality and attitudes of the employees of the organization because market trends majorly impact the philosophy of human resources, which makes the workplace environment more joyful and flexible. In support of this wording, Vena et al., (2019), said that employees of the organization are feeling motivated and show encouragement towards their work if the organization is developing to make a sustainable profit because it keeps their minds satisfied at their workplace. These huge transformations help the organizations to be more productive in the market. For example, the furniture manufacturer company IKEA. The company makes a huge turnover in their workplace such as technology development which increases the sales of their products in the market of the United Kingdom and increases the opportunities for competitive advantage.
Creating a sustainable transformation in an organization and employees' performances is a diplomatic situation for the management team. Organizations are showing a successful vibe when the management of the organization takes various initiatives to create some changes in it and in the employee's performance. According to Nohira et al., (2021), the preference of the customers of the organization is the very first important factor in creating the necessary changes in any organization because sometimes the changing strategy fails for the demand of the customers. Leadership strategy and the leaders are one of the important parts of making their employees more efficient because the employees need some guidance and the right tools to make their performance way better. In that case, Jones et al., (2020), said that Leaders are the unforgettable factor in making their employees more efficient, and an active leadership strategy and skills help the whole organization, sometimes directly or indirectly. Employees can understand better than any other the aim behind the perspective of organizational transformation, and to create effective change in an organization a, successful communication is really needed for this. For that reason, Khan et al., (2021), said that effective communication could help in the group discussion to answer the thinking of the employees because an effective communication strategy helps to understand the deeper and clearer reflection of the employees. Moreover, working with sustainable management strategies and often changing the business model allows the organization to examine and identify the needs and demands of its consumers, just like the furniture manufacturer company IKEA changed its products marketing strategy, which helped them to make a profit and helped to increase the variations of its furniture.
Source: (Cha et al., 2019)
From the above-mentioned analysis, it can be discussed that the transformation of an organization and the efficient performance of employees of any organization are interconnected with each other. The change in an organization is designed for their employees to make their performances better (Halpern et al., 2021). Moreover, a major transformation in an organization is to increase the possibilities of its growth and development. Adapting successful high technologies and strategies enhances the cultural change in the workplace and spreads more positivity among the employees. The performance efficiency of employees is connected with the development of the organization because the employee's performance increases the productivity of the company (Baptista et al., 2020). After all, strategic employee management helps to ensure the activities and the outcomes of the employees in the organization.
Moreover, it gives the employees huge responsibilities and helps to manage them. Better employees' work efficiency helps to gain the trust of the organization, which shows the results of a high turnover employee management rate. It also helps to boost the mindset of employees because, according to many resources, it declared that employees who are happy are the most productive (Baiyere et al., 2019). One of the greatest examples of this type of organization is the furniture manufacturer company IKEA which is one of the largest furniture manufacturers in the United Kingdom.
In order to improve the various situations, there are many requirements to create a huge transformation of the organization. The change of organization like the company IKEA is occurred due to multiple reasons, such as new technology development. The uses of new technology help the organization to be more efficient and innovative in its workplace. Moreover, adapting to this culture also helps to increase the productivity of employees and help them to be more efficient at their work, and on the other side, it opens the huge competitive advantages, which is really important for the development of any company. It shows that to create a sustainable organizational structure, there is a huge need for organizational transformation. To be more productive in the marketplace and go with the trend of the market, the employees' performances matter the most. For that reason, to make the performances of employees better, the organizational strategy is very responsive. The transformation of an organization is the reflection of the mindset of leaders, and any type of change mostly affects the employees of the organization (Haitana et al., 2022). The major requirement of changes in the organization and employees' performances is to create a sustainable culture of the company, as a culture of an organization can help to reduce the problems like employee turnover and low engagement with market positioning and others.
Moreover, to evaluate the market impact, either positive or negative, a cultural transformation is majorly needed in any organization because the organization takes few responsibilities and enhances their soft skills and communication skills of them. A perfect leadership strategy creates the perspective of organizational changes and increases the efficiency of employees' performances. With these long processes of developing the organization makes a huge turnover from the present desire to the future want to create the development of the organization in a sustainable way.
From the above-mentioned analysis, it can be shown that the organizational transformation and employee efficiency impact in a positive way on the whole organization. With these short-term changes in an organization might be painful sometimes, but on the other side, it has a huge advantage in managing the organization in a sustainable way. Moreover, it opens up various ways for opportunities. The first advantage is encouraging an innovative culture. With these changes, the organization finds itself more creative and stronger to give an equal competition with its competitors because it is important for the organization to understand the practices of organizational transformation and employee efficiency. It also helps to promote the soft skills growth of the employees of the organization because the ability and adaptability of employees and the development of the organization are interconnected with each other. Moreover, it enhances the productivity of employees. It clearly shows that to understand the needs and benefits of an organization, and there is a huge need for organizational transformation and the efficient performance of employees.
The organizational transformation also creates some disadvantages, such as employees feeling demotivated. During the changes in an organization, an employee loses confidence because the ideas of the employees are not supported by the higher authority of the organization, and for that reason, the staff is not giving their best at their workplace. For example, IKEA faced a huge loss in its early days due to this situation, but the company and its employees showed the capability to decrease the problem, and now they are running their business in a sustainable way (Kuruppu et al., 2019).
To create the transformation in any organization, the first step of this situation is to create a business management strategy at the early stage. The furniture company IKEA created a business management strategy based on their furniture variation (Mhlungu et al., 2022). They make a product selling strategy which is very beneficial for them. They sell their products at a low price to gain the trust of their customers. The other approach is to set visionary goals. The creative goals are the reflection of the effective leadership strategy because leaders create a positive impact in the process of organizational transformation. The leaders are maintaining a good and communicative relationship with the employees of the organization because employees are the most important factor in any business development.
The first, foremost requirement for being able to initiate operations and employee efficiency transformation is to identify any symptoms the company might be facing, negative symptoms that reflect the internal problems which exist within an organization. If in the annual reports the company finds a decrease in its revenues or the profits have decreased, then senior executives must be able to understand that there exists a problem within the organization that needs to be changed, altered, or transformed so that the disease be cured, and the firm be able to function properly in a healthy manner. Sometimes, the senior executives of several companies choose to ignore several red flags and symptoms, which becomes the major reason for the destruction of the company (Bohunovsky, Radinger-Peer, and Penker, 2020). The primary objective of operation management is to change the present course of the company and take it to the place where it wants to be in the future; that changing in the course is possible only if the present symptoms of problems and destruction be identified and diagnosed. Ikea is a multinational giant, but it is lagging behind in several ways, not being able to cope with the competitive advancement of its employees. Ikea lacks the technological and digital drive which its competitors have, and it is lagging behind in the field of online marketing (Canterino, Cirella, and Shani, 2018). If the executives of Ikea identify this symptom which has proven to be a hurdle in their growth, then they would be able to bring about a change and transform for the better performance of the organization (Muthuswamy, 2019). However, organizational and employee efficiency transformation is not an easy process, and it requires a proven method or procedure for its success; therefore, organizations must consult organizational transformation experts who would properly be able to initiate the process of future betterment.
The entire course of the study has been dedicated to the proper analysis of the nature of organizational and employee efficiency transformation, and it has become obvious that in the present competitive economy, the importance of organizational transformation has grown manifolds (Eynard and Cherfi, 2020). The overwhelming number of rivals and their competitive desire to capture the entire market makes it necessary for organizations to look within themselves and indulge in systematic identification of any negative symptom which might be harming the overall performance of the company in the market. Identification of the symptoms is the foremost step toward the process of organizational and employee efficiency transformation. Organization transformation, in simple words, is a process that helps a company to alter its present ways and its present course of function to take it to the position of advancement where it wants and aims to be in the future. Organizational transformations bring about a transformation in the internal functioning of an organization, and the workforce is the nerve and heart of an organization; the proper functioning of a workforce is essential for the proper functioning of the function, and that is why this study has also focussed upon the importance of employees and their efficiency in working for an organization
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