Organisational change in small and medium sized enterprises - a regional study

Organisational change in small and medium sized enterprises - a regional study

The viability of small and medium sized enterprises (SMEs) (defined as having 20
to 200 employees for this research) is vital to economic stability and growth in the
Regional District of the Central Okanagan (RDCO). An important factor in the
survival and growth of these enterprises is their ability to implement effective
organisational change.
This research has been defined by the research objective, to examine the nature of
organisational change experienced by SMEs in the RDCO and considers research
questions in relation to the prevalence of organisational change practices, the
types of strategic changes and the external and internal factors influencing
organisational change as well as changes in the structure of the work force. The
objectives pursued with the introduction of change initiatives, and the extent to
which the objectives were achieved was also considered.
The impact of selected demographic variables (size, presence of a human
resources manager and existence of planning) on the introduction of
organisational change practices and strategic changes was analysed and presented.
The ability of regional SMEs to meet the economic expectations placed upon them
and their uniqueness compared with large organisations was investigated.
Examination of the relevance of existing models of organisational change to
SMEs leads to the development and presentation of a new conceptual framework.
Information analysed quantitatively was obtained from a questionnaire distributed
by e-mail or regular mail to approximately 400 businesses and that to be analysed
qualitatively from in-depth interviews and a focus group involving a smaller
sample of these same organisations.
SMEs in the RDCO are experiencing changes in management, changes in
products and services, changes in equipment and technology as well as work force
growth and the restructuring of work practices. Objectives sought by the
introduction of these changes include improving labour productivity, reducing
labour costs, increasing competitiveness, as well as improvements in internal
communications, decision making, business processes, and customer service. The
majority of SMEs report that they achieved these objectives to a major or minor
extent.
The perspectives of managers and/or owners in SMEs relative to their first hand
experiences and their reflections on organisational change are presented. The
uniqueness of SMEs, the relevance of regional context and the pace and scope of
change are considered. Insightful commentary has been summarized and a
number of interesting themes emerge. The proposed new model for
Organisational Change in SMEs has been refined and validated.