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.