THE EFFECT OF TECHNOLOGICAL CHANGES ON SMES PERFORMANCE IN LAGOS STATE: A CASE STUDY OF SELECTED SMES

Chapter two

Literature review

Theoretical Framework

Lewin’s Change Management Model

“Lewin (1951, cited in Robbins, et.al., 2008) argued that successful change in organizations should follow three steps:” Unfreezing: change efforts to overcome the pressures of both individual resistance and group conformity”. Movement: “a change process that transforms the organization from the status quo to a desired end state” and the third step is Refreezing: “stabilizing a change intervention by balancing driving and restraining forces”. In this respect, “Harper (2001) proposed that for effective change to take place, management must ensure that all relevant stakeholders are given the opportunity to be engaged in decision-making and problem solving in a collaborative manner. A better understanding of the needs and benefits of change may result in little or no resistance on the part of change recipients. In the final step (refreezing), the emphasis is on the reinforcing of new processes and tasks in the organization by the employer. For this step to be successful, employees must be acknowledged, as reward is an important consideration. Reward is crucial for behaviour modification and employees should receive appropriate recognition for changes in behaviour if they embrace the technological change.

Conceptual Framework

Change Management

“Moran and Brighton (2011: 111 –118) defined change management as the process of continually renewing an organization direction, structure and capabilities to serve the ever-changing needs of external and internal customers”. “When change is announced in an organization, there is a general hope and feeling among the staff that the outcomes will be favorable to them (Kimaku, 2010”). The norm indicates that most employees expect a positive outcome and their management will consider their needs. This also applies to new ideas, technology, products or service. “Therefore, trust becomes a key factor in determining how employees think, feel and act in respect to the current change (Sikasa, 2004)”. “Korir, et. al (2012) defined change management as the effective management of a business change such that executive leaders, managers and frontline employers work in concert to successfully implement the needed process, technology or organizational changes”. Due to its importance, change management is becoming imperative and needs appropriate managerial skills and strategy. For firm to survive, succeed and remain competitive in today’s highly volatile and continuously evolving business environment, it must be able to successfully manage the change which is as a matter of fact a necessity. “Organizations today have increasingly become aware of the importance of change management practices. This awareness in a system is a critical dimension in the performance of organizations (Rees, 2008: 87-89)”. “Organizations were faced with threats of competition and changing employees needs which had to be met using different techniques and production models apart from the existing ones (Kotter, 2008)”. When the issue of change is introduced to the employees, they tend to fear and often assume a defensive and resistant role. It is important to note that employees do not perceive change positively. Change interferes with their routine activities and they are subjected to a deviation from what they are used to doing. They feel threatened and unsure of their future. This brings about mental and emotional instability, often with implications on their performance. During the implementation of change, the employees are noted to have negative feelings and they struggle in finding how to cope with the effects of change. “Resistance displayed is deeply rooted in preconditioned and routine subjection that the employees were previously exposed to within the work environment (Terziovsk, 2010: 892-902)”.

Challenges of Change

It is necessary for leaders to note that changing the running of an organization from a command and control nature of management to the nurturing and motivational nature of leadership is important for effective change to take place. Without a consistent focus, it becomes incumbent on each member to interpret the environment and to make decisions on which opportunities to explore. In addition, individuals who are asked to make a change are really being asked to make a commitment of personal energy. Company resources must be devoted to help workers understand the impending change, convince them of its value, and manage the resistance that will inevitably surface.

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