Impact Of Organisational Narrative On Organisational Performance Assessment 2 Answer

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Question :

Assessment: 2 Essay (Individual) (2 DOD words) - 

In this assignment students will be required to demonstrate an understanding of communications theory and the importance of effective communications within an organisational context.

Essay Question:

Discuss how organisational narrative may impact upon organisational performance in the context of change management due to globalisation? Please draw upon Communication theory and use examples to support your claims.

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Answer :


In this post-globalisation era, international competition has been increased. Globalisation has also contributed towards the overall prosperity because it strengthens the incentives for adopting the new technologies. Therefore, for satisfying the need for a new market, securing sustainability in the increasing level of the international market and adopting new technologies, it is essential to apply the organisational change.

A key challenge for every modern organisation is implementing the change program. This is because; it is tough in engaging the customers, employees, stakeholders and partners with the process of change. In that context, the essential component to navigate the way forward is the narrative of organisations. Organisational narrative refers to the audience focused story for the planned journey that has helped the organisation in becoming what they wanted to be. Sharing the narratives with different stakeholders, especially the employee's crates trust and credibility, which increases the possibility of employee engagement during the process of change which increases the organisational performance with efficiencies. This essay is intended to discuss how organisational narrative can impact organisational performance during the implementation of change caused by the globalisation.

As stated by Colón-Aguirre (2015), stories mainly convey a sense of heritage and histories. However, in the present day, stories are also using as a powerful tool for changing the organisation. According to Boje, Haley & Saylors (2016), the value of the organisational narrative has gone beyond the just telling stories in the newsletter and the annual report of the organisation. When an organisation is associated with embracing the description and then applying it throughout the organisation, then it can be helpful to achieve a clearer and appealing brand identity. An excellent organisational narrative is highly influential for an organisation in getting the sustainably engaged audiences. Organisational narratives are highly influential in showing the intangible as well as indefinable organisational attributes and values. Sharing authentic stories with employee helps in building trust and credibility that creates a close relationship among the employees and the leaders (Boje, Haley & Saylors, 2016). This close relationship is highly effective for the leader in making the subordinates identify the need for change. A productive relationship among the leader and the employees not only develops helps the employees in understanding the necessity of change, but it is also helpful in engaging the employees in the change process. For making a change successful, an employee requires an extra skill because every change in an organisation needs some additional knowledge. Now, organisational narratives offer a sustainable along with the practical structure to share knowledge (Bell & Leonard, 2018). Organisational narratives help the leader in sharing a vast quantity of data with the audiences that help the audiences in understanding the current condition of their organisation along with the need for change. 

Change management by organisational narratives can be explained with the help of the ACT theory of communication. The acronym of the theory is the adaptive concept of though which one of the cognitive architecture is. Cognition refers to the process to acquire or understand knowledge as well as information with the help of experiences, thoughts and other senses. Therefore, according to the theory, organisational narratives creates cognition process that creates a thought and experience among employees regarding change which reduces their resistance during the transition. According to Orr & Bennett (2017), every story tells by the leaders during a change process illustrates a broad set of quantitative data and the insight into the lessons learned (Erete et al. 2016). Stories help the external and the internal audiences in making sense the large amount of information that an organisation mainly holds.

Most of the changes that are applied by a large organisation mainly appear to the employees as the complicated, complex, counterintuitive and strange process that creates difficulties for them to understand the process (Vaara, Sonenshein & Boje, 2016). The new change mainly involves the attitude, concepts along with the skills that a worker does not accept or understand as it changes their habit. Most of the analyst has demonstrated the fact that due to significant changes in an organization, an organisation either has to go through a painful period or change the population of workers who have a better skill set for the implementation of change (Bell & Leonard, 2018). Therefore, if an organisation does not want to follow any of the paths, then they might face issues while implementing change. In that consequence, organisational narratives can be helpful (Vaara, Sonenshein & Boje, 2016). This is because; it can help a large number of employee in understanding the difficult along with the complex transition of organisations. Stories comprehend different fact to the audiences, such as what kind of changes is available, why the changes are necessary and how the organisation should implement the change (Vaara, Sonenshein & Boje, 2016). Organisational narratives invite the target audiences (employees) in seeing the analogies of the story from their background, from their expertise along with from their contexts. Narratives help the listener in understanding the fact that what they would do if they would face a similar situation in their on the organisation.

It is the fact that organisational narratives are unable to substitute any organisational change in the program, strategy, incentives, budgets or measurements (Vaara, Sonenshein & Boje, 2016). However, it is one of the tools that a manager utilises in making an elicit decision for implementing this type of change in the first place (Bell & Leonard, 2018). Narrative helps the leaders in communicating the ideas behind change-related initiatives throughout the organisation. The storytelling idea is beneficial in mobilising a large number of employees, along with the managers. Organisational narratives can help implement changes for several reasons such as storytelling is easy and natural. It helps the leaders in expressing the current condition of the organisation easily that help the employees in understanding the necessity of change more quickly.

Along with that, stories show the connection between different things. A good story is associated with holding disparate elements for a longer possible time which increases the engagement of employees with the change more effectively. Along with that, stories help cope up with the complexity (Gill, 2015). Every change management process is complicated. This complexity creates a fear in the mind of employees regarding an organisational change. Storytelling reduces the complexity by expressing the factual information in exciting ways which attracts the audiences towards the information with efficiencies. Stories can change or enhance perception (Gill, 2015). This fact can be explained with the help of cognitive dissonance theory. This theory describes that tension made people in acquiring understanding and knowledge through the senses. By applying the theory in the context, it can be said that the tension that is created by the storytelling makes people in gaining knowledge from the leader who is involved in storytelling. Therefore, with the help of storytelling, a leader can change the perception of employees regarding a change which increases the chances of a lesser number of resistances from the staff.

Most of the modern organisation considers the employees as organisational assets. They are associated with developing either rational engagement or emotional engagement with the employees so that a better relationship can be formed with the employees. Rational engagement is generally established based on the stimulation of the mind, whereas, the emotional engagement is mainly formed based on the stimulation of the heart. Therefore, for developing an emotional relationship and trust with the employees, most of the organisation develops mostly the emotional engagement with the employees (Gill, 2015). This is because emotional commitment has been proved as more critical for achieving the winning result. Compelling storytelling is always essential for an organisation in developing emotional engagement with the employees which creates a trustworthy relationship that not only engages employees in the change process but also increases the employee morale (O’Neill, 2016). Employee morale refers to the overall viewpoint of an individual who works in a workplace that also includes the attitude, emotions, level of satisfaction, an outlook of employees. Good employee morale makes employees confident and satisfied employees, whereas, the low employee morale creates uncaring, negative and angry employees (O’Neill, 2016). Therefore, active employee morale creates job satisfaction among employees which creates a better job performance among them. Thus, from the fact mentioned above, it can be said that organisational narrative has a productive relationship with employee performance. This is because corporate narrative boosts the employee morale, which increases employee performance.

According to Shahbaz et al. (2018), globalisation refers to the description of the growing interdependence of the economies, population and culture of the world that are brought by the cross-border trade in the technology, products, services, people and the flows of investment. Globalisation is all about the distribution of the income and mobility of the labour across countries. Moreover, globalisation is also associated with removing the existing fragmentation in the economy of the world.  Globalisation makes an organisation to focus international market along with the domestic market (Beumer, Figge & Elliott, 2018). Therefore, globalisation creates some organisational change. In the context of the globalisation, the change in the organisation mainly involves the altering the vision and mission of the organisation, introduction of new technology along with new activities and the introduction of the new performance management system and the rating system (Waddell et al. 2019). Changing the organisational structure is also associated with the globalisation. Organisational change is involved in modifying the systems and procedures along with the regulatory responsibilities and structure. For the modification, it is also essential to improve the skills of the organisation so that these changes can be successful (Reese, Rosenmann & McGarty, 2015). For the implementation of change in an organisation, only the allocation of budget, plan for implementing change and involvement of the human resources is not sufficient. For implementing the change, the support of the managers for the employees is highly essential so that the employees can adopt change with efficiencies. As every change require a new type of skills for the organisation, therefore, the development of new skill is highly significant. As stated by Hopper, Lassou & Soobaroyen (2017), change management requires the constant support of the managers for the employees so that the change cannot be stressful for the employees. 

In general, the main characteristics of the globalisation is increasing the global interdependence among different economic actors, a new competitive environment, international labour division along with the free movement of the goods, people, capital along with the information (Lawrence, 2015). As an example of the change caused by globalisation, improvement of the capabilities is necessary so that an organisation can achieve competitive advantages. For the development of the skills of the employees, it is essential in implementing a new performance standard for new rating system, which can create fear among the employees regarding the change (Lawrence, 2015). Moreover, globalisation requires innovation which needed the advancements of technology for achieving sustainability. This is because; the need of customers is different in different countries.

Additionally, customers also wanted to get the product or services which are technologically improved. For satisfying the need of customers, it is essential in applying technological advancements which also requires the improvements of skills among the employees to work in the new technology (Lawrence, 2015). This fact also creates fear among the employees because they think that it can reduce their comfort zone. 

Moreover; they think that this change can create a loss of job for them. Due to this reason, the employee can restrict the changes in their organisation. For reducing the resistance of the employees, it is essential for in making them understand the necessity of changes. In that consequence, organisational narratives can help the corporate leader in reducing the resistance (O’Neill, 2016). With the help of the organisational narratives, the leader can explain the change-related needs by explaining their current condition and the future condition after the implementation of the change. This fact can help the employees in understanding the necessity of change which made them in accepting change. Organisational narratives also improve the employee morale towards change which creates motivation among the employees to take the change. This motivation is highly effective for the employees in showing a higher level of performance.

In this essay, the main focus is given on the importance of organisational narratives on organisational performance in the context  of change management due to globalisation. For offering a clear overview of this section, this essay first gives a brief overview of the corporate narratives. After that, this essay provides a brief overview of how narratives can make the change more comfortable and increase organisational performance. After that, the the changes that are occurred due to the globalisation are highlighted. From the discussion, it can be said that for implementing the change in the organisation, organisational narratives is highly essential. Storytelling helps the leader in making the employees understand the change-related facts more efficiently, which reduces the chances of employee resistance after implementing the change. Organisational narratives help the employees to identify various facts about their organisation that helps them in understanding their values. This fact increases their morale and motivates them in performing better.