The Proactive Strategic Change Commerce Essay

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It is well determine that strategies of organization are likely to change the following recognition of serious difficulty or in the countenance of declining performance (Boeker, 1989). Proactive strategic change can define as a change strategy that occurs in the lack of identifying problems or decreasing performance. This is very complicated for organization to make major changes, whether proactive or problem- driven that the punctuated equilibrium paradigm suggests. (Tushman and Romaneli, 1985; Gersick, 1991). Tushman and Romaneli emphasis responsibility played by person in charge very essential that lead to strategic reorientations when organization complicated to make changes. The strategy progressions agree that a key responsibility of person in charge is to ascertain the organizations within strategic decision are made. (Chakravarthy and Lorange, 1991). The probability non-performance-induced changes and the environment situation in strategy within their organization will affect of person characteristic distinction. ( O'Reilly, 1991; House and Rousseau, 1992).

According to Mischel (1977), poor and high situations important to describe situational distinction and identifying the cause that affect a person to start the strategic change. Tough situations are those who can interpret the situation in the similar technique to responses appropriately, motivate and potential to respond. Most people have ability to appropriate responses and also skill that essential to respond. Action make by person distinction will influences by situational factors in making decision. In opposition, poor situations are those in which uncertainty about the importance of the situation and suitability of different responses. This is because individual response is uncertain and potential to respond may be different.

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1.2 Objective

To determine the personality individual and situation strength that generates proactive strategic change.

1.3 Problem statement

To estimate effect of specific personality trait on productive strategic change

To estimate effect of specific situation strength on productive strategic change.

1.4 Hypothesis

H1: Tolerance for ambiguity will have a significant positive relationship with proactive strategic change.

H2: Openness to experience will have a significant positive relationship with proactive strategic change.

H3: motivation to respond will have a significant positive relationship with proactive strategic change.

H4: ability to make that response will have a significant positive relationship with proactive strategic change.

Chapter 2: Literature review

2.1 Introduction

This proposal determine the relationship between person differences construct such as tolerance for ambiguity and openness to experience and also the precursor of situational strength such as motivation to response and ability to make that response with the proactive strategic change.

Proactive strategic change

Proactive is the main differentiator to difference behavior of people and organization. Proactive change which occurs in the absence of performance declining or environmental risk will not state dominating (Bateman, 1999).

2.1.2 Tolerance for ambiguity

According to (Budner, 1962) uncertainty situations are those that insufficiently structure or classify by a person due to inadequate information. Ambiguity is a riskier arises of doubt. The definition of intolerance for ambiguity is a propensity to recognize or interpret information noticeable by ambiguous, imperfect, fragment, various, feasible, unstructured, doubtful, not consistent, opposite, contradictory or indistinct meaning as actual or possible sources of psychological discomfort or threat (Norton, 1975).

2.1.2.1 Tolerances for ambiguity and proactive strategic change

Norton's determine that tolerances for ambiguity are expose stability across various situations and will be consider as a stable personality characteristic. Uncertain and ambiguous outcome will be evaluating before decision to change are implement.

H1: Tolerance for ambiguity will have a significant positive relationship with proactive strategic change.

2.1.3 Openness to experiences

According to (McCrae and Costa, 1985) human personality represent five broad aspects that once is openness to experience. People that openness to experience more prefer to initiate than to conservative. That is compare with people closes which not interest with the new suggestion or things.

2.1.3.1 Openness to experiences and proactive strategic change

People that openness frequently creative and able to conduct a capacity for original thinking. For new experiences, people openness can expect such people then they also more prone than closes people to make proactive strategic (McCrae, 1987).

H2: Openness to experience will have a significant positive relationship with proactive strategic change.

2.1.4 Motivation to respond

According to (Burke, 1994) determine that motivation may be ambitious by the present of inducement for the agree response. For example of inducement involve the degree and certainty of the outcome accumulates to organization and person decision making.

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2.1.4.1 Motivation to respond and proactive strategic

To ensure that person is maintaining motivate to response, reward system can be implement such as bonuses, promotion and special awards. For example, if person get reward, they will more motivate. The rewards must align with the proactive efforts (Bateman, 1999).

H3: motivation to respond will have a significant positive relationship with proactive strategic change.

2.1.5 Ability to make that response

Ability to make that response will generate by resources and principal competencies (Prahalad and Hamel, 1990). Strong situation will present when many threat with enough resources and main competencies encourage recognizing strategic alternative. When organization not has same ability to response appropriately, distinction in organization competency is posited to play a part responsibility whether to continue or not.

2.1.5.1 Ability to make that response and proactive strategic

Example in an organization, managers should underline the context of organization plan and mission to motivate proactive behavior. This is important to setting the goals for ensure that employee responsibility to the strategic plan and understand that proactive behavior is necessary of success. Therefore, when employee give ideas of ambiguous merit, manager have to response whether that ideas are accept or give reasonable reason when to reject the ideas (Bateman, 1999).

H4: ability to make that response will have a significant positive relationship with proactive strategic change.

2.2 Research framework

Tolerance for ambiguity

Proactive strategic change

Ability to make that response

Motivation to make that response

Openness to experience

Variable definition:

Proactive strategic change

Proactive performances differentiate a person from the pack and organization from the other of the market places. Proactive include generate change and not merely anticipating it. That means it must to include the essential of flexibility and adaptability toward an ambiguous future. A person proactive is able to take the advantage in improving business. Conversely, not proactive person is always sitting backside, give opportunity to others for make things happen and passively. All people can generate the change but actually not all of them can be proactive. (Bateman, 1999)

Tolerance for ambiguity

According to (Ely, 1989) give positive response of uncertain situation and lack of clear lines of demarcation is definition of tolerance of ambiguity. (Ehrman and Oxford ,1995) mention that people that potential take risk can tolerate ambiguity. Ehrman (1993, p. 331) present three concept which include the ability to receive new information, to accept incomplete information without reject it and to adapt one's existing cognitive, affective, and social schemata in light of new material.

Openness to experience

Active imagination, aesthetic sensitivity, attentiveness to inner feelings, a preference for variety, intellectual curiosity and independence of judgment are the element of openness to experiences. People that open is curious about internal and external worlds. They experience both positive and negative emotions more keenly than do closed persons. Research has shown that openness to experience is related to success in consulting (Hamilton, 1988), training (Barrick & Mount, 1991; Vinchur et al., 1998) and adapting to change (Raudsepp, 1990).

Motivation to response

Ability to make that response

Positive change usually generate from person that have high degree of self-esteem, personal competence and self- confidence. This person also has potential to response to change and see it as a advantage. For example, when in an organization supervisor and employees link together to support and implement change to other employees. (Stark, 2010).

Chapter 3: Methodology

3.1 Data collection

Method that will use for collect the data is questionnaire that will distribute to all employees in an organization. The questionnaire will cooperate with the dependent variable and independent variable to obtain accurate finding toward the problem statement and objective. This questionnaire will use because it is more easy and quickly to obtain the data. Beside that, more than 10 literatures data are needed in order to conduct this study and accuracy purposes. The literature data mostly obtain through reading and internet searching. The sources in obtaining these preliminary data for example are books, journals, previous studies and etc, which may relay.

3.2 Data analysis

The process for transfer data to computer will use statistical software such as SPSS.