Abstract:

There are numerous academic studies on organisational change that are based on research conducted on organisations operating in the private business sector. This study investigated the organisational change strategies adopted by a non-profit pharmaceutical company based in Pinetown, South Africa. The organisation was faced with operational inefficiencies and a declining financial position that prompted the leaders to embark on an organisational change strategy to address the problems. The aim of the study is to investigate how the organisational change strategies have affected employee morale and performance. The findings of the study indicated that three major organisational change strategies were implemented, being structural, behavioural and turnaround strategies. The specific strategies were the restructuring of divisions, sales growth strategy, and organisational culture change. The findings confirm that employee morale has declined since the changes were implemented. The lack of employee participation in the planning of the change strategy, confusion over desired behaviours, lack of role clarity, and high job insecurity, all contributed to this low morale. Performance however has not been negatively affected, as 49% of participants agree that they are making greater effort since the changes were implemented and are still committed to the organisation. Recommendations to management to address the low employee morale include increasing dialogue with employees by allowing them to participate in the planning of future changes. Organisational change affects career plans and progression; therefore management should provide career development support to have a committed workforce. Key Words: Organisational Change, Employee Morale, Operational Inefficiencies, Change Strategies.

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