Application of Neo-institutional and Practice Theory to Fuji Xerox Essay

Application of Neo-institutional and Practice Theory to Fuji Xerox - Essay Example Fuji Xerox Australia Institutional Design In 1990s organizational change and need for adaptation appeared as a core issue in organizations due to complexity in the political, regulatory and technological environment (Greenwood and Hinings 1996). This ability to embrace change and adapt to it has become a key factor in an organization’s survival and retaining a competitive edge. Minor(2007, p351) describes institutionalization as a process by which specific behaviors or activities are cognitively and normatively applied in an organization, so that it is taken for granted that they are lawful. The institutional theory there by, does not focus on organizational change but on isomorphism and stability of an organization (Greenwood and Hinings 1996). Fuji Xerox executive Mr. Gorrie explained the organizational design as a process by which FX aligns their business processes for creating an efficient decision-making process work-flow. Furthermore, they have a reward system to motivat e employees to engage in behavior that is congruent with their environmental conservation goals. Situation Analysis Application of Neo- Institutional Theory Initially it was considered that perhaps institutionalization could be detrimental to an organization’s ability to embrace change. This concept was replaced by a newer one that proposed that institutionalization could actually serve as an excellent basis to propagate change (Greenwood and Hinings, 1996). Recent developments in Neo-institutional theory have highlighted the capacity of various organizational factors to function as agents of institutional change. This concept can be extrapolated to the concept of institutional entrepreneurship, which implies that organizations develop and manipulate structures to work toward their strategic objectives (Nelson, Neri and Paul, 2007). Mr. Gorrie suggested a practical example of change management that was supported through institutionalization. He suggested that when FE was awar ded the contract for New South Whales Government worth $300 million. The contract required for FE to supply multi-function devices to all higher educational institutions under the umbrella of NSW. The project was huge and the organization was under a great deal of pressure about their capability to meet such a massive demand. That required for extensive change management, this required for massive expansion to deliver the order and manage their daily operations. So in light of institutionalization, the change was communicated trough top management and intranet throughout the organization. Furthermore, a senior manager was appointed to ensure that the change was properly communicated and implemented. Application of Practice Theory The main concerns for practice theory are the dynamics of action and the social environment in which the action takes place. According to Feldman and Orlikowski (2011) Practice theory can be applied to an organization in three ways: Firstly the Empirical fo cus that deals with how people act in the context of the organization, secondly the Theoretical focus which relates the actions of employees to that on the social structures of life, and thirdly the Philosophical focus that addresses the constructive role that organizational practices play in creation of social reality. Mr. Rodney