Exploring the Direct Influence of the Organizational Change Process on Organizational Performance

Abstract

Organizational change can significantly impact organizational performance, but this impact can be different depending on the nature and purpose of the change and how it is managed. The paper proposes a model for evaluating the effects of the organizational change process on organizational performance, staff retention, and organizational abandonment. The empirical study in which the model is tested was carried out among 294 employees from Romanian organizations who answered the questionnaire questions. Structural equation modeling was used to process the data and obtain the results. Effective change management and employee involvement in the change process can contribute to the success of organizational change and the development of a positive organizational culture, leading to increased organizational performance, high employee retention, and the organizational dropout rate minimization. In addition, organizations should also consider open and transparent communication with employees, as well as providing support in developing the skills and competencies of employees so that they can adapt to organizational changes and contribute to the organization's success.