Change Management and Legal Compliance in Modern Organizations

Authors

  • Didit Darmawan Universitas Sunan Giri Surabaya
  • Rommy Hardyansah Universitas Sunan Giri Surabaya
  • Sulani Universitas Sunan Giri Surabaya
  • Antonino Pedro Marsal Instituto Boaventura De Timor Leste
  • Eugenia Brandao Da Silva Instituto Boaventura De Timor Leste

Keywords:

change management, legal compliance, organizational legitimacy, regulatory audit, governance, institutional structure, institutional reform

Abstract

Organizational change is a necessity in responding to the dynamics of both internal and external environments. However, the success of the change highly depends on the extent to which the process operates within the applicable legal boundaries. This study aims to examine the relationship between change management and legal compliance through a literature review approach. Data were obtained from relevant academic sources and analyzed thematically to understand the conceptual principles governing the alignment between institutional transformation and legal validity. The study results show that legal compliance is not an obstacle to change, but rather a foundation that strengthens the legitimacy and sustainability of the process. When the law is aligned from the planning stage to the evaluation stage, changes tend to be widely accepted, minimize conflicts, and have a clearer direction. Furthermore, these findings underscore the importance of strengthening regulatory capacity within organizations so that every transformative managerial decision does not violate applicable legal provisions. This study is expected to enrich scientific references in the development of management policies and the strengthening of organizational governance systems oriented towards legal and institutional sustainability.

References

Al Hakim, Y. R., D. S. Sagita, & M. Irfan. (2022). Leadership Influence in Shaping Responsive Organizational Culture in the Face of Ongoing Change, Journal of Social Science Studies, 2(1), 207 – 212.

Beer, M., & Nohria, N. (2000). Breaking the Code of Change. Boston: Harvard Business School Press.

Beşliu, D. C. (2018, May). Institutional management of change. Resistance of the employees against organizational transformations. In Proceedings of the Scientific Conference AFASES, 8, 351-358.

Blanco-Portela, N., Benayas, J., Pertierra, L. R., & Lozano, R. (2017). Towards the integration of sustainability in Higher Education

Institutions: A review of drivers of and barriers to organisational change and their comparison against those found of companies. Journal of cleaner production, 166, 563-578.

Blumberg, D. M., Schlosser, M. D., Papazoglou, K., Creighton, S., & Kaye, C. C. (2019). New directions in police academy training: A call to action. International journal of environmental research and public health, 16(24), 1-14.

Booth, W. C., Colomb, G. G., & Williams, J. M. (2008). The Craft of Research (3rd ed.). Chicago, Illinois: University of Chicago Press.

Bubuljica, H. (2019). Management Of Organizational Changes in The Case of Healthy Competence for The Companies. KNOWLEDGE-International Journal, 26(6), 1605-1610. https://doi.org/10.35120/KIJ26061605B

Burdon, W. M., & Sorour, M. K. (2020). Institutional theory and evolution of ‘a legitimate’compliance culture: The case of the UK financial service sector. Journal of Business Ethics, 162, 47-80.

Burke, W. W. (2002). Organization Change: Theory and Practice. Thousand Oaks, CA: Sage Publications.

Chiva, R., & Habib, J. (2015). A framework for organizational learning: zero, adaptive and generative learning. Journal of Management & Organization, 21(3), 350–368.

Christensen, T., & Lægreid, P. (2001). New Public Management: The Transformation of Ideas and Practice. UK: Ashgate.

Christensen, T., Lægreid, P., & Roness, P. G. (2007). Organization Theory and the Public Sector: Instrument, Culture and Myth. London: Routledge.

Christensen, T., Lægreid, P., & Røvik, K. A. (2020). Organization theory and the public sector: Instrument, culture and myth. London: Routledge.

Craig, P. (2017). Formal and substantive conceptions of the rule of law: an analytical framework. In The rule of law and the separation of powers. London: Routledge.

Darmawan, D. & A. Gani. (2024). Reciprocal Relationships between Psychological Well-Being and Quality of Social Interaction: A Review of Social Exchange Theory, International Journal of Service Science, Management, Engineering, and Technology, 5(3), 5–10.

Ferlie, E., Ashburner, L., Fitzgerald, L., & Pettigrew, A. (2005). The New Public Management in Action. Oxford: Oxford University Press.

Fiene, R. J. (2022). Regulatory Compliance Monitoring Paradigms and the Relationship of Regulatory Compliance/Licensing with Program Quality: A Policy Commentary. Journal of Regulatory Science, 10(1), 1-7

Gautama, E. C. & R. Mardikaningsih. (2022). Driving Sustainable Behavior Change Through Education and Public Awareness, Journal of Social Science Studies, 2(1), 259 – 264.

Gill, R. (2003). Change management--or change leadership?. Journal of Change Management, 3(4), 307–318.

Gorddard, R., Colloff, M. J., Wise, R. M., Ware, D., & Dunlop, M. (2016). Values, rules and knowledge: Adaptation as change in the decision context. Environmental science & policy, 57, 60-69.

Gozman, D., & Currie, W. (2015, January). Managing governance, risk, and compliance for post-crisis regulatory change: A model of IS capabilities for financial organizations. In 2015 48th Hawaii International Conference on System Sciences. US: IEEE.

Hahn, T., Pinkse, J., Preuss, L., & Figge, F. (2015). Tensions in corporate sustainability: Towards an integrative framework. Journal of business ethics, 127, 297-316.

Halizah, S. N. & R. Mardikaningsih. (2022). Accommodating Social Change in Sustainability Policy: Solutions for a Just and Relevant Society, Journal of Social Science Studies, 2(2), 299 – 304.

Hauser, C. (2022). Trade-control compliance in SMEs: do decision-makers and supply chain position make a difference?. Journal of Business Ethics, 179(2), 473-493.

Hill, C. W. L., & Jones, G. R. (2001). Strategic Management: An Integrated Approach. Boston, US: Houghton Mifflin.

Hughes, O. E. (2003). Public Management and Administration: An Introduction. New York: Palgrave Macmillan.

Huse, M. (2005). Accountability and creating accountability: A framework for exploring behavioural perspectives of corporate governance. British Journal of Management, 16(1), 65–79.

Inderberg, T. H. J., Rognstad, H., Saglie, I. L., & Gulbrandsen, L. H. (2019). Who influences windpower licensing decisions in Norway? Formal requirements and informal practices. Energy Research & Social Science, 52, 181-191.

Jackson, J. (2018). Norms, normativity, and the legitimacy of justice institutions: International perspectives. Annual Review of Law and social science, 14(1), 145-165.

Jalagat, R. (2016). The impact of change and change management in achieving corporate goals and objectives: Organizational perspective. International Journal of Science and Research, 5(11), 1233-1239.

Kennett-Hensel, P. A., & Payne, D. M. (2018). Guiding principles for ethical change management. Journal of Business and Management, 24(2), 19-46.

Klein, N., Ramos, T. B., & Deutz, P. (2022). Factors and strategies for circularity implementation in the public sector: An organisational

change management approach for sustainability. Corporate Social Responsibility and Environmental Management, 29(3), 509-523.

Kotter, J. P. (1996). Leading Change. Boston: Harvard Business School Press.

Mair, J., Mayer, J., & Lutz, E. (2015). Navigating institutional plurality: Organizational governance in hybrid organizations. Organization studies, 36(6), 713-739.

Mansaray, H. E. (2019). The role of leadership style in organisational change management: a literature review. Journal of Human Resource Management, 7(1), 18-31.

Mardikaningsih, R. & D. Darmawan, D. (2022). Situational Leadership Strategies to Improve Change Management and Team Performance, Journal of Social Science Studies, 2(1), 247 – 252.

Mardikaningsih, R. & D. Darmawan. (2022). Design and Implementation of Communication Strategy in Change Management, Journal of Social Science Studies, 2(2), 237 – 242.

Marsal, A. P., A. Oluwatosin, & S. Sulani. (2024). The Role of Adaptation Technology to Enhance Social and Economic Resilience to Climate Change. Bulletin of Science, Technology and Society, 3(2), 57-63.

Martinez, V. R. (2020). Complex compliance investigations. Columbia Law Review, 120(2), 249-308.

Midttun, A., Gjølberg, M., Kourula, A., Sweet, S., & Vallentin, S. (2015). Public policies for corporate social responsibility in four Nordic countries: Harmony of goals and conflict of means. Business & Society, 54(4), 464-500.

Moran, J. W., & Brightman, B. K. (2001). Leading organizational change. Career Development International, 6(2), 111–118.

Neumann, J., Robson, A., & Sloan, D. (2018). Monitoring and evaluation of strategic change programme implementation—Lessons from a case analysis. Evaluation and program planning, 66, 120-132.

Oluwatoyin, F. & R. Mardikaningsih. (2022). Community Adaptation Strategy to Climate Change Based on Socio-Cultural Perspective, Journal of Social Science Studies, 2(1), 167 – 172.

Paraschiv, D., Niţu, M., & Savin, M. (2019). Change management within companies. In Proceedings of the International Conference on Business Excellence, 13(1), 625-634. https://doi.org/10.2478/PICBE-2019-0055

Pfeffer, J., & Salancik, G. R. (1978). The External Control of Organizations: A Resource Dependence Perspective. New York: Harper & Row.

Pollitt, C., & Bouckaert, G. (2004). Public Management Reform: A Comparative Analysis. Oxford: Oxford University Press.

Putra, A. R., & S. Arifin. (2022). The Importance of Total Quality Management (TQM) in Building A Sustainable and Adaptive Organizational Culture to Change, Journal of Social Science Studies, 2(1), 67 – 72.

Robbins, S. P., & Judge, T. A. (2007). Organizational Behavior (12th ed.). New Jersey, USA: Prentice Hall.

Rogers, J., & Bell, F. (2022). Transforming the legal profession: an interview study of change managers in law. Legal Studies, 42(3), 446-469. https://doi.org/10.1017/lst.2021.43

Scholz, R. W. (2017). The normative dimension in transdisciplinarity, transition management, and transformation sciences: New roles of science and universities in sustainable transitioning. Sustainability, 9(6), 1-31.

Schwarz, G. M., Bouckenooghe, D., & Vakola, M. (2021). Organizational change failure: Framing the process of failing. Human Relations, 74(2), 159-179.

Scott, W. R. (2003). Organizations: Rational, Natural, and Open Systems (5th ed.). New Jersey, USA: Prentice Hall.

Smart, R., & Pacula, R. L. (2019). Early evidence of the impact of cannabis legalization on cannabis use, cannabis use disorder, and the use of other substances: Findings from state policy evaluations. The American journal of drug and alcohol abuse, 45(6), 644-663.

Soderstrom, S. B., & Weber, K. (2020). Organizational structure from interaction: Evidence from corporate sustainability efforts. Administrative Science Quarterly, 65(1), 226-271.

Sousa-Zomer, T. T., Magalhães, L., Zancul, E., & Cauchick-Miguel, P. A. (2018). Exploring the challenges for circular business implementation in manufacturing companies: An empirical investigation of a pay-per-use service provider. Resources, Conservation and Recycling, 135, 3-13.

Sroufe, R. (2017). Integration and organizational change towards sustainability. Journal of Cleaner Production, 162(1), 315-329.

Stephens, B. (2017). The amorality of profit: Transnational corporations and human rights. In Human rights and corporations. London: Routledge.

Strauss, A., & Corbin, J. (1990). Basics of Qualitative Research: Grounded Theory Procedures and Techniques. Thousand Oaks, CA: Sage Publications.

Suchman, M. C. (1995). Managing legitimacy: Strategic and institutional approaches. Academy of Management Review, 20(3), 571–610.

Tyler, T. R., Goff, P. A., & MacCoun, R. J. (2015). The impact of psychological science on policing in the United States: Procedural justice, legitimacy, and effective law enforcement. Psychological science in the public interest, 16(3), 75-109.

Van Tulder, R., & Keen, N. (2018). Capturing collaborative challenges: Designing complexity-sensitive theories of change for cross-sector partnerships. Journal of Business Ethics, 150(2), 315-332.

Warren, K. (2019). Administrative Law in the Political System: Law, Politics, and Regulatory Policy.London: Routledge.

Weiss, J. W. (2001). Organizational Behavior and Change: Managing Diversity, Cross-cultural Dynamics, and Ethics. Ohio: South-Western College Publishing.

Wettstein, F. (2015). Normativity, ethics, and the UN guiding principles on business and human rights: A critical assessment. Journal of Human Rights, 14(2), 162-182.

Zalnieriute, M., Moses, L. B., & Williams, G. (2019). The rule of law and automation of government decision‐making. The Modern Law Review, 82(3), 425-455.

Downloads

Published

2024-12-29

How to Cite

Darmawan, D., Hardyansah, R., Sulani, Marsal, A. P., & Da Silva, E. B. (2024). Change Management and Legal Compliance in Modern Organizations. International Journal of Service Science, Management, Engineering, and Technology, 6(3), 11–16. Retrieved from https://ejournalisse.com/index.php/isse/article/view/140

Most read articles by the same author(s)

1 2 3 4 5 6 > >>