Resources: Main Page | Research Methods (A) | Major Theories (B) | Issues and Contemporary Topics (C) | Professional Education (D)
Aisle C (Topics and Issues): Agility and Adaptability (CA) | Digital Technologies (CD) | Employee Well-Being (CE) | Diversity, Equity, Inclusion (CI) | 21st Century Leadership (CL) | Resource Management (CR) | Sustainability (CS) | Meaningful Work (CW)
Rack CA (Agility & Adaptability): Agile Methodologies in Management | Resilience and Organizational Change
Jump to: Importance | Research Areas | Foundational Works | TAOP Episodes | References
Why are Organizational Agility and Adaptability Important Contemporary Topics?
Organizational agility and adaptability are increasingly recognized as critical capabilities for organizations navigating the complexities of the modern business environment. Such concepts are particularly relevant in the context of rapid technological advancements, changing market dynamics, and evolving workforce expectations. But rather than a theory, this represents a broad domain of practical problems that organizations and its leaders face. Compared to, for example, contingency theories of organizing that look at how the context drives decisions and actions, agility and adaptability are characteristics of a desired organizational culture that is prepared and resilient against any contingency.
A significant aspect is overall environmental uncertainty and on-going societal, political, and economic change. Many of these are addressed in greater detail in The External Environment (Rack CX), but in summary organizations are concerned about being able to address major drivers of change that they cannot control. These might include, but are not limited to, global economic volatility, continuous technological disruption (also see Rack CD), and geopolitical instability. The COVID-19 pandemic was one catalyst with the supply chain disruptions and political unrest it brought, but significant inflation in the early 2020s, wars in Ukraine and the Middle East, and the arrival of AI and blockchain technologies all contribute to the uncertainties that organizations face. Resilience is a popular term to refer to the character of organizations that are best prepared to cope.
Closer in are other forces of change that affect organizations more directly but that may also appear intractable to leaders or executives. There is the problem of data overload (and AI technologies are sometimes touted as a remedy) and poor data utilization that potentially lead to errors and missed opportunities. There are changes to customer expectations and demands for personalized, immediate, and seamless experiences, while also desiring that the firms operate responsibly and in a sustainable fashion (also see Rack CS). Also shifting are government regulations and oversight, which can also put continuous and variable pressures on organizational activities. These necessitate organizations to stay highly responsive and agile in their approaches to product development, customer service, and maintaining their competitive advantages in the marketplace.
Internally to the organization, cultures that embrace flexibility, experimentation, and quick adaptation can help organizations to thrive. However, establishing such a culture can be challenge and resistance can be a problem. Many organizations have processes, hierarchies, and cultures that may respond to uncertainties by entrenching rather than being agile. Organizations with outdated technologies or business models may find it difficult to transform without significant investment of time and resources.
The types of organizational interventions that can foster greater agility and adaptability are plentiful. The question is to what extent do these approaches work and how leaders and members alike would know. These include adopting cultures of continuous learning to promote greater flexibility, learning, and growth. Training programs, knowledge-sharing initiatives, and leadership development are example of approaches one may use. Leaders can also adopt “agile frameworks” such as Lean to improve their organizational processes to enable faster, iterative responses to change or break down “silos” (or other barriers to horizontal communication and collaboration) to allow faster decision-making and better responsiveness. It is also important to not treat resistance as inherently bad but that it may instead be signs of a legitimate concern that needs to be voiced rather than suppressed (Piderit, 2000).
Relevant Theories or Literature Streams
The menu for this rack lists several subtopics that might be of interest and which we may produce a dedicated page in future. The Rack CA menu at the top and bottom of the page and resource links below will include active and available subpages. Also, Aisle B (Theories) may include resource pages on some of these streams.
Note: This is not intended to be comprehensive, but illustrative of the different perspectives that research can take in matters pertaining to organizational agility and adaptability (Scite, 2024).
Two early literature streams in organization studies are sociotechnical systems theory (STS) and organizational learning theory. STS focuses on the interaction between social and technical systems within organizations. The foundational work by Trist and Bamforth (1951, also see Episodes 34 and 114) highlights the importance of designing organizations that consider both human and technological factors to enhance adaptability and performance. This theory is relevant for understanding how organizations can create environments that support agility. Meanwhile, organizational learning theory emphasizes the importance of learning as a mechanism for organizations to adapt and innovate. Argyris and Schön’s “Organizational Learning: A Theory of Action Perspective” (1978) explores how organizations can develop learning capabilities that enhance their adaptability to changing conditions.
The role of organizational culture in fostering agility and adaptability is a significant area of research. Edgar Schein’s Organizational Culture and Leadership (original 1985) provides a framework for understanding how culture influences organizational behaviors and fosters or inhibits change. Dynamic Capabilities Theory, from David Teece et al. in “Dynamic Capabilities and Strategic Management” (1997), emphasizes the importance of an organization’s ability to integrate, build, and reconfigure internal and external competencies to address rapidly changing environments.
Naturally, agility and agile management is itself a construct in contemporary organizational researh. The concept of agile management has gained prominence in recent years, particularly in the context of software development and project management. The Agile Manifesto (2001) outlines principles that prioritize flexibility, collaboration, and customer responsiveness. This framework has been adapted to various organizational contexts, emphasizing the need for organizations to be agile in their operations and decision-making processes.
Some Contemporary Areas of Research
Please note that this is not to be considered an exhaustive list. We welcome feedback to ensure currency on contemporary challenges and research efforts. This is also not intended to provide a comprehensive look at ongoing research in any of these areas but just to highlight some of the specific topic areas being pursued as of this writing.
Cultural resistance to change. Leaders often encounter resistance from employees who are accustomed to established ways of working. For example, Hernawaty and Syahrani (2022) highlight that organizational culture can significantly hamper agility, making it difficult for leaders to implement necessary changes. This resistance can slow down the adaptation process and hinder the organization’s ability to respond to new challenges. Organizational inertia can be a significant barrier to agility, as established routines may prevent organizations from adapting to new circumstances. Friedman et al. (2015) emphasize that while organizations may adapt over time, inertia can increase the impact of selection forces, making it challenging to implement necessary changes. Leaders are concerned about overcoming this inertia to foster a culture of adaptability. So the question is how can these sources of resistance and inertia be identified and mitigated?
Effective leadership for adaptability. To what extent can leaders or managers foster agility and adaptability, or what may prevent them from doing so — whether from external factors or things that cause them to get in their own way? Grass et al. (2020) discuss how top management behaviors can influence empowerment dynamics and team adaptability, indicating that leaders must navigate complex dynamics to support agile practices. However at the same time, leaders may also be worried about the availability of resources needed to enact the needed changes — financial resources, human capital, and technological infrastructure. Organizations may struggle to allocate resources effectively to support new initiatives, particularly in times of economic uncertainty (Akkaya & Mert, 2022). Thus, to what extent are leaders able to inspire and guide their teams through transitions, especially in rapidly changing environments?
Maintaining legitimacy in a rapid-changing environment. The rapid pace of digital transformation, the evolution of the gig economy, and concerns over sustainability presents challenges for organizations seeking to remain agile while also remaining legitimate in the eyes of their stakeholders. Almatrodi and Skoumpopoulou (2023) discuss how organizational routines must adapt to support digital transformation efforts, highlighting the complexities involved in this transition. The maturation of the gig economy presents complexities for organizations in managing a flexible workforce. Leaders worry about how to integrate gig workers into their operations while maintaining control and ensuring quality (Anwar & Graham, 2020).Leaders are also concerned about how to align agility with sustainability and corporate social responsibility (CSR) initiatives. The need to respond quickly to market changes must be balanced with the organization’s commitments to ethical practices and environmental stewardship (Syafii, 2021). These are other dynamics in the environment may drive managers to focus on sustaining the legitimacy of their organizations (in other words, to keep looking good) which may either provide room for the members to maintain the needed agility or mask problems with keeping pace (Zbaracki, 1998, covered in Episode 121).
Ethical Considerations. As organizations adapt to new work models, there may be ethical concerns that emerge such as related to worker rights, fair compensation, and the impact of organizational practices on employee well-being (Healy et al., 2020). To what extent do these ethical considerations enable or impede the development of needed agility and adaptability in the organization?
Foundational Works
Before 1980, the concepts of organizational agility and adaptability were not as widely discussed as they are today. However, several foundational works laid the groundwork for modern thinking on these topics. These books primarily focus on management theory, organizational design, innovation, and leadership—concepts that are central to building agile and adaptable organizations. Here are some of the most important foundational books from before 1980 that influence thinking on organizational agility and adaptability:
Douglas McGregor, “The Human Side of Enterprise” (1960)
McGregor’s work (which we covered in Episode 59) encouraged a more adaptive and flexible approach to management, emphasizing employee autonomy, collaboration, and innovation—essential for agility. His renowned Theory X and Theory Y framework (Theory X being more authoritarian and Theory Y being more participative) fundamentally challenged traditional, rigid, hierarchical management structures. His emphasis on human motivation and the potential for self-directed teams laid the foundation for more adaptive organizational cultures.
Peter Drucker, “The Practice of Management” (1957) and “Managing for Results” (1964)
Drucker is often regarded as the father of modern management, and his writings on innovation, decentralized decision-making, and organizational effectiveness were revolutionary. His The Practice of Management emphasized “management by objectives” and the importance of creating an organization that could adapt to external changes. Managing for Results explores how organizations can effectively manage change by focusing on results and aligning resources toward achieving goals. Drucker emphasizes the importance of performance measurement and organizational flexibility in adapting to market needs.
Thomas C. Shelling, “The Strategy of Conflict” (1960)
Schelling’s work on strategic decision-making, negotiation, and conflict resolution provides valuable insights into how organizations can adapt in the face of competition, market changes, or crises. His game theory analysis offers a framework for understanding strategic decision-making in uncertain environments.
James D. Thompson, “Organizations in Action” (1967)
Thompson’s work on organizational systems (which we covered in Episode 90) and the contingency theory of management (see Rack BC) suggests that organizations must adapt their structures and processes to their external environments. This work introduced concepts like interdependencies and organizational behavior that are key to understanding how organizations remain flexible.
Related TAOP Episodes, Events, and Notes
55: Group Dynamics and Foundations of Organizational Change – Kurt Lewin
Available Resource Pages
Aisle C – Management Topics
Rack BH – Human Dimension – Culture, Climate, Identity
Rack CA – Organizational Agility & Adaptability
Rack CD – Digital Transformation and Future of Work
Rack CE – Employee Well-Being & Mental Health
Rack CI – Inequality and Justice
Rack CL – Leadership in the 21st Century
Rack CR — Resource Management
Rack CS – Sustainability and Corporate Social Responsibility (CSR)
Rack CW – Meaningful Work
References
Akkaya, B. and Mert, G. (2022). Organizational agility, competitive capabilities, and the performance of health care organizations during the covid-19 pandemic. Central European Management Journal, 30(2), 2-25. https://doi.org/10.7206/cemj.2658-0845.73
Almatrodi, I., & Skoumpopoulou, D. (2023). Organizational routines and digital transformation: An analysis of how organizational routines impact digital transformation transition in a Saudi university. Systems, 11(5), 239.
Anwar, M. and Graham, M. (2020). Between a rock and a hard place: freedom, flexibility, precarity and vulnerability in the gig economy in africa. Competition & Change, 25(2), 237-258. https://doi.org/10.1177/1024529420914473
Argyris, C. & Schoen, D. A. (1978). Organizational learning: A theory of action perspective. Addison-Wesley.
Drucker, P. (2012/1957). The practice of management. Routledge.
Drucker, P. (2006/1964). Managing for results. Harper Business.
Friedman, Y., Carmeli, A., & Tishler, A. (2015). How ceos and tmts build adaptive capacity in small entrepreneurial firms. Academy of Management Proceedings, 2015(1), 15278. https://doi.org/10.5465/ambpp.2015.15278abstract
Grass, A., Backmann, J., & Hoegl, M. (2020). From empowerment dynamics to team adaptability: exploring and conceptualizing the continuous agile team innovation process. Journal of Product Innovation Management, 37(4), 324-351. https://doi.org/10.1111/jpim.12525
Healy, J., Pekarek, A., & Vromen, A. (2020). Sceptics or supporters? consumers’ views of work in the gig economy. New Technology Work and Employment, 35(1), 1-19. https://doi.org/10.1111/ntwe.12157
Hernawaty, H. and Syahrani, M. (2022). Managing workforce agility through bureaucratic leadership and organizational culture in public service mediated by psychological empowerment. Jurnal Manajemen Dan Pemasaran Jasa, 15(2), 197-212. https://doi.org/10.25105/jmpj.v15i2.12656
McGregor, D. (1960). The human side of enterprise. McGraw-Hill.
OpenAI. (2024). What are the greatest challenges organizations face today being agile and adaptable against the dynamics of the global or local environments; What are the foundational theoretical streams or texts from before 1980 that organization researchers are using most to examine matters of organizational agility and adaptability. ChatGPT (November 2022 version) [Large Language Model].
Piderit, S. K. (2000). Rethinking resistance and recognizing ambivalence: A multidimensional view of attitudes toward an organizational change. Academy of management review, 25(4), 783-794.
Schein, E. (1990). Organizational culture. American Psychologist, 45(2), 109-119. https://doi.org/10.1037/0003-066x.45.2.109
Schelling, T. (1960). The strategy of conflict. Harvard University Press.
Scite. (2024). What is the meaning of organizational agility and adaptability in organizational studies and why it is an important contemporary issue; What worries organizational leaders about their organizations’ barriers to agility or incapacity to adapt to contemporary changes in the environment; What are the foundational theoretical streams or texts from before 1980 that organization researchers are using most to examine matters of organizational agility and adaptability. Scite (April 2024 version) [Large Language Model].
Syafii, M. (2021). Socially responsible investment. Fara Id and Wealth Management, 1(1). https://doi.org/10.58968/fwm.v1i1.158
Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic management journal, 18(7), 509-533.
Thompson, J. D. (2017/1960). Organizations in action: Social science bases of administrative theory. Routledge.
Zbaracki, M. (1998). The rhetoric and reality of Total Quality Management. Administrative Science Quarterly, 43(3), 602-636.
Jump to: Importance | Research Areas | Foundational Works | TAOP Episodes | References
Rack CA (Agility & Adaptability): Agile Methodologies in Management | Resilience and Organizational Change
Aisle C (Topics and Issues): Agility and Adaptability (CA) | Digital Technologies (CD) | Employee Well-Being (CE) | Diversity, Equity, Inclusion (CI) | 21st Century Leadership (CL) | Resource Management (CR) | Sustainability (CS) | Meaningful Work (CW)
Resources: Main Page | Research Methods (A) | Major Theories (B) | Issues and Contemporary Topics (C) | Professional Education (D)