Change In The Management Of Organization Business Essay
According to Mullins (2007, p 733) "change is a pervasive influence. It is an inescapable part of both social and organisational life and we are all subject to continual change of one form or another." The effects of change can be studied at different levels. Change can be studied in terms of its effect s at the individual, group, and organisation, and society, national or international level. However, because of it is everywhere in nature, change at any one level is interrelated with changes at other level, and it is difficult to study one area of change in isolation.
Laurie J, Mullins (2007). organizational management. London: British Publisher. 733.
David Evans (1999, p 221)," change as the 'substitution or succession of one thing in place of another; substitution of other conditions; variety'. " All the elements point to possible danger areas-'newness' which is often distributed because it is new; 'substitution, or replacement which could lead to fears of the unknown; and 'variety' , which again takes us away from simple, familiar things.
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David Evans (1999). Supervisory Management, Principles and Practice. 5th ed. London: Redwood Books, Trowbridge, Wiltshire. p 221.
Carnal, (2007), Change being the most important aspect of businesses these days, should be dealt with, very carefully in order to achieve the goals and objectives desired by the management of the business. The world is moving at a fast pace and only those businesses will survive in the market who plan and administrate the changes in their business very effectively and properly. The strategy for the implementation of the change should be a perfect one without any loopholes in it. To keep pace with this fast moving world and to excel in the market, a business needs to bring about some changes in its way of working to become more efficient and run successfully. These changes could be in any mode that is in to replace the currently system being used by a modern one or to use the new technology in it.
Colin A, C (2007). Managing Change in Organization. 5th ed. London: Prentice Hall, . p305.
Web 2,Tesco is the world`s number three retailer and it is operating in 14 countries these days including China, India, United States of America and United Kingdom. It`s base country and its head office is in UK. It has employed 468508 people worldwide with 286394 only in UK. It has 4308 stores in these 14 countries with 2282 only in UK. Tesco is looking forward to increase it until 2007, Tesco used to carry on its business in stores only. There were no online shopping services available at Tesco. In the late 2007, it was proposed, that Tesco should introduce online shopping for its customers. In this way, customers can have anything of their choice at home by a single click on the computer screen saving their time. After the management finalized the decision, tesco.com was launched business in other countries worldwide to give its competitors a tough competition. The launching of tesco.com produced very healthy results. It produced a rapid 14% increase in sales with the profits rising 26% to £136 million. Tesco.com was the third most visited website in UK. It captured more than a million customers. Since tesco.com has been launched, the costs Tesco incurred were reduced by over 20% in the last three years. Customers were given an option to get the goods delivered at their door or they can pick it from 261 stores nationwide. Tescodirect.com, which is a sister website of tesco.com also produced great results growing the sales by 28%.
Web 3, Kfc is operating in 80 countries these days with more than a billion diners annually throughout the world. Kfc became public company in 1966 and it was acquired by PepsiCo, Inc .In 1969. In 1997, PepsiCo, inc. spun its restaurants and YUM Company bought it which has over 32500 system units in over 100 countries worldwide. Recently, Kfc has authorized some of its branches to sell halal chicken in UK. As there are a lot of Muslims in UK, who are forbidden to eat any chicken other than halal according to their religion, Kfc management thought that they should make its branches halal in the areas where Muslim population is dense. It will bring profit as well as will attract the Muslim customers to it. Kfc making its branches halal in Muslim community areas showed great results. It attracted a lot of those customers who had never been here before due to their religious reasons. It helped in bringing peace among the people and removed the distinction of religions in terms of food. As a result, there was a big increase of 30 % in sales creating great profits.
Joseph, (1991), the bureaucratic organizations, we should know that what a bureaucratic organization is. A bureaucratic organization is one where the laws and conditions are fully comprehensive and everything happens in accordance with the laws. Administration has to abide fully by the laws. In bureaucratic organizations, there are formal and informal channels of communications and a hierarchy exists which means that the powers and authorities are distributed properly.
Raelin, J.A. The Clash of Cultures: Manager Professionals, Massachusetts, 1991.
Web4 United States postal service is an independent organization working under the government of United States. Benjamin Franklin laid its brick in 1775 in Philadelphia. It is providing the postal facilities to the people of United States and it is employing 596000 employees and 218000 vehicles. It is United States second biggest civilian employer following Wal-Mart. It is currently working under the United States cabinet. The efficiency of USPS is remarkable. Though it is a government organization, still the success and growth rate of the organization is very high. It is providing services to other government organization as well as the private organizations and the common people. We can get an idea of its efficiency by the note given by Supreme Court in 2006 which was,
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"Each day, according to the Government's submissions here, the United States Postal Service delivers some 660 million pieces of mail to as many as 142 million delivery points."
USPS has left its competitors far behind in terms of efficiency. It is operating 32700 post offices countrywide. USPS has the world largest fleet of vehicles with over 260000 vehicles. It is being modernized and technical advancements are being made in order to compete with its competitors which are e mail and united parcel force. The impact of USPS on its environment can be stated, There are different separate departments in USPS e.g. policy office, office of strategic planning etc. Every department is responsible for whatever happens in it. Every head of department is responsible for its department. No department helps the other department. It has a rigid structure towards change. Jobs are based mostly on permanent basis. Career progression is based on experience and personal relations and not on the performance basis. As the USPS is a bureaucratic organization administrated federally, therefore the process of change is very slow. This is a basic reason for the downfall of bureaucratic organizations. Any change in its process or the way in the running of its business has to be authenticated first by the board of eleven directors out of which nine are selected by the president on their experience basis or on the basis of their personal relations.
web5 International revenue service is the world`s most efficient tax collecting organizations working very effectively under the government of United States. In 2009, they collected the tax amounting $ 2.3 trillion and more than 236 million tax returns were filed. The efficiency of IRS as told above is remarkable. It ct is the world`s largest tax collecting agency and collected $2.3 trillion last year. The tax returns were filed in the largest number amounting 236 million. They have introduced a system of filing your tax returns online these days and this system is getting popular among the people. In 2009, the number of online applications filed was 70% more than those which were filed in 2008. The impact of IRS on its business environment is not that negative as the impact of most of the others bureaucratic organizations. IRS started outsourcing by giving contracts to private tax collecting agencies in 2006, but it had a strong negative effect in the environment and therefore, it ceased it in October 2009. A lot of tax proportion was being paid to those private agencies. The impact can be understood by considering the employees blame "bureaucrats" for everything which happens in a wrong manner. The managers do not like bureaucracy anymore than any of the other employees. It is not driven by the "mission driven model" but is driven in accordance with what the government says. There is no system of employees` development as the promotions made are experience based. A bureaucratic organization has a very rigid structure and changes do not affect it that often. However, in this fast running world, to bring a change in the business is mandatory. In IRS, the tax laws are passed by the government and the organization has to work in accordance. The changes are made by the IRS commissioner who is appointed by the government of that time. The commissioner has to consult with White House in order to bring about the changes.
Mullins, (2007), the effective management of change must be based on a clear understanding of human behaviour at work. Most people are not detached from their work but experience a range of emotional involvements through their membership of the organisation, they feel threatened and disoriented by the challenge of change. Emotions such as uncertainty, frustration on fear are common reactions. It is understandable therefore that people often adopt a defensive and negative attitude, and demonstrate resistance to change. It is important to remember that change is a complex and powerful psychological experience, and that individuals react internally to change.
Laurie J. M, (2007), Organisational Management, 8th ED London
According to Atkinson, a major problem in driving change in organisations is dealing with and managing the resistance that will be encountered - but that resistance should be welcomed as a healthy response to change. In the absence of really positive benefits from the proposed change, the 'default' response of resistance is acceptable. It is unusual for any change not to attract some resistance. Even with foresight, pre-planning and all the apparent logic the need to change, you should expect some resistance as the norm. Recognise and welcome it as a healthy response and an opportunity to openly debate possibilities and treat resistance as a powerfully ally in facilitating the learning process.
Philip Atkinson, 'Managing resistance to change'
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Mullions, (2007 p 743), the successful implementation of new work methods and practices are dependent upon the willing and effective co-operation of staff, managerial colleagues and union. People are the key factor in the successful management of change. If change is to work, it must change the perceptions, attitudes and behaviour of people. Change has become such a fact of business life; it is worrying that so many change management programmes fail to fulfil their potential. The consensus among the experts is that it is often the people factor the derails the effort. Simply, organisation knows where they want to go - but they are not taking their people with them.
Laurie J. M, (2007), Organisational Development, Culture and Change, 8th ED London
Huczynski and David, (2007 p 601,602), in 1999, when the Bacardi Group took over John Dewar & Sons, a Scotch whisky distilling company, and management wanted to change aspects of the organizational culture and working practice. They negotiated an agreement with the trade unions which represented around 200 employees, committing both sides to a partnership based on consultation, skills development, flexible working and sharing information about company performance and management plans (Margolis, 2001), this participative approach to change is now conventional practice. Lester Coch and John French (1948) at the Harwood Manufacturing Corporation in Marion, Virginia. The company made pyjamas, and employees were complaining about frequent changes in work methods and pay rates. Absenteeism was high, efficiency was low, output was restricted deliberately and employees were aggressive towards supervisors. Most of the grievances concerned the fact that, as soon as they had learned a new job and started to earn bonuses, they were moved to another task. This meant that they had to start learning all over again, during which time they lost the bonus. Coch and French (1948) designed an experiment with three production groups, each with different level of participation in introducing changes. However, they participated fully in the changes, which resulted in a rapid increase in efficiency. This result confirmed that it was not the people involved but they way in which they were treated that affected resistance to or acceptance of changes. Since that study employee participation has been standard advice for managers seeking to encourage a welcoming and creative approach to change and avoid resistance.
Andrzej, A., Huczynski. David, A., Buchanan. (2007 p 601,602), Organizational Change, 6th ED London
Huczynski and David, (2007 p 597,598), it is often possible to anticipate responses to change, and to use that knowledge both to develop support for change and also to address resistance to change at an early stage. Change has both positive and negative aspects. On the one hand, change implies experiment and the creation of something new. On the other hand, it means discontinuity and the destruction of familiar arrangements and relationships. Despite the positive attributes, change can be resisted because it involves confrontation with the unknown and loss of the familiar. It is widely assumed that resistance to change is natural. Many people find change both painful and frustrating. They are different causes of resistance to change. Change may threaten to move us out of our 'comfort zone', away from those things which we prefer and enjoy. We develop vested interests in the perpetuation of organization structures and technologies. Change can mean loss of power, prestige, respect, approval, status and security. Change can also be personally inconvenient. It may disturb relationships and other arrangements that have taken time and effort to establish. It may force an unwelcome move on location. We are mo likely to resist change when we do not understand the reasoning behind it. Resistance can be reduced through improved understanding. If managers have little trust in their employees, information about changes may be withheld or distorted. We each differ in the ways in which we perceive and evaluate the costs and benefits of change; a major disruptive threat for me can be a fresh and stimulating challenge for you. we are differ in our abilities to cope with change, to face the unknown and to deal with uncertainty. Change that requires people to think and behave in different ways can challenge the individual's self-concept.
Andrzej, A., Huczynski. David, A., Buchanan. (2007 p 597,598), Organizational Change, 6thED London
Huczynski and David, (2007), there are different technique for managing resistance. Education and commitment, managers should share their perceptions, knowledge and objectives with those affected by change. This can involve a major and expensive programme of training, face-to-face counselling, group meetings and the publication of memos and reports. People may need to be informed about the nature of the problems necessitating change. Resistance may be based on misunderstanding and inaccurate information. It therefore helps to get the facts straight, and to identify and reconcile opposing views. Participation and involvement those who might resist change should be involved in planning and implementing it. Collaboration can have the effect of reducing opposition and encouraging commitment. Managers can use this approach only where participants have the knowledge and ability to contribute effectively, and are willing to do so. Facilitation and support Employees may need to be given counselling and therapy to overcome fears and anxieties about change. Negotiation and agreement It may be necessary to reach a mutually agreeable compromise, through trading and exchange. Manipulation and co-optation This involves covert attempt to sidestep potential resistance. Co-optation involves giving key resistors direct access to the decision -making process, perhaps giving them well-paid , high -status management position. Implicit and explicit coercion Where there is profound disagreement between those concerned with the change, and where there is little chance to anyone shifting their ground, it may be appropriate for management to abandon attempts to achieve consensus and resort to force and threat. It may be sufficient to offer to fire, transfer or demote individuals, or block their career prospects.
Andrzej, A., Huczynski. David, A., Buchanan. (2007 p 599,600,601), Organizational Change, 6thED London
At the end, I would like to say that change in the management of organization can produce very bad effects on a business if not dealt with carefully. Therefore, it is a very sensitive issue and proper attention should be given to it. While implementing a change, a business should be aware that what type of business is it going to be, that is whether it is going to have a bureaucratic structure or a non bureaucratic structure. The next step is to select the best model for implementing that change. A number of models are being used these days by the businesses to bring the change, but it should be selected very carefully. Then come the requirements for the implementation of the selected model. They should be taken into account very carefully. And at the last but not least, come the stakeholders. Their interests should be secured. They are the backbone of the company so they should be convinced prior to bring about the changes in the company.
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