Why Organisation Change Management Is Important Commerce Essay
Change management is a systematic approach to leading with change, both from the perspective to an organisation and an individual level. There are three different aspects:
Adapting to change. For example, adaptive organisation is one that can effectively innovate, adapt and perform in the face of adversity (not just in a good times) Adapting organisation often bounce back even stronger when stressed versus being flattened by their own inability to change.
Adapting organisation characteristics:
- Clear focus around purpose and goals.
- Flexibility and openness to new approaches, roles and ways of getting work done.
- Creativity and a proactive approach to finding opportunities to improve.
- Top leaders open to employees' influence.
- Cooperation and open communication.
Controlling change. The procedures to ensure that all changes are controlled, including the submission, recording, analysis, decision making and approval of the change.
Effective change is one of the manager most important jobs, requiring the monitoring assessment and correction of results. An analysis and evaluation of the change is needed, as it is important to know how the change has affected the organisation.
Organisation change is important as, though the research finds that change is taking place at an ever-increasing pace.
Recent CIPD (Chartered Institute of Personnel and Development) research suggest that most change initiatives fail and less than 60% of organisations met their stated objectives which are usually bottom line improvement.
Failures to introduce effective changes can lead to:
loss of market position
removal of top management
loss of stakeholder* credibility
loss of key employees
*Useful tips - stakeholder definition.
According to Wikipedia:
Stakeholder is a person or organisation that has legitimate interest in a project or entity. In discussing the decision - making process for institutions - including large business corporations, government agencies and non-profit organisations - the concept has been broadened to include everyone with an interest (or "stake") in what the entity does.
Managing the changes in an organisation requires a broad set of skills: analytical, political, business, system and people skills. Having great analytical skills, for example, will make manager a good change agent. He also should evaluate the political and financial impacts of the changes that can take place. Manager should be aware that following a particular process at that instant would fetch him immediate financial effects and start that process so that the change process is noted by the management. The workflow has to be changed in a way of reflecting the financial changes that occur. Operations and systems in the organisation should be reconfigured in a way of getting the desirable financial impact.
Consequently change management is an important role in an organisation. This allows the organisation to give a reactive or a proactive response to the changes that occur internally or externally. Knowing the change management and its process would help an organisation and its processes to be stable.
4.3 Major factor should manager consider when changing an organisation.
There are many things which manager should consider when changing an organisation:
Impact the psychological, emotional and physical states of employees (organisational change can impact the psychological, emotional and physical states of companies employees, many people experience comfort zones and develop barriers during their daily lives.)
Challenge and stress peoples (change in company operations can challenge and stress peoples values and central core beliefs.)
Resistance to change (resistance to change can be defined as an individual or group engaging in acts to block or disrupt an attempt to introduce change. Resistance itself can take many different forms from subtle undermining of change initiatives or withholding of information to active resistance, for instance through strikes.)
Resistance to the content of change (for example to a specific change in technology or to the introduction of a particular reward system.)
Resistance to the process of change (for example, management re-structure jobs without prior consultation of affected employees.)
Management need to be aware of these different factors to ensure they respond appropriately.
Suggested reasons for resistance include: loss of control, shock of the new, uncertainty, inconvenience, threat to status and competence fears. It is important to try to diagnose the cause of employee resistance as this will help determine the focus of effort in trying to reduce and remove the issue.
Manager should also consider which type of changes he going to follow, because it helps all participants to retain scope and perspective and also it creates frequent frustration during new change. And below I describe which types of changes as a manager we can follow:
Planned (carefully thought through, based on data ,documented) Planned change occurs through a full iteration encompassing the four phases, i.e. starting with an operation and maintenance phase, flowing through initiation, development, and implementation, and arriving at a new operation and maintenance phase.
Unplanned (occurs through fixes, adaptations, and experimentation that can occur within any phase)
Organisation wide (examples of organisation-wide change might include a change in mission, restructuring operations , new technologies, mergers, major collaborations, re-engineering, etc.)
Change Primarily (smaller changes such as adding a new person, modifying a program, etc.)
Incremental (incremental changes are gradual improvements, slow change)
Transformational (radical ,fundamental)
Difference between structural changes and people changes.
Here are other factors to consider when changing an organisation:
The Change Agent
Determining What should be Changed
The kind of Change to Make
Individuals affected by the Change
Evaluation of the Change
The Change Agent:
The change agent might be a manager inside the organisation or an outside consultant hired because of a special expertise in a particular area. He might be responsible for making very broad changes, like altering the culture of the whole organisation; or more narrow ones, like designing and implementing a new safety program or a new quality program.
Special skills are necessary for success as a change agent. Among them are the ability to determine how a change should be made, the skill to solve change related problems, and facility in using behavioural science tools to influence people appropriately during the change process.
Probably the most overlooked skill of successful change agents, nevertheless, is the ability to decide how much change employees can resist. Leadership should choose agents who have more experience in all these fields. A potentially advantageous change might not result in any advantages for the organisation if a person without experience in these areas is designated as a change agent.
Determining What should be Changed:
Organisational effectiveness depends on three classes of factors:
People (people factors are leadership skills, attitudes, communication skills, and all other characteristics of the human resources inside the organisation)
Structure (structural factors are organisational controls, such as policies and procedures)
Technology (technological factors are any type of equipment or processes that assist organisation members in the performance of their jobs.)
For an organisation to maximize its effectiveness, appropriate people must be matched with appropriate technology and appropriate structure.
The kind of Change to Make:
Most changes can be categorized into one of the three kinds:
Technological b) Structural c) People
These three kinds of change correspond to the three main determinants of the organisational effectiveness - each change is named for the determinant it emphasizes.
Structural change emphasizes increasing organisational effectiveness by changing controls that influence organisation members during the performance of their jobs. Structural change is aimed at increasing the organisational effectiveness through modifications to the existing organisational structure like:
Clarifying and Defining Jobs
Modifying Organisational Structure to fit the communication needs of the organisation.
Decentralizing the organisation to reduce the cost of coordination, increase the controllability of subunits, increase motivation, and gain greater flexibility.
Although structural change must take account of people and technology to be successful, its primary focus is obviously on changing organisation structure. Managers choose to make structural changes within an organisation if information they have gathered indicates that the present structure is the main cause of organisational ineffectiveness. The precise structural changes they choose to make will vary from situation to situation, of course. After changes to organisational structure have been made, management should conduct periodic reviews to make sure the changes are accomplishing their intended purposes.
Although successfully changing people factors necessarily involves some consideration of structure and technology, the primary emphasis is on people. Organisation Development: people change gives special importance to increasing organisational potency by changing certain aspects of organisation members. The focus of this type of change is on such factors as employee's attitudes and leadership deftness. The process of people change can be referred to as organisation development. Though organisation development concentrates mainly on changing certain aspects of people, these changes are based on an overview of technology, structure and all other organisational components.
Individuals affected by the Change:
To increase the chances of employee support, one should be aware of the following factors:
The usual employee resistance to change (resistance to change within an organisation is as common as the need for change. After managers decide to make some organisational change, they typically meet with employee resistance aimed at preventing that change from occurring. Behind this resistance by organisation members lies the fear of some personal loss, such as a reduction in personal prestige, a disturbance of established social and working relationships, and personal failure because of inability to carry out new job responsibilities.)
How this resistance can be reduced ( Avoid surprises ,promote real understanding, set the stage for change, make tentative change)
Evaluation of the Change:
The purpose of this evaluation is not only to gain insight into how the change itself might be modified to further increase its organisational effectiveness, but to determine whether the steps taken to make the change should be modified to increase organisational effectiveness, next time around. Evaluation of change often involves watching for symptoms that indicate that further change is necessary. But the decision to change must not be made only based on the symptoms. Additional Change is justified if it will accomplish any of the following goals:
Further improve the means for satisfying someone's economic wants
Promote human work for human beings
Contribute to individual satisfaction and social well being.
Importance of the research in organisation change.
5.1 Definition of the research:
Research play important role in organisation development. Managers always look forward in future to be ready for different changes of product, service, taste, behaviour, law and other important factors. So, how do they know what to expect in market changes or trends ? The answer is Research.
According to Trochim, W.M.K, (2006) Research can be defined as the search for knowledge or any systematic investigation to establish facts. The primary purpose for applied research is discovering, interpreting, and the development of methods and systems for the advancement of human knowledge on a wide variety of scientific matters of our world and the universe. Research can use the scientific method, but need not do so. Research is a systematic, objective collection and analysis of data about a particular target market, competition, and environment. It always incorporates some form of data collection whether it is secondary research or primary research which is collected direct from a respondent.
The purpose of any research project is to achieve an increased understanding of the subject matter. With markets throughout the world becoming increasingly more competitive, market research is now on the agenda of many organisations, whether they are large or small.
Research Paradigm and Methodology:
During the past century, different paradigms have taken birth due to the remarkable growth in social sciences research. There are mainly two paradigms to the verification of theoretical propositions, i.e. positivism and phenomenology.
According to Dash, N.K. (1993). The positivist paradigm of exploring social reality is based on the philosophical ideas of the French philosopher August Comte. He emphasized observation and reason as means of understanding human behaviour. According to him, true knowledge is based on experience of senses and can be obtained by observation and experiment. Positivistic thinkers adopt his scientific method as a means of knowledge generation. Consequently, it has to be understood within the framework of the assumptions and principles of science. These assumptions, as Conen et al (2000) noted, are determinism, empiricism, parsimony, and generality.
Determinism. It means that events are caused by other circumstances. Hence, understanding such casual links is necessary for control and prediction.
Empiricism. It means collection of verifiable empirical evidences in support of theories or hypotheses.
Parsimony. It refers to the explanation of the phenomena in the most possible economic way.
Generality. It is the process of generalizing the observation of the particular phenomenon to the world at large.
Positivistic paradigm thus systematizes the knowledge generation process with the help of quantification, which is essentially to enhance precision in the description of parameters and the discernment of the relationship among them. Although positivistic paradigm continued to influence educational research for a long time in the later half of the 20th century. It was criticized due to its lack of regard for the subjective states of individuals. It regards human behaviour as passive, controlled and determined by external environment. Hence human beings are dehumanized without their intention, individualism and freedom taken into account in viewing and interpreting social reality. In accord with the critics of this paradigm, objectivity needs to be replaced by subjectivity in the process of scientific inquiry. It rise the phenomenology.
Phenomenology is a theoretical view point which believes that individual behaviour is determined by the experience gained out of one's direct interaction with the phenomena. It rules out any kind of objective external reality. Husserl and Schutz are the main proponents of this school of thought. During interaction with various phenomena, human beings interpret them and attach meanings to different actions and or ideas and thereby construct new experiences. So, the researcher has to develop empathic understanding to know the process of interpretation by individuals so that she can reproduce in her mind feelings, motives and thoughts that are behind the action of others.
The two paradigms presented here are concerned with two concepts of social reality. While positivism stands for objectivity, measurability, predictability, controllability and constructs laws and rules of human behaviour, phenomenology essentially emphasizes understanding and interpretation of phenomena and making meaning out of this process.
Research paradigms and research methods:
Each of the paradigms discussed above has definite research methods which can be used in carrying out investigation.
Positivism which emphasizes objectivist approach to studying social phenomena gives importance to research methods focusing on quantitative analysis, surveys, experiments and the like.
Phenomenology which stresses on subjectivist approach to studying social phenomena attaches importance to a range of research techniques focusing on qualitative analysis, e.g. personal interviews, participant observations, account of individuals, personal constructs etc.
In social sciences and in other disciplines, the following two research methods can be applied, depending on the properties of the subject matter and on the objective of the research:
Qualitative researchers aim to gather an in-depth understanding of human behaviour and the reasons that govern such behaviour. The qualitative method investigates the why and how of decision making, not just what, where, when. Hence, smaller but focused samples are more often needed, rather than large samples.
Qualitative methods produce information only on the particular cases studied, and any more general conclusions are only hypotheses (informative guesses).
Quantitative research refers to the systematic empirical investigation of quantitative properties and phenomena and their relationships. The objective of quantitative research is to develop and employ mathematical models, theories and hypotheses pertaining to phenomena. The process of measurement is central to quantitative research because it provides the fundamental connection between empirical observation and mathematical expression of quantitative relationships.
Quantitative research is used widely in social sciences such as sociology, anthropology, and political science. Quantitative methods can be used to verify, which of such hypotheses are true.
5.4 Research strategies and analysis.
As a manager I will have all avaible tools and knowledge to drive company to the success. But how to use all knowledge, people, technology, etc. which I have ? In order to explain it I give you an example. Let imagine I am a top manager of BMW car manufactory and today is my first working day. Even if my company doing very well there are always something you can change and improve. And if we doing well today it doent mean thing will not change tomorror or in near future, because of factor which drive company to changes. Here are show why I going to apply changes on my business:
desire to grow.BMW sell car to many countries around the word. And we still don't have dealers in Nepal and Romania. Our mission will be to have dealer in capitals of Nepal and Romania in following year.
technological changes. I got report from my operation manager that we can reduce number of people working in assembling process by 1 per cent. We can do it because of the new technologies allowed us to automotisate some process. And it is also help to reduce cost in there processes.
new government legislation. We will have to obey new changes in law regarding hazardos waste and pollution. So, we take it in consideration right now.
competitive pressure. Our biggest competitor Ford launch new model of Ford Mondeo in 2010, which is as good as BMW 7 and it is cheaper. We need to do revaluation or may be provide discount prices in some counties.
economic crisis and growth .Because of the economic crisis which appear in 2008 we have huge reduction in sales. We must change something!
changing taste (our clients don't like any more metallic colour as before ,so need to take it in account for designing our new models)
The logical question is how do I know all their factor (mentioned above),which driver me us to change ?
Most of the working time I isolated in offices and do not communicate directly with potential buyers. And the same time I aware of all the changes taking place in markets.
The answer is Research. We spent millions on research each year and it help us to be successful. Our company has research manager and we spent a lot of time for communication and cooperation. I must be sure he focuses on real problem, so I try to use precise research brief to explain my needs. Basicly I am a consumer of his research.
The following steps I going to follow in my research:
Identify the problems and opportunities (expand business to Nepal and Romania, automotisate some processes in assembling department ,obey new law, be competitive with Ford, reduction in sales due to crisis , improve car design )
Formulation of research brief. Prepare easly understable and exact only information for my reaseacher.
Selection of researcher. Find best peole , agency , provider we can afford. We need someone who do the job at best level, because their job will affect our business.
Collection of secondary date. We going to use all avaible information we can get, even it is not linked directly with our research problem.
Choice of method. Qualitative, quantitative or even both. We going to chose both , because we want to get results from both methods and compare them. We belive this way we go deeper in the field and will be able to get better feedback.
Collection of primary data. We going to create survey form on our web page ,telephone surveys, mail survey. Also we going to run personal interviews and use observation.
Analysis of data. It is very important to understand what we found from research. This is conclusion of our research. If we make mistake here, then money and time for the research is wasted.
Preparation and presentation of research findings and recommendation. This last step and my favourite.It summarise whole big work we have done. We need to present findings for our investor. We must make sure to do it right, so everyone understand and be ready to answer question.It is important to make impression , so we get extra millions for development.
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