Analysis of the concepts of change

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The purpose of this study is to analyse the concept that change without consultation can ever be successful or not. The study is to understand the concept of change management and its each and every component which is closely related to organizational structure and organizational development through prior consultant with the employees of the organization.

2. Introduction to topic:

Today's business environment is changing so rapidly that it prompts everyone to adopt changes with respect to organizational behaviour. ''The velocity of change is so quick that if business organizations don't accept the change and move with the change then they will left behind" because of these factors there is a necessity of the new concept known as "Change Management.'' Rapidly changing technology and ideas made business organizations more aware of the usefulness of advice and on implementing specific kind of change in the business boundaries. The best example is Total Quality Management (TQM)

3. Concept of Change:

Definition:-

Change is nothing but to, alter, to make different, by substituting something else for, or by giving up for something else; from one state to another; as to change the position, character, or appearance of a thing; to change the countenance.

Source: - (Anon., 2010)

''Change is nothing but simple alterations of the current status quo." Change occurs continuously in a period of interval. No moment is exactly like the one that preceded it. Change refers to significant and a planned alterations in the organizational system. Changes differ from one component of organization to another component. Changes related to input and output relationships, changes to structure or design, changes to the technology, changes to people and their roles in the business organization, changes to mechanism, changes to the culture; basically change means any type of alteration to each and every aspect of the business structure. The forces of change are internal as well as external. The term planned change is refers to the changes that are intentional and guided by individual within the business organisational boundary. Changes come under process of intervals

(See Appendix 1)

Source: - (Hodge et al., 2003)

3.1 Types of changes:

Different kinds of change require different strategies and plans to increase employee engagement and acceptance of change. The three types of change that occur most frequently in organizations are listed below:

Developmental change

Transitional change

Transformational change

(See Appendix 2)

3.2 Need for change:

In today's era our society is changing in a global context. Need for change has become a vital part of the society. Many business organizations including financial, government, and educational institutes are seeking ways to restructure that will increase their flexibility and effectiveness in the highly competitive environment. Recognizing the need for change is the primary objective of most of the business organizations. Some business organizations are very good at anticipating the need for change; these organizations get benefit because they have the time to investigate the emerging problem or opportunity and decide how best they can respond to the change.

Change needs to be understood and managed in a way that people as well as business organizations can cope effectively with it. Change can be unsettling, so the manager logically needs to be a settling influence. People are affected by the change agree with, or at least understand, the need for change, and have a chance to decide how the change will be managed, and to be involved in the planning and implementation of the change.

4. Organizational change management:

4.1 Organizational change

Organizational change management concept refers to understanding your business organization and matching the initiative to your organization's real needs. Organizational change management technique is the first step in making your change successful. This technique brings about organizational change is fundamentally about changing people's behavior in certain desired ways. Leadership and management skills, such as visioning, prioritizing, planning, providing feedback and rewarding success, are key factors of organizational change management.

4.2 Definition:

Change management is a framework for managing the effect of new business processes, changes in organizational structure or cultural changes within an enterprise. Simply put, it addresses the people side of change management.

The term ''change management" is all about modifying or transforming business organizations in order to maintain or develop their organizational effectiveness. The term change is revolving around the alteration in the current state as well as in future state of the business. Whereas, the term management is a systematic process of implementing desired changes in the organizations. A change management technique has to ensure that the organization (or the part of the organization it manage) must perform effectively.

Source:-(Hayes, 2002)

A successful change management strategy includes:

Agreement on a common vision for change - no competing initiatives.

Strong leadership to communicate the vision and sell the business case for change.

A strategy for educating employees about how their day-to-day work will change.

A plan for how to measure whether or not the change is a success -- and follow-up plans for both successful and unsuccessful results.

Rewards, both monetary and social, that encourage individuals and groups to take interest for their new roles and responsibilities

Source: - (Anon., 2009)

4.3 change management:

Change management as a discipline has grown tremendously over the last five years. Between the 2003 benchmarking study and the 2005 benchmarking study, the percentage of participants using a structured approach to manage change grew from 34% to 55%. Change management provides a systematic approach of implementing organizational strategies in the business. Below are several reasons why change management has become so important to organizations in recent years.

Change management is needed to understand why change is happening.

Change management is needed in both the solution and the change.

Change management is used to identify Resistance to change.

Change management technique is used by managers as well as leaders to demonstrate their own and the organization's commitment to the change.

Change management is needed to develop effective communication between different levels of management. For example Top- level, middle- level, lower-level management.

Change management is needed to support strong relationships among senior directors and managers (leaders)

Change management is needed to meet project objectives.

Source:-(prosci, 1996)

4.4 Who is involved in managing change....?

(Change Agents)

Change management process requires each and every component of the business organization to fulfill their specific roles:-

(See Appendix no .3)

Source:-(prosci, 1996)

4.5 Change management model:

According to Kotter (1996) Managing change is a strategic task of managers. Organizational change management models provide tools that can be successfully implemented by managers in various phases of the organizational structure. This model provides the systematic change management process for leading and managing planned organizational structure. The following model will guide managers from the initial stage of organizational structure. The model by John Kottler determines eight phases of change process and each step is characterized by transformation suggestions. This model determines management steps that ensure essential activities for successful change.

4.5.1 Kotter's Change management model:

(See Appendix 4)

Strengths of the model:-

This model is easy to understand.

This model can be successful when all the steps include in it are well communicated.

This model gives the guidelines for the organizational change process.

This model fits well into the culture of classical hierarchies.

This model specifically focuses on buy-in of employees as the focus for success.

Weaknesses of the model:-

It is difficult to change the direction once the process has started.

The linearity of the model can lead to wrong assumptions.

This model gives no room for co-creation or other forms of true participation.

This model can lead to frustration among employees if all the stages and individual needs are not taken into consideration.

Source:-(Kotter, 2009)

4.6 Resistance to change:

Nature and effects:

This term refers to any employee behaviours that are designed to delay or prevent any type implementation of work change. Generally employees resist to change because of it threatens their social-interaction, current status of the role, security for needs, and self-esteem. The nature of resistance to change can be distributed as real or imagined, large or small, intended or unintended, with respect to change. Employees and managers sometimes will try to protect themselves from the effects of change. Their feedback towards the change may range from complaints, sabotage, and work slowdowns.

4.6.1 TYPES OF RESISTANCE:-

There are three types of changes which can work in combination to produced employee's total attitude towards change which are listed as follows:-

Logical resistance

Psychological resistance

Sociological resistance

(See appendix no .5)

Source:- (Newstrom & Keith, 1993)

5. Consultation in change management:

Prior consultation is vital tool of change management system. The consultation process may be complex and drawn-out affair that involves many people, organizational resources, and lots of time. Nevertheless, in many respects, consultation is much like the processes associated with any generic decision process. The first step of the consultation is to recognition of a need for change with respect to business organisation's current situation. Consultation procedure may recognize external conditions. For example new laws, products, competitors, new technology and other relevant changes. Whereas internal conditions includes new markets, new operations, greater profitability and more efficiency. Consultation is a complex phenomenon which differs from situation to situation with respect to business organization. There are many consulting services available some of them are listed below.

Tata consultancy services.

The Boston Consulting Group.

IBM Global Business Services.

(Hodge et al., 2002)

5.1 Steps include in consultation in change management:

Change management technique deals with how changes to the system are managed. This technique provides how managers develop and maintain an appropriate relationship with those involved in or affected by the change. Managers as well as leaders can adopt this technique to implement planned change successfully in the business organisation.

There are mainly six important steps involved in the change management techniques

Recognition: - This is the first step in recognition of external events and internal which require a change to take place. This step involves complex processes of perception, interpretation and decision making authority.

Start of the change process: - The start of the change process involves translating the need for change into a desire for change. This step established a workable and effective change relationship.

Who to involve...?

Who should take management responsibility...?

What to make public (if anything)

Diagnosis: - This step refers to two steps one is review of the present and another is to identifying the future state. These two steps frequently go through several iterations, progressing from broad concept and detailed to be implemented.

Prepare and plan for implementation of changes: - After detailed analysis of future and present this step will lead to the identification of long list things which will need to be follow in order to make the proposed changes in reality. All the things need to be taken into account when developing an implementation plan.

Implement change: - In this step whatever has been planned now, needs to be implemented into business and focus shifts from planning to action. In this step attention is also provide for monitoring and control.

Review and consolidate: - Review refers to the part of heading which is sometimes taken to imply forms of post-implementation. Whereas consolidation refers to involve feedback process.

Source:-(Hayes, 2002)

5.2 Consultation in change management model:

Change management model is a standard way of dealing with changes of a specific type or complexity; change management model includes pre-selected or sequenced set of activities. The aim of this model is to provide accurate and timely assessment of changes. (Prosci)

"ADKAR" - a model for change management

Graphical representation of ADKAR model:

Overview of the model:

ADKAR model is very much a goal-oriented change management model which allows managers or change agents to focus their activities on specific business results. The model was initially used as a tool for determining if change management fields such as communications and training were having the desired results during organizational change. This model's origins in aligning traditional change management activities to give predetermined goal.

The goals or outcomes defined by ADKAR are sequential and cumulative. An individual must obtain each element in sequence in order for a change to be implemented and sustained in respective area of fields.

A manager or leader can use this model to identify gaps in the change management process and to provide effective training and development for their employees.

The ADKAR model can be implemented in the business organizations by following ways:-

The model can diagnose employee resistance to change.

The model can help employees transition through the change process.

The model creates a successful action plan for personal and professional advancement during change.

The model develops a change management plan for your employees.

Outcomes of the ADKAR model:-

The ADKAR model has the ability to identify why changes are not working and help managers or leaders to take the necessary steps to make the change successful. They will be able to break down the change into parts, understand where the change is failing and address that impact on any specific area in the business organization.

The effective change management strategy required following five key goals stated by ADKAR model:-

A = (Awareness) of the need to change.

D= (Desire) to participate and support the change.

K= (Knowledge) of how to change (and what the change looks like).

A= (Ability) to implement the change on a day-to-day basis.

R= (Reinforcement) to keep the change in place.

Example:-

In every multinational organization, awareness of the business reasons for change is a goal which is related to a change management. A company desires to engage and participate in the change methodology and resistance management. Every company has to keep a record of Knowledge about how to change the goal of training and coaching. A company can deal with desired changes by identifying the required outcomes or goals of change management. This is the time ADKAR becomes a useful framework for change management teams in the planning and execution of their work of the business organization.

(See appendix 6)

(Prosci, 1996)

5.3 Benefits of consultation in change management:

Consultation is useful, as well as a constructive exercise in promoting, understanding and problem solving between management and employees. Consultation in change management refers to exchange of views, which leads to a more informed decision, and where decisions become productive for business organizations.

In addition to the benefits, additional long-lasting benefits of consultation in change management are as follows:-

Greater organizational effectiveness

Improved work quality and morale

Enhanced collaboration and communication

Higher retention rate for employees

Better customer service

(See appendix 7)

6. Case example:

Case Study Example 1:- Rolls-Royce Group

Rolls-Royce is a British aircraft engine maker. The company has related businesses in the defence aerospace, marine and energy markets.

The majority of workers are skilled engineering craftsmen who are servicing a range of civil and military engines for over 90 contracted customers. The business demands high-technology engineering.

The company develops an integral part of a change management process that has transformed the business. At the start of the change process in 1998 the business was facing serious problems in an increasingly competitive market. Customers were dissatisfied, and turnaround times for repairs were unacceptable. The firm's reputation was suffering and staff morale was poor.

The overall change strategy of the company focused on two main themes of change management: One processes and other people. There were a number of elements to both these themes, including re-engineered processes, the implementation of change in a company were seen as follows:-

Resource planning system

Team-based working

A management re-organization

The use of the balance scorecard.

These were seen as an integrated whole and a key aspect were engaging employees in the organization. The successful implementation of mentioned strategies came out in positive results.

Different approaches of the case study:-

Team- based learning

The team coach

Skills matrix

(See appendix 8)

(CPID, 2010)

CASE STUDY EXAMPLE (2):-

McDonald's (fast food retailer)

(See appendix 9)

Source:-(Typepad, 2009)

Personal example:

As per my own personal experience working with a custom notified shop 'Frisson' in India. I have experienced many changes in the organization which are related internally (within the organization). In that organization I have experienced many changes which are new to me and for other employees changes made by management include:-

Computer based record of items

New barcode system

On-line billing system

At the time of introduction many employees were resisting to change. Then changes were introduced by the management with consultation with other employees. The Net result of the implemented changes came out with positive results and it increased sales and also identification of each and every item become easy due to bar code system. The on-line billing system becomes very user friendly to keep every record of the transaction. Hence according my own experience consultation is an effective tool of change management.

7. Conclusion:

From the above study, the conclusion that comes out is that change with consultation is more successful than change without consultation. By analyzing theory, various models and above examples this assignment concludes that consultation is a vital tool of change management for successful implementation of changes in the business organizations, by which managers/leaders can achieve pre determine goals of the business organizations. Consultation technique provides certain level of security to implement specific type of change in the organizations.

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