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The truth about organizational change is that getting the structure and the number right is the first step, and very important but animation the structure to achieve the right actions by right motivated people is vital, for any organization, and any organization change, the central purpose is to create so thriving and developing and organic activity that the organization can provide excellent well paid employment for all its people
Change in organization is very important part every organization make its policies and apply rules and regulation, if they satisfy they carry on with these rules but if there is problem they change their policies. In this context merger and acquisition is good example of organizational change. (Barclays and Lehman brother, Cadbury and craft) these are some examples of organisational change. Change in organization is not as easy as the word change it takes too much time some time change makes collapse in organization. As mentioned above when Barclays hire Lehman brother American company they problem exist in staff motivation, work force diversity, change in culture, finance management, culture conflicts.
Before introduce any kind of change company should keep in mind the road map of change is it is applicable or not or our management are motivated in this concern our employs are happy about it and any kind of change be made it should be according to rules and regulations.
FIVE FACTOR OF ORGANIZATIONAL CHANGE
Change in organization is always made for improvement, five factors which should be keep in mind when be made a change polices and if anyone is weaker than other company should be improve that one.
1. awareness in the staff or knowledge in mind of management what kind of change they want and what are its effect on organization, what's its effect on employee of organization because some companies says that our employee are our assets, are there are safe. Is this change is helpful in future. Low level of awareness may later translate to resistance and non-participation.
2. Desire is another part of change are the organization staff is interested in change or not, if the answer is yes it mean they are happy is no there are too much more problems in organization there is resistance and non participation.
3. Knowledge we mean new changes which are made are fruitful for the organization what are the result we take. There is more change of organization change successes if their employs adjust them self according to change.
4. We should keep in mind that we made a lot of changes in organization are our employs are able to face these change, company should arrange new programme for the staff to help them according to new machinery and technology.
5. If the company employee are not satisfy according to change the company should reinforce them to do something, make some frameworks, increase staff salaries, give them incentives (barleys and Lehman brother).
2.0 ORGANIZATION CONTEXT FOR CHANGE
Culture in organization is play a victualler rule its development, its change, we can define culture as
"Reflecting the underlying assumptions about the way work is performed: what is acceptable and not acceptable; and what behaviour and actions are encourages and discouraged."
"The collection of traditions, values , policies, beliefs, and attitudes that constitute and pervasive context for averting we do and think in a n organization"
TYPES OF ORGANIZATIONAL CULTURE
By person culture we mean when the employee of organization think that this kind of change is of their own benefit, its mean it increase their salary, increase their knowledge. We take the example of arresters, architects, doctors or consultants, although it is found in few organizations.
Is like stereotyped as a bureaucracy and works by logic and rationality. Role culture rests on the strength of strong organizatnal pillars, the functions of specialists in, for example, finance, purchasing. Role is more important than the position power and individual.
Power culture is founds is small organization, and relies on trust empathy and personal communication for its effectiveness.
Johnson presents a culture web to analyse the organizational culture, how its works, what kind of culture is necessary for the organization, and culture change create different kind of questions for the organization
Are the change is fruitful for company?
Are the employee are satisfied?
Are the change fulfil stakeholder expectations?
Cultural web influence in organization in different ways
Paradigm is the heart of organization culture, paradigm of the organization which encapsulates and reinforces the behaviours observed in other elements of the culture web
It include how things in organization are happened, and how thing should appear, because i am working in Asda any change in organization is directly and indirectly effect on the organization. Actually this is the way how the organization behaves each other and towers those outside the organization.
Special event in the organization on which company should emphasis what is important and its also include formal organization process and informal process, how its work can it possibility to change in organization structure are successful
Told by the member of organization which flag up the important event any personalities and typically have to be the success failure and heroes, villains, and mavericks'
By symbols we mean such as offices, cars titles type of language or terminologies which are interrelated with the success and these are present as the examples of quality and present the nature of organization. As like i am working in Asda it show the example of low price and quality product if we compare with it to other organizations like Tesco Sainsbury.
Management position is an important part of organization, most powerful group of individual or groups in organization which may be based on management position and seniority but in some organization power can be lodged with other levels or functions
Measurement and reward system, motivation theory is best explanation of reward system in the organization, if company give the proper reward to their employees then they are to be motivated and do more work, but if there is inequity there is definitely be a problem, for example stewardship of funds or quality of service.
Culture play an important role in most part of organization decision, it tell the management how decisions are made, who take participating in decision making, how the reward are distributed, and check the performance of every employee, are they working best who work best promote him on higher position as a team leader. And check how the organization responds to its environment change.
2.0 EXPORING CHANGE
When an organization want a change its means they want to extend their business, they remove threat from opportunites swot matrix is good exemple of this
INTERNAL FACTOR (Strength and Weakness)
The main aim of organization is to improve its internal factor, but now the question is this how the company improve its internal factor with the special aspect of change. Company use its strength to overcome to its weakness, company use its technology, use its brand image, its product quality, economy of scale, its management to overcome on week brands, sub-scale, management, low customer retention, poor assess to distribution. When the company made any kind of change he should be keep in mind that change is useful and meet its entire objective.
EXTERNAL FACTOR (Opportunities & strength)
Company have palatines of opportunities and use these opportunities to overcome on threats use customer changing tastes, technological advances , change in government politics(like in Pakistan government give subsidies to all the investors who invest in country, give them tax relaxation, incentives, cheaper light in china for international investors, same like this give loans to small industries in USA). Company use new distribution channel to compete in global m market and daily change in brand image in the mind of people
PORTER FIVE FORCES MODEL
Industry competitors and extent of rivalry
Use of the Information form Five Forces Analysis:
Five Forces Analysis can provide valuable information for three aspects of corporate planning:
The Five Forces Analysis allows determining the attractiveness of an industry. It provides insights on profitability. Thus, it supports decisions about entry to or exit from and industry or a market segment. Moreover, the model can be used to compare the impact of competitive forces on the own organization with their impact on competitors. Competitors may have different options to react to changes in competitive forces from their different resources and competence's. This may influence the structure of the whole industry.
In combination with a PESTLE Analysis, which reveals drivers for change in an industry, Five Forces Analysis can reveal insights about the potential future attractiveness of the industry. Expected Political, Economical, Sociodemographical, Technological, Legal and Environmental changes can influence the five competitive forces and thus have impact on industry structures.
Useful tools to determine potential changes of competitive forces are scenarios.
Analysis of Options:
With the knowledge about intensity and power of competitive forces, organizations can develop options to influence them in a way that improves their own competitive position. The result could be a new strategic direction, e.g. a new positioning, differentiation for competitive products of strategic partnerships (see section 4).
Porters model of Five Competitive Forces allows a structured and systematic analysis of market structure and competitive situation. The model can be applied to particular companies, market segments, industries or regions. Therefore, it is necessary to determine the scope of the market to be analysed in a first step. Following, all relevant forces for this market are identified and analysed Hence, it is not necessary to analyzer all elements of all competitive forces with the same depth.
The Five Forces Model is based on microeconomics. It takes into account supply and demand, complementary products and substitutes, the relationship between volume of production and cost of production, and market structures like monopoly, oligopoly or perfect competition.
Influencing the Power of Five Forces
After the analysis of current and potential future state of the five competitive forces, managers can search for options to influence these forces in their organization's interest. Although industry-specific business models will limit options, the own strategy can change the impact of competitive forces on the organisation. The objective is to reduce the power of competitive forces.
The following figure provides some examples. They are of general nature. Hence, they have to be adjusted to each organization's specific situation. The options of an organization are determined not only by the external market environment, but also by its own internal resources, competence's and objectives.
CREATIVITY AND IMPROVEMT
Customer is the king of market, he want a quality in any source
How does EFQM fit in with other models?
EFQM is an over-arching framework that, if used as a diagnostic tool, will help you put in place an improvement plan to better your organisation's results. Other tools and standards focus on specific areas of your organisation whereas the Excellence Model follows a holistic approach. The diagram below shows that there is synergy between EFQM and other tools and standards.
For instance, if you conduct a self-assessment via the Excellence Model and determine that an area for improvement is in your "People Results," you may want to use the Investors in People standard to help your organisation improve. Likewise, if your organisation's "Processes" need improving, you may want to consider implementing ISO 9000:2008.
IMPACT OF CHANGE IN ORGANIZATION
RESISTANCE TO CHANGE
Change in organization is not easy way it create a lot of trouble in organization. Some time change can cause a collapse in organization. Some are the resistance in organization change. One is employee habits when the new things or technology or new reules and regulation are to be introduced it create a problem for the organization employee, becsue some like change but some not like change thats why is mai reson of problem other include
Inconvenience or loss of freedom
Security in the past
Fear of unknown
Now the question is this how the organization can implement in better way in organization. Company use different kinds of techniques to implement change, bukd a guiding team , create vision communicate, empower action, product short-term, don't let up always help to their employess to improve the organization, make change stick.
When managing change it's important to recognise that transition is an individual reaction. The role of managers is to help others through to new beginnings whilst maintaining the level of activity or service. Here are some points to bear in mind when assessing where people are on the transition curve.
Some people repeat sections of the curve to best handle transition (there's no right or wrong sequence).
People will exhibit different emotions depending upon the nature and number of changes occurring to them at the same time and their 'emotional intelligence'. This is normal.
Realising where you and the people around you are on the curve will help you initiate appropriate actions and respond effectively.
Teams may travel the curve together but individuals will arrive at 'beginnings' at their own personal rate.
It's OK to be slow so long as you're moving and not stuck somewhere.
It's OK to be slow so long as you're planning on arriving sometime.
It's OK to be fast so long as you're tolerant and supportive of slower travellers.
It's OK to be fast so long as you honestly acknowledge your own 'endings'.
In the 'Endings' stage, staff may want to deny the existence of the initiative and other related change events. Their denial can move them to fear and uncertainty about the future. This diminishes their level of activity and readiness to deal with the accelerating pace of change as the process starts to impact on the organisation.
Staff may acutely feel the loss of the familiarity and security they felt in the organisation before this and other changes occurred. They are likely to be trying to reconcile or accept the fact that things will now be different from the way they have been. They will be trying to accept that they will have to let go of their current sense of identity in the organisation.
Follow this link for a checklist of actions to consider in the Endings zone.
Understanding the Neutral Zone
The Neutral Zone or exploration stage is the time between the current and the desired state. Staff will be attempting to orient themselves to the new requirements and behaviours. During this time, they will be confused about the future and will feel overloaded with competing demands.
This can have a negative impact on activities. Because things can be chaotic at this stage, staff may question the status quo or the accepted way of doing things. It is important to note that with encouragement this stage can be a time of exploration that is ripe with creative opportunity.
Follow this link for a checklist of actions to consider in the Neutral zone.
Understanding New Beginnings
The New Beginnings stage of the Transition Curve is that time when people are ready to commit to the new direction and the change. They feel secure in the new organisation and are ready to function as a significant contributor. This typically occurs as the initiative starts to achieve some of its desired goals.