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Change is a process that is inevitable. It is constant that takes its levy on every stage of life, including all organizations. Change is happening everywhere; in fact, at a rapid pace. The results of such rapid and dynamic change is that the organizations can either get used to, develop or die. According to Alvin Toffler's famous comment 'There is only one constant today and that is change' was made some decades ago. With changes come doubt and lack of confidence. No longer can organizations, even in the public sector, where 'stable state' was ever the catchphrase relax. All are being increasingly challenged by change. As a result, organizations can either progress or perish.
"People change what they do less because they are given analysis that shifts their thinking than because they are shown a truth that influences their feelings."(Kotter J and Cohen D S, 2002)
Organizational change is very fragile. When a company is going through a change, there is always a break and make time. The result will affect the ending if the change is not managed properly, and if it is not implemented properly. To make change properly it is very essential to understand the process of change. It is very important to know the factors that are need to be considered in this process. All the process and procedures.
Management in business is to look after the company. All the managers look after the company.
In the present times, the most prevalent concept for downsizing the employees has been the technological revolution and globalization in the business world which is changing and becoming more competitive. The competitiveness increased due to innovation, higher customer demands and technological advancement. To survive in the business world by any organization is not easy unless it makes its procedures and functions time efficient and increase the productivity. For this the organizations are adopting machines of sophisticated and automated which is making the hierarchical structure flat as much of the employees are downsized in order to cut the cost for retaining employees who are technically being replaced by the advanced machinery. The management is decreasing and only specific supervisors are being retained in an organization for limited operations. This is helping the organizations to over come their costs and increasing productivity which is leading them to be more competitive in the business world.
Process Models of Change
Unfreezing is the first of Lewin's change transition stages, where people are taken from a state of being unready to change to being ready and willing to make the first step.
Here are some ways to make it happen:
Burning Platform: Expose or create a crisis.
Challenge: Inspire them to achieve remarkable things.
Command: Just tell them to move!
Evidence: Cold, hard data is difficult to ignore.
Destabilizing: Shaking people of their comfort zone.
Education: Learn them to change.
Management by Objectives (MBO): Tell people what to do, but not how.
Restructuring: Redesign the organization to force behavior change.
Rites of Passage: Hold a wake to help let go of the past.
Setting Goals: Give them a formal objective.
Visioning: Done well, visions work to create change.
Whole-System Planning: Everyone planning together
Restructuring takes place in case of a change in the strategy. It should have a clear rationale and should be done in conjunction with other parallel changes such as process change and culture change.
A significantÂ modification made to the debt, operations or structureÂ of a company. This type of corporate action is usuallyÂ made when there are significant problems in a company,Â which are causingÂ some form ofÂ financial harm and putting the overall business in jeopardy. The hope is that through restructuring, aÂ companyÂ canÂ eliminate financial harmÂ and improveÂ theÂ business
Mergers and acquisitions
Common ways to expand your business include making a strategic acquisition or merging with another business.
An acquisition is when you buy another business and end up controlling it.
A merger is when you integrate your business with another and share control of the combined businesses with the other owner(s).
IT- Based Process change (Cameron,2004)
Culture web analysis
It is often very difficult for individuals within an organisation to fully understand the culture within which they exist. The Cultural Web is a tool that can help describe the various factors within an organisation that preserve and sustain the commonly held core beliefs and assumptions.
In times of change trust is an essential element of gaining commitment to change. Trust is based on predictability and capability, so employees and managers alike need to see that the organisation is capable of meeting its challenges within the bounds of its values. The more leaders clarify the company's intentions and ground rules, the more people will be able to predict and influence what happens to them, even in the middle of change.
The culture of a company is the embodiment of "the way things are done around here". People look to the culture to evaluate how they will be affected by change. In designing strategic implementation projects, it is critical to really understand how people will feel about change.
Using the Culture Web tool, elements of the organisation culture can be analysed as a means of understanding the cultural context of the organization
Stories - The past events and people talked about inside and outside the company. Who and what the company chooses to immortalize says a great deal about what it values, and perceives as great behavior.
Rituals and Routines - The daily behavior and actions of people that signal acceptable behavior. This determines what is expected to happen in given situations, and what is valued by management.
Symbols - The visual representations of the company including logos, how plush the offices are, and the formal or informal dress codes.
Organizational Structure - This includes both the structure defined by the organization chart, and the unwritten lines of power and influence that indicate whose contributions are most valued.
Control Systems - The ways that the organization is controlled. These include financial systems, quality systems, and rewards (including the way they are measured and distributed within the organization.)
Power Structures - The pockets of real power in the company. This may involve one or two key senior executives, a whole group of executives, or even a department. The key is that these people have the greatest amount of influence on decisions, operations, and strategic direction.
These elements are represented graphically as six semi-overlapping circles (see Figure 1 below), which together influence the cultural paradigm.
Five forces model
The Porter's 5 Forces tool is a simple but powerful tool for understanding where power lies in a business situation. This is useful, because it helps you understand both the strength of your current competitive position, and the strength of a position you're considering moving into
Five Forces Analysis assumes that there are five important forces that determine competitive power in a business situation. These are:
Supplier Power: Here you assess how easy it is for suppliers to drive up prices. This is driven by the number of suppliers of each key input, the uniqueness of their product or service, their strength and control over you, the cost of switching from one to another, and so on. The fewer the supplier choices you have, and the more you need suppliers' help, the more powerful your suppliers are.
Buyer Power: Here you ask yourself how easy it is for buyers to drive prices down. Again, this is driven by the number of buyers, the importance of each individual buyer to your business, the cost to them of switching from your products and services to those of someone else, and so on. If you deal with few, powerful buyers, then they are often able to dictate terms to you.
Competitive Rivalry: What is important here is the number and capability of your competitors. If you have many competitors, and they offer equally attractive products and services, then you'll most likely have little power in the situation, because suppliers and buyers will go elsewhere if they don't get a good deal from you. On the other hand, if no-one else can do what you do, then you can often have tremendous strength.
Threat of Substitution: This is affected by the ability of your customers to find a different way of doing what you do - for example, if you supply a unique software product that automates an important process, people may substitute by doing the process manually or by outsourcing it. If substitution is easy and substitution is viable, then this weakens your power.
Threat of New Entry: Power is also affected by the ability of people to enter your market. If it costs little in time or money to enter your market and compete effectively, if there are few economies of scale in place, or if you have little protection for your key technologies, then new competitors can quickly enter your market and weaken your position. If you have strong and durable barriers to entry, then you can preserve a favorable position and take fair advantage of it#
These forces can be neatly brought together in a diagram like the one below:
The EFQM Model
The EFQM Excellence Model is a non-precriptive framework for organisational management systems, promoted by EFQM(formerly known as the European Foundation for Quality Management) and designed for helping organisations in their drive towards being more competitive. The Model is regularly reviewed and refined: the last update was published in 2010.
Regardless of sector, size, structure or maturity, organisations need to establish appropriate management systems in order to be successful. The EFQM Excellence Model is a practical tool to help organisations do this by measuring where they are on the path to excellence; helping them understand the gaps; and then stimulating solutions.
Figure 1: The Excellence Model Framework
Components of EFQM
There are nine 'big ideas' or criteria in the Model that underpin this premise and attempt to cover all an organisation's activities. These nine ideas are separated into Enablers and Results. The Enabler criteria are concerned with how the organisation conducts itself, how it manages its staff and resources, how it plans its strategy and how it reviews and monitors key processes. They are:
Policy and strategy
Partnerships and resources
The organisation's Results are what it achieves. These encompass the level of satisfaction among the organisation's employees and customers, its impact on the wider community and key performance indicators. They are:
Key performance results
Each of the nine criteria is subdivided to describe in more detail the concept of 'Excellence' in that area and to examine how well an organisation is doing through a list of practical questions to ask itself. The starting point for most organisations is to gather evidence relevant to the nine criteria of the Model. This involves asking, for each of the criteria, 'How good are we and how could we improve?' Evidence may take a variety of forms depending upon the organisation.
STAKEHOLDERS INVOLVED IN THE CHANGE PROCESS
In this case the stake holders must be clearly observed and their expectations must be kept in mind before going to implement the change process in the organization. These include;
â€¢ Investors. Investors deploy their money which they earned with great hard work in an organization which guarantees them a profit which is greater than from any other place.
â€¢ Management. Managers of a company give up their family life to work in an organization, who promises them a good income if they contribute to its growth and make it profitable. So they work extra hours for it.
â€¢ Employees. Employees are also a lot more important because they are the ones who actually produce and sell the product to customers outside. They should be considered primarily when bringing a change because they are putting a big part of their lives into it.
â€¢ Customers. An organization in order to satisfy the stakeholders mentioned above needs to satisfy the customers. A customer is our money and helps us to achieve our goals and obligations.
â€¢ Suppliers. The suppliers should be paid fair price for their products and services, without suppliers organizations cannot survive or even exist. Organizations should work properly with them.
â€¢ Community. The community is responsible for building roads, police protection, electricity and all the infrastructure requirements required for running the business smoothly. So an organization needs community because it plays a vital role.
SYSTEMS TO INVOLVE STAKEHOLDERS AND THEIR ANALYSIS
The power of resistors will differ from situation to situation and so will be the stakes involved. The employees can be given incentives to adhere to the change process. The incentive strategy can be useful.
Unpredictability can not be ignored or it is inevitable in a process of change. To contribute towards the change, the organization must call upon all the stake holders on a meeting and have a brain storming session with them. It should win the confidence of the stakeholders to plan for change. By doing this, there is a great chance of implementing the change successfully with minimizing the expected resistance from the stakeholders.
Thus, structural designs need to be reorganized and adjusted to support the change. Thirdly, change brings conflict between winners and losers - those who benefit from the change, and those who do not. This conflict necessitates the creation of domains where any issues can be renegotiated and the political map redrawn. Finally, change can cause the feeling that there has been a loss of meaning for the recipients rather than owners of the change. Thus, changeover rituals that mourn the past and celebrate the future can help people to let go of old bonds and adopt new methods (Bolman & Deal, 2003).
To increase the likelihood that future initiatives will be successful, organizational leaders must become more adept at facilitating change and improvement, and select their advisors or consultants for their improvement initiative with care and intelligence (Cenek, 1995). Cenek suggests that leaders can create adaptive, responsive organizations that successfully pursue continuous improvement through the following efforts:
1. Communicate the need for change and improvement, and influence others to begin a continuous developmental process within the organization, without prescribing the exact steps to follow.
2. Ensure that an improvement initiative is business-focused and that it will improve quality, reduce costs, and expand market share.
3. Make an effort to understand the mechanics and theory of organizational change, which are no more difficult to grasp than the methods and practices.
An Effective Communication with Employees:
An effective use of the face to face communication to handle the situation effectively and will produce the high turnover to the management.
Employee Participating in Management Decision Making:
To get to involve all the employees of the country office organisation to take part in the decision making process.
Indentifying the moral of the employee to get into the counselling through their position, job and their work related stress by motivating them to achieve the organisational goals.
Employee Training and Development:
Identify the workers current working problems and the future needs through performance management and by providing adequate proper training and development the country office organisation can bring the high moral and motivation to their employees.
CONCLUSIONS AND RECOMMENDATIONS
Change is an on going process or a never ending process. Growth of human body is a very common example. Constantly changing and eventually growing old. It is inevitable. Same is the case for organizations. They are constantly changing their strategies in order to compete in the market. Changes in organizations can be of different types. Some are structural, process oriented or strategic shifts. It depends on the requirement. When a change is made, there are different stakeholders who are involved or should be involved in the change process. Not all changes are successful. Employees should be taken into confidence. Their feedback should be valued. This will help them motivate and give them feeling of security.
Long run success of an organization would be promised as the technological use would increase the profits of a company. The changing world has compelled the organizations to change their structure. The organizational structure along with decrease in the business hierarchy have changed their structure in many different ways. The factors like higher competitiveness, innovations, customer demands, increasing productivity, cost efficient and internet have played major roles in compelling the organizations to change their over all structure.
By the use of technology, the processes and functions are becoming more streamlined and less time consuming which is making the productivity process easy and simpler for an organization.
For every organization, the flexibility factor is becoming indispensible as it is essential to come up with innovations. The innovation is helping organizations to shift to new products which needs a whole different workforce, departments, processes and functions which automatically demands an organization to change its structure to work with the innovation around. This also leads to the extension of product line for an organization.