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The change management refers to bring positive changes in the business to meet challenges of new world and to survive in the industry. The change management helps employee learn new process and method important for business and survival of products. Organizational change is more challenging than any other change because it involves people by large and the management forces the need for change in order to save their market share customer loyalty and employee's trust and to keep the whole business on the right path.The change management depends on the understanding of the people in the organization as the organizatio has different kind of people working in it and they respond differently to
the change process and as well as their understand varies in perceiving the change process. As business have their own product and nature different business adopts different approaches of change management. Change is an intrinsic aspect of every business especially healthy businesses that innovate and readily adapt to shifts in the market. So, for a business to remain healthy, its IT organization must be capable of effectively and efficiently handling change. It must be able to execute change with minimal cost and minimal risk of business disruption. IT must also be able to keep itself well-aligned with changing business goals and priorities.
Following are the three different to change management
KOTTER'S 8 STEP Approach to Change management.
Kotter's has defined change management comprehensive step for the successful implementation of change management
(Kotter, Leading Change)
1-''Act with urgency
2-Develop the guiding colition
3-Devlop change vision
4-communicate the vision by-in
6-Generate short term wins
8-Make the change Stick....................
Prosci's Five Building Block Model:
The Prosci's change managemet approach based on basic factors from experienc and feedback of managers supervisor and people managing teams. If Incident and Problem Management represent the "heart" of Service Support, then Change Management is the process to control the "heart rate". Optimized Change Management results in fewer incidents and problems, and helps ensure that strategic improvement requests are quickly processed and implemented. That is why the process must be well documented, especially during categorization activities, since decisions made here will affect how resources and costs will be allocated.
It emphasizes that organization change is sucessful once its been understood and exihibited by the employee and managers both.The model called At ADKAR'
( j.M Hiatt, ADKAR)
McKinsey'S 7S FrameWork
Evaluate the relevance of above approaches and example of different organization
The Kotter 8 step is a fast approach for implementing change as on other hand Prosci's model is holistic and human based approach to implementing change but in ADKAR model lacks the unforseen likely to occur during the change process and lacks the way to resolve the unforeseen issues but Kotter 8 step is
comprehensive change management model though based on urgency approach but it encompasses short term result to long term plus its empower broad based action provide the guide line to control restraining powers playing against the change process. The McKinsey 7 Step framework focuses an integrated change management approach each element of which is connected with the other but the other two past approaches are step by step.There are three significant element which are absent in the other two approaches that is the structure of the organization it say that the change process very depend on the kind of structure organization has its span of control and hierarchy, secondly the organizational over all strategy should be view while implementing the change process, it also suggest that the management style has to be alter while implement change. There is initial resistance to organizational change for at least three reasons. First, people have had negative experiences as a result of previous organizational change efforts. However, this is not to suggest that most people have had generally bad experiences with the entire organizational change process; we are specifically referring to the "transition" part of change. In the change process, you do not just go from the old to the new-from the status quo to a new, better alternative.
Making the Most of Change,where he suggested that the transition, not the change, matters. Change is not the same as transition. Change is situational because of the new technology, the new boss, the new team roles, the new policy, etc. Transition is the psychological process people go through to come to terms with the new situation. Unless transition takes place, the planned change will simply not work. Some discomfort is inevitable, but organizations generally fail to minimize the negative consequences of transition. Workers fear they cannot conform and succeed in the post-change work environment. They are often confused about why organizations make the change, exactly what the scope of the change is, and how their jobs will be impacted. Most organizations do little to allay such fears and concerns. If they did, implementing organizational change can be much faster and done more effectively.
MCDONALD CHANGE STRATEGY:
Mcdonald fast international growth step was kind of Kotter's 8 step model as they started buying franchise so randomly to create more number of customer and to grab more sale and urgent approach of making change but it resulted in poor quality of service and loose controls at many ends of business.
Barclays Change :
When Barclays started operation in united kingdom in January 2004 they focused to adopt more efficient communication system which were distinctive from the previous communication system they were using in other countries. And introduced technology based customer services in order to make customer the focal point of the communication which refers to Mskinsey 7S framework. The system change was connected with other 6 ''S'':
Stragetic INTERVENTIon Techniques
Intervention techniques are step that are taken when managers realize that the process of change is going of out of set track or the periodic results
are not as they were calculated.These techniques are utilise to put the upset right and to restore the spirit back. These techniques are as under.
When ever there willl be change initiative it will be couple with conflict. The 3 element of change are 3 'PS' People, Personalities and POlitics.Conflicts are likely to occur when people less communicated about the change and when people resist changing beacuse of fear of loosing some valuable thing at work. There are some ways to resolve conflict with in change management teams
2-Difference of Opinion
When there is a diverse work force with different educational back ground ethnic and cultural and religious differces it is likely that people will
have differnce of opinion.
Whenever change is connected with people emotions they tend to disagree on it. Disagreement can destract the change process badly.
4- Unwillingness to compromise
During the change process if employees are unwilling to compromise on change aspects management implement autoractic style of mangement.In which
they impose polices and some time use forcing strategies to make the change happen.
1-Education and communication
-Why to change
-Opportunities of being changed
2-Participate and Involvement
3- Facilitate and Support
4- Negotiation and Agreement
- Open door Policy
2-Difference Of Opinion
The leading fast food company McDonald was established in 1948 in America. McDonald has flourished its business with number of restaurant by franchising all over the world. They had adopted the (QSC&V) quality Service cleanliness and value standard for its fast growing food chain. In 1970 McDonald established Drive Thru service which was a unique innovation in the fast food industry. Which provides convenience and flexibility for the customers.
In 1988 Mcdonalhad introduced breakfast menu for the working class who attend work early morning. The latest introduction in the menu is ''Salad Plus'' MENUE. They have started using automatic cooking tool. McDonald have adopted different modern strategies to maximize market share and has worked hard to stay in the business. ( WWW.naturalnews.com/mcdonald.html)
Mcdonald came up with the attractive Happy Meal specifically design for kids in late 70s.When the deal was introduced it was served in beautiful boxes couple with gifts inside. The Happy Meal was consist of burger fries cookies and soft drink. McDonald combined the deal with conventional cartoon character toys. In 2010 authenticated media forces discovered that the Happy Meal is not healthy ofr the kids and investigation revealed that Mcdonald Happy Meal burger and fries never decompose even if they are left of decade because of preservative ingredient used in the making which contains high sodium.
The medium highlighted the risk of consuming such food item.
( WWW.naturalnews.com/mcdonald.html) (The Losangles Times)
The centre of Science in public interest (CSPI) is planning to sue Mcdonald as it is not adhereing regulatory instruction to discontinue Happy Meal because its causing weight problem in children specifically. At the same time Califorina ban marketing of toys accompained with kid's meal for Happy meal in the interest of children's health. But Mcdonald does not take the responsibility of all these facts highlighted above going against the reputation of Mcdonald.
Factors of change for Mcdonald Change Management
- Regulatory Compliance
-Threat from Competitor within the industry
As said above that McDonald Happy Meal is facing a lot of criticism by different health agencies working in the interest of children's health. Its likely that McDonald should work on a plan to change or replace its Happy Meal with a meal based on healthy ingredients help in children initial growth and also have taste to attract kids. They need to review the existing Happy Meal deal with new healthy ingredient and get them endorsed by authentic health agencies working for children healthy food and health. As failing to do so will cost Macdonald not only with financial loss as penalty but also a loss of trust from parent customers. Despite the fact that media a health agencies have pointed out the risk attached with Happy Meal Mcdonald
sale have not shown decline. Strategically it is suggested that Mcdonald should carve out plan to save its sale and its brand image in the customer mind and also to be in the good books of regulatories.
High Research Cost:
Mcdonalds has not started any strategy to of change suggested above because it might involve alot of comprehensive research to figure out what will be the ideal recipe that is healthy for kids and at the same time tasty enough to lock children.
Lack of skill workforce:
Introducing highly healthy and tasty food or deal for children which help them in their growth require a skill force specially hired to look after the change meal for kids. It will require changing the Human Resource induction policies and training needs of new staff.
The idea of changing Happy Meal with healthy ingredient may not possible for insufficent supply of raw material and requires tp build an entirely new
and change backward supplier integration system.
3.1 In view of the above suggested change strategy the following model is recomande:
The McKinsey's 7S Framework which encompasses the integrated infrastructer for a successful change
Staff: In the above of example of Mcdonald right work force to act as change agent is important to a successful change process. There is a possibility that new recepie might require staff to work in a different and change working condition and with different working shift Mcdonald need to select the
right managers supervisor who clearly understand the need for change and are able to communicate to the down line of staff and have the ability to make the staff realize that the new product will require employees to have change working attitude.
Skill:In the above scenario Mcdonald need people who have certain abilities skills and knowledge for the change process to be successfully implemented.
System: To bring the change positively it will be necessary for Mcdonald to improve and change their polices procedures and process in order to put an integrated synergy between all the function of the organization.
Style: The management style matters a lot to achieve the change process goal. This will depend how speedy management need to bring the change.
Shared Value: The Mcdonald should work around a health and hygiene value on priorty and share it internally and externally.
Strategy: Mcdonald long term objective and strategy should be based on its share value and it should plan accordingly.
Structure: Based on the change process Mcdonald has to review its span of control accountabilities and reporting's.
3.2 Stake holders role in change management process;
Stake holders are share holders buyers, suppliers software companies, regulatory authorities, media house, marketing agencies customers and employee which can not be ignore while change process is taking place. All these has their own impact on business big or small. All these entities are taken into confidence about the change according to their involvement in the business. In the Happy Meal scenario the biggest stake holders for McDonald customer media house and regulatory authorities. Customer can be communicated through media that the Happy Meal is now healthy as well for their kids and Happy meal should accompanied with EAT HEALTY PLAY HEALTY AND STAY HEALY.
3.3 Resistance can be of two type internal and external
Internal resistance can occur from employee if they resist to use the new and change policies and system at change working condition If the change management process faces lot of resistance if its not planed properly and efficiently. Complicated method for change can create resistance as people find it difficult to adopt it. Proper support system with clear understanding help management and employee to implement the change smoothly and successfully. ''It can be argue that the successful management of change is crucial to any organization to survive and succeed in the presence highly competitive and continuously evolving business environment. However, theories and approached to change management currently available to academic and practioners are often contridictory, mostly lacking empirical evidenc and supported by unchallenge hypotheses concerning the nature of contemporary organizational change management''( R. Todnem, 2005)
(ORGANIZATIONAL CHANGE MANAGEMENT OF CRITICAL REVIEW JOURNAL OF CHANGE MANAGEMENT, 2005, RUNE Todnem VOLUME 5 ISSUE 4 Publisher: Routledge)
According to Kurt Lewin there are two driving forces in the change process.
Driving Force Restraining Force
People ready to embrace change People resist to change in the organization
The success of change depend which source is more powerful. In McDonald scenario it need to assess the internal driving and restraining forces within the organization. In case of any resistance conflict can arise during change process. There can different stages in the conflict during change process they are potential and opposition, awareness and personalization, behavior and outcome. The outcome can be of two type functional and dysfunctional. Functional conflict outcome is such that people forced
to search for new product development. People feel resistance and there is turn over in the organization.
In McDonald scenario management can adopt the following strategy to avoid the conflict collaboration, compromise and accommodation and avoidance.
4.1 strategy for Change:
In view of the above scenario it is suggested that the following change strategy will be best for Mcdonald.
BACKEND CHANGE STRATEGY
Identify the need to change and assess the time line for implementing the change
FRONTEND CHANGE STRATEGY
Communicate the need for change internally and externally
BACKEND CHANGE STARTEGY
Formulate supporting policies and procedure
select the people from organization who are highly adaptable to work as a change agent
SET PERIODIC TARGETS AND OVER ALL TARGETS
Assign Target to change agent
CREATE AND SUPPORT AND FACILITATION SYSTEM AND MONITOR IT
IMPLEMENT THE CHANGE
Evaluate the pace of change and assess the degree of resistance and will according implement intervention techniques
Exhibit the change as change agent
Evaluate comprehensively the degree of acceptance towards change and performance of individual and team involve in the change management process
Before implementing the change process it is necessary to carry out SWOT analysis and also evaluate its internal and external compatibilities for implementation that is political legal environmental and social economical. Pilot testing of the change model is suggested. Measure expected outcome
The above model for change will be ideal for McDonald to bring change in its Happy Meal menu. The process of managing change should clearly define
and should be simple for employee to adopt. Contingency planning is very important during the change process for managing the unforeseen and resistance Once the need for change is identify by the changer maker it is important to documentize it and bring them into SOPS. After identifying the need for change its important to communicate it by every means in the organization and externally to stakeholders. once the need for change is communicated properly supporting policies and procedures will be devised for every department of the organization and each segregated function will be addresses accordingly
At this point change agents are selected from within the organization and outside the organization to successfully implement the change through realistic set targets. It will be positive that the agents as well as management create a feeling of involvement and participation during the change process in order
to make employee feel that they are not isolated and alone in the process, this give them motivation and trust in employee and help them to embrace change. If the change process covers longer period it is necessary for the management to conduct transparent performance evaluation relating to change process so that the employee needs are fulfill and their satisfaction increases and results in high morale of employee and increase efficiency. Its also important that the change agent are equipped with the skills to manage resistance at the right time for the smooth process of the change. Incase of any resistance management need to ascertain driving and restraining forces.
Maintaining change is as important as its implementation. Management should maintain open communication means to immediately highlight any issue arising in the process of change. During change management process management need to ensure that required logistic support is intact. Simultaneously company's information technology system is change accordingly. The focal point of the change management process.