This report mainly discussed about the background of the organisation in a strategic change, related issues when the strategic change take place, stakeholders who participate in a change for development of the organisation and implementation of organisational strategic change for ensuring of on going change.
The economic conditions of the organisation, rules and regulations of an organisation, legal requirements, the strength and weaknesses identified from the strategic change and organisational development through the strategic change will affect to the strategic change background of an organisation.
The strategic change will affect to the organisational work force and frame work. The strategic change will benefit to the organisational future functions and decisions. Therefore Issues can be arising in such a situation, within an organisation. Then the management will interact with theses issues and solve the problems and utilize the advantages from the change.
The stakeholders are the most important people who have directly involve with the organisational functions. Therefore the strategic change affect to their functions within the organisation. So issues may arise as favour of the strategic change and in favour as well. So the management should have ability to come out with these issues and improve the organisational functions as planned by the strategic change plan.
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The strategic change is for development of an organisation in the future. Then the implementation will take place for strategic change. Then the ensuring on going strategic change is very useful for an existence of organisational goals.
Question O1: Background to organisational strategic change
The organizational strategic change occurs due to different factors of the environment of the organization, stakeholders and external issues. As main step the forces crated to the change, then the needs of change come out with different views finally agree to the strategic change. In that way the background is crated to the organizational strategic change.
The internal and external factors will make forces to change the organization. The internal factors such as size of the organization, technology, innovation, changes in Human Resources and Leadership are originated through the organization for a strategic change. The political, economical, social and technological, competition, bargaining power of suppliers and customers, threats of substitutes and new entrances are making external forces to change the organization.
When organization is expanding day by day the work will get complex everyday. So to the development of divisional, departmental and branch work will different than the past. Therefore the working practices will change. That means the organization needs the strategic change.
The technology will improve daily. Due to new systems and its advanced situations required a change within the organization. Due to technology the data and information can be stored, use very easily quickly and so on. Therefore the existing practice will change.
The innovations of new concepts like TQM (Total Quality Management), JIT (Just in Time) and etc. are make easy the working practices of the organization. Therefore to increase the quality and standards of the products and services the organizations use these concepts. That means make background to the strategic change in the organization.
The newly recruited people are use to work in the new technology and educated than the existing personals but they don't have the experience of work. So the improvement of competence of staff will lead to change the handling of work in the organization. Therefore Human Resource changes make the force to strategic change within the organization.
The top management is the leaders in the organization. They can influence the all activities and functions caring out by the organization. The changes in the leadership of the organization will lead to changes in the working practices, decisions taken by the management and organizational structure and culture. Therefore leadership makes background to the organizational strategic change.
The political factors are also making the changes within the organization. The governments' policies on business, nature of the stability, regulation which impact on the business by the government, future direction of the government, taxation on products and services, laws and statutes, regulation on employment are influence to strategic changes within the organization. Therefore the political factors may make the background of organizational strategic change.
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The nature of the economy will directly influence the scope of the business. The inflation, interest rates, economic growth, infrastructure and exchange rates are impact on the business. Due to changes in the economy the organization required an immediate strategic change for existence and growth of the business.
The culture, styles, trends, social values, customers attitudes towards the products and services are affected to the organizational change as well. These will create forces to strategic change for the organization.
The nature of the infrastructure, quality of human resources engaged in the sector, nature of technology expected by the customers, available investments and etc are required to supply by the organization to its stakeholders. Therefore the strategic change background will design within the organization. So the technology will create the strategic change.
The incremental of bargaining power of customers demand for high quality products. So the organization must have resources and techniques to produce such a high level standard products and services. So the organization must change according supply the demanded products and services to the customers.
The competition is a critical in the market place. The growth of the organization depends on the nature of the competition which can create to the other organizations. To compete with others all aspects of the organization must be in unique quality. Therefore strategic change is most important aspect in such a situation.
New products, services and substitutes are threat to the businesses. Therefore to comply with these threats the organization should be continuously change in all aspects. These new arrivals and substitutes crate a background of strategic changes within the organization.
The organization must understand the needs for a change. Some organizations does not require to strategic change. The development of clear objective to change is most important. Otherwise changes will not affect favorable or not an effective strategic change to the existence of the organization. The following questions will help to understand the background to organizational strategic change.
What should be involved in the strategic change?
What is the proposed strategic change?
Why should the organization do it?
What are the major effective criteria to be done to the strategic change?
How we can manage the strategic change?
The setting up of the strategic change plan is the first step of setting up the background to organizational strategic change. As first step of the strategic change plan, identified the strategies for an appropriate strategic change and design the strategic change, as identified by the background of the organization. Then identify the significant steps taken to the effective organizational change process.
Then discuss the need for a strategic change and its involvement criteria, in detail with the people who have participate in the strategic change process. Communications arise between all parties who have involved within the change process and produce the strategic change policy statement. Produce a time schedule to the strategic change and action plan monitoring charts to monitor the strategic change process.
Then identify the stakeholders who should participate in the strategic change process. Then identify the stakeholders participate in the strategic change planning process and commitment towards the change. Make the background to communicate the problems and issues within the change process and establish problem solvency system. The strategic change background must run within the scheduled time frame. So the actions must be planning to finish strategic change according to the time constraints establish through the strategic change plan. Then establish the problems arise in the strategic change implementation stage and set the background to eliminate such limitations of the strategic change process.
Question O2: Stand issues relating the strategic change in an organization
Issues relating in selection of an appropriate strategy
The selection of an appropriate strategy to change is a critical process in an organization. Lot of criteria to be check before the change takes place. The incremental change does crate a step wise increments of the changes and does not feel like a radical change. The step change occurs radically and immediately influence to the all activities.
The economic condition of the country is one thing must be considered when selecting an appropriate strategy. If the economy is fluctuating the organization may not be able to bear the changes. The legal requirements, rules and regulations, taxation of the government will influence the selection process of the strategy to change the organization. The labour laws and social and environmental conditions are also influence to the process.
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Resistance to change
The resistance to change is like a war in an organization. Some employees, customers and shareholders do not like to change the existing practice of the organization. They are fear, dislike to change. By using different methods we can change their minds in to a position of strategic change.
The education and communication about the change and understand the benefits of it, and its returns, understand the need for change and etc. are used to change the stakeholders.
The participation and involvement of stakeholders to the strategic change process is very practical. By participating strategic change they can understand the easy of the work and methodical work and feel ownership of change.
Facilitation and support is very useful within the change process. The management should listen to the requirements of the stakeholders as well. Because everything is done in the organization is to satisfy the stakeholders. So the facilitation and support feel like satisfying them and easy to change by using their new ideas and support of them.
The negotiation and agreement stated by considering interest of both parties. Manipulate their minds and overtime they will accept the change. The coercion is unethical in certain circumstances. But to overcome the resistance to change, has to be use the by force and destroy the resistance. By using these methods the resistance to change issues can be eliminate and will be able to go for a change.
Lack of Knowledge about the strategic change planning and preparation
The Planning and preparation is most useful in such a process. But the lack of knowledge about the change will affect to the planning and preparation. Using out source knowledge for the change is effective in that time.
Do not have a clear mission and objectives
It is hard to state the strategic change objectives. Because there is a complex and confusion mission and objectives are established by the organization. There are no clear goals set out by the organization. Therefore clear mission and objectives must be stated before take place of strategic change. These complexities will lead to failure of strategic changes in some organizations. Some organizations never anticipate the future and environmental influence to the organization.
High cost of strategic change
The problems arise due to unaffordable cost of the strategic change. The cost of the strategic change must be bearable by the organization. The organization should have financial strength to carry out post strategic change functions of the organization. In some case the strategic failure is also affordable by the organization.
The selection of time frame of the strategic change is also critical in some times. The strategic change must determine the time frame of implementation. If the change runs in a long run or short run. The time frame can be determined as according to the selected strategy and according to the other conditions of the organization.
Limitations of technology
Use of technology influences the change. The selected strategy may not be applicable to the existing technology slandered of the organisation. Therefore the selection of strategy will increase the cost of establishment of technology or the selected strategy does not require the existing technology. So technology and the strategy must be compatible with each other.
Poor selection of organisation unit to implement the strategic change
Determination of the strategic change must be done to the separate department, full branch or all branches within the country or international branches within the whole world. According to the business, goals, requirements, needs the change must be done.
The uncertainty of the economic condition of the country, fluctuations of the political decisions, instability exchange rates and interest rates, social and legal factors crate the barrier to the strategic change.
Over reliance of past success
Due to past success of the organisation the shareholders do not like to go to the strategic change. But due to many reasons the future will be different from the past.
Fear of new things
Some organisations fear to strategic change, due to loss of position and status of the organisation. But they don't know the changes will maintain and grow the status of the organisation.
The communication between the management, customers, employees and shareholders is very important. The poor communication will lead to failure of the strategic change in an organisation. The required meetings must be continuing to an effective strategic change.
Lack of resources
The organisation must have necessary resources to carry out a strategic change. Resources like technology, knowledge and so on. Otherwise the problems arise within strategic change process in the organisation.
Lack of necessary skill/ talents
The poor skills of the workforce may confuse the all activities in the strategic change process. They don't have ability to implement, maintain and review the strategic change process. So these poor talent issues may arise when processing some organisations.
Question O3: Stakeholders in developing a strategic for change
The stakeholders (shareholders, employees and customers) are directly connected with the organizational activities and performance. Therefore the consideration of stakeholders' acceptance is essential. Their performance, work returns, their reactions are affected to achievement of the organizational goals and the mission. So creation of positive image about the strategic change is useful to the both parties (stakeholders and organization).
The strategic change is risky work caring out by the organization to the stakeholders. If the change is not suitable to the organizational mission, goals and the culture the cost of the strategic change in financial and non financial is very high. So it can be affordable or not affordable by the organization. Therefore this will affect to the stakeholders as well. In the sense of customer the low quality and standard products and services, in the employee point of view the confusion of work place and the shareholders loose the money and different harder ships of the management level. To eliminate the risky situations to the stakeholders view, organization must take steps before the strategic change.
The stakeholders consider about the benefit from the strategic change. The shareholders hope for high returns of share prices, the employees expect salary increases as well as better conditions in the working place thorough the change and the customers expect quality and value for money they spend for services and products due to change. So the failure of the strategic change will harm the stakeholder returns as well. So the stakeholder acceptance to the strategic change is more important.
On the other hand a stakeholder reaction for the change is more important. In the strategic change the stakeholders must help to implement the change in the organisation. Their reaction will present the acceptance or rejection to the change. In the strategic change the shareholders concerns about issuing shares, the customers will expect high quality products and services and the employees expect salary increase. So stakeholder reactions must involve when developing a strategic change in the organisation.
The training and development programmes must be carry out to educate the employees to familiarize the established changes in the organisation. The seminars will explain the needs for the change. The newly introduce systems; technology and etc. are not familiar with existing employees who have work through the long time. Therefore on job training and off job trainings are essential to cover such a situation.
To manipulate the employees in the organisation, can do job rotations, promotions, job redesigning, job simplifications and so on. Through the manipulation the resistance to change can be eliminate, motivate the employees and go for a successful change in the organisational perspective.
Communication is an effective medium of keep relationships with the stakeholders for a successful change. The clear, truth communication will build the trust with the organisation and stakeholders (customers and employees). This trust will make easy the strategic change process of the organisation and do not resistance to change.
The stakeholders can be involved to participate in the strategic change process. The participation will encourage the stakeholders for a different works and will gain some extra knowledge, and feel like ownership of the change. Understand them a value of involvement of participation by the stakeholders to the organisational strategic change process.
Workshops are plan to the stakeholders. That improves the understanding of each other, new ideas, policies and etc. Can be use change model diagrams for a better implementation and understanding of the change process.
Identifying employees age the strategic change can be done. The different ages required different styles of management change techniques. The age will differ the needs, wants, motivation and etc.
There is a trend among the stakeholders when considering the change in different time periods. The personality styles, culture and social factors will differ the each and everyone. So development of change according to these crates may lead to the stakeholders in the strategic change.
Providing power and responsibility to the stakeholders is one motivational factor for development of strategic change in the organisation.
Question O4: Planned to implement models for ensuring on going change
The strategic change implementation can be evaluated, to ensure the on going change. The monitoring and review techniques can be established for that. The change can be implementation using the stakeholders (employees, shareholders and customers).
By dividing the organization in to teams and giving them instructions to change as stated by the strategic change plan. So without an additional effort the each team used to implement the change. The team building is also easy for the evaluation purposes of the strategic change implementation. Can be able to monitor and review the team performance for a successful implementation of strategic change. By monitoring the each team and incentive giving to the best team will motivate the employees through successful strategic change process.
Establish of continual meetings in the organization about the strategic change and its current situations and the issues are Improve the internal and external communication between stakeholders. That helps to understand the strategic change and ensure of on going strategic change.
The action plan can be use to review the implementation process. And understand the current organizational position behind the strategic change. It helps to identify the time frame and the expected level and the current level of the organizational strategic change. That's also use to ensure the on going strategic change.
Using change agents can be use to ensure the on going change. The change agent is familiar with all aspects, reasons, and facts of the strategic change. So he should know the strategic change position of the organization. Check whether the process is been successfully driven.
Recording keeping and monitor the changes to ensure of the ongoing change. Measuring the achieve targets against the strategic change progress. Check whether the desired performance and results achieved by the stakeholders through the strategic change.
Access the past performance with the current performance. Rapid changes in the performance will reflect the on going strategic change.
The considerable improvement of capabilities of the employees ensures the on going strategic change implementation is successful.
This report mainly discussed about the background of the organisation in a strategic change, related issues when the strategic change take place, stakeholders who participate in a change for development of the organisation and implementation of organisational strategic change for ensuring of on-going change.
World is change every day, new technologies are emerge and customer anticipation and satisfactions are change day by day therefore every business has to upgrade their standard. Each and every organization has understood change system, so they give more priority to change their management and products relative to market change.
The strategic change is for development of an organisation in the future. Then the implementation will take place for strategic change. Then the ensuring on-going strategic change is very useful for an existence of organisational goals.