To stay competitive in the world of furious competition, companies are required to constantly follow path of change. It has become necessary to adopt change not only to stay competitive but also to survive due to fast and rapidly upgrading technological advancements and growing cut throat competition (Cotter and Leonard 2010).
Success of managers is not only dependent on his ability to adapt change and also the finding suitable management strategies and methods. Many of the times strategies back fires if the managers doesn't find suitable wavelength of the all the stakeholders and the one fix for all. Therefore, when planning change it requires manager to take the entire stakeholder on play field to decide the future direction, evaluating capabilities, risk and issues; followed by constant evaluation of the implemented plan and measuring efficiency. This collectively decided direction defines fate of the organization, if it stays or goes out of the market place.
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Change is usually assumed to provoke when transition is carried by new chief executive as in the case of GE. Jeffert R. Immelt in GE responded this need of change. He transformed company from a status Quo process oriented organization to place of great marketers that are lead the market. It was his strategy to bring in new systems, calling in more diverse people in the company and moving GE from the demand meeting company to leader of the future (Business Week 2005).
develop systems to involve stakeholders in the planning of change and develop a change management strategy with stakeholders
Involvement of the stakeholders is instrumental to the success implementation of organization for meaningful system change requires following four key ingredients to be present:
Leadership at all levels: Effective systems change requires knowledgeable, practical, and skillful leaders who can cooperate effectively to ignite evolution and vision. It can be bureaucratic, technical, and advocacy leaders using organizational power and personal influences. Such leaders must be recruited from diverse avenues having experience and expertise but ability to work with shared vision and continuous update to their knowledge.
Inclusion of stakeholders: all the internal, external customers, government, society individually and in group dynamics; hence the perspective and concerns of all must be addressed in the bringing about change in the organization and involvement at all level is necessary from policy development to policy implementation and monitoring and evaluation. Allowing and appreciating discussions to bring about new ideas and imaginations that bring break-through in the organization. This step can be successfully accomplished only when the first one strength in it and only skilful leader can address this most important ingredients proportion to the changing organization by defining the optimal coordination among stakeholders
Equalization of knowledge: Diverse stakeholders bring about diverse knowledge. Leader of change needs to take these as opportunity and not the barrier. To make a successful use of this knowledge it is required that knowledge used in brain storming the solution of the critical thinking for critical issues.
Sustainability: System of change can only be successful if the set vision is sustained and the strategies are consistently followed. It requires leaders to work beyond the conventional boundaries. Reaffirming the set vision, celebrating the achieved targets and establishing sustainability at all forums from top management to the basic level and very important level of serving customer.
Evaluate the systems used to involve stakeholders in the planning of change.
Planned changes are vigilant moves to make organization more agile and maintain its strong foot holdings in the growing cut throat competitive moves. However, Simple is to design a change for any organization but to implement change, it is most difficult task that manager accomplishes (Tiller 1963)
People in the organization resist change as they foresee a threat of their survival in the organization if they are not adaptable to new strategy and expected changes in their roles, required adaption in their attitudes. Therefore, their readiness to change is the most critical factor to success of change and for it is required to establish a system that involves all stakeholders.
Apart from the inside customer of organization, also the investor, shareholder industry participant all have stake and survival requires their acceptance of change.
Always on Time
Marked to Standard
Immelt in GE revolutionized the GE with the innovation as key to door. All from the top management to the lieutenants are required to put and make a difference where they are and risking failure was badge of honor in times when GE was undergoing change. From annual general meetings of executive, GE moved to team of marketers, unit heads holding regular meetings on phone.
Immelt explained "there is no place in GE where you feel more like a loser than in Germany. You have Siemens and Philips, we haven't been that good". Employees were asked to re-conceptualize themselves and business leaders were required to submit three break-through proposals per year and an incremental growth of at least 100 Mn. For the shareholders, since GE was constantly making penny a share, they had no queries to ask management how it is make.
Explain what systems and processes would need to be/have been developed to ensure involvement of the stakeholders in the change, and justify choice.
Success of company is yielding benefits and growth. To evaluate strategy the decisive factor of growth that is, if reaped, then the strategy is said to be successfully implemented. Comparing the suggested and implemented one at GE, there are many differences that exist.
For instance, the suggested system requires leadership at all levels whereas Immelt had decided focus of turning organization into marketing leader of the future. He wanted GE to run ahead of time and be an organization that decides the future. It had been in projects that were expected to be debated in 2015 like cleaner coal plant- an imaginary breakthrough in GE.
For inclusion of stakeholders, investors were since getting return on their investments thus, they had no worries what change is going in the organization. There was lot more appreciation for bringing in new ideas but the difficulty of survival was increasing for those who couldn't suggest break through.
Knowledge equalizing was well addressed and those provide ideas and suggestions they were provided full financial support to turn it into reality. This way Immelt had great sustainability in the organization in organization's new vision of change.
Hence, GE under the revolution brought in by Immelt is has been more or less similar to the suggested system. The importance of leadership at all level was though present in new system introduced in the organization but leaders had to make their focus extremely marketing oriented that was bringing in difficulty for many of the leaders.
Create a strategy for managing resistance to change.
With the change comes resistance to change and leader are required to prepare well devised strategy to resist change having similar strength as of strategy. When integrating change, company needs to identify its position in the strategic change model and then follow the recommended strategy.
Immelt strong change of strategy makes it fall in upper right box where change to organization is high and also change of strategy is high. It is most difficult component of the matrix to deal with. Here, the entire re orientation is suggested and required from people to cultural change.
Immelt followed the same re orientation and most out sourcing and recruiting from outside was witnessed. It forced people to brain storm and move ahead from a cost cutting process oriented culture to the dynamic world of innovations that where all one has to think is to bring break through. The entire organization and its culture were reengineered and people at GE had re-conceptualized themselves. This way, Immelt countered resistance to change and directed all to the visions set by him and his team.
5-Review the effectiveness of management actions to overcome any
Identified instances of resistance:
Whenever change is adopted in any organization there is a lot of resistance by managers' stake holders and sometimes customers as well to adapt to that change. This resistance takes place because people are user friendly used too of a particular product. It may take them time to get familiar with any changed technology. Employees might become pessimistic towards change thinking that what if they cannot bring about a positive change and lose their jobs; hence there is a lot of uncertainty in the minds of employees or lower level workers to adopt change.
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However if the management acts effectively these resistances are removed easily. The change should be communicated fully as to what change is required where and when. Analysis of the output to that change should also be done.
In the case of GE Electronics, Jeffry R. Immelt stressed on the need of changing GE from being a status quo company to a risk taking company.
For this purpose certain long followed rules and traditions were changed. The top ranks were diversified there was a lot of change in the higher level of management. But this was not just done in the air a clear picture was provided to GE employees managers stakeholders that they had to adapt to a change of fresh thinking they had to widen their imagination as much as possible. Even if new ideas failed they were honored. But the mark to success for Immelt GE was that he expected a technological breakthrough and all the young leaders had to do more then just a normal manager.
A lot of employers were worried in the beginning stage that what if we are not all that creative. But Immelt made a point took a stand and all creative members of GE stayed in the team and their creativity was bought into reality. Success or failure did not matter but new innovations were the rule.
6- Describe the most important features in the successful implementation of organizational change, drawing upon at least two organizational models
The most important features in the successful implementation of organizational change are as follows:
A clear cut picture should be given to all members of the organization that why this change is being adopted. What results are expected and what rules need to be followed now.
A clear explanation should be given about the expected profits, or gains in any other form from this change.
Change should be well understood so as to be well applied
Productive criticism should be welcomed
Customers employees stake holders share holders should be free to object question or give suggestions.
A proper game plan for the implementation of the change should be in the pipe line
Sales marketing financial targets to be met after the implementation of change should be written properly in black and white for the record.
New rules and standards should be communicated to all
Progress reports should be made annually so as to evaluate the change. They can also be prepared monthly depending upon the variation of change
Whatever negative or positive outcome an organization receives after adopting to the change should be communicated well and a plan b should be created for the next change to be adopted.
In light of Imelt's revolutionary GE. The first step of assessing was completed by the upper management they had to understand the new norms, now, were of innovations and imaginations. The intent was to market a revolutionary product and earn sales growth on GE S share. The current state of GE was that the organization was becoming status quo, changes were not adopted and sales were not increasing. After adapting to the change GE changed from a manufacturing firm to a marketing and manufacturing firm. The change readiness assessment was also done in a way the reality of new ideas was kept in record i.e. if the newness adopted failed or passed. A huge infrastructure was built so that the dreams of all employees turned into a reality. Research Centers and Cutting Edge Centers were established in NY Bangalore Shanghai and Munich where research and pre reading of all new ideas were done.
Evaluating the change effort: Immelt GE evaluated the change effort. He knew that this change will bring about positivity and a lot of challenges. The company changed itself from a statuq quo organization to a think tank full of new ideas and imaginaries.
Managing the people side of change: The employees were told that the new norm to follow and is to get great ideas and depending on this they will receive bonuses as well. Failure or success of the innovation was not a part of bonus come what may has to be new.
Managing the organizational side of change: The organizations position was changed over all search centers were opened for research and development work. The portfolio was repositioned and new resources were added with the basic objective of getting more growth.
Individual response to change: Employees were skeptical towards this idea of change before however they adapted to this change and newness and products having a fresh being nature were born.
General Nature of Change: The change was strong, bought in a lot of competition that was won by hardcore work, achieving all objectives making GE the leader of this century.
7. Plan to implement a model for change and develop appropriate measures to monitor progress.
Change is the only constant.
- Heraclitus, Greek philosopher
Every organization needs to keep adapting change often to be the leader. A game plan should be thought of that makes is convenient for employees to adapt change employers to communicate change and customers to accept change.
Following steps can be followed to implement a model for change:
The need for change should be made urgent for all members of the company. They should be pumped up about the idea of adapting to change, this will happen when once urgency for this change is created.
A swot analysis should be done for the change to be implemented
After urgency has been created , higher level management should make a team of lead coordinators , project officers, team leaders should be set to work
After imaginative ideas are thought , the broader vision should be established
The vision statement should be communicated well
The purpose of the business should be well defined
The mission statement should be communicated
Economic conditions should be kept in mind
Short term realistic goals should be kept in target to achieve
Change should not be stopped at a point after each and every change adapted , its gain or loss should be analyzed as there is always room for improvement
Changes in Corporate Culture
After change is adapted in the organization, a swot analysis should be conducted. All strengths of this change to organization and corporate culture should be observed. It should also be observed if change is serving as strength.
Weakness of the organization should be identified and rectified with the new change
Opportunities that pop up due to change should be fully availed
Threats should also be kept in mind. Once the SWOT is conducted profit objectives to be achieved should be jot down. A strong vision statement should be created and well communicated. The economic conditions of demand and supply should be observed, if there is a shortage of a particular product in the industry or its value is downtrodden then new and fresh initiative will make a lot of sense. Demand of new products will be made by customers if its according to the choice and feasibility of customers. Thus the manufacturers and suppliers will also make profits be selling more.