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This assignment presents and discusses that Change management entails thoughtful planning and sensitive implementation, consultation with, and involvement of, the people affected by the changes. Before starting organizational change, ask yourself: What do we want to achieve with this change, why, and how will we know that the change has been achieved? Who is affected by this change, and how will they react to it?
And communication is a vital part of personal life and is also important in business, education, and any other situation where people encounter each other. People in organizations need to communicate to coordinate their work and to inform others outside the business about their products and services. And also discusses about the internal communication and the challenges that can be met when dealing with an international team.
The rate of change in an organization is increasing rapidly in the 1990s. For example, the development of information technology is so great that for many employees their house will soon also be their place of work. The computer firm Digital already has in excess of 1,000 of its 4,000 workforce operating from home.
Today is a permanent characteristic of business activity. In some cases it can be anticipated and therefore planned for, in others it is unexpected. For example, a rapid growth in sales may demand extensive change. If it can be foreseen, this will allow the process of expansion to be managed more effectively. Even when a business cannot control the change, anticipating it will allow plans to be made. This is why Nike has always employed an army of young people it calls 'coolbunters'. Their job is to keep in touch with relatively straight forward with understandable and limited objectives. This in itself is not a new or radical finding anyone who works in or studies organizations will have noted that change comes in a wide variety of shapes and sizes.
The most extreme change would involve abolishing the existing way of doing things and starting again. More often, adjustments are made to the present approach in order to fit a new position. For example, many companies did this in recognizing their management structure in response to recession in the early 1990s.
All change, from introducing a new piece of machinery to restructuring the organization, has implications for employees. The management of people is the largest problem which faces those who are trying to move the business successfully to a new position.
By-Ian Marcouse, Andrew Gillespie, Barry Martin,
Malcom Surridge, Nancy Wall)
Organizational change can be complex, ambiguous and open ended phenomenon; it can also be
Steps in the change process:-
Change is often managed less effectively than it might be because those responsible for managing it fail to attend to the some of the critical aspects of the change process.
Of the need
Start of change process
prepare for implementation
Recognition: - The start of the process is the recognition that external events or internal circumstances require a change to take place. Recognition involves complex processes of perception, interpretation and decision making that, if not managed carefully, can lead to inappropriate outcomes- for example the organization might fail to change when it needs to, or it may change when change is not required.
Start of the change process: - The start of the change process involves translating the need for change into a desire for change, deciding who will manage and, especially where an external change agent is introduced to help with this process, establishing a workable and effective change relationship.
Diagnosis- reviewing the present and identifying the preferred future state: - Although reviewing the present and identifying the future state may seem at first sight to be separate and distinct activities, in practice they are often integrated. The present state of the organization can often be understood only in terms of the context of its past history and its external environment. The precise objectives for reviewing the present state will depend upon the type of change that is being managed. The diagnostic process disconfirms their view that all is well with the existing state of affairs.
Prepare and plan for implementation: - There will be different lead-times associated with the various tasks, inter-dependencies between them and resource and other constraints. All of these things need to be taken into account when developing an implementation plan. However, it is important that implementation is not viewed as only a technical activity. Implementation has an important political dimension. It needs to address the extent to which people are ready for and accepting of change, and weather the process threatens them in any way. There are two basic approaches to implementing change. Sometime change involves moving from A to B, where, before implementation, the nature of B is known and clearly defined. This kind of change is sometimes referred to as a 'blueprint' change. Typical example of a blueprint change includes relocation, computerization of a business process, or the introduction of a new appraisal or grading system. In these case circumstances it is easier to view the management of change from the perspective of 'planned change' that involves a predetermined linear process.
`Review and consolidate:- The 'review' part of this heading is sometimes taken to imply some form of post-implementation review, but in practice monitoring and reviewing progress are on-going activities, as progress is measured against key milestones.
Before discussing various approaches a company can take to reduce resistance let us understand the sources of resistance first briefly. Resistance to change doesn't necessarily surface in standardized ways, resistance can be overt, implicit, and immediate or deferred. It's easiest for management to deal with resistance when it is over or immediate. For example a changed is proposed and employee quickly responds by voicing complaints, engaging in work slowdown, threatening to go on strike etc. The greater challenge is managing resistance that is implicit or deferred. Implicit resistance efforts are more subtle loss of loyalty to the organization, loss of motivation to work, increased errors or mistake etc and hence more difficult to recognize. The major forces to resistance to change are:-
INDIVIDUAL SOURCES OF RESISTANCE:-
It mainly resides in basic human characteristic such as perception, personalities and needs.
Habit: - To cope up with life's complexities, we rely on habits or programmed responses. But when confronted with change, this tendency to respond in our accustomed ways becomes a source of resistance.
Security: - People with high need of security are likely to resist change because it threatens their feeling of safety.
Economic factors: - When pay is closely tied to productivity and people have fear that they won't be able to perform new task or routines to their previous standards.
Fear of unknown: - Change substitute's ambiguity and uncertainty for the unknown.
Selective information processing: - People hear what they want to hear and they ignore information that challenges the perception world they have created.
ORGANIZATIONAL SOURCES OF RESISTANCE:-
It resides in the structural makeup of organization themselves.
Structural inertia: - Organizations have built-in mechanisms-like their selection processes and formalized regulation to produce stability. When an organization is confronted with change, this structural inertia acts as counterbalance to sustain stability.
Limited focus of change: - organizations are made up of number of interdependent subsystems. One can't be changed without affecting the others. So limited changes in subsystems tend to be nullified by the larger system.
Group inertia: - Even if individuals want to change their behavior, group norms may act as a constraint.
Threat to expertise: - Changes in organizational pattern may threaten the expertise of specialized groups. For example bringing in computerized system in a bank where everything is done manually may act as a threat to an employee who is expert in manual calculation.
OVERCOMING RESISTANCE TO CHANGE:-
Here the role of change agent is very important. Change agents are the person who act as catalyst and assume the responsibility for managing change activities. Goals and objectives should always be frequently redefined to all employees. This shall aid towards clearing up any misunderstanding and possible conflict. Resistance to change can be reduced in following ways:-
Education and communication:- Resistance can be reduced through communicating with employees to help them see the logic behind the change. Research shows that the way the need for change is sold matters-"change is more likely when the necessity of changing is packaged properly. Also communication reduces the effect of misinformation and poor communication. A study of German companies revealed that changes are more effective when a company communicates its rational balancing various stakeholders (shareholder, employee, community and customer). In a large organization employees may wish to elect a spoke person who can talk directly to management. Whereas in small organization employees should be encouraged to speak up if they feel that change is causing a conflict.
Participation: - It's difficult for an individual to resist a change decision in which they participated. Prior to making a change, those opposed can be brought into the decision process. Assuming that the participants have the expertise to make a meaningful contribution, their involvement can reduce resistance, obtain commitment and increase the quality of the change decision. However there are some negatives attached too-potential for a poor solution and great consumption of time.
Building support and commitment: - Change agents can offer a range of supportive efforts to reduce resistance. When employees fear and anxiety are high, employee counseling and therapy, new skills training or a short paid leave of absence my facilitate adjustment. Research has shown that when employee has low emotional commitment to change, they favor status quo and resist it. So firing up employee can also help the emotionally commit to the change rather than embrace the status quo.
Implementing changes fairly: - When implanting change, it's crucial that organization bend over backward to make sure employee see the reason for the change and perceive that the changes are being implemented consistently and fairly.
Manipulation and cooptation: - manipulation refers to covert influence attempts. Twisting and distorting facts to make them appear more attractive, Withholding undesirable information, and creating false rumors to get employee to accept the change. If management threatens that plant will be closed if employees do not accept pay cut. The threat is actually untrue, management is using manipulation. For example jet airways threaten to close down its operation at the time of crisis (employee resistance).
Cooptation on the other hand is a form of both manipulation and participation. It seeks to "buy off" the leaders of a resistance group by giving them a key role in the change decision. The leader's advice is sought not to seek a better decision.
Selecting people who accepts change: - IT appears that people who adjust best to the change are those who are open to experience, take a positive attitude towards change, are willing to take risk and are flexible in their behavior.
Coercion: - Last on the list of tactics is coercion; that is, the application of direct threats or force on the resistors. For example threats of transfer, loss of promotion, negative performance evaluation and poor letter of recommendation.
BASIC APPROACH TO MANAGING ORGANIZATIONAL CHANGE:
Successful change in the organization should follow these three steps:-
Unfreezing the status quo à movement to desired state àrefreezing the new change.
Unfreezing can be achieved in one of the three ways. The direct force which directs the behavior away from the status quo can be increased. The restraining force which hinders the movement from existing equilibrium can be decreased. Third alternative is to combine the first two approaches i.e increase direct force and decrease restraining force. Companies that have been successful in the past are likely to encounter the restraining force because people question the need for the change. Similarly research shows that companies with the strong cultures excel at incremental change but are overcome by restraining force against radical change. Also to deal with resistance management could use positive incentive to encourage employee to accept the change.
Research on organizational change has shown that, to be effective, the change has to happen quickly. Organizations that build up to change do less well than those that get to and through the movement stage quickly.
In order to make change successful the new situation needs to be frozen so that it can be sustained overtime. Unless this last step is taken, there is very high chance that the change will be short lived and that employee will attempt to revert to the previous equilibrium state. Refreezing can be done by systematically replacing temporary force with permanent ones. For instance management might impose a permanent upward adjustment of the salary.
OTHER WAYS OF IMPLEMENTING CHANGE:
Establish the sense of urgency by creating a compelling reason for why change is needed.
Form a coalition with enough power to lead the change.
Create a new vision to direct the change and strategies for achieving the vision.
Communicate the vision throughout the organization.
Empowers others to act on the vision by removing barriers to change and encouraging risk taking and creative problem solving.
Plan for, create, and reward short-term "wins" that move the organization towards the new vision.
Consolidate improvement, reassess change, and make necessary adjustment in the new programs.
Reinforce the changes by demonstrating the relationship between new behavior and firm's success.