The IKEA company running from six decode ago by 1926.ikea They walking from the woods of southern Sweden. Now they have major retail branch over 40 countries around the world. The founder of IKEA is Ingvar Kamprad is born in Småland in southern Sweden.
Within their long history, they have must a principle of changes to gowning their successful history. First need to understand what means about changes that means organizational changes. Changes take many forms: one is extreme that are modify the cause of exist of a company and other is sometime any small portion need to review. Changes can be influence the whole company or small portion of the company such as a single team. In a company occur many changes parallel at a time. Newton (2007)
In the IKEA group of company, if there are occur any changes then they achieve the following thing: The achieve the boost in processes and procedure; develop their information technology system, improved their customer services, develop the skill and ability of their teams stuff, including outsourcing company structure will be change, an innovation and broader range of product or services, review the culture of the company and merge and de merge between the company.
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Any changes occur is a reaction for any stimuli that means every change having some key factor and principle. Some change occurs for internal reason for company and some reason for external reason for the company. The internal changes are comes about trough the creativity of stuff in this company to produce a method that are benefit for the company. This change are recognize by the senior manager in this company that means top down change, but sometimes many changes are identify from bottom up changes. In external changes of this company include: taking step to develop the technology side of the company, taking action of the various demand and needs of the customer, organize the company for changing new legislation and regulations, and try to always react with various competition that are new market policy and new company arise with new technology, etc.
Change Management and innovation
To achieve a desired final state through changes by set of processes, tools, methods, approaches and techniques is called change management. Change management is means leading transition from one state to another. Change manage is approaches have many innovation in IKEA group company. It helps this organization to gain its aim and objectives that are cannot possible to gain by the present method and successfully operate with customer. This manage also try to minimize the negative of any change occur in this company. Well designed and implementation change can be give massive improvement in this organizational performance, but sometimes it brings negative impact if this changes need again. Change management tries to minimize the time and length of this performance by dropping following changes. CameronGreen (2009) This change management are innovating the different areas of the company that are: project manager use this innovation of the change manager to refer that need any manager change need to the scope or requirements of a project. This change management is impact on the cost of this project, time of a project. Operational manager use this term for to an operational process or system is controlled to ensure that the change does not adversely affect operations. For example a new machine is coming on a production line factory, then production manger that is act in change manger ensure that this machine are operate after successfully testing and no disturbing or interrupt to another production that are running in this factory.
Change theories and tools within the organization or in IKEA
Every organization tries to react with new market policy, new technology, and customer demand. To keep pace with this market change, every organization always takes many sides of change management. There are include process change, structural change, cultural change and cost change in such type organization is called IKEA. Beer (2003) In structural change consider the all functional part of the company that are need to be change for better performance. During structural change, top management, aided by consultant, attempts to reconstruct these sectors to achieve better performance. In process change describe the how product will be done. Process change focus to make processes quicker, more effective, more reliable and less price. Cost change management always considers the price cost according to the customer or market demand. And in cultural change management means the stuff co operation with other and work flow in group member.
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According to the " Harvard Business School Professors Michel Beer and Nitin Nohria " described two forms of change theory that are called E theory and O theory. E theory means change from the economical approach and O theory means changes from the organizational capabilities approach. In goals of any company, E theory describe the maximize shareholder value and O theory describe the developing capabilities of this company. In E theory also changes the leadership manages from the top and O theory tries to participate the leadership from bottom up. E theory focuses the structure and system of the company and O theory develop the corporate culture and stuff relation and behavior. E theory conduct the process in plain and established way, but in O theory conducts the process in experimental way. McCalmanPaton (1992)
In IKEA group of organization, consider the major change of program according to the market demand and customer choice. So what theory is appropriate for this company is difficult to do say. Because from the previous experiment it is shows that neither theory is guarantee of success. In E theory is develop the rapid changes that are sometimes beneficial. But not either E theory or O theory is beneficial for this company. For successfully change tools in a company. It needs to apply the both theory.
Effect of globalization on change management using Risk Management Technique
Risk is unavoidable in every project in organization. Risk may be come in any side of the organization that means operational, process and cultural risk, etc. For example, in a team group any member is sick then there will be occur a risk. A good manager always takes action to reduce the risk and make contingency plan to mitigate risk. Wallace (1999)
Figure1 : Risk Management
.There are many risk management technique are available for reduce risk. Risk also effects the globalization on change management. There are many factor are include to effect the globalization. Deaconu Capital repositioning is one of the common globalization effects that are identify. For the reason of economic growth of the developed countries that are seeking the market in the developing countries also coming risk in the economic field. Increasing trade exchange is also another risk that are sometime arrange without any regulations.
The Barriers of change process
There are many change management processes available that are structural process, cultural process, behavior change process, etc. To achieve this process, there are also coming many barriers. The behaviorist approach is about changing the behaviors of others through reward and punishment. This leads to behavioral analysis and use of reward strategies. Personality type has a significant effect on an individual's ability to initiate or adapt to change. To overcoming this behavioral change barriers, manager can take step. For behavioral barriers, get his reward strategies right and link goals to motivation for cognitive.
To overcoming these change problems make sure that the organization continues to do all the normal work that needs to be done in priority to the change itself. Any product need not be delivered when change are in risk. Kotter (1996) There are need to continuous monitoring progress in terms of both completion task and the delivery of benefits. Resolve this problem quickly and effectively. The decision to go live requires an understanding of the risk being taken. Risk can be minimized by activities like testing and contingency plans, but there is never zero risk. Celebrate success proportionately and at the right time.
Source of conflict within the change management
Conflict takes place in organization because organizations function by means of adjustment and compromises among competitive elements in their structure and membership. People's views often conflict. If they hold them strongly, the result can be two kinds of conflict, horizontal between functions, departments, groups and individuals, and vertical between different levels in the hierarchy.
A conflict between individuals raises fewer problems than conflict between groups. Individuals can act independently and resolve their differences. Members of groups may have to accept the norms, goals, and values of their group. An individual's loyalty will usually be to his or her own group if it is in conflict with others.
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Every change provides an opportunity to learn. True learning is not just about discussing what went well and badly, but about taking real action to ensure the lesions are drilled into the organization. Change is continuous in an environment of finite resource. To perform the best changes requires tough decision making and prioritization of change option. To thrive in a world of change the organization should deliberately develop change management skills as a core skill for everyone in the organization.
When developing or changing anything for organization consider how they can design in flexibility so the next time it comes to making a modification it is easier, quicker, and cheaper.
The best method of handling conflict is to adopt a problem solving approach by: getting arrangement on what problem is, jointly analysis the causes of the conflict, identifying alternative mean of dealing with the issue, jointly evaluating the metrics of each alternative from the perspectives of both parties. Working through the alternatives to find the one closest to meeting the needs of everyone connected and agreeing on how the preferred solution can be implemented to the satisfaction of both parties.
Conclusion of all the outcomes for the given organization IKEA
The most important task is to gain the commitment of all concerned to the proposed change. This can be achieved by preparing for change thoroughly, gaining understanding and acceptance of the reasons for change, managing the transition carefully, and implementing the change in a way which ensures, as far as possible, that it is accepted so that, in use, it's worth becomes evident.
The main business theam of IKEA group is delivered the well designed product in minimam prize that are able to all people. The IKEA organazations develop their more store moer than 4.5% to 660 miliion. This is increase the tortal EUR 22,713.