A structured approach to transition organizations from the present scenario to the desired state is what called Change Management. It is sought to be an organizational process targeted to empower employees to recognize and grip changes in the work environment. Change management can be stated to be a project management process through which changes are made gradually in the organization. Strategic changes, structural changes, technological modifications and change in the attitudes of employees are some examples of organizational changes that are need to make (Beitler, 2006).
While the change management process is going, organizational change management calls for creative marketing to facilitate communication to showcase the change audience as well as the deep understanding of leadership styles and dynamics. Even organizational change management brings in line the expectations of interested groups, communicates, involves and manages teams and people properly. It even make use of metrics such as leader's commitment, effectiveness of communication and the believed changes that are needed to be designed for strategies so as to avoid the failures of changes and solve the problems regarding change projects. Change management to be effective requires all the above mentioned efforts and dimensions of change in the organization (Hiatt, 2003). The above dimensions can be pursued as follows:
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Formulating an efficient Communication strategy that bridges the gap between the understanding of benefits due to change and the implementation of the change strategies.
Plan an effectual ability upgrading scheme for the association. Overall these events can oppose confrontation from the workers of organizations and bring them into line to on the whole strategic way of the organization.
Personal psychoanalysis of personnel members (if required) to lessen any change connected fears.
Standard Chartered Bank
A bank heritage straddling for more than 150 years, Standard Chartered has reached to extensive global peak and holds a very strong position in the emerging markets and new dealing business. It was formed in the year 1969 through the merger of two banks; the Standard Bank of British in South Africa and Chartered Bank of India, china and Australia. Both the companies are agreed to the changes and needs to capitalize the resources for huge expansion in trade and want to earn handsome profits by the movement of goods and services from Europe, Asia and Africa. Currently, it is having a network of about 1700 branches and 5700 ATM's in across 70 countries. The strength for the bank is the Diversity across the nations. More than 75, 000 employees representing different nationalities with 70 senior managers are employed in the Bank. Those project and events are sponsored that brings value to life and make a difference in communities across the world. (Standard Chartered Bank)
Task 1 - Background to Change
1(a) Background to change that exits in today's economy
Standard Chartered bank has already been succeeded in fleeting from a centralized organization to open market environment. They are most likely to adopt changes for recovering from the risky and unbalanced situation. The Bank should be prepared for the future global competitiveness. The Bank is responsible to make changes either less or deep. The changes have to be made at different level i.e., technical, social, and economical changes. This requires for the recognition of seven levels of modifications:
Their mode of behavior
Their techniques or tools
Their procedures, policies & rules for the working processes as well as the management system regarding human resource
Their administration of work specifically great amount of alterations in required competencies
Their goals, aims, purposes and business policies or plans, even the structure
Their values, beliefs, ethics, mode of conduct in society and their existence
The profundity of the changes is understandable when the Bank moves down slowly. It is important to note that lower level changes to be adapted after the acceptance of the introductory changes only.
Even though environmental challenges pose certain challenges which require Standard Chartered Bank to: (Standard Chartered Bank)
Plan for new strategies especially in new markets or behaviors, changing the authority system, more concentrations on mergers and acquisitions, negotiation with other banks for financial agreements and even constituting prudential services
Enhancing of investment, modifications or alterations in the structure of organization and implementing controlled and strict procedures
Always on Time
Marked to Standard
Reinforcement of such tools and practices in the management like planning, budgeting and communicating an improved image
Development of new actions such as new proposals to new clients, adjustment in the pricing strategies and simplifications in methods to reduce the cost, adaptation of new selling practices and customer services
These changes are to be made in accordance of their importance and sought purpose. Some essential changes are to be made gradually rather than making sharp cuts for the modification in organizational structure.
1(b) - Evaluate the strengths and weakness of Bureaucratic Organizations
Strengths of bureaucratic organization are:
Strengthened control over the staff and employees with the clear understanding of rules and regulations.
No confusion, this shows that the reporting relationship is well established.
The standardization procedure is followed and every one is subjected to pursue the similar process.
The decision making system is centralized and all the decisions regarding organization are supervised.
Main benefits of such organizations are the enhanced control and supervising of top level management. The triumph of such organizations is dependent upon the prudent decisions of the top level management. If the top level management is wise enough then the results or the outcomes can be positive and if the top level management is not good or can take wise decisions then the organizations could be turned into disaster.
Weaknesses of bureaucratic organizations are:
The main disadvantage of bureaucratic organizations is that they are deficient in field of innovation. All the tasks and procedures in this organization are fixed so that there is no room for the innovation. Even the employees get dissatisfied and de motivated due to the lack of innovation and participation. Human resources is somehow gets unutilized as these are not optimally created which being the main disadvantage for the bureaucratic structures or administrations.
The jobs for the employees become boring eventually. Even the flow of communication has to pass through so many stages that there are greater chances for the distortion. There are so many levels of hierarchy in the administration. With the greater amount of control in the hands of top level management, creativity and innovation is missing. The procedure for decision making and the other processes are too slow. Within the bureaucratic organizations, political natural is natural to occur. People tries other illicitly approaches to be at the upper level of hierarchy.
1(c) - Comparative analysis of alternative forms of organizational development
Organizational development is something which is going on throughout the world in every organization. If we take into account all such tax related and other organizational developments, we can find out that following are the various distinguishing characters of organizational development: -
Focus on process and culture of the bank
Increases collaboration between the employees and the bank
Focus is on the employees of the bank
It promises collaboration of change managers and employees
There are various forms of organizational development or OD. The ones that can be implemented in Standard Chartered Bank are discussed below: (Joan, Edgar, 2006)
Team Building: Team building is one important aspect of an organization. Standard chartered bank has various departments that need various efficient teams in each department of each bank in every corner of the world. The motivated and well behave team is what takes the organization towards success. Team building and management promotes organizational development.
Organizational assessment: Assessment of each department of the bank will help in development of organization. The employees and the process followed by each sector of the bank with the business strategies and services delivered have to be analyzed.
E-Learning: E-Learning is very important in a global bank like Standard Chartered where many of the services are internet based and also the database is required to store all the heavy work going on in the banks. Developing and promoting e-learning will promote development within organization.
Innovation: Innovation is the key to success. The monotonous services and products are not liked by all. Though there is not much scope of innovation in Standard Chartered bank as they are providing and serving people with all kinds of possible banking services, still they can use some innovation to help people further with new strategies and plans. Innovation is a key to mew services which attracts customers and takes the organization towards development.
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Leadership Management: Managing the leaders and choosing the people who can guide others and also be an asset for the organization are very important for the bank to keep the brand name and reputation stable in the market. Good leaders and managers take the organization towards the path of development.
Change Management: For organizational development, it is important that organization understands the demand of the time and the customers and then plans the changes accordingly. Flexibility and adaptability is what is the demand of the time. For development in any organization, it is important that the organization understands the changing market, and develop strategies that can help in changes accordingly.
Change management is the most important organizational development that brings along all other above organizational developments.
Task 2 - Involving others in the process of change
2(a) - Identification and involvement of stakeholders in the change process:
Stakeholders for Standard Chartered
There are several stakeholders for the standard charted bank that comes in contact with the Bank. (Standard Chartered Bank- Global Networks)
Professional Bodies - standard charted bank is partner with the UNEP financial instruments statements and is working as the member of UNEPFI/ GRI financial services working group. Even the bank has participated in the UK-based companies for the environmental indices and corporate responsibility.
Socially Responsible Investment Analysts - the bank has SRI Forum in 2004 in London. The intention for this is to widen the audience for annual event. The Bank is engaged with 60 key stakeholders inclusive of SRI so as to make decision regarding the seven priority areas so as to put together the strategy for "Building a sustainable business".
Existing and potential shareholders - the communication with existing shareholders is through Sustainability Review and annual Report which are being sent out in Annual General Meeting. The relationship with investors and major influential investors is maintained on an ongoing basis by the investor relationships team.
Bank employees - the Bank's aim for the Sustainable Business was presented to the 500 or more senior employees within the organization to enhance communication for creating consumer awareness and impel participation of employees in the core themes. All the graduates are also employed in the core programs.
Customers - obligation towards the consumers is the vital thing to show. Bank is obliged to give standard quality products and fair treatment to ensure employees with trust and faith. This responsibility is far more than obedience but is necessary to build sustainable business.
The business for lending is surrounded with environmental and social risks which entails the Banks to gain fame and also shows the impact that it is having on the consumers and the business. Even the objective of Standard Charted Bank is to offer its customers with exceptional service and ways to enhance the business.
Non -Government organizations (NGOs) - many NGOs like Banktrack, Global Witness, Platform, and Corner House are the shareholders of the Bank. The approach to work with non governmental organizations is always been a matter of issue on specific basis. The Bank tries to understand and focus on the local and global issues on which NGOs wants to focus.
Government -Standard Charted Bank has worked with UK Bank and other leading companies some of the programs of our bank are to address financial services for communities and people, HIV/AIDS and small & medium based enterprises.
Involvement of Stakeholders in Change Management
While considering the involvement of stakeholders in the management of change in Standard Chartered Bank, there is limited one to one relationship. Many of the stakeholders are influenced by the relationship that they share with the Bank and in their programs.
Management of Stakeholder is a key element for the organizational management where they are united branding, corporate social responsibility initiatives and marketing (Freeman, 2007). Likewise, managing stakeholder is important for the change management in the organization to see the capability for realizing the impact or benefits of changes that was being initiated to convey. The benefits for these changes will not be realized unless and until they are being conveyed to the stakeholders and accepted by them accordingly.
Program management for changes centers on the efficient stakeholder management (Brujin, 2003). While initiating change in the organization, change management employs to convey the basics that are required for facilitating changes in the organization at every level.
Communication of change management in Standard Chartered Bank flows in a certain manner discussed below:
The Bank has decided to restructure the organization and as a result appointed a change manager for this very purpose.
Change manger is responsible to develop a business case for the Bank to initiate change programs in the organization and is subjected to approve the case by the decision making executives and other stakeholders. He is also responsible for collating the funds and resources for the programs.
Program management team is being set up by the program manager as well as an office for program management team is being established. They all charted down the projects in which change is to be implemented.
The projects are conveyed for the outputs. The programs are then integrated with the outputs within the organizations' operational aspect. This entails the use of new systems and processes. Thus, value is produced for the owners and stakeholders.
Change managers is responsible for sponsoring the program and is the primary client of this but the people who needs to be satisfied are the operational mangers and staff. If the Bank is not making use of the new set of programs then the value so created becomes less.
2(b) Analysis of the systems involved in key change process management
The technique discussed above is appointment of change manager who will be the in charge of the of the program management within the bank. The change manger will have to be sure that the changes taking place are effective or not. Change manger is an asset to the organization as he/she will be looking after the changing organizational demands and will manage within the bank appropriately. The change manager will be solely responsible for the organizational changes at various stages. There are many other benefits that can be taken apart from involvement of stakeholders with help of change manager.
Standard Chartered Bank is an international organization which requires to changes according to the location of the bank like country, state, etc. Being a global bank, the demands of the organizational changes change with the area. Change manager will be required at respectively who can understand the customers of the region and plan and manage changes accordingly.
Apart from directing transitions in teams, organization and individuals, there are more detailed there are various detailed changes that a change manager will have to look at in the bank and these are:
Changes in the customers and behavior of the personnel
Change manager is a multidisciplinary responsibility and requires organizational change management in certain aspects like:
creative marketing of the services offered by the bank according to the region to enable effective communication with the changed audiences
Deep understanding of the social responsibilities with dynamics of leadership and its qualities
The customer expectations are to be met by the bank and change manager has to put forward those changes within the organization so that changes and their management can be done suitably
There are various transformational and transitional changes that can follow in the bank but it is the change manager who will have to be responsible for maintaining the ethics, metrics, constraints etc.
The strategies and plans are to be constructed for effective management of the change at various stages and sectors within the bank
Change management is effective and change manager is called efficient manager only when he and she can bring about beneficial changes within the dimensions of the organization. However there are certain steps that can help a change manager:
The change manager must construct a communication strategy that will bridge the gap between the organization and the people who are facing the changes. The significance and the benefits of the changes will have to be understood by the both and should be in agreement with both.
Devise skills and tools that will help in upgrading the organization. The resistance from the internal and external factors should be minimum rather with agreement would come flexibility.
Personal counseling of the member of the organization can be an effective tool and should be adopted during every change process.
Stakeholders are the operational part of the Bank and managers play the key role of the stakeholders within the organization under different range of entities:
Being the part of the organizational hierarchy, they automatically become the stakeholders for the Bank.
They are being the stakeholders in the change management process which is administered by the change manager.
The end users of the resultant systems and processes, they become the stakeholders of the program.
They are more likely to become the stakeholders in some of the projects as when they are subjected to matter experts.
At some point of time change management in the Bank becomes stakeholder management. Thereby, stakeholder management should be incorporated in the change management process at change manger's level. All the department of the Bank is subjected to support the stakeholder management in the organization for achieving the best results and benefits of the changes.
These are some steps that Standard Chartered Bank can take to make sure that their stakeholders are happy and in agreement with the changes in the organization.
Task 3 - Implementation of models for change in the management
3(a) - Identifying the appropriate models for change in the organization
To develop an effective management in the organization, changes are very important to be taken at every level and should be managed properly. Most of the organizations are focusing on the project management of the change. While undertaking the project management, it is necessary to monitor changes properly. If the change that has been implemented in the organization fails, it is because the impact of changes is not taken into account from the individual perspective. At the time of implementing change in the organization, one important thing to be remembered is that people are different and have different perceptions. Each employee would react in its exceptional way. Some would like change or some would resist them (Cameron, 2009).
There is variety of change management models that we can employ in our organization however; only two most appropriate ones are discussed seeing that Standard Chartered Bank is a global organization. These two have been discussed bellow:
Lewin's Change Theory
There are three stages of this model and they are:
Unfreezing: Aim is to motivate the staff for the change and bring change in their attitude and behavior.
Changing: Change brings in new learning experiences therefore the employees should be guided about new information, methods, models, etc. that will be helpful for them to adopt change.
Refreezing: During this stage the employees the behavior and attitude is changed and they have integrated with the change so let them adopt the same and work with this like their normal way.
Edgar Huse's Model:
Steps involved in this change model are:
Scouting: The person in charge of the change, i.e. change manager in Standard Chartered Bank, will scout and guide the employees about the changes and talk with them explicitly.
Entry: This means opening doors for the employees and preparing them for the change.
Diagnosis: This involves diagnosis of the previous changes and strategies with comparison of the present.
Planning: In detail planning of the change and implementation strategy is done.
Action: Implement the plans that have been set out.
Evaluation: Evaluate the plans for what has been done and what all is required.
Stabilize: After the plan has been implemented and evaluated, stabilize it so that employees can work in their normal manner.
These two simple models can be implemented in the organization. Managing organizational change will be easy if these models are implemented properly. Managing change requires proper planning and responsive implementation and consensus of those employees who gets affected the most by these changes. Change to be implemented should be measurable, realistic and achievable. These models tell the organization for hoe to make a relevant change.
3b) Implementing model and expected improvement
The former model, i.e. Lewin's change theory is more applicable in the Standard Chartered Bank. However, during the change and planning if any loophole or problem persists, later model i.e. Edgar Huse's Model can be used.
(Lewin's Change Theory)
There are certain steps to be followed for the purpose of adopting the organizational change model.
Communicate the need for change: Talk to the employees and tell them why s the change required. Educate them about the benefits of the change to them.
Feedback from employees: Get feedback and suggestion from the employees. Ask about the problems they think can be faced and give them the solutions. Also the suggestions by them can be useful.
Know the reasons for changes: no change should be implemented just because a change has to make. Know the goal that has to be accomplished and then communicate about that goal with the staff.
Plan Change: next is to plan the changes that have to be made.
Delegate Decisions: the staff and employees should know about the decisions made on the changes.
Patience: the implementation will take time so be patient and follow the process and wait for the results.
Back-up: Follow the back-up plan and manage the risk if any during the change.
Analysis: Analyze the results after the change has been implemented and result can be seen.
These are the simple steps of implementation. These steps make sure that there is minimum resistance from the employees and the change process is smooth.
These change models ensure smooth adoption of the change in Standard Chartered Bank. They will help in improving the changes in the organization. With Lewin's model, it has been ensured that each of the technicalities of the implementation is covered.
Modern Business organizations need to be flexible and open to the changes with the increasing competition and demands of the customers. This model will help Standard Chartered Bank with the same.
Change management is one of the significant organizational development for not only Standard Chartered Bank, but also all other organizations. The change is one thing that is constant and therefore, organizations would have to adopt changes appropriately. The stakeholders are to be involved in the course of change and for managing whole change process in the organization, a change manager is important. There are various models that can be adopted for bringing about changes in the organization and managing them. The aim is to have effective changes and that can be only after dedicated strategies with devoted mangers and involvement of the employees of the organization.