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To change something involves modification, variation or altering it in new way. Organisation change or adapt what they want to achieve and how they going make it possible. The organisations that responses to change after external circumstances are reactive. On the hand organisation which recognizes need for change at earliest possible time are proactive. Some organisations are traditional in attitude seeking little in way of change. Others are entrepreneurial in attitude ever looking for new prospect and new confront. Some organisations are rigid that change or alteration is sluggish and complex practice; others are enthusiastic with in-built flexibility facilitating alteration to catch up on frequently and moderately without difficulty.
However there are general points that can be made about the concept of organisation change. Before change take place organisation should know some key factors such as; how much change is needed? How much time is required for change to take place? When should change take place? Who should be key performer in change process? And what role should they have? Who benefits from change and harms from it.
There are mainly two forces which puts organisation to change; external and internal. First let's took at external forces:
Changes in demand for the organisation`s product or services for example new trends in market place, change in customer preferences, government legislation
Aggressive tactics of competitors for example developing an advantageous improvement in product or in service.
Entrance of newcomer with advance and low-cost product or service.
Taking over of business by more power full organisation
Merger and acquisition.
Change in supplier
Change in terms of trade example currency exchange rate, tariff etc
Fail to requite skill employees
Change in technology available for business in term to more profits.
Change in government rules for example taxation, new budge, new labour law
The impact of these external forces in terms of change might differ; depending on organisation and industry in which they compete. For example supermarket Retail Company like TESCO and ASDA will give more important to its competitor. While banking organisation like HSBC or Barclays will immediately respond to economic condition or change in government rule.
Internal forces which should in theory be more predictable indication of change are as follows:
Redesigned in strategy which leads to new mission and goals. Sometimes depends on external consideration.
Introducing new culture to manage new divers' work force for example change in management style, collaborative working, recruiting more divers personnel.
Change in production methods to improve and create better use of resources.
Require to improve quality of products or services.
For launching new product or services developed by research and development or sales or marketing department.
Want to develop better standards or services for dealing with suppliers.
Need to deploy human resources where they are most effective.
Need to Change or upgrade information technology.
Dealing with these external forces of change management have plane how they will respond to them. Some potential changes are being declared well in advance and in these cases planning is taken care proactively.
Other common issue concerning organisational change include resistance to change the use of key individuals as change agent and cost of implementing change. It is obvious that managers planning changes should take in consideration that resistance will be unavoidable.
Every single change will bring some straight cost an example of this is equipment cost, relocation cost, recruitment cost, and possible redundancy payment. Apart from this there will be hidden cost like communicating change to employees, providing proper training and provisionally redeploying key managers and staff on the projects.
Resistance to change:
There is not much point in change in "change for change`s sake." Nearly everyone have to convince of need to change. Several employees will panic. The reality is that ever human grouping has some forces within it which keep it together and provide it with stability and other which provide it with reason to change or adapt. Kurt Lewin1 demonstrated the dilemma carefully with his classic concept of "force field theory". This theory propose that all behaviours is the result of equilibrium between two set of opposite forces what he calls "driving forces and restraining forces" driving forces push one way to attempt to bring about change; restraining forces push the other way in order to maintain the status quo.
Generally speaking human being tends to prefer to use driving forces to bring about change. They want to be successful by putting pressure on those who oppose them but as Lewin's model suggests the more one side push the more other side resists consequential in no change. The better way of defeating it is by concentrating on the removal, or at least deteriorating of objection and fear of resisting side. Therefore primary strategy should not be how we can persuade them of our point of view on change? But rather what are their objections and how we can deal with them? Lewin come up with three-stage approach to changing behaviour which comprises the following step:
Unfreezing existing behaviour: getting recognition for change.
Changing behaviour: changing mind set of employees, modifying behaviours this is mainly done by change agent.
Refreezing new behaviour: that is emphasizing new patters of thinking or working.
The unfreezing stage is designed at getting people to notice that change is not only compulsory but is desirable. The change stage is mainly a question of recognizing what need to be change in people`s attitude, values and action, and then helping them to acquire ownership of the changes. The responsibility of change agent who is the main person accountable for helping group and individual to acknowledge new ideas and practise is significant at this stage. The refreezing stage is aimed at consolidating and emphasizing the change behaviour by different support and system like encouragement, promotion, participative management and more consultation.
Now let look at kotter's2 theory about. John kotter a professor at Harvard business school world-renowned his eight step change process in his 1995 book "leading change" which are as follows:
Construct and maintain a sense of urgency about the future.
Generate and empower a leadership team a guiding of coalition.
Developed an end goal, vision and strategy to achieving.
Continuously communicate new vision and set out what change in behaviour are required.
These are four stages are intended to help deforest hardened status quo.
Giving power to employees to help change happen by eliminating hindrance such as restrictive organisation structure, lack of necessary skills, rigid managers and inequitable reward system.
Creating some benefits in instantaneously so that employees in organisation can see some substantial progress on the way to achieving the goal.
Consolidating short gain and creating more change by progressing the action taken in stage five, launching new projects and taking in more people who are dedicated to the change that are sought.
Implanting the new approaches in organisation culture so as to avoid eventual regression into previous practice. This implies adapting the culture from some earlier model and being prepaid to adapt again the change.
So far now we have discussed the problem of dealing with organisational change. The study of how organisations try to adapt to changing conditions, whether internal or external is development of the last decade or so. The phrase which has been invented to explain the process of adapting to change is "Organisational development". Organisational development (OD) can be defined as follows.
"Organisational development is strategy for improving organisational effectiveness by means of behavioural science approaches, involving the application of diagnostic and problem solving skills by external consultant in collaboration with organisational management."
The important characteristic of OD process is the relationships developed among change agent and his client group. It is necessary that a mutual relationship is build or else the process will never complete. In practise the collaboration means being open with one another having high amount of trust and get ready to work through conflict in positive manner. From definition we come to know that OD is about to change and change can be painful, particularly when it comes to people attitudes, beliefs and self imagine. Those engaged in the process have to admit the implication of collaboration; they are genuine about improving their organisation.
According to Bullock and battens there are four phases of organisational development as follows:
Exploration phrase: In this state an organisation has to investigate and decide whether it wishes to make definite changes in its business functions and if so, commit resources to planning the change. The change process involved in this phrase are becoming responsive of planning and implementing the changes, exploring for external assistance like change agent or facilitator to support with planning and implementing the change and developing the contact with change agent which defines each party's accountability.
Planning phrase: once the consultant and organisation has established the contact. Then the next state which involves understanding the organisation problems or concern starts. The change process involved in this are assembling information in order to set up accurate analysis of the problem, developing change goals and crafting the correct action plan to accomplish these goals. And convincing key decision maker to grant and sustain the proposed changes.
Action plan: In this state an organisation put into operation the change originated from the planning. The change process involved are aim to shift an organisation from its present state to desire future state as well as establishing suitable arrangement to manage the change process and gaining help for the action to be taken and evaluating the functioning activities and feeding back the result so that any required alteration can be prepared.
Integration phrase: This state begins once the changes have been effectively delivered.
It is concerned with consolidating and establishing the change so that they become part of organisation ordinary daily process and do not need any special arrangement or support to maintain them. The change process involved are emphasizing new behaviours through responses and incentive system and progressively decreasing dependence on the consultant spreading the thriving aspects of change process all over the organisation and training managers and employees to keep an eye on the changes regularly and to look for improve upon them.
The role of change agent: The accomplishment of organisation development programme relay highly on the part played by eternal facilitator or change agent. The change is at middle in entire OD process. If he is enabling to build a definite liaison between himself and management team concerned or he fails to establish his reliability with variety of other groups his change of obtaining the degree of commitment required will be thin. On the other hand if he obtains trust and respect both as person and skilled advisor he has top possible basis for achieve his own involvement to aim and objectives of the programme.
Following are the qualities, values and abilities are required for change agents
Qualities of intellect and personality are vital in particular the ability to listen diagnostically and to apply realistic approaches to the problems and condition also mature attitude in terms of an alertness and recognition of personal potency and weak point.
Values that consist of the preference intended for interpersonal relation stand on collaborative reliance and concerning for team worker rather than competitiveness and for disagreement to be handled honestly and helpfully.
General skill such as consultation skills presentation skill and capability to establish and sustain comfortable association with the extensive cross section of people.
Major approaches in organisation development:
Coaching and counselling: activity planned to facilitate individual and usually on one to one basis.
Team building: activities design to progress team relationship and task success.
Inter group activities: designed to advance the level of association among the interdependent groups.
Training and development: activities designed to improve key area of employee's knowledge and skills and developing a range of involvement learning techniques.
Role analysis: focusing on what is anticipated from the employees rather than on their current job description. Planning new configuration of job and task.
Job redesigning or job enrichment: reassessing contemporary job in term of their variety and category of task and redefining jobs as well as vertical job enlargement.
Diagnostic activities: make use of questionnaires, survey, interview, and group meeting.
Planning and objectives setting activities: design to improve planning and decision making skills.
Process consultation: where the third party facilitate to see and identify the human process that are taking place around him. For example leadership issues, communication flow, competition between individual and groups.
Business process Re-engineering: examining key business process from a questioning point of view.
Benefits of organisational development: the most important benefits of organisational development are specifying below. The relative importance and relevance of any one benefit obviously depends upon the need of organisation however in general terms the benefit of organisational development can be summarised as follows:
It enables an organisation to adjust to change in a way that gains the full obligation of the employees concerned.
It can direct to organisation structures that assist employee's help and the achievements of tasks.
It releases hidden energy and creativeness in organisation.
It can improve understanding of organisational objectives by employees.
It provides opportunities for management development in the context of real organisational problems.
It may stimulate more creative approaches to problem solving during the organisation.
It typically enlarges the ability of the management groups to works the same as team.
Difficulties in implementing change: in those pursuing a change programme such as organisation development begin to see it primarily in mechanistic what to do terms kotter3 remind them that it is the manner in which the programme is driven that is the most important. He identifies eight typical mistake made by senior management in relation to organisational change
They allow too much complacency.
They fail to create sufficiently powerful guiding coalition.
They greatly under communicated the vision to be attained.
They underestimate the power of vision.
They permit obstacle to stand in the way of vision
They fail to create short term win.
They declare victory too soon.
They neglect to anchor changes in the organisational culture.
According to kotter any change to have chance of success it is essential to have not only an ideal to him for vision but also an ideal framework for guiding those responsible for achieving that result.