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This executive report consists of dealing with the Change Management of the Organization, where the change takes place when the Large Housing Builders integrate with the small builders and decided to make them one among the whole Large firm's organization.
First step of the Change Management can happen by the careful analysis of the Organizational structures of both large and small firms and recognizing the cultures followed by both the organization.
Secondly, finding the Key issues that may arise once the organizations integrate. When finding the key issues of the organization, the senior management executives find the issues with every perspective individual level, so that either of the firm or the employees should not feel unconsidered and may feel discriminated and insecure.
Thirdly, prioritize the issues, which should delt first and respectively. Prioritizing the issues is done, bearing in mind that the change is painful for the end users, and no one likes it, everybody has the inertia towards change and cannot adopt the change very quickly, so the senior executives take changing steps in a gradual way rather than a rapid- revolutionary change
Next step involves, finding the methodologies to solve the issues and incorporate them into the organization at all the levels namely, individual level, department level, project level and at organizational level at different intervals of time. Again, incorporating the methodologies also done with every perspective that suits all bands of employees in the organization.
2. CHANGE MANAGEMENT ISSUES:
2.1 ANALYSIS OF STRUCTURE AND CULTURE OF LARGE FIRM AND SMALL FIRM:
This report contains some of the key management issues and plans to welcome and integrate Small Builder Ltd with Large House Builder, Plc. The report is prepared in detail keeping in mind the current and future predictions of the housing market, large firm's background and the issues to be discussed as part of the business strategy for the coming years, concluded with a summary of all the above.
2.2. Background of Large Housing Firm:
The large was started 35 years ago. The company operates national wide in UK. They provide a full life-cycle service for both private and public sectors. The large firm was started by two people, who are the present directors (executive and non-executive directors), were once the members of “The Association of Chartered Certified Accountants”. It is a privately owned company but designated as Plc for extra financial status.
The 2007 “Recession” in US had its effect on the UK housing sector too, the house loans became very timid and the housing rates fall from peak to trough was a credit crunch period for the large housing company like any other housing sector. Since the large firm is a public limited company, in order to maintain the financial status, it accessed the capital market and offered its shares to sales for the public through a recognized stock exchange. At this point of time the company decided to integrate one of the small firms into its social housing sector.
The main intension on the large housing builders was to acquire a small firm, as the large firm had the plans of extending its social housing projects to other parts of the UK towards the eastern part of southern England region to develop. The large firm's one more strategy was that, it is better to integrate with small firm and make that small firm one among their whole, who are reputed in that particular region and known for their small projects, who meets the clients demands with satisfactory budget and contemporary designs. Who also have good hold on the local vendors, contractors, local transport facilities to get the raw materials at the cheaper rate, instead of recruiting new staff and investing on them for training and additional things like setting up the regional office, staff, transfer of goods and raw materials to the site from the head office place etc. By doing so the company the projects will have the brand value and also satisfy the clients and investors needs and requirements in the recession period.
2.3. Background of small firm:
Small firm is a private limited in the south east of England, started by husband and wife, both being architects. Initially the projects were handled only by this couples and the father of the company owner was managing all the structural designs. Slowly the family started recruiting structured as the small firm. At the first the firm was into doing only private residential single projects to their friends and off late gradually they started buying the lands and building apartments of small sizes, which are very contemporary designs and structures and by using eco-friendly and sustainable building materials which were more attracting the buyers and investors. Gradually the firm started taking big projects, in the sense, apartments and villas and pent-houses, even though the projects were expensive the investors were ready to buy because the brand value the firm has acquired and the unique designs they had.
The other reason was, at the time of the firm was emerging there was a boom for the housing, and the financial position of the clients or the public was too high, unlike the credit crunch and recession we have now. And the loans were given in all the banks for housing was easily available with less interest rate.
2.4. Organizational Structure of the Large Housing Sector:
Wilson and Rosenfeld (1990, p.215) offer the following definition of organization structure:
The established pattern of relationships between the component parts of an organization, outlining both communication, control and authority patterns. Structure distinguishes the parts of an organization and delineates the relationship between them.
Bartol and Martin (1994, p. 283) include the additional element of ‘designed by management' in their definition of structure, which is: The formal pattern of interactions and coordination designed by management to link the tasks of individuals and groups in achieving organizational goals. However organizational structures are not ‘objective' in the sense that they can be understood by reference simply to some organizational chart or description of formal power an status relationships between individuals and groups.(Senior, B. (2002), Organisational Change, pg 70).
In the broader sense the large firm's organization structure can be explained as below: see fig 1
Being a senior manager and the part of the senior management, it can be said that the large firm follows one of the best organizational structure called “Bureaucratic Structure”. According to Weber the characteristics of the pure form of bureaucratic structure are as follows. The four major ones are as following:
- Specialization and division of labor.
- Hierarchical arrangement of positions.
- A system of impersonal rules.
- Impersonal relationships.
Other characteristics of the bureaucracy identified by Weber are: the selection of officials solely on the basis of technical qualification; appointment not election; remuneration by fixed salaries with a right to pension; only under certain conditions can the employing authority terminate an employment; the employee can leave at any time; a system of promotion according to seniority or achievement or both. Senior, B. and Fleming, J. (2006), Organisational Change, Pearson education ltd, p. 81
Source: Based on Weber, M. (1947), The Theory of Social and Economic Organization, Free Press, translated and edited by Henderson, A. M. and Parsons, T. in Pugh, D. (1990), Organisational Theory. Selected readings, Penguin. (German original published in 1924,)
Where, PM - Project Managers
R1- Region 1, 2, 3, 4 etc
P1, 2. - Project 1, 2 . . .
The organization consists of 5 bands, where the
Band 1: The top band is filled by chairman non-executive and executive director, they are the top most level managers of the firm, the top managers do not look after the day-to-day activities of the firm instead they set the goals for the entire organization and direct to achieve them.
Band 2: The second band consists of middle managers come next to top managers. They are responsible for carrying out the goals set by the top management. They motivate and assist the low line managers to achieve the targets. Middle level managers are the employee who were the employees promoted from band 3 within the organization or from the other organization. All the middle managers have the aspiration to reach the top level management, so they strive hard the achieve the goals and meet all the targets and impress the top level managers.
They manage the day-to-day activities unlike top level managers and also manage and take responsibility of the other departments and regions.
Band 3: They the first level managers, they are usually at the supervisor position, site managers, plant managers. They follow the guidelines given by the middle level managers.
Band 4: This band of employees is the staff who works for the band 3 employees.
Band 5: This Band of employees is basically the fresher and the trainees.
It is not mandatory that the regional departments also follow the same structure as that of the main office's organization, in this case also, the regional organization structure is different from that of the head office organization structure, where in they are following a normal simple entrepreneurial structure. Here the organization adopts Exploitative innovation at the company level, where there is no use of any technical knowledge, and adopts the exporative innovation at the project level at different regions, so the organization is Project-Based Company.
Project based company:
The core capabilities of the Project based company are:
- Strategic capabilities
- Functional capabilities and
- Project capabilities
Before following any organizational structure it is essential to identify the exact:
- Basic parts of the Organization.
- Basic co-coordinating mechanisms.
- Basic type of decentralization and
- The key Generic Structure.
So, as for the senior management analysis the large housing firm has adopted “Diversified Organization Structure”.
2.4.1. Diversified organisational structure:
According to Diversified Structure the firm has:
- Middle line part of the organization is given more importance, i.e. middle managers.
- It follows standardization of output.
- It has “Limited Vertical Decentralization” of organization structure.
- The organization is relatively simple and stable.
- It adopts itself to market diversity.
- It is departmentalized nationwide.
- It follows “Analyzer” type of business strategy. Figure 4 shows the different parts of the diversified organizational structure.
Managers who stand in the straight-line relationship with strategic apex and to operating core.
Standardization of the output:
One person specifies the general outputs of the work of another.
Limited Vertical decentralization:
Managers of market-stand units are entrusted to control most of the powers and decisions apprehensive to their line division., Professional reports-Center for the study of digital libraries, United States, Henry Mintzberg, (2009), “A Topology of Organizational structure”, slides 4-13, [Accessed on 29.12.2009]. figure 5 shows how the power is distributed in the limited vertical decentralization structure.
When it is said that the company follows analyzer type of business strategy, according to Miles and Snow's typology of strategic behavior they are said to operate in two types of product-market domains namely a) Stable b) Changing. In their stable areas, the company/organization is said to operate more efficiently and monotonously by using formalized structures and processes. In their changing areas or what it is called as more innovative areas, the higher level managers keep an eye on their competitors intimately for new-fangled ideas and then they swiftly adopt those that materialize to be the most capable. Analyzer's uniqueness includes:
- A limited essential product line.
- Explore for a diminutive number of related product or market opportunities.
- Cost-efficient technology for firm products and development technologies for new products.
- Skills in invention competence.
- Course of action in business and promotion.
Of large analyzers, Miles and Snow, (1984b), ‘Designing strategic human resources systems', p. 41 say:
Larger Analyzers create semiautonomous division to handle major diversification efforts but tend to do so only when those products and markets are viewed as relatively stable and manageable. Typically, large analyzers use matrix structures to handle market and product innovations until these can be incorporated into the established production system. Senior, B. and Fleming, J. (2006), Organizational Change, p. 112.
As it's already said that the large firm follows the analyzers type of structure, according to that the larger analyzers adopt matrix type of structure integration.
2.5. Organizational Structure of the small firm:
When it comes the organization structure of the small firm, as it is said that it is a family based small firm, they follow the Entrepreneurial organization structure. According to this generic organization structure the firm,
- Emphasis's more on the strategic apex.
- It has vertical and horizontal centralization.
- Direct supervision.
- Simple, informal station structure.
- Prospector oriented company and some times it is a combination of reactors and prospector oriented.
When it is said that the firm has vertical and horizontal centralization, means all the power rests in the strategic apex. And prospector oriented means they search for right product and opportunities and they take risk in creating new products and they are adventurous and experiment oriented in response to environmental and global trends. Because of all this facts the firm is not that efficient, an since they change their strategy according to the environmental trends, the inconsistency exists in the structure of the organization. Senior, B. and Fleming, J. (2006), p. 112.Miles, R. E. and Snow, C. C. (1984).
Definition: According to Deshpande and Webster, 1989, culture is defined as “the pattern of shared values and beliefs that help individuals understand organizational functioning and thus provide them with norms for behaviors in the organization”. Lu, S. L. (2009),
Like how the personality of a individual is important for the personal growth in the same way organizational culture is important for the organization growth.
Organizational Culture can be defined as - “the set of attitudes, view points, ideas and thinking that is unique to any one organization”.
Positive aspects of the organizational culture- it guides in making and taking decisions regarding achieving the goals and targets. It provides uniqueness an distinctive characteristics to the associates, and strengthen the dedications. It guides employees' behavior and give justification for the work done.
2.6.1. Elements of organizational culture:
Paradigm: According to Campbell, D. et al, A paradigm is a world view-“a way of looking at the world. It is expressed in the assumptions that the people make and in their deep routed beliefs”. It is important because it defines the behavior of the organization in the given conditions. Various elements that cause one culture to adopt one paradigm and another to espouse a different one are set in the culture web in the above figure.
The visible signs of a strong organizational culture are: Stories, Heroes, Rituals, Ceremonies, Symbols and myths
Directly Observed elements are Physical structure, language, rituals an ceremonies, stories of legends. Beneath surface elements are beliefs, values, and assumptions. Values are socially desirable, so what people say, they value may differ from what they truly value.
- Espoused values: these values are not to be the true values of organization, but they establish the people image.
- Enacted values: are the values that are truly and exactly in use, these values guide the individual decisions in the work place.
2.6.2. Large firm's culture:
According to Cameron, K., and Quinn, R. there are four types of organizational cultures based on how they tend to react in strategic terms, they are:
- Clan culture
- Hierarchy culture
- Adhocracy culture
- Market culture.
Among the above four, and since the firm is inclined to client demands and market trends the large firm adopts the market culture, where the organization is result and goal oriented, and whose major concern is in getting the job done and employees are very competitive to the demands. They use their greater skills to satisfy the customer needs. The main components of the firm will be client insight and foresight and competitors insight and foresight externally and internally distilled components will be cross functional collaboration and strategic alignment. Chris brown, (2009), blog on market company strategies.
2.6.3. Small firm's culture:
The small firm is said to be following Adhocracy Culture, this type of firm are creative place to work with, where people carry out the work because they need to be done, for the sake of doing.
2.7. Integration of Large firm with the small firm:
When the large firm and the small firm integrate the structure and culture of both the firms may change or only there may be a change for the small firm. After the analysis it can be stated that, after the integration the company is said to be having the matrix structure, and thus the firm is said to be project based organization.
The brief description of matrix structured organization is explained below.
2.7.1. Matrix structure:
The essence of matrix structure lies in a set of horizontal and vertical divisions are superimposed. Therefore the organizational structure is functionally designed across vertical axis and conventionally hierarchical across horizontal axis, where both the command lines operate at the same time. Figure 5 shows the matrix form of organization structure.
It is evident that if the company is following the matrix type of organization structure then the firm is “Project Based Organization” as mentioned above. In a typical project based organization the construction projects usually have unique features like new procurement preparations, innovative team formation, creative and contemporary designs and materials. Thus, both company level strategies and structures and project level strategies and structures exist, and the same time company or project measures will be in grouping. Figure 6 below shows the typical project based organization structure.
Advantages and disadvantages of matrix structure:
Advantages: with the matrix type of organizational structure the decisions can be decentralized to functional and project/regional/divisional level managers, this facilitates in taking and implementing the decisions and allows the organizational structure to be flexible to any changes and to form and re-structure the cross functional panels according to trade and commerce priorities. Staff belonging to one functional panel has the opportunity to work with the staff belonging to another functional panel from other department, however still maintain their agreement and information sharing with their own professional grouping. By assigning functional staff to one or many projects on a stable or unstable basis, trustworthiness of the projects are maintained.
Disadvantages: since the functional and the project levels or bands overlapped, a layer of project managers can be organizationally exclusive, and there is a possibility of confusions and misunderstandings that who is ultimately responsible if some goes wrong in the outcome of the project. The overlapped arrangement and the need for superior statements between the armaments of the matrix can increase the chances of conflict between the project and the functional managers, in between all these misunderstandings the staff may suffer or the employee may be subjected to often change their project teams and project managers may make competing demands on the employee. All these issues will lead to the poor outcome of the project/mission.
2.7.2. SWOT analysis:
Resource and market are the building blocks of strategy, and strategy can be defined according to Johnson et al., (2008) “Strategy is direction and scope of an organization over the long term, which achieves advantage in changing environment through its configuration of resources and competences with the aim of fulfilling stakeholders expectations”. Source: Lu, S. (2009), culture and people module, black board, slide 12, week 3.
Resources and market have their own strengths, weaknesses, opportunities and threats. Strategic management is a combination of both:
- Market based view of strategic management (opportunities/threats) and
- Resource based view of strategic management (strengths/weaknesses).
From over the ages, SWOT analysis have prove to the most efficient and one among best enduring analytical technique in strategic management. Situational SWOT analysis is referred as the strategic formulation for strategic planning, extensive series planning and is often concerned with company's mission, strategies, objectives and policies. The analysis begins with the process of finding the strategic fit between the external opportunities and internal strengths while functioning in the region of external threats and internal weaknesses. Hunger, J. D. and Wheelen, T. L. (2003),
In market based management, the business environment operates in two types of environment namely:
- Given environment and
- Interaction environment
- Given environment is the environment where firms are influenced by, but cannot influence themselves, Example: - political situations, public-spending budgets, building regulations etc.
- Interaction environment is the environment where the firms can actively interact and influence themselves. Example: - consultants, competitors, contractors, sub-contractors, suppliers etc.
2.8. Change management Issues:
After the firms have integrated, means that the small firm is one among the whole large firm, i. e the small firm is the part of the large firm but not the large firm itself. Once the firms are integrated, there arises so many issues regarding structure and culture of the integrated firm, because before the integration both the firms followed different structure and different cultures. And since the small firm integrates with the large firm most of the times it can be said that the small firm incorporates and adopts the structures and cultures of the large firm. And sometimes the large and small have to be flexible enough to adopt to the new culture and structures of each other. It is not only the small firm always adopts the concepts, cultures and structure of the large firm but the large firm also will take up some of the qualifying and attractive points from the small firm after the care full analysis and decisions by top management.
2.8.1. Issues regarding Organizational structure:
- Organizational structure: Is it mandatory to alter or change the company structure? How does it affect the overall result? Is the advantage of changing the structure is more than the cost of doing so?
- Cooperation: Is there a interdepartmental cooperation and the cooperation between the employees to encourage to promote skills, knowledge(technical and non-technical knowledge) an information sharing?
- The line management roles get shifted to ‘facilitator' from ‘autocrat'
- More Strategic positions are taken by senior management
- The margin line between the jobs, divisions and departments become hazed.
- The jobs gets widened in terms of scope and responsibility.
2.8.2. Issues regarding Organizational cultures:
- VCI (Vision Culture Image): One of the key issues the large firm should consider is the VCI alignment of two companies. Crack/gap in the VCI alignment should be addressed as soon as possible to ensure a sustainable change.
- Integration: Conflicting cultures can generate difficulties in integrating the workers and employees, which may cause huge problem in the future and slow down the change process. Bhooshan Parikh case study, (1 march 2009), Change Management Issues, http://www.scribd.com/doc/12901870/Change-ManagementCase-Study [Accessed on 4.01.2010],
- Individual differences: either to give first attention to social and non-verbal values and business matters next or the visa-versa.
- Parochialism: managers and employees come to the host place and exhibit their own variety of behaviors true to the citizens of their home town.
- Ethnocentrism: easy adaptation of the another culture with a predisposition that their own culture is best and this predisposition is called ‘ethnocentrism'
- Cultural shock: when the employees are send to different job locations, a feeling of insecurity, anxiety, confusion leads to various degrees of cultural shock.
3. PART 2
CHANGE MANAGEMENT PLANS
Preparing a Management Report for the Change management in integration regarding the organization structure and culture involves, understanding the issues caused by the integtration and view the issues from the end user perspective. This will lead to proceed in a right path in planning the change management for two years. There are two ways in which the change management can introduced:
Evolutionary or Revolutionary way. In this particular case, which deals with culture and structure issues, it is good to follow the Evolutionary Way, and gradually proceeding towards the change. Senior, B. (2002), Organisational Change, second edition, Pearson Education limited, p-47
3.1. The Roots of Change Management Theory:
The Theory of Change Management has different roots, and that is the reason it is applied in different ways in different fields.When we talk about the Change management of an individual level, or business pertaining, or on societal level it refers to behavior change, technology and business process change, creating new laws and objectives respectively. Regardless of how and where the change management is to be applied, the change management theory operates on five key principles:
- The first is that, people show different reactions to change as every individual is unique.
- The second is that everybody as their own basic needs and necessities to satisfy their essentials, regardless of what their occupation is.
- Third is that, for every change initiated, everybody or every entity has to loose something or come up the inertia level to get success in the change.
- Fourth is that, everybody expects different from the change management hard work, so all that programs has to be practical and realistic.
- Fifth is that, there is always a fear for change, so proper suitable change management entails facing those fears in a proper way
When all these five principles are applied properly by an organization under going change management, all the odds and issues will come down significantly, it doesn mean that failure never occurs but the scale of odds of failure will come down according to Change Management 100 Success Secrets, http://www.scribd.com/doc/16947893/Change-Management-100-Success-Secrets-The-Complete-Guide-to-Process-Tools-Software-and-Training-in-Organizational-Change-Management
3.2. The Need For Change Management:
The success of the change management does not come with the idea of one but from everybody's support in the organization. It involves careful planning and accomplishment and the people affected should also be involved and consulted. The forcible change on any individual or organization will cause problems, so all the change management plans should be realistic and applicable.
The change management tools include downloadable templates, readiness assessments, guidelines for executives who opt for change management, also how to manage resistance when a change mangagement is incorporated. All these tools aims in providing change management strategy.
3.3. Planned and Emergent Change:
According to Senior, B. (2006), the drift in the strategic process forces the organizations, deliberately into more alertly planning the change. However, the dissimilarity between the emergent and planned change is not clear cut. Condemnations of the idea that change can be planned systematically and logically have been made by Wilson (1992), he also says that when the change management is planned, the concept heavily relies on single view the change is ought to be. According to this view, it is assumed that the environment is known and the logical process of environmental analysis can be exploited in the tune of planning any change. Senior, B. (2002), Organisational Change, second edition, Pearson Education limited, p-44,45
3.4. Predictable Change:
According to some experts, Change is neither viewed as Emergent nor Planned. As every living has cycles of growth, so the concept of an organizational life cycle (Greiner, 1972; Kimberley and Miles, 1980) has been used to illustrate the stages through which the organizations go through as they grow and mature. Senior, B. (2002), Organisational Change, second edition, Pearson Education limited, 46
Greiner maintains that, as the gradual growth is seen in the size and maturity of the organization, their activities will undergo five phases, each of them will be associated with a different growth life in an organization's life. As every growth period moves in to the next phase, the organization undergoes a short Crisis Period, which are respectively called as Evolutionary and Revolutionary stages as shown in figure 7. The Greiner model is helpful in identifying an organization's exact situation and state, which provides the warning of the next crisis point the organization has to face. It also helps other organizational personnel and managers to become conscious that change is, to some extent, inevitable; organization should have necessity change as they grow and mature. However it may be possible to predict the further crisis point (through organization life cycle), more has to be done to develop different concepts and ways to bring about necessary changes from one stage to the next stage. Therefore according to Greiner it is however, necessary to adopt some model, topology or techniques for diagnosing the type of change existing at any point of time in order to determine what and which kind of approach for the change to be taken into consideration.
3.5. Levels of changes:
There are three level of changes in Organizational Change management, namely:
- Change in Individual level
- Change in Group level/Project level
- Change in Organizational level
Individual Level Change:
Change is reflected in an individual, when there is a change in the job assignment, job transfer to different location, which in turn leads to cultural change or change in the knowledge level with the experience.
Some opinions says that change at the individual level will have singnificant implications on the entire organization.
Other experts says that above is not true as the change at individual level will have repercussion effect on the group also.
Group Level Change:
Since most the organizational activities are organized on the basis of group, majority of the organizational changes tales place at the group level. The group levels can be departmental or informal groups, and changes at this level can affect social organizations, patterns of communication, flow of work, job design.
Senior managers and management consider the group level while implementing change. The informal group can be the major barrier for change because of the intrinsic and inbuilt strength they possess. Implementation of the change effectively at the group level can frequently overcome the confrontation at the individual level.
Organization Level Change:
Organizational level change is usually referred as ‘organizational development'. Usually the all the decisions regarding the organizational change is decided by us (in this case), that is the senior manager and management. The organizational change is a gradual slow process.
3.6. Model for Change management - Lewin's three step Change Model:
Most of the organizational change theories are originated from the milestone work of famous Psychologist Kurt Lewin in 1950's, it emphasizes on three steps: Unfreezing, change and Refreezing. Lewin's model is of Planned Change and large-scale system change, the model explains how to initiate, manage and stabilize the change process.
This stage focus on to create the motivation to change. In doing so the individuals are encouraged to replace their existing or old behavior and attitudes with that of what the management requires. It is said that, if the restraining force is greater than the driving force there is ‘no change'. Therefore the driving force must always be greater than the restraining force in order for enough motivation to take place. Purely initiating the driving force is not enough to get the the shift in the equilibrium of the perceived change (Schein, 1995), Fear of change is the major restraining force faced by an individual under change process, to surmount this fear and try to change, the individual must widen the sense of comfort. (Pettigrew, 1992).
Lewin believed that the human behavior is based on the quais-stationary equilibrium supported by a complex field of driving and restoring forces, he also believed that the stationary equilibrium has to be unfrozen before the old behavior is discarded and new behavior is incorporated.
Means exactly replacing the old actions with that of new actions that are dependable to the goals. As change always includes learning, the senior management decided to provide the employees with new an contemporary models, new behavioral and personality models, new ways and different perspective view of looking at the things around. Role models, experts, mentors, bench marking the company against the world- class organization and providing training to the employees were considered to be the best option for the senior manager for in regard to the future plan.
One of the best way to achieve the changing stage is by trying all the possible variety of activities, so that some or the other activity clicks! And will appeal to the stakeholders. According to Lewin also it is difficult to predict the specific desired output from any planned change because of the complexities around. Hence forth one should ought to consider all the possible force of activities to evaluate on trial and error basis. (Lewin 1947), http://www.scribd.com/doc/21556594/Change-Management-Lewin's-3-Step-Model
Change is stabilized in the refreezing stage, which helps the employees to integrate the changed behaviors and attitudes into the usual way of carrying out the things at work. This can be achieved by giving a chance or prime importance to the employees to exhibit their new changes in their behavior and attitude. Extra efforts are made by giving additional coaching, and models are used to reinforce the stability.
3.7. Organizational Application of Lewin's Model:
Efforts of Change takes time and risk, loosing energy and force, if there is no short-term goals to meet and celebrate, (Kotter, 1995), without any short term goals prevails, people tend to give up the change, so Lewin suggest that the organization has to be practical in establishing the goals and objectives and rewarding and recognizing the changes involved by hikes, promotions, appraisals (Kanter, 1993), all the models are just the tools to achieve the Change. The careful study of the Lewin's 3-step Model gives an idea to make the planned change in the organization.
Actually speaking, there is no real approach for change, so integrating other management models with the Lewin's three-step change model is better than just following one. So the integration of John, P. Kottar's eight step model with Lewin's 3-Step model approach is found to be better option to make Planned Change in the Organization.
3.8. Integrated approach of Change Model: Lewin's and Kottar's Model:
In Integrated Approach, Kottar's eight steps are divided into three stages of Lewin's model, and is explained below:
In the Unfreezing stage:
1. Establishing the sense of urgency
2. Creating the guiding coalition
3. Developing vision and strategy
4. Communicating the change vision
In the Changing stage:
5. Empowering broad based action
6. Generating short term win
7. Consolidating gains and producing more change
In the Refreezing stage:
8. Anchoring new approaches in the culture
3.9. The Brief of 2-year plans for Organization Change Management:
is explained below:
The three steps of the model will be divided into 3 stages. In 2 years (24 months), the first 8 months will go for Unfreezing stage, the next 8 months will go in Changing stage, and the remaining 8 months in Refreezing stage.
First 8-months, Unfreezing step:
In this particular stage, the important step is to ‘motivate' the employees both new and existing. Everybody's mind set should be prepared for ‘Readiness to Change'-this should be the main goal in the unfreezing stage. Every single person in the organization is made aware that the change is going to happen and all the previous working patterns, their behavior and attitude towards work will change for good-this should be the motivation. Instead of enforcing a fear of change in the employees mind. As then informing the employees about the changes that are going to take place ahead and preparing them to take-up the change. Educate the new staff, that change is inevitable and make them feel comfortable at the mean time by allowing them to gel with the existing staff, team members. As mentioned in the figure 8. The company adopts the one particular model and uses as a guiding tool to plan. According to which, in this particular stage the key activities are:
Educate: oneself about the change, and educate others also and motivate to participate in the change process.
Inform: why there is a change? Because of the integration of firms. What change? Cultural and structural change. Where? At individual level, department/group level and also at organization level.
Consult: in the sense, take the opinion of everybody right from the chairman to lower most band level regarding what changes they are expecting and adopting the values accordingly in everybody's favour so that staff feels good about the changes.
Second 8-months, changing step:
The main theme at this phase is the ‘Implementation' of the plans made in the first 8 months of unfreezing stage. In this stage the key activities will be like a back bone support for the staff in and while exhibiting their cultivated new attitudes and giving further help, guidance in order to build a good rapport within the team and outside the team. Arrange for training and workshop programs to gain extra knowledge. Providing resources for the new innovative ideas. Taking regular feed backs from the staff for the changes incorporated, that weather they are happy with the change or not? Is the new rules and regulations are according the ethics and norms of the organization. Showing recognition for the good work done by giving hikes, promotional offers and encouraging them to use new technologies, arranging are team outing so that the cultural and level barriers go down or decrease and to feel the oneness of the organization. Celebrating the company anniversaries and rewarding the certain staff for their out-ranging performance in that particular finance year.
Final and third 8-months, Refreezing step:
As everybody know that the change is inevitable, inspite of that efforts are made to ‘stick to it' for the changes make in the previous year is the theme at this stage. The key activities at this stage will be monitoring and evaluating the changes that needs to refreeze and what activities will further requires unfreezing and changing. This stage is the stage of stability, where all the changes that took place in the previous phases will be refreeze and stabilized. However being a senior manger, it should be now that nothing is permanent except change, so it is often good to be prepared for the next change in growing market demands and globalization, uncertainties of the market.
The description of the Change Management practices given in this report as a senior manager ensures a greater and best out come for the initiatives. In the organization, the change management the change management preamble is started with adaptation and amendments in the project management process.
As and then the firm gets full-fledged qualified and cultivate itself in its use of, procedures of change management, models and techniques, topologies become entrenched in the culture
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