Management change in organizations

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Discuss the historical context of change and how organizations were affected by it.Your answer should be supported with a discussion on different economic era and organizational theories along with the external and internal triggers (factors) of change.

Historical background for economical change and evolution of organizational theories

The history for the economic changes can be explained in different stages. There are many changes from our food habits to dressing code and culture. These changes that are from agricultural are to present informational era. In ancient days our ancestors used barter system like exchanging of goods and because there is no money system. The major economic eras in the change of the organizations are 1) Agricultural era 2) Industrial era 3) Technological era 4) Informational era

Agricultural era

At the Early stages when there is no money that time people used to exchange their goods with each other. Because of inequality in exchange and there need for the change and this change lead to the introduction of money. This is said to be barter system.

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In this time the origins of organization theory were founded. For example Sun Tzu's the art of war (500 BC) recognized the need of hierarchical organization and staff planning. Other ancient people such as Greeks and Romans developed understandings of how work can be organized and strategies implemented.

The classical organization theory was evolved from the early development of complex organizations with the beginnings of the factory system in Great Britain in the eighteenth century. Some of the fathers of organization theory include Adam smith(1723-90), who work includes an inquiry into the nature and causes of the wealth of nations (1776) outlines the basis for the division of labour as the basis of efficiency in a competitive market place.

Industrial era

The most of the change occurred in the industrial era at the end of middle Ages shaped with the genuine use of resources. It brought about improvements in agriculture, the large-scale production of iron steel, the development of machinery, and production of the goods came into existence. In twentieth century coal industries dominated and later on oil, gas outdated it.

The cheap, concentrated and abundant fossil fuels led to the explosive growth of population, wealth, technology, production and trade. The industrial society showed growth and innovation rates so much faster than any previous civilization that a new situation was aroused. The change is also due to rapid increase of world population. There is rapid increase of technology and technological changes happened in transportation and communication systems.

At the time of industrial revolution, the scientific management came into existence. It predicted on the machine model of take, make and break. This means taking raw materials, converting them into products and eventually breaking them. The two things involved are environmental and social balance through high impact extraction and production techniques.

This includes development of new products, usage of those products and discarding them. Cutting of the forests, rusting machinery and the heaping debris of salvage yards are the fossil remains of this Era. In this following theories had evolved, the theory of scientific management has evolved which was introduced by Fredrick Taylor who is the father of scientific management. Taylor introduced time and motion studies to try to establish the 'one best way' of achieving efficient production.

In the school of school of thought Max Weber proposed the features of bureaucratic organizations this theory also evolved in the industrial era.Max Weber (1864-1920) took a sociological perspective in his study of bureaucratic organizations. He studied the effect of a specific set of structural arrangements on specific patterns of behaviour and defined an ideal -type bureaucracy. The industrial enterprise is characterized by economies of scale, standardization of work, standardization of the work force, financial capital being seen as the scarce resource. The below theories were also proposed regarding organizational nature and performance of the employees as follows

Hawthorne studies mainly explain about the importance of worker attitude and provided information about factors other than physical working conditions that contribute to positive worker attitude. This also includes more humanistic treatment of workers on the job. This provided evidence for Herzberg's theory is that there is no direct cause effect relationship between working conditions and productivity (Herzberg, Mouser & Snyder am 1959).

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After the Second World War, the Neo classical organizational theory was proposed there was a drive to improve efficiency. This theory main approach was to attack the work of classical theorists.

Her bent A Simon, he developed theories about organizational decision making about bounded rationality and satisfying an organizational decision making (1957).One of the major themes of neo classical theorists was that organizations cannot stand on isolation from their environments.

Selznick coined the term 'cooptation' which describes the process bringing on and in corpora ting new elements within its policy- making which an organization must undertake in order to avoid such elements becoming a threat to the organization. The above all theories were explained about the organizational behaviour and for improvement of efficiency of organization's performance.

Technological era

The emerging life science model unfolds like a new species in a new ecological niche function such as innovate, reproduce and aggregate. In this time most of the species compete when they meet, but organisms strive when possible to reproduce more rapidly than their rivals and to dominate by sheer strength of numbers. Economists call this increasing return which means discovering new things, development of new technologies which lead to the technological era. For example Microsoft windows, brand franchise such as Amazon, QWERTY sequence of a key board are some of companies which entered into the market with the introduction of new technologies. In business the merger of AOL with Time Warner is an effort to establish supremacy through aggregation in the e-business and communications industries.

The following theories were evolved in this era as follows

The systems approach mainly focused on the total work organization and the interrelationships of structures and behaviour and range of variables within the organization.

The socio-technical system is concerned with the interactions between the psychological and social factors and the needs and demands of the human part of the organization, and its structural and technological requirements.

Information era

Organizations are now said to be operating in a new economic era, the information age, or from an organizational theory perspective, the post modern age. The key characteristic of this era or that the pace of change engendered by rapidly advancing information technology pushes organization to the boundary between order and 'chaos'. chaos is the condition in which complexity and unpredictability or prevalent various pundits like WARREN BENNIS (1966) and CHARLESS HANDY (1994) have predicted that the change from technical systems to information technology is step change which points to potential melt down of conventional organization forms and processes. The key aspects of this age are intellectual assets, brain power and the ability to acquire process and deliver the information effectively. The following theories are proposed in this era as follows

Contingency approach is an extension of the systems approach. It mainly highlights possible means of differentiating among alternative forms of organization structures and systems of management. It implies that organization theory should not seek to suggest one best way to manage organizations but should provide insights into the situational and contextual factors which influence management studies. This theory was evolved in the information era and the factors responsible for change are discussed below as follows

Globalization: government has intended to liberalize and deregulate their national economies like reductions in international trade barriers are enabling new oversee competitors in mature production and service sectors to challenge establish market.

Uncertainty in climate due to global warming, getting more industrial opportunities, rises in customer demands.

Technology is leading to the creation of new products, services, channels of distribution and even industries. The triggers of change within the organization such as when there is a new vision and mission, the purchase of new technology, merger and acquisitions, poor employee morale , perception of opportunities and change of ownership.

Define Bureaucracy and evaluate the strengths and weaknesses of bureaucratic organizations. Is it applicable in today's Business world. Justify

Bureaucracy

It can be defined as form of organization that emphasizes precision, speed, clarity, regularity, reliability and efficiency achieved through the creation of a fixed division of tasks hierarchical supervision and detailed rules and regulations.

Main characteristics of bureaucratic organizations

  1. There will be well defined hierarchy and their tasks are defined according to their position.
  2. Proper division of labour
  3. Allocation of right work to the right people
  4. All the decisions will be made by the top management
  5. Proper distinction between the administrators and workers
  6. Due to lack of flexibility there will be no change in rules and policies
  7. Well defined set of rules and policies were adopted to run the operations of organization smoothly

Strengths

  1. Well defined hierarchy there will be proper distinction between administrators and workers.
  2. Clear vision and mission objectives.
  3. Centralized system, so that all decisions can be monitored
  4. Predefined set of rules and policies were adopted so that everyone in the organization should follow the rules strictly.
  5. There will be standard procedure that everyone should follow.
  6. The decisions will be monitored and whole system is centralized
  7. The reporting relationships are clear and well defined so that there will be no confusion.

Weaknesses

  1. There are number of levels of hierarchy this lead to the miscommunication
  2. All the decisions were taken by the top management due to this there will be no proper understandings between administrators and workers.
  3. There will be no innovation and creativity because of lack of communication between top level people and low level people in an organization.
  4. The processes and decisions that are related to bureaucratic organizations are very slow
  5. The communication process will be unclear because of so many levels that include in this process
  6. The duties involved in this organization will be boring enough for the employees.

Evaluation of strengths and weaknesses of bureaucratic organizations

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In the bureaucratic organizations to evaluate the main elements such as hierarchy, specialization and unfriendly wisdom are analyzed first and then their interrelations between them. There will be no proper ideas for growth as there is no proper communication between employees and the organization. Due to the hierarchical system, there will be delay in decision making because of so many levels to take the decisions which is to be taken by high- level authorities. The unfriendly nature of work procedures and relationships in bureaucratic organizations make modest to cultivate employee commitment. The importance of bureaucratic organizations mainly depends on order, procedure and regularity which were formulated to handle comparatively established and expected processes, due to these become more intricate and undecided so that for bureaucratic organizations it is very difficult to bring the change.

Applicability of bureaucracy in today's business world

Most of the government sectors follow bureaucracy, with well defined set of rules and policies and full control over the administration processes. In this modern age as we see some of the large scale organizations the features of bureaucracy can be identified. It is best suited for the organizations deals with the low level of competition and well established technology.

Evaluate and compare the different approaches which Supermarkets may use in context of Organizational development? At least compare the two approaches

Organizational development:

It is the continuous process implemented by any organization. It is making their operational people more efficient to get the good result that will give scope for the development, improving the business by various strategic plans to get the profits for the organization as well as to stand in top position in the market .By expanding their present business will come the development and also improvement in product range, infrastructure of the organization and their increase in share value and increase in employees number and by entering into different markets and successful in those markets this all come under the organizational development.

Changes and development of supermarkets in UK

Many changes had occurred in supermarkets of UK like there is increase in range of various food products, due to the mixed culture in UK most of the supermarkets were categorized their products according to their culture and also providing alcoholic products in the supermarkets comes under change. Supermarkets were introduced their own brand products and created brand image for their product in the market. New technologies were introduced in the supermarkets to make convenient for the customers and to be competitive in the market like self check machines were introduced into the stores for attracting the customers. Most of the supermarkets are providing the goods for lesser prices and good service to the customers. Most of the supermarkets were diversified into different markets for expanding their business and their existence in the market for a long term.

The supermarkets in UK like Tesco, Sainsbury, Asda, Waitrose, M&S, Iceland and morrission are attracting the customers by providing food products for low prices. The above mentioned are the part of UK supermarket industry. The serving the customers with good customer value and providing offer on the products to attract the large number of customers and to be competitive in the market. There is a drastic change in their infrastructures which will be convenient for the customers. All of the supermarkets are providing finance for their most visited customers and also providing cash back facilities. Providing wide range of seasonal and frozen foods.

Ways to develop for Supermarkets in UK

The supermarkets in the UK should develop in their infrastructures to provide convenience for the customers. New technology should be introduced in each every supermarket for the customer convenience like self-checkout machines. Providing more number of regional products according to people living in the area where the store is located. Development in security inside the stores for most valuable products by introduction of new technologies into the stores or else alternative steps should be taken in order to deceased thefts inside the stores. Separate section of non-food products should be introduced in each and every supermarket so that wide range of customers will come to the stores. Cash back facility should be provided for the customers to maintain the good will and introduction of more number of own brand products in order to brand image for their product in the market and also worth full for the customers. Each and every supermarket should provide online shopping facility for the customers and also providing home delivery.

The various levels of operations in the stores should be run properly and their efficiency should be increased in order to provide quality services for the customers and also organization growth for this the supermarkets should recruit capable staff and also should introduce the special programmes for training the new staff and existing staff so that they can improve their skills which will helpful for the organization growth and their personal development to be number one in this competitive environment and this is the one way that supermarkets can their improve their performance which leads to the development of the supermarkets.

The supermarkets in the UK should change their option of exporting the fresh vegetables from existing countries like Africa to other countries like Zimbabwe and Kenya because of the following considerations like cost, quality, delivery, product variety, innovation, food safety and quality systems help top determine what types of producers and processors are able to gain access to the fresh vegetables chain and the activities they must carry out. This is one way that all supermarkets in UK can develop.

The supermarkets in the UK should introduce more number of brand products in the stores with more quality, good packaging and offering with less prices so that more number of customers can be attracted and they should minimize their manufacturing costs for their own products so that they can offer the products with minimum prices this is one way that supermarkets can develop to improve their performance and to be competitive in the market.

All the supermarkets should collectively work on problem like reducing the wastage otherwise pollution will be increased. Therefore all the supermarkets should develop a special system or process inside their stores in order to reduce the wastage and successful in keeping healthy and good environment which is indirectly beneficial for the customers and for longer period the supermarket chains can exist in the UK.

Comparing of two ideas

  1. Developing more number small stores with gas stations located at the stores
  2. Providing online shopping and delivery of products to the homes.

The above two said ideas are not possible for the all the supermarkets developing the more number small stores makes more no of customers can be attracted by providing more convenient shopping for the customers and decrease in wastage of time for the customers and also opening the gas stations will make them to enter into different market with more profits with the satisfaction of the customers.

Providing online shopping for the customers is good idea it saves the customers time but there is chance of customer dissatisfaction in supplying the products according to the customer want It will not successful for all the supermarkets where there will be huge investment should be required. Therefore among two ideas, developing more number of small stores with gas stations is more beneficial for organizations and successful in attracting large number of customers which results in generation of more profits to the organization.

Select a Retail store from the Super market industry. Give a small introduction of the organization. Suggest the changes appropriate for it to be successful in the competitive environment. Support your answer with appropriate models and process for change in the organization.

Introduction to the Supermarket Tesco

Tesco is the one of the biggest supermarkets in UK. It is entering into different markets to expand their businesses and to be number one in the market by providing good quality products and good service to the customers. Tesco had introduced hundreds of discounter-branded products and this includes in their product line. Tesco mainly focused on the prices by providing the products with affordable prices and also by providing high valued customer service. Tesco started with a slogan that 'Every little pays you', they introduced club cards for the benefit of their regular customers, this is the organization who provided returns on the purchased goods and the attracted a large number of customers to their supermarkets. They have introduced online shopping facility for the customers for those customers who are busy and unable come to the stores directly. They obtained growth in the online shopping. Tesco is continuously expanding their supermarkets globally for example recently they are planning to open super markets in India for this they have tied up with TATA. Tesco opened large number of small stores named Tesco-Extra, Tesco-Metro, Tesco-Express to the nearest places for the convenient of the customers so that the customers can save their time and money for their shopping and also opened gas stations at their small stores in order to not to lose their existing customers and to gain new customers. They have introduced new technologies in their stores like self -check out machines for easy shopping to the customers. They increased the wide variety of products in their product line with regional foods and also according to the season. They have expanded their vegetables and fruits section in the stores. Tesco had entered into banking sector in order to provide finances for their existing customers. They used to sell electronic products in the stores like laptops and iphones to attract the customers with different products. They have also introduced Tesco mobiles this made to enter into different market.

Changes Suggested to the Tesco

Tesco is one of the number one supermarkets in the UK. Here some of the changes were suggested for the Tesco for the improvement of the organization's performance and which can helpful for them to be competitive in the retail chain market in the UK.The following are the changes that should brought in the Tesco stores. The changes are as follows Tesco should introduce a wide range of Asian products to their existing product line especially in the stores that are located in the areas where more number of Asians live, because it will be very convenient for the Asians to shop nearby stores where all the products that are available to them within the convenient distance.

Tesco should bring change in making more convenient way of searching the products for the customers so that they can experience easy shopping like by introducing the electronic devices where customers can search their desired products by entering the keyword of the product so that all the related products will be displayed with section and location so that the customers can able to find the requested products easily.

Tesco should introduce the security tags for all the products whose price is above £5 and special alarm machines should be introduced inside the stores in order to reduce the thefts inside the stores so that it may be beneficial for organization's growth.

The above changes were proposed for improving the performance and efficiency of the Tesco for sustaining the competition from the competitors and also for long-term existence in the super market industry.

Model supporting the change

The above changes are explained with the help of Kaizen model which is a continuous process this should be required for the super market to develop and also to be competitive in the market. I have chosen this model for improving the performance and efficiency of the supermarket for the continuous growth of the supermarket.

Plan

Tesco should plan to bring the appropriate change in their stores first of all they should analyse the things that the change brought will be beneficial for the organization or not like they should introduce Asian products in the existing product line in their stores in their stores where more number of Asians live.

Work

The plan which ever prepared by the Tesco should bring into reality for this they should prepare time table for certain period and arranging all the resources that are required to bring the change and process should started according to the plan. They should observe the progress of introducing the Asian products can able to attract the large number of customers when compared with previous results.

Asses

They should measure the performance of the change that is whether the change that is brought is beneficial or not by comparing with the previous results that means after introducing the more number of Asian products finding out whether large number of customers are attracted and is it helpful for organization's growth.

Rework

This will helps the organization to rectify their defects and improve themselves by readjusting the plan and this can be achieved with the help of feedback system this is a powerful tool for any organization to evaluate their plan how far is success and from their they can rework on their plan for continuous improvement and to be competitive in the market.

The above said model is very helpful for any organization to bring the change and it make success by finding the defects in it and rectifying those defects and implementing this process continuously for the continuous growth and performance of the organization for sustaining the competition from the existing competitors in that particular market.

Use the appropriate tools to develop the systems to understand and involve appropriate stakeholders in the introduction of change. Evaluate how successful your system will be specially in handling the resistance to change in the organization

The most of the organizations bring change for long-term existence in the market and to sustain the competition from the competitors. Previously the changes proposed for Tesco Based up on their current position in the market and also future requirements. Every organization considers the following characteristics to bring change. They are as follows

The change that was proposed for Tesco in Previous Question is

Increase of the Asian foods in the stores concentrating on the areas where more number of Asians live

Technological change such as introduction of electronic devices at the entrance of the stores for the customers to search their products which ever they want to purchase.

Tools to develop the change and involve appropriate stakeholders

The tools are used to develop the systems and involving stakeholders to bring the change in an organization. They are as follows like stakeholder analysis and Force-Field analysis.

Stakeholder Analysis mainly focuses on the stakeholders who involved to bring the change .The stakeholders are those people who directly or indirectly have capacity to influence and able to bring change within the business.

This consists of following process firstly identifying the stakeholders those who are directly or indirectly influence the organization.

The stake holders of Tesco are customers, shareholders, employees, communities, suppliers, government, non-governmental organizations, pressure groups, farmers, competitors, distributors, financiers, government policies, owners and call centres.

The next step in stakeholder analysis is to measure the importance of each and every stakeholder that who can have more influence on proposed change. The important stakeholders for the Tesco who can influence proposed change are customers, employees, suppliers and government policies. If we consider ratings like low -medium -high.

The stakeholders who are mentioned above come under High rate.

Keeping track record of each stakeholder with regard to similar issues, that is discussing the issues with the stakeholders and suggestions taken from them to solve them by keeping record of this, future coming issues can be easily solved in advance.

The change that was proposed for Tesco can be calculated by measuring each stakeholder's interest. It can be found out by rating from low -medium- high.

Tesco should conduct support change questionnaire, by this it can able to identify the stakeholders most likely to interested and able to be influential in regard to the change. The result can be assessed by giving rating as low- medium- high from 1 to 7.

Tesco should approach a method like plotting level of stakeholder interest against stakeholder power as shown in the following figure

Tool should be used to gain a preliminary perspective on how Tesco responds to change. I will explain this tool in evaluation part. This tool is very helpful for identifying how flexible organization that can respond to changing strategic imperatives and help to diagnose their progress as they implement change.

Tesco should discuss will all his employees regarding introducing the more number of Asian foods and electronic devices for searching of the products what they want, by taking their considerations and also customer feedback in order to bring the change that which should be successful and helpful organization growth.

Force- Field analysis is another tool for looking at the factors that can support the implementation of change.

The change for the Tesco is to introducing Asian foods and introducing of electronic devices for searching of products. The people those who support for this change are come under driving forces and those who oppose for the change come under restraining forces.

The organization should identify the strengths of driving forces and restraining forces have been accurately calculated, this will clarify both the likely outcome and the sources of greatest control that is to balance both the forces. It suggests that change actions that can be taken such as decreasing of restraining forces that is people those are opposing the change should be negotiated with the meetings and by conducting motivating programs, make understanding that bringing the change will very helpful for organizational growth. Adding the driving forces that means people who are supporting for change should be added by doing this they can be successful in bringing the change.

In the case of Tesco employees, suppliers, distributors, existing suppliers, financiers and council may be the restraining forces and the driving forces are customers, solid support from top management and key senior people of Tesco available to participate.

Evaluation of the System proposed for involving stakeholders

The system proposed above should be evaluated for finding out how much successful system in involving the stakeholders to bring the change. The support for change questionnaire is in (Appendix1).

The Support for change questionnaire is used within the organization to analyze about the degree of support that exists for the change.

The questionnaire should be given to a cross section of people in the organization.

Aggregate scores to ensure secrecy for individuals but publicize the different scores for different groups like middle senior management, marketing department and production department.

A meeting should be conducted with interested parties in order to discuss the results and also discussing where the greatest agreement exists and why, and where the greatest divergence exists and why. Conduct the meeting in a non threatening atmosphere and encourage people to explain why they scored the way they did.

By gathering the information from the questionnaire and the subsequent discussion, consider the implications for the proposed change; for example, do you need to do more to improve the prospects of successful implementation.

By taking level of interest matrix into consideration following things can be analyzed like

Whether the new stakeholders are added to the situation to balance the change, whether any oppositional stakeholders are encouraged to leave, can the influence of pro-change stakeholders be increased?

If the stakeholder resistance is strong, should the proposal be revisited?

The table which was explained in (Appendix2), analysing the results that which will helpful in success of bringing the change. For each area calculate all the scores and all the scores should be in between 3 and 15.If the score is lower than that indicates the areas of greater concern as you proceed through the organization design. Similarly, if the score is higher that indicates the strengths of the organization can build on going forward. Continue to use this tool for the questions arise as to how flexibly the organization can respond to changing strategic imperatives which will helpful for diagnosing the organization progress as to implement change.

Finally there is suggestion that the organization Tesco should manage resistance to change by education and communication like informing people as to the rationale for the change, by participation and involvement like involving people in the change process as active participants, by facilitation and support like providing resources - both technical and emotional, by negotiation and agreement like offering incentives to actual or potential resistors, by manipulation and cooptation like selective use of information; "buying" the support of certain individuals by giving them key roles in the change process.

Develop a complete plan for implementation of the changes and identify at least two objectives the Supermarket will achieve at the end of implementation

Implementation plan

Every organization should plan properly to bring the change for succeeding that change .Before implementation should plan for the changes like identifying opportunities and solutions, by evaluating critical options, by communicating information properly with all the people who are responsible in bringing the change and identifying problems of implementation, resources needed and appropriate priorities. The implementation plan for the Tesco in introducing Asian foods and electronic devices for searching of the products within the store. Before implementing the plan they should set up the targets and certain time limit for reaching the goal. All the resources should be gathered that are necessary for the implementation of plan and allocating tasks with according to the plan.

In the first month they should introduce some of the Asian products into some of their stores where Asians live. Inside the stores they should allocate space especially for Asian foods.

Installing the electronic machines for searching of the products in some their stores.

In the second month all the products list should be entered into the database so that customer's able to search for the products easily.

In the third month the feedback should be taken from the customers so that wide range of Asian products can be introduced if the first attempt is successful and also for the usage of electronic searching machines a person should be appointed for helping the customers.

At the same time the changes should be monitored and also reviewing the progress of the plan, identifying the areas for improvement, improving the use of resources and also allowing enough time for change.

In the fourth week electronic machines should be introduced into all the stores and also all types of Asian food products should be introduced and measure their performance that how much percentage they success in executing their plan in bringing the change that which favours in organization development.

In the fifth week they should take the action for improvement in their process for change to get complete success of implementing the changes, which result can encourage all the people in the organization to get ready for any future changes that are compulsory to implement for the organizational growth.

By the successful implementation of plan to bring the change the objectives can be obtained by Tesco like attracting large number of Asian customers to their stores with this their gross profits may be increased and their share value also be increased and also satisfying the customers what they actually expect from their by providing quality service and availability of all types of products. With the introduction of electronic machines in searching of the products they are providing easy shopping experience for the customers and they capture large number of customers with the existing customers and also with the new customers. Therefore it can be concluded that with the continuous improvement in their process of change they can able to achieve 100% success in satisfying the customers and brand value also be increased and goals also be achieved.

References

  1. Carnall C (2003) Management Change in Organizations, 4th ed., Prentice Hall: London
  2. J.Mullins L (2007) Management and organizational Behaviour (8th edition) published by FT Prentice Hall, UK.
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  4. Linda Holbeche (2006) Understanding change published by Holbeche, UK
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