However there are general points that may be made about the idea of organisation change. Before change happen organisation ought to know some key factors such as; how much change is necessary? Just how much time is required for change to occur? When should change happen? Who should be key performer in change process? And what role should they have? Who benefits from change and harms from it.
Changes in demand for the organisation`s product or services for example new trends in market, change in customer preferences, government legislation
Aggressive tactics of opponents for example developing an advantageous improvement in product or operating.
Arrival of newcomer with advance and low-cost product or service.
Takeover of business by more power full organisation
Merger and aquitation
Change in supplier
Change in terms of trade example forex rate, tariff etc
Fail to requite skill employees
Change in technology designed for business in term to more profits.
Change in government rules for example taxation, new budge, new labour law
The impact of the external forces in conditions of change might differ; depending on organisation and industry in which they compete. For example supermarket Retail Company like TESCO and ASDA gives more important to its competitor. While banking organisation like HSBC or Barclays will immediately respond to financial condition or change in government rule.
Planned changes in strategy as result of new mission and goals. Sometimes will depend on external consideration.
Efforts to introduce cultural change for example change in general management style, collaborative working.
Change in production methods to improve and make better use of resources.
Need to improve quality of products or services.
For launching new product or services produced by research and development or sales or marketing department.
Need to boost standards or services for dealing with suppliers.
Need to deploy human resources where they are simply most reliable.
Need to Change or upgrade information technology.
Dealing with these external forces of change management have plane how they'll react to them. Some potential changes are being declared well in advance and in these cases planning is taken care proactively.
Other general issue concerning organisational change include resistance to improve the utilization of key individuals as change agent and cost of implement change. It's important that managers planning changes should acknowledge that some resistance will be unavoidable.
All change will incur some direct cost an example of this is equipment cost, relocation cost, recruitment cost, and possible redundancy payment. Aside from this you will see indirect cost like communicating change to employees, providing appropriate training and temporarily redeploying key managers and staff on the projects.
There is very little point in change in "change for change`s sake. " Most people have to be persuaded of need to change. Some people fear it. 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 illustrated the dilemma neatly along with his classic notion of "force field theory". This theory claim that all behaviours is the consequence of equilibrium between two group of opposite forces what he calls "driving forces and restraining forces driving forces push a proven way to try and cause change; restraining forces push the other way in order to keep up the status quo.
Unfreezing existing behaviour: gaining acceptance for change.
Changing behaviour: adopting new attitudes, modifying behaviours this is mainly done by change agent.
Refreezing new behaviour: that is reinforces new patters of thinking or working.
The unfreezing stage is targeted at getting visitors to note that change isn't just necessary but is enviable. The change stage is principally a question of identifying what have to be change in people`s attitude, values and action, and then helping them to obtain ownership of the changes. The role of change agent who is the key person in charge of helping group and individual to simply accept new ideas and practise is important at this time. The refreezing stage is targeted at consolidating and reinforcing the change behaviour by various support and mechanisms like encouragement, promotion, participative management and even more consultation.
Create and sustain a feeling of urgency about the future.
Create and empower a leadership team a guiding of coalition.
Developed an end goal, vision and technique to achieving.
Constantly communicate new vision and lay out what change in behaviour are needed.
These are four stages are designed to help deforest hardened status quo.
Empowering employees to help change happen by detatching obstacle such as restrictive organisation structure, insufficient necessary skills, inflexible managers and unimaginative reward system.
Generating some benefits in short-term so that individuals can easily see some tangible improvements on the way to achieving the goal.
Consolidating short gain and producing more change by continuing the action taken in stage five, introducing new projects and attracting more people who are focused on the change that are sought.
Embedding the new approaches in organisation culture in order to avoid eventual regression into previous practice. Therefore adapting the culture from some earlier model and being prepaid to adapt again the change.
The change in an organization is important to stay in the competition between your competitors in the business. Change is an inescapable part of social and organizational life.
The idea of change in organization may be wide change or small change.
Small change in organisation may end up like adding new persons, modifying an application wide. Wide changes will end up like lay off's, mergers, new technologies and collaboration with a major company.
The Nature and Reason behind Resistance of Change
Employees can also resist change because they'll find some new technology and program to learn and you will see new challenges to handle and achieve new goals, but instead they will have fear of unknown future and about ability to adopt it. (De Jader 2001) Argues that "Most people are reluctant to leave the familiar behind. We all have been suspicious about the unfamiliar; we have been naturally concerned about how we are certain to get from the old to new, particularly if it involves learning something new and risking failure. "
FORCES (SOURCES) OF CHANGE
An organization can have many different forces for change its organization. Awareness of these forces will be helpful to the managers to improve their organization by implementing these changes accordingly with time.
There are both external and internal forces that are discussed hereunder:-
3. 1 External Forces
External forces for change will be originated beyond your organization these force of change may have global effects, because organization generally offer an external change when they are eventually find they are running or going out of business.
There are basically four key factors for an external change which are discussed below:-
The manpower plays a essential role running a business. It is like the essence of business while managing effectively in varied work force. This manpower is very varied. Because of the above the establishments have to control more efficiently to be able to get involvement and dedication to the work from the workforce. -
As the technology is rapidly changing from daily, they can be new innovations, applications which will make the task quiet easy. It is very important to numerous organizations to utilize technology and its applications as a way to boost productivity and market competitiveness. Both manufacturing and service organizations are increasingly using technology. The best Example is most Banks in Tanzania using Automation Teller Machine.
Mostly all the factors of the change factors of the involves in the general public around. Change in the technologies is socially good if the technologies are developing the environment. The change may bring the whole turnover of the company but it can happen only with the support of the employees. Unless there is a co procedure from the prior employees there may not be any utilization in the change of management. So change in management first step is to gain support and co operation from the employees is being affected by this. If there is no support then it will be a high risk in change of management.
4. Political Pressures.
Substantial changes can also be a force due to political events. For instance, the shift from socialism economy to liberalization of economy in Tanzania created many new business opportunities. Though it might be problematic for a business to predict change in political forces, many organizations hire lobbyists and consults which can be helpful in detecting and giving an answer to social and political changes.
Human Resource problems/projects
Human Resource is another area where a business can transform inside the organization. The management has to decide the change of skill-level of its workers and need to change the level basing on the performance of the workers. Perceptions and expectations, attitudes and values are also a common give attention to organizational change.
These problems derive form employee perceptions about how they are really treated at the job and the match between individual and organization desires and needs. Dissatisfaction is also a symptom of a worker underlying problem that ought to be addressed. Absence of employees in a higher level and turnover can also be a force for a change. Organizations can respond these types of problems by various approaches like, by implementing reasonable job previews, by reducing the role conflict of employees, burden and uncertainty and reducing the strain of the employees. Anticipation from the employee's participation and suggestion for a positive change.
Managerial Behaviour/ Decisions
Interpersonal conflicts between managers and their subordinates is also an indicator where change is necessary. Behaviour of the employees or managers inside the business is vital in the organization where managers and their team are directly related to the organizational value. In such instances both manager and employee need interpersonal training or they need to be separated. Managers with leadership qualities and taking the appropriate decisions inside the team are one of the solutions because of this kind of problem.
Resistance To Change
In today's economy, change is all-pervasive in organizations. It happens continuously, and often at rapid speed. Because change has become an everyday part of organizational dynamics, employees who resist change can in fact cripple an organization. (Mullins, 2005).
Resistance is a compulsory response for just about any major change. Individuals will rush o defend their status quo if they feel their security or status is threatened. Resistance would be the conduct which may serves to maintain the status quo when confronted with pressure to improve the status quo. Folks are not prepared to resist the change, but rather they might be resisting the increased loss of status, loss of pay and comfort.
Why People Resist Change at work.
Now-a-days all the companies, Government departments and institutions, whether or not public or private, no more have a selection, the change is mandatory to survive in the competitive world but however people have a tendency to resist change. Change in an organization is not an easy task, this will improve the strain on the management to learn the transparency of change.
The perception of change will differ between managers and employees: top level management seeks an alteration is an chance to strengthen and also to advance the business enterprise in their career, whereas for employee's, included middle level managers change is never popular it is disruptive and intrusive.
The following are the best described explanations why people resist change.
Fear of Failure
Resistance to change could cause fear. During periods of change, some employees may believe that days gone by is the most secured and predictable time. If they have performed well in the past, they could resist changing their behaviour that they might not achieve much in the foreseeable future.
Creatures of Habit
Working things in same routine manner is comfortable, asking employees to change away from the routine work they could think why do we are in need of change?. In some cases, employees may ignore change because it may require employees to see something beyond from their normal and easy approach to operation.
No clear needs
Some employees may neglect to recognize the positive impact of change in the organization, so they may find change is unnecessary. Some employees may see an alteration in their attitude of impact on their jobs.
Loss of control
Employees are used and are definitely more familiar with the work style which gains a lot of control over their work place. They may feel that this will not be possible and think they may loos control over their work when the business is changed which might confuse the employees and feel powerless.
Unwillingness to learn
Some employees prevent their own growth and development; they may even hesitate to try or learn new routes and express their unwillingness to learn.
Fear that the new way might not exactly be better
Some employees may resist change because they fear that the change may not cause improvement. As their current status is quiet sufficient and might not need change because they don't know whether the change may result as the same.
Understanding and Managing the Resistance to Change
It is very much important that the managers should resist the change, if failed change efforts are costly. Cost includes loss of employee loyalty, possibility of reaching goals will be lowered, and waste of money and resources and fixing the failed change effort is difficult.
Using strategic measurements can be a way of creating support. The other areas of process like, involving employees right from the start, explaining the explanation for change in the organization clearly, clear strategy, direction, vision and also accepting and respecting the viewpoints of the employees. Employees often do not accept change which cannot be controlled; however it will be more likely to have a considerable influence on change.
Overcoming Resistance to Change
Resistance to change is a complex issue by the employees in the management and ever-evolving organization of today. The procedure of change is extensive, and employees resistance is considered a critically important to overcome resistance to change.
There are tree key conclusions which should be kept in mind before recommending the approaches to overcome resistance.
First, a business should be equipped for change before it gets affected. It is better to conduct a survey should be conducted and evaluate it when the organization is ready to undertake change.
Second, change will never be successful when the top level management fails to inform the employees and aware them about the procedure of change.
Third, understanding the change may affect resistance of employees, they can be less inclined to resist.
7. 0 Positive Resistance to Change
Managers often understand resistance negatively and employees who resist are considered disobedient and organization must overcome the obstacles in order to achieve new goals. Employee resistance will play a dominant role and useful when there's a change in organization. Initiating the proposed change by the management is possible when employees resist change. That may help the organizations to choose all possible changes in appropriate to the current situations. According to (De Jager 2001, " Resistance is merely an effective, very powerful, very helpful mechanism. "
Monitoring Organizational Change
Effectiveness can't be measured if the change is not monitored. During change monitoring is particularly crucial due to numerous forces. Complications increase while the procedure for change.
Tata is one the primary car manufacture in India. In 1992 the management of the company has been changed. Here the brief description of the business when Ratan tata taken over the business in 1992.
After the Ratan tata overtaking the Tata businesses, he implemented lots of the strategies like unite, refocus and modernize the group, the strategies were the revival of Tata administrative services (TAS) a department of Tata Services Ltd. have been recruiting talented individuals for management career acceleration in group affiliates because the 1950s. TAS had been successful in comparison to other domestic companies in retaining people however the prestige had waned somewhat in recent years. Ratan promoted TAS as a 'premium career' and elevated the program's status among up-and coming business leaders through media exposure. TAS was to become a group talent resource by enlarging the program and increasing the mobility of TAS participants among group companies.
New TAS recruits (mostly MBAs) were to work in a variety of industries in the group. The
Compensation packages offered to TAS recruits are also redesigned to match the marketplace rates. These efforts to regenerate TAS and make it a destination of choice for talent paid off well for Tata Sons and all the group companies which opted to participate in the TAS program.
The another important strategy was the restructuring the complete business like The objectives for restructuring were defined clearly. First one, Returns must be higher than cost of capital, Each company must be the industry leader occupying one of the top three positions; and The business enterprise identified must have prospect of high growth and really should be globally competitive. Having decided on these objectives, there have been clear strategies for exits. There is an escape from the sooner sentimental approach to businesses which may have been built over decades. Ratan Tata decided to exit the firms of soaps and toiletries, cosmetics, consumer electronics, pharmaceuticals, computer and telecom hardware, branded white goods, paints, oil exploration services, cement, textiles. . . equally fervent was his expansion/entry into businesses discovered as having high growth potential. These included passenger cars, auto components, retailing, telecom, power and insurance.
Change is inevitable and it is must in the present days where it is necessary in the present competitive world to stay in competition. Taking the right step in right time helps you to save the business from escaping. the business. Change in should reflect to the goals of the organization so that the members of the business understand, implement and achieve the goals accordingly.
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