The Factors That Affect Organizational Change Commerce Essay

There are different factors which affect organizations change. These factors can be external (technology, Government procedures, public pressure, cost of uncooked material etc) or inside (change leadership, decline in profit, union action etc). in this era of globalization the most commonly seen organizational changes are implementation of new technology, mergers and downsizing.

To survive in the market with the increased competition it's very troublesome for the employees of the business to simply accept the change. In this type of situation the management should ensure the acceptance of change at every level. Change Management is defined as organizations potential to implement and maintain change for the survival. For the survival of the organization change management is your best option.

Figure : Stages of change

If business is not in a constant phase of change management and regularly assessing and adjusting then business may be at best average within its industry. For a few organizations this implies they may be going backwards and eventually bankrupt. Only those companies can survive which can adapt to changes.

This change management model practices all the change management models and ideas. Every firm can be summed up to be always a combination of these three elements which includes the structure, the folks and the strategy. Any change in any area of a business will impact at least one or many of these elements.

Figure : Three elements for change

The framework of the system is the process that delivers the strategic aims of organization with physical resources. Change management specialists will review management operating-system (MOS) with complete and proper composition.

The people involved in this process are stakeholders, resourced people, and management team. Everyone involved in this process should be well informed and should focus on the right things. They have to communicate with one another.

Figure : people involve in change management

To achieve the mark for the ongoing existence of the business strategy is the most practical method. Change management supplies the guidelines for the expansion of the company.

The Skill of Change Management

Managing change in the workplace while making sure the functions strategy is on the right path. This is achieved by the support of individuals and structure elements towards achieving the organizations corporate and business strategy.

Phases of Change

Organizational change involves the fear of loss inherent in this technique, and this loss is mostly believed by employees. The Kubler Ross Grief Model addresses the emotional issues associated with change. The four psychological expresses experienced throughout the change process may be portrayed by employees in behaviors that are hurdles to the process of change. This model consists of four stages given below

Denial

The first mental condition during change is denial. This is the stage where employees don't consider this is happening to them. They have certain anxieties and these anxieties should be tackled during this stage. This fear can be reduced by taking them in self-assurance. Fear and mistrust have to be replaced by approval.

Resistances to change

The second emotional state is resistance to the change process. Amount of resistance is natural a reaction to change. Eric B. Dent and Susan Galloway Goldberg (1999) gave the theory that managers and leaders of the business must decrease the resistance to compete with other organizations. Kurt Lewin, the social psychologist, introduced the term "resistance to improve" as a systems. As we realize that individuals of any group are generally resistant to change. Relating to Scott & Jaffe 'resistance is a level that ends as individuals begin to split up from days gone by & are more confident of the capability. They play their role by their participation to reduce level of resistance to change'. For example, competition might pressure a business to arrange work around procedures to improve operating efficiencies. Functional departments involved with these procedures would be merged. Employees might not see a dependence on this change. The reason why for change must be totally described so that employees understand why it's important to adopt the change. Chew (1990) studied the truth of Machinists' Mutiny. In his analysis he revealed that credited to poor planning and implementation the change is ceased due to staff resistance. This article also contains expert ideas that company should adopt so they may have better implementation of change

For the execution and keep maintaining change satisfaction of the folks is vital. The reaction to resistance is very important. Forcing compliance may increase resistance. Those affected by the change probably know a lot about what is required to implement something new, and their suggestions is important to the change process. The degree to which employees will support your brand-new initiatives depends upon how many of these recommendations are widely-used.

Explorations

The third psychological state encountered is exploration. employees will search new roles if they are incapable to avoid the changes. In such a stage both specific role as well as the group role are identified. it is important that unresolved conditions that continue to surface be dealt with during this stage. One should be ready for the negative result of the staff. Those individuals should be warned at the first indication of falling back to old behaviors. This negative reaction can be improved to the positive if trust can be created among groupings.

Commitments

The final mental state is determination to the change effort. Mutual commitment is set up for the change work. Obstacles have been removed and the emphasis is on successful implementation of the changes.

Models of the change process

After years of failed change attempts, researchers are saying that knowledge of the change process is crucial. To thrive we have to know successful change during and before the change process. You will find five most popular types of the change process(Lewin's three-step change model, Kotter's eight-step plan, Harris's five-phase model, Fullan's change themes placed, and Greiner's six-phase process). But in this survey we will discuss only two of them.

Lewin's Three-Step Change Model

Change will involve a collection of organizational operations that occurs as time passes. Lewin (1951) suggests this three step process. These steps generally involve lowering the forces performing to keep carefully the corporation in its current condition.

Figure : Three step model

Unfreezing:

This is the first step which is accomplished by adding new information that points out failure in today's point out. Crises often arouse unfreezing. This turmoil can be anticipated to upsurge in staff, demographic shifts, and an urgent strike. This is not necessary that during unfreezing crisis always take place. For identifying problem creating areas in organizations financial data, environment examination and enrollment projections can be used.

Moving:

Once the business is unfrozen, it could be altered by moving. This task generally includes the change in structure, development of new standards, attitudes, and habits. Some changes may be modest and require a few members.

Refreezing

The final step is refreezing which involves stabilizing the change. In this task largely the changes in organizations coverage, organizational culture, or modification in organizational composition often accomplishes. (Fred C. Lunenburg, 2010)

Kotter's Eight-Step Model

John Kotter (1996) of Harvard University or college developed a more specific model for controlling change that was based on Lewin's three-step change model. The steps involved in this model are given below.

Establish a feeling of urgency: Unfreeze the organization by developing a convincing reason behind change.

Create the guiding coalition: Develop a cross-functional, cross-level group of individuals with enough capacity to lead the change.

Develop a eyesight and strategy: Make a idea and tactical plan which brings about the change process.

Communicate the change eyesight: Produce and use a communication strategy with the employees about the new ideas and strategic plan.

Empower broad-based action: Eliminate obstacles to improve, and use focus on components of change to transform the organization. Encourage risk taking and creative problem resolving.

Generate short-term wins: Plan for and create short-term "wins" or improvements. Recognize and reward people who donate to the wins.

Consolidate profits and produce: The guiding coalition uses trustworthiness from short-term wins to set-up more change. Additional people are helped bring in to the change process as change cascades throughout the business. Attempts are made to reinvigorate the change process.

Anchor new techniques in the culture: Reinforce the changes by highlighting contacts between new actions and operations and organizational success. Develop methods to ensure management development and succession.

Types of Change

Change can be classified into four categories, structural change, cost change, process change, and cultural change.

As the organizational framework of the business changes the structural change takes place. This change in composition is because of the merger of the company. The improvement in the organization can be achieved by changing its long set up framework into more versatile form. This is done by small clubs.

In order to boost performance and efficiency by lowering cost, cost changes are the best option. This can be done by reducing budget, reducing needless activities and by shifting employees according to the need.

Process changes are applied in the business to enhance the efficiency. This change takes place in production team where these products are formed, stuffed and shipped.

Cultural changes will be the least substantial of all the types of change. If an organization tries to look at a more participative style this requires a shift in many organizational activities. Mainly the connection of employees and mangers experience the change in culture

IMPLEMENTING CHANGE

The proper implementation is based on number of steps. The first step in utilizing change involves folks of higher management and executives. For instance, an organization wants to install new system of computers in its areas. Then they major personal aren't only top management but professionals with lower ranked will supervise the employees for the use of the new technology. In cost slicing change different personals are involved. When a company wants to reduce its budget in a specific department then the managers of that department should be involved in cutting the cost. As the important workers have been revealed, the next step included is utilizing change properly. For the implementation of the change the successful change in plan is required. This plan defines the tasks of the main element personals.

The third step in utilizing change. This change helps the plan. Implementation includes the management. This key step consists of facilitating employees to accept the change. The business should supply the basic support to the employees like training, reward system etc. if firm does not provide this kind of support there are chance for the failure of the plan

Change process is the ultimate step of booming change implementation. Conversing with the worker about the change and its importance will be very useful through out the process. As we realize that change can create dread in employees and relax them increased communication can help a great deal. Professionals should carefully listen to all their question and their advises to defeat their dread. Creating opportunities for staff like providing them with positive feedback or holding meetings may facilitate change more effectively. (Wendy H. Mason, 2003)

Abrahamson (2000) gave the view of "Change without Pain". The primary theme in this specific article was change must happen, but change will not always have to be troubling to the organization. The author calling this "tinkering and kludging. By placing small changes between large changes, companies can take care of change through energetic stability. The goal of dynamic balance is to create a change which can be sustained permanent, not just for a while. To achieve strong stability the top and small changes must be achieved at the right time, at the right pace and the organization must "tinker and kludge". "Tinkering" is going for a current process and making small changes to it. That is done at a low cost to the business and the email address details are often very quick. "Kludging", on the other side, is tinkering but on a larger scale. "Kludging" talks about outdoor resources for improved upon parts or techniques and talks about the unused resources within the company. Many companies don't realize they have got resources not being used because the processes using the resources are to slow to fully make use of the capacity of the resource.

CASE STUDY

This research study was based on a company called Trail Production which produces cable connection crane components. This analysis was done by Chew(1990). The business was a mid-sized company setup to perform high volume careers on manual equipment. But with today's current economic climate and competition, Path identified the best money was at low volume jobs. The President of Trail made a decision to bring in new technology to replace the old machines. He explored the new machines and decided to bring in eight flexible creation cells which would replace twenty-eight old six-spindle screw machines. Since this was new technology and training would be needed a plan was laid out to create teams, one for each and every cell, and the company would stage in the new machines. Each team would learn and then they would develop and run their own cell. Once one cell was on-line a new cell team would start up until all eight skin cells were on-line. The first five clubs went through the process fine, but at team six the company acquired a problem. Team six contains men who was simply at the company many years. The team visited the chief executive and advised him they refused to change over to the new machines. They believed the old machines were working fine and the new machines did not show the expected advancements, so they wanted to continue focusing on three six-spindle screw machines. At this time the president were required to determine if he wished to keep going with the job or adjust it to keep a few of the old machines. Some management workers noticed that if the new cells were heading to work, a clean break in the action had to be made from the old machines. Others sensed that because the productivity gains weren't being seen yet by the new cells, the opportunity of keeping the old machines for a short while might be a good idea. The truth ends with out a decision being made by the company. Four experts in functions management give their views on the problem. Only one from the four said the company should keep on with the initial plan in case the participants of team six leave the company then it's the price to be payed for progress. The other three are quick to point out the leader made a wrong assumption in the planning. He assumed that by bringing in new technology output would improve. This is a wrong assumption because technology is merely as effective as the company and how the company works. Among the experts points out "truly understanding how the complete system plays mutually, and not just utilizing the latest approach, means bridging the gap between the psychological and the complex. The president did not notice that by bringing in new technology it could change the culture of the shop floor. Men who possessed years of experience on the old machines and were in seniority would be at the same level or less than the younger more computer literate employees. This might be a major culture change for the employees. A lot of the experts suggested slowing the rest of the cell startups and specifically responding to the concerns of the men on team six. If team six's concerns are not addressed there could be more problems with the rest of the teams. This post showed a good picture of how a company has to start major changes, especially ones impacting on the culture of the business. The expert views enhanced this article and I would highly recommend this article since it is an exemplory case of a case that is performed out in companies around.

CONCLUSION

Today change is the required to carry business and survival of the business. Organization or organizations should under go change with the duration of time otherwise will endure. This change along its success also brings concern with employees. This leads to resistance to improve. In this example top management and authority can play a essential role. The success of the organization depends upon management team that how effectively they resolve the issue. They are able to take help by researching past style of change and swapping them with new ideas. The good communication process is very important for the soft process of change.

RECOMMENDATIONS

Following are some referrals.

Managers should improve their social and communication skills in order that they could help their staff overcome the aches and pains associated with change.

Tell people the reality and give just as much information as possible. Keep providing information at the earliest opportunity.

Give them a chance to digest the news.

Give them the perfect time to vent there might be anger because this is normal response.

Listen to personnel and their concerns don't interrupt them so they can reduce their fear.

REFRENCES

Abrahamson, E. (2000). "Change Without Pain. " Harvard Business Review, 75-79.

Chew, W. (1990). "THE SITUATION of the Machinists' Mutiny. " Harvard Business Review, 4-8. )

Dent, Eric B. , and Susan Galloway Goldberg. "Challenging 'Level of resistance to improve. '" Journal of Applied Behavioral Technology (March 1999): 25.

Fred C. Lunenburg. (2010). "Approaches to Controlling Organizational Change. " international journal of scholarly educational intellectual diversity size 12

Kotter, J. P. (1996). Leading change. Cambridge, MA: Harvard Business College Press

Lewin, K. (1951). Field theory in social science. NY, NY: Harper & Row.

Oliver Recklies "Managing Change - Meaning und Phases in Change Functions" www. themanager. org/strategy/HYPERLINK "http://www. themanager. org/strategy/change_phases. htm"changeHYPERLINK "http://www. themanager. org/strategy/change_phases. htm"_HYPERLINK "http://www. themanager. org/strategy/change_phases. htm"phasesHYPERLINK "http://www. themanager. org/strategy/change_phases. htm". htm. (seen on 12 of November)

Supreet Ahluwalia and Vivek Joshi (2008)managing Change in an Company. http://www. indianmba. com/Faculty_Column/FC707/fc707. html (utilized on 13 of November)

Wendy H. Mason (2003) "ManagingChange"www. referenceforbusiness. com (accessed on 12 of November)

http://www. change-management. com/tutorial-cm-basics-who-mod2. htm (Utilized on 13 of November)

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