Introduction to Organizational Change
Organizational change refers to the process where organization attempts to change its structure, strategies, method of operations, change in technologies, culture in order to create and affect of change within an organization and also the effects of these changes on the organization. Depending upon the organization, changes can be continuous or may occur for distinct periods of time (Baum, 2003). Organizational change is unavoidable in the life-span of an organization because changes are by its very nature is very constant and will occur at one or the other point. None of the organization can avoid changes until they accept the change else there survival will come under danger. In order to succeed in this global world and to become a market leader, a firm could not avoid the changes. It has also been described that survival of organization is completely dependent on the changes (Blake, 2008). Until and unless an organization will not accept changes than it cannot survive in the market. If in a fashion industry, the new style have evolved according to customer's preference than all the organization has adopted the change but one company did not accept the new pattern and continues to manufacture the existing pattern than the customers will not purchase the goods from that firm, hence that enterprise would come at a declining stage and its survival will be at risk.
Changes are basically driven by internal and external forces which force the organization to bring changes (Carnall, 2007). Changes in demographics, cultural diversity, environmental issues, economic upturn and downturn, political imbalances, changes in laws and regulations, ethical changes, consumer awareness, intense competition, other changes in global forces such as terrorist attack, new reforms, etc. All these factors forces the organization to bring changes in their structure, culture, production process, etc. Change plays a major role in the sustainability of an organization. If changes are implemented in an effective manner than employee will not resist to it and thus, employees will become more efficient which will help an organization to gain competitive advantage over others. This will probably satisfies the employees and they will sustain in the organization for longer period. If employees are efficient then it will eventually leads to better performance and through that more profit generation will be there (Carr, 2001). Similarly, if a company aims towards better changes while keeping mind the environmental protection and also through this resources will be optimally utilized which will help in sustainability development. This report has been emphasized on the change perspective and also the discussion has been made on the various approaches to change. The critical analysis of this report has been done.
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Perspective towards change is different of different people. In an organization mainly employees have a negative aspect towards change and always they wish to resist it because they are not in their favor until and unless its benefits are seen by them. But through managers perspective, change is a positive factor for them because it is a sign of organizational growth. They want to introduce and implement the changes in an organization so as to create competitive edge and succeed in the market (Claire, 2010). There are basically three factors which plays a significant role in shaping the perspective of an employee towards change. Firstly, organizational culture, that is values, beliefs, behavior of employees. If the employees belongs to the society which have the set pattern to grow and develop than their mindset will be same, thus there will be social process perspective towards change. If the company is culturally diversified then there will be less chance of resistance because employees will have an influence from other employees. Secondly, power and politics, if the power is centralized in an organization and management forcefully implement the changes than there will be a negative perspective towards changes (Dunphy, 2007). On the other hand, if decision making power is decentralized and less politics will be there in the environment than employees will not resist for the changes. Lastly, learning and development factor, if the organization provides proper learning and development of an employee is done on a regular basis than their employees will never resist for the change because they know change will develop their personality and professionalism.
There are various approaches to changes which can help in implementing the change in an effective manner so as to receive less resistance by employees (Fitsimmons, 2009). Mainly two types of approaches are more important that is Planned change and Emergent change. Planned change means a change which is predetermined and implementation is done after proper planning and following a step by step procedure. The basic characteristics of this type of change is that it seeks to improve the ability of organization by adapting changes in its environment; it is concerned with changing the employee behaviour so that their performance can be improved as the failure and success depends upon the employee performance and behaviour. It helps in customer satisfaction as well because efficient employee can only satisfy the consumer. Foe example, the automobile company Maruti Suzuki has taken the franchisee of Nexa in order to separate its sedan cars from that mini cars (Galvin, 2003). This shows that through planned change only such change can be brought in the company and it has effectively bifurcate their customers which will provide high satisfaction to them and their employee's performance will also get improved due to this.
Further, planned change can be best implemented by adopting a model. One is Lewin's model of change, where three steps are followed that is Unfreeze-Change-Refreeze. According to Green (2007) Lewin has propounded this model in order to bring organizational change by a easy generic steps which explains that managers unfreeze the employees by communicating about the change, providing training session about thee results and consequences of change so that mindset of employees get changes. After that Change is implemented which is a most important for every organization where employees look for the opportunities, resolve their uncertainties and do best thing to perform task. Lastly Refreezing is done where employees get used to towards the change which have been implemented.
On the other hand, there is another approach of change which aims towards the change management in an organization that is emergent change. Emergent change is basically based on an assumption that change is a continuous process, open-ended and completely unpredictable process so that positioning and realigning of an organization can be done towards its changing environment (Rowley, 2000). Further, organization has to study and improve their performance after each and every win because over-enthusiastic behaviour of employees may lead to decline in their performance and this limit their success for the next time. For instance, Nokia has shifted its Symbian software to Microsoft in their gadgets in order to attract large customer base towards its products. This emerged change comes because cited company was not getting much response to their multimedia phones. This change generally helps company in developing effective goodwill and brand image.
Moreover, emergent changes can be understood by following the model of Kotter's 8 step change model. In this, Kotter identifies the change that is necessary in the organization. As per the view point of Carr (2013) this model emphasize on the preparation and also the acceptance of change by employees which is happening in the organization by not considering the actual change. Further, organizational transition can be done easily by following this model of change. There are 8 steps which can be described as – it increases the urgency of change in the organization because it helps in increasing the sales and productivity for the firm. Secondly, building a team which is dedicated for accepting the change. Thirdly, it emphasize on creating vision for change; fourthly, communication has been done about the change so that employees could work accordingly; next step is to empower the employees; creating a short term goals and objectives in order to achieve organizational goals. Next step is to focus on staying consistent for performing task and duties. Lastly, if organization likes the change than it should make it permanent and follow the same practice (Normandin, 2012).
Another model is of McKinsey model for emergent change focuses on holistic approach of the organization. This model basically lays more stress on factors like shared values, strategy, system, structure, style, skills and staff. According to the study of Rowley (2000) this model offers effective method so that needs of an organization can be understood. Furthermore, proper guidance towards change management has been provided by this model. However, this model has limitations which can affect the company's performance because it is generally complex and major differences are ignored at the time of implementation.
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According to Green (2007) in the ear of intense competition, enterprise require to prepare themselves with the strategies for the planned and emergent change. Planned change refers to the deliberate change which company intend to make and on the other hand, emergent change refers to the situation which arises due to changes on external environment that is social, political, environmental, industrial, etc. In order to adapt with coming change, the business unit brings some organizational changes in it.
There are many companies which are facing issues like sustainability, ethics and CSR. For this purpose, planned and emergent changes should be applied so that company can cope up with the changes occurring in the environment (Galvin, 2003). For instance, Nokia which failed to adopt changes which were occurring in the environment, thus it loses its sustainability for development and its survival comes to an end. Similarly, Nestle followed unethical practices for reaching maximum customers, due to which corporate image and customer loyalty of this firm got lost. Such company requires planned changes so that learning and development can be done by the employees so that ethics should be build among them. Thus, changes should be timely implemented in the company to make them sustainable and ethical. The ethical company will always devoted towards the fulfilment of social responsibilities.
As per the above study it can be concluded that the change management is one of significant aspect in organisational process. It is considered as an action in which management focuses on transformation of structure, planning, management, etc. in order to attain great success and effective accomplishment of goals. It has been concluded that there are number of change management models which facilitate the management of change in an organization. Changes should be timely implemented in order to bring develop the sustainability, ethical practises, devotion towards social responsibilities in order to safeguard the corporate image, customer loyalty and increased profits.
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