Organisational change can be described as a process to move the organisation from current status to future state . The purpose maybe to increase productivity, capability, effectiveness and the organization`s ability. Although change is often necessary and important for organizations and individuals in order to survive or to develop.
They typically demonstrate resistance to change. Managers have to develop new ideas to overcome this challenge. (Robbins and Decenzo,2008) The other business environment also involve during this process because of some forces or effects that have to be considered on for change.Such as competitive, economic, political, global, social and ethical forces which are called external forces in theory(Jones,2006) The company must be willing to respond to them in an appropriate way and bring or find new alterations to the organization.
An example is BP. This company has been dealing with the explosion that occurred on 20 April 2010. (web1) Huge amounts of oil leaked to the ocean and affected all the environment. Such as wild life in the ocean, the coasts and people`s health who lives around the Gulf of Mexico. Environmental effects were not the only problem for BP. There were world problems too.
Barack Obama, president of U. S. A.
described the problem as `the worst environmental disaster U. S. has ever faced`( web 2) BP`s prestige was at stake. They tried to find technical solutions to reduce the oil leak and its impact.
They decided to announce a future change in the CEO, the American would succeed Tony Hayward. (web3) . The understated British approach had not been appreciated in the U. S. A. From the point of view OF BP this action is the consequence of effects of political and global forces. Under global pressure, the BP shareholders realized that having a new CEO will reduce the pressure from foreign influences.
It seems BP is facing important facts that they have to cope with. The management with its new CEO are coming up with significant ideas such as creating new brand with new logos as a part of BP under its control worldwide. This way maybe more effective than selling the oil to customers in this name.
So, this is a strategy to stay competitive in energy industrial. After being forced to re-structure the management and redesign their future plans to increase its profit. BP also has to handle the issue of ethical problems. It has been described as `BP revenues to secure fund for damages`.In addition to external forces, internal forces create need for change in organisations. There are forces inside that push management to redesign the strategies, to modify or update systems, to introduce innovative ideas and directions.
The most common are leadership and a vision of the possible, performance failure, employee dissatisfaction, workforce demographics and new ideas. (Jeffrey and Linda,2003) Workplace resistance can be illustrated, as in the Royal Mail strike in 2009 in U. K. (Web4) The Postal workers were displeased about `panic-driven cuts` that were being made by Royal Mail.Management had to do things to reduce employee dissatisfaction in other words to reduce the resistance to change. As discussed previously, change is likely to be necessary. It is an organizational reality.
Some early management theories are found to enable to make sensible approaches to changing. In order to effect organizational change, `Lewin` s three step model was identified by Kurt Lewin in 1947. (Burke et al,2009). This model is still relevant to planned changed programmes which target improving effectiveness and productivity, modifying or rebuilding the structure, aiming to settle a high quality management system.This model based on three different steps in order. It starts with unfreezing stage which explains the idea of being aware of necessity of the new changes which clarifies that doing things the old way no longer works nor admissible. Changing, the second step is implementing the new ways ,means change occurs.
The last stage is called refreezing. In this case, the members in a group or organizations must realize and accept that changes are made and settled in appropriate ways and have to be sure that keeping it permanant is essential.Emergent strategy, unplanned change focuses on trial and error method to implements change.
Emergent strategies are more positively related to sales growth with firms by changing the structure and operating it really well. As can be seen, there are reasons and ways to make changes in organisations. When the decisions for change are made, what then happens? Some actions be against innovations or some refusals will occur. Issues have to be analysed in different levels. Managers have to examine why people resist change and how to take measures to meet this challenge.There are some common reasons why resist to change happen inside organisations.
A prime example of `organizational-level resistance to change` would be ,when purchasing management would like to recommend and achieve a project about low cost expenses. Manufacturing management very often inclines to resist. These kinds of non agreements will slow the changing process, maybe making the change impossible even if it is necessary. Another consideration is resistance to change in individual-level. People resist when they do not understand what sort of things are exactly planning to change, in other words misunderstanding and lack of trust.For example, making flexible working schedule which aims to help the workers to concentrate more and to make working conditions better will be misunderstood because of different perceptions or maybe being less trustful.
Another case is parochial self interest which means they will fear that they will lose their current position, authority or money. Uncertainty is another reason that people resist organisational change. They might be worrying about their knowledge or ability under the pressure of new workforce that is why they may simply not like the idea of change.Different assessments is another case. If workers assess the coming new changes differently from their managers, even if neither predictions nor opinions are correct, then the resistance is inevitable especially if individual`s tolerance for each other is really low.
(Jones,2009) Obviously, there are kinds of problems that always remain especially inside the organizations as a result of some dissatisfactions of out of date management systems in recent years. Looking at these cases, in order to be successful for dealing staff about resistance to change, some methods are helpful.Education and communication are important too.. This process`s aim is to give information to people to improve their knowledge about new innovations for desired change.
. Giving important details can be useful to clear up misunderstanding. One by one discussions, group presentations, reports can be ideal to communicate in appropriate ways. If organizations want resisters to become more committed to the change, encouraging their participation in its design or implementation is another effective technique for reducing their fear or worry.Facilitation is another way that managers can deal with potential resistance to change.
This help might include providing training in new skills, therapy, listening or giving employees time off after a period of change. Negotiation and agreement are commonly used in situations where someone or some group will clearly lose out in a change and where that group has considerable power to resist. Sometimes managers have to deal with resistance forcing people to accept the change by threatening, firing or transferring them, this means coercively.It can be risky if it affects the people in a negative way.
They might get cross and it will end up with bad results. The example of BA cabin stuff strikes were unsuccessful resistance to management coercion. If the other ways do not work to make the change more acceptable, different tactics can be used that are described as manipulation and co-optation. ( Stephan,David,2008) The structure and the design of organisation, improved technological systems and other operations will take a significant part in this period too.As a result of this, some programmes are designed or different approaches have been found to make the changes in a systematic way. Changing organization structure and design basically includes any kind of vicissitude or problem in each department which requires modifying the old settled systems, modernizing the style of organisation and trying to keep it up to date, redesigning mechanisms between the coordination or any change in work group relationships. (Ricky,2008) For instance, `India`s Tata begins global search to replace veteran chairman`.
(L.James,Financial Times Companies and Merakets,05/082010)As it is indicated in the news, a global search have been started by Tata Group to find its successful leader who will be the chairman when its experienced chairman Ratan Tata retires in 2012. The successor will be chosen either internal or external. As can be seen in this concrete example, Tata group have already anticipated for change by deciding to replace its chairman which is expected to happen in two years time. There is another approach called changing technology and operations. Technology is improving rapidly to supply increasing demands.A interesting example to this is one of the biggest and international airline`s developed technology.
the EasyJet company was facing with an ash problem which comes from an Icelandic mountain called Eyjaffjalljokull. It was an unpredictable situation that affectted all air traffic, passengers, airports and most importantly the profit of EasyJet company. Departing or arriving passengers who were affected because of the delays started to claim to have their refunds.
The company was going to make a loss financially. As a consequences of this the EasyJet company decided to improve a radar system which will detect the clouds in advance. web 5) This new technology needs to be adapted.For this reason skill training programmes must provide to the employees to make the new system efficient. Having information technology in organizations is today`s most important necessity to increase the performance and the quality of the systems in departments, with software programmes integrated to the systems. In this way it is not too complex for people especially managers in different departments to follow the developments, changes or routine operation and processes in the business environment. Changes in people is another important area to be considered.The point is employees skills and abilities can give organizational advantages or disadvantages.
The managers have to find the most effective way to keep the workers under control during the this process. Changing the habits or attitudes of the people that they used to do for years in the firm is not easy and will take a long time. The good way to improve their skills in to arrange effective training programmes. The quality of the company will increase as well as their performance.
However, during the recession or when crisis comes, as expected managers have to find solutions to survive, facing other competitive companies.They may have to dismiss some of their employees which will be a problem . The managers have to be careful and sensible about it and they also have to do it without getting into touble. So presentations, performance-based training programmes, one by one discussions, are ways that human resources can help organizations to develop. This category is a really important part of the change system. Additionally to these systematic methods ,another strategy come up and sho a high level potential as an important factor in the business environment.
Business Process Change (BPC) or Re-engineering is defined `the fundamental reconsideration and redesign of organizational process, in order to drastic improvement of current performance in cost, service and speed` by Hammer and Champy. ( web6). As described, BPC comprises all of the objectives which can be use to redesign or renew the workflows during the process such as technologies, people, visions, missions, commitments, outcomes, incomes. Sometimes managers can think every process works well in each department so there is no need to worry and change .But when they think like this, either minor or major problems may occur in the system. At that time, managers have to change their mind and have to use one of the relevant business processes which might be useful to stay competitive.
Nowadays, companies realize that re-engineering is necessary. According to some research,there are steps to implement and integrate it to the system. These steps play an important role to make the company more efficient. After determining the goals and finding ways to build up a structure, the company has to develop these elements for re-engineering.Second step is to explain and represent the importance of top management commitment to the reengineering effort. The next step is to explain the urgency of the process to the employees. The last step is the top down and bottom up perspective of the top management and employees is a fact that needs to be balanced. This shouldn`t be underestimated.
( Ricky,2008) People now focus on Organization Development (OD) which is really new and special for the organisation. It is a long term but one of the most effective strategies that will increase learning and problem solving capabilities.OD helps to strength the organization`s capacity for adoption and redesign. If also works to change employees` behaviours, habits ,attitudes and relationships with each other. Several kinds of activities have played an important role as a part of organizational development in recent years. Most popular and effective ones are `Team building, survey feedback and large-group interventions, process consultation` described in some sources.
(Richard,2006) Team bulding is an activity that encourages the workers to work in groups in good ways. The relationships between the individuals are expected to be positive to increase the team effectiveness.It is also important to identify the roles and responsibilities for each person to make it efficient. To be able to find the right answers or overcome the problems which comes from workers, survey feedback is a good approach to assess their personal or specific problems.
Each member of the organization responds to a questionnaire which aims to measure their attitudes. This method will support the employees and will be a good option for managers to respond to them. Intergroup development aims to be successful in the same things which we mentioned before in the team building area between different groups from different departments.It is important to co-ordinate the various groups to help for effective change. If managers cannot find the right ways to overcome the problems or if they cannot manage the right procedure for employees for development, consultants can help managers to understand the process elements and they show the way to act during the process.
The point is these experts are not responsible for solving the problems. They have to assist the managers on how to overcome them. The quality movement has a huge impact all around the world on business. From my point of view, there are various theories to make change happen.The best appropriate plan might be chosen depending on the time, people, type of the area that company works on, productions, culture in the organisations. There is no certainty that the chosen method always will work.
It is possible that these ways might be not useful for every department. Circumstances and needs will vary. Accurate analysis, proper consideration of options, a clear idea of necessary in desired outcome, knowing the internal and external limiting factors. All these can lead to differing actions. In addition, determination can influence success even more than the system that is chosen.Referenceshttp://www.valuebasedmanagement.net/methods_bpr.html