There is some diversity of opinion regarding the management of change in multinational firms. Prepare a report that critically evaluates the utility of theoretical models of change for executives who are looking to transform ways of working within their multinational firms.
Work should be underpinned by theory, examples and supported by extensive references. Students should use the readings and many web sources provided as well as the material to which reference has been made in the lectures. Your own supported synthesis and interpretation should be offered.
The emergence new kind of economies has shown so many business opportunities for number of companies in be it public and private organization. This has further resulted in the many traditional companies, for instance, an organization in public sectors which accepted the elements of change with a realization change will help them to sustain in long run. But the process of bringing change is not an easy process and each time it is difficult to sustain and organization have had some very low rate of success. Any successful organization should always be prepared to take up the concept of changes management easily (Cameron and Green, 2015). The change management usually aims on external as well as internal culture within which company function. The report will understand in detail about the change and the change management. The research also argues that the management must be very sensitive for any kind of transformation in the organization. Such kind of change activities also involve the virtual aspect of a company which consist of innovative as well as development on technological level with the proper restructuring which can influence the overall span of the management along with the basis for departmentalization as well as proper compilation with implementation of work and all of this impact people working in the company (Hayes, 2014).
The basic element of change for people at large, a country’s wellbeing is actually based on the overall performance and quality of the education, organization and government. There used to be a time when companies operated with a single mindset to earn maximum profit and this is why they are able to maintain most of public and private organization with no particular reason to actually be part of a specific goal for change (Altamony et al., 2016). On the other hand, many public organization whether they are global or national were appropriately judged to be ineffective. Organizations become effective and improve the performance since it slowly become important for them to properly maintain a strong base for work ethics as well as values which also happen to include right strategies and work culture. In addition, it is also important for employers as well as employees to have a proper or shared perception for change and in addition it is also important for all the parties to properly commit to the change whenever it is needed. It is also important to understand here that efficiency and consistency can only be accomplished when strategy is properly linked to corporate with the system and the culture. Similarly, organizational effectiveness is based on so many factors along with group effectiveness and personal impact that will decide organization efficiency, success and effectiveness. Change can be termed as a shift in the attitude of the whole company. Therefore, in other words many companies when impacted by the transformation in environment that need adaption for internal procedures. But at the time of adding new angles to the definition based on change, and it is always maintained that change should be incidental by nature (Riekert et al., 2013). All kind of change and related initiative requires a lot of planning as well as consultation from the expertise. Experts also has a similar kind view, it is important to state that kind of transformation and associated initiative should be planned in an active manner with all important stakeholders. In addition, changes that are planned must be particular and have a specific motive for the company to remain in a more visible state. Moreover, these kinds of changes must be constant and must be adaptive procedure to employees so that people can buy into new concepts and shaping the formation of the workforce and related identities so that right kind of intuition become more constant by nature with strategic right kind of direction (Thomson, 2016).
The author’s claims that the companies usually fail to constantly introduce change which is adaptive by nature and people will also experience the adaptation without much energy that comes from the workforce getting into different principles as well as perspectives along with formulating the identities in ways that match new kind of direction. It is crucial that workforce can afford key options in order to participate in change based initiatives and the workforce must always be important players by facilitating, executing as well as managing the effective change since workforce should be involved directly in the procedure to transform in some or the other form. It is very crucial to identify that the workforce can also be main restriction in executing changes. Therefore, to limit the opposition towards change is based on incremental transformation and related approaches in company that faces this confusion (Thomson, 2016). The approach can be perceived called as a fine-tuning process and making it small adjustment in the system. The incremental transformation claims to be a series of small transformation where everyone attempts to manufacture the work that has already been achieved and improves the functioning of the company with the help of small changes. There are number of proponents in the approach to transform as a normal as well as continuous process that occurs in all kind of organizations. This kind of change also forces more effective manner of getting the workforce to work in association and as per the accord and in the end, it results in the companies that performs in efficient as well as effective manner (Thomson, 2016).
Change management is an important part of every organization and is a continuous element in many companies. This specific report will aim on important elements where changes is based on managing the change in an effective manner to maintain its competitive advantage in global as well as national level. Companies that can manage the changes have a great benefit over the competitors. At the same time, change management like change is a challenging word to define. At the same time, change management is slowly becoming one of the important themes in social sciences and managing the change has two crucial meaning where making of change can be planned as well as managed with the response to transform over which companies function with no control (McCracken and Morley, 2014). This way, the need to recognize organization with wise change has become one of the most critical and most challenging duties for the companies. This cannot be traced easily in past when organization use to control their future and function in a predictable manner which is considered relatively stable manner. This is complete opposite where the mannerism in which companies work and deal with diverse situation these days. Presently characteristics like locations, balance sheets, culture of organization and the overall structure can control different operations and destinies for some organization. It has been elaborated by so many authors that maintaining that companies are now facing diverse challenges which can be imposed by globalization by impacting in which it can be controlled. The fact that control has now become a more articulated work and it was dealt in different manner in the past. When the factors associated with globalization can be discussed as a procedure has eroded or reduced the impact of many national organizations and the limitations associated with borders and it is also discussed that globalization has also resulted in the changes associated with different countries, organization and regions (McCracken and Morley, 2014). At the same time, it is also important to understand that view can also be formed on the basis of discussion which can be debated since those people advocating the concept of globalization will be based on considering different views as a simple process. The concept of globalization has operated more than just changing associated between the countries, organization and regions.
The report discussed the reasons for changes is vital since one of the important areas of inquiry was directly associated with change management and changes. It is important to understand here that why employees do involve or engage in change process. There are so many kinds of underlining approaches that decides the change in direction and step that should be taken here. The discussion in the report are based on the reasons for transformation that will help in evaluating the collected data since it is an attempt to evaluate workforce and the overall understanding based on change as well as change management (Cummings and Worley, 2014). There are so many approaches based on changes in organization and draw from the time and view that there is no consonant with early time of 21st century. Currently many organizations are facing with so many risks of unknown and uncertainties which is almost synonymous with the modern world brought by modern technology and globalization. There are six important factors that are accountable for all kind of changes that occurs in the current modern world and companies alike and it is discussed in detail below: -
- There are number of new technologies that have changed the face of electronics, communication, consumer based market and speeded industries.
- Globalization is important which has resulted in the world that is also connected as well as interdependent as information, good and money all around the planet.
- New technologies and globalization together have sharpened the precipitated and competition with rise as well as fall of the leaders in market (Cummings and Worley, 2014).
- New transformation processes and practices that are now happening at a faster rate than ever.
- There is an amazing rise in advancement in technology and it is also matched in business and in lives of people.
- The issue of complexity that are rising as a result of all the transformation with more and more challenging demand for managers that uses to seek some certainties.
Following are some of the best approaches and strategies to execute change management: -
- Lewin’s change management model: - the principle in change management model is one of the most effective and popular models that make it possible for people to understand the company as well as structured kind of change. The model is specifically designed and developed by the Kurt Lewin in the year 1950 and it also hold valid in the present time. The author was a social scientist and physicist who easily explained the structure or about the changes in organization with the help of changing the state (Cummings and Worley, 2014). Following are three most important stages discussed in detail below: -
- Unfreeze: the first stage is based on the process of change as per the method by author involves the preparation for the transformation. This further means that at this phase and the company must also be prepared for any kind of change and also for the characteristic that change is vital and required. This stage is crucial since many people worldwide try to completely resist the change and it is vital to completely break the startup queue. The point here is to explain that people on why the present manner requires to be transformed and how change can be related to profit. The step also consist a company examining the core and re-evaluating it (Booth, 2015).
- Change: this phase is based on overall transition process and transformation which takes place. The procedures that may take time for the existence since people normally want to spend time in order to embrace new cases with development and transformation. This stage involve good leadership as well as reassurance which is crucial since such features not only lead to change in the right route however it also makes the process much easier for the staff or people who are trusted in the procedure. Interaction and time here therefore are the important point for this stage in a successful manner (Booth, 2015).
- Refreeze: all the transformation which has been accepted embraced and executed by people and the organization starts to become more stable. Therefore, the stage is based or refers of refreeze. This is the high time when the staff and procedure begin to refreeze with things to start going back to routine and pace. The step also needs assistance where people ensure that the transformation are used at all the times and executed even after the goal has been accomplished. It also brings a sense of stable situation, workforces that get comfortable and create confidence of the needed transformations (Booth, 2015).
- 7 S models by McKinsey: the current 7S model is one of the models that can be transformed to persist even when other came in and it is completely out of trend. It must also developed by the consultant by operating for McKinsey in 1980 and characteristics with seven steps for management of changes.
Following is detailed discussion of the different stages: -
- Strategy is actually a plan developed to get past for the competition and accomplishes the objectives. The first stage based on change is as per McKinsey’s 7S model and consist of the growth based on step by step process or future plan.
- Structure: the overall structure is based on stages or features related to the model that is based to the manner in which the company is categorized or the overall structure that can be followed (Sharma et al., 2014).
- Systems: to get more and more work done, the way where routine work can be perfumed in different stages.
- Values: shared values also associated with the core or different value of a company as per in which it functions or work.
- Style: the way in which the changes as well as leadership is adopted or executed is called as style.
- Staff: the staff here is based the employees and their capability to work
- Skills: the overall competencies are based as per the skills possess by the workforce while working in the company (Sharma et al., 2014).
- Change management theory by Kotter: - the change management theory introduced by Kotter is one of most adopted as well as popular in the present world. The process of change management theory and it is also divided into eight stages where each stage aim on key principle which is related with response of change of people (Sharma et al., 2014). Following is the detailed discussion of all the stages: -
- Increase urgency: the step consist of creation for the sense of urgency among the people to encourage them to move in forward direction and it is towards goals.
- Building the team: this step of change management theory is related with getting the right kind of people on the team by selecting so many skills, commitment and knowledge.
- Getting the correct vision: this stage associated with creating the correct kind of vision which is based on strategy as well as creativity, objectives and emotional connects.
- Interact or communication: this step with people is based on change and it requirement is also based on important part of the current change management theory propounded by Kotter (Sharma et al., 2014).
- Moving things: to get things moving as well as empowering the action and need to get the right support, removing the restrictions and execute the feedback in a very constructive manner.
- Aiming on short term objectives: aiming on short term objectives and division of the final goal into small yet accomplished part is a good way to achieve the final success without much pressure and attention.
- Incorporated changes: apart from changing and managing it in an effective manner, it is crucial to properly reinforce it and finally make it a part of culture in organization (Sharma et al., 2014).
- Never give up: the process of persistence is actually a key toward success and it is also crucial to never give up which is also related to the procedure of change management will be continuous.
In the present world of fast changing technologies and complicated work environment like the transformation which is followed by the government and change management strategies are also followed by the government where companies are crucial in order to meet the requirement of all stakeholders of the company. The initiator of change must be continuously look for creation with acceptable change procedure and practices to increase the participation of workforce and it is important to facilitate the complete involvement to provide a weather that can be beneficial for changes based initiatives and must also build a healthy work association with all the involved stakeholders (Laumer et al., 2016). The workforce that is one of the most crucial elements of stakeholder is based on considering since the most crucial assets of any company. The loyalties as well as attitude of workforce are completely impacted by the participation in efforts related to change and this has a direct impact on the overall involvement in the change process. As per the finding shown in informal as well as formal element of the current qualitative case study, it is also obvious that the basic understanding of the workforce associated with change and change management process and practices that completely differ from diverse degrees. Therefore, it is also vital for the company to build a positive association that will provide a strong base to manage any issue in change management processes (Laumer et al., 2016).
Altamony, H., Al-Salti, Z., Gharaibeh, A. and Elyas, T., 2016. The relationship between change management strategy and successful enterprise resource planning (ERP) implementations: A theoretical perspective. International Journal of Business Management and Economic Research, 7(4), pp.690-703.
Booth, S.A., 2015. Crisis management strategy: Competition and change in modern enterprises. Routledge.
Cameron, E. and Green, M., 2015. Making sense of change management: A complete guide to the models, tools and techniques of organizational change. Kogan Page Publishers.
Cummings, T.G. and Worley, C.G., 2014. Organization development and change. Cengage learning.
Hayes, J., 2014. The theory and practice of change management. Palgrave Macmillan.
Laumer, S., Maier, C., Eckhardt, A. and Weitzel, T., 2016. User personality and resistance to mandatory information systems in organizations: a theoretical model and empirical test of dispositional resistance to change. Journal of Information Technology, 31(1), pp.67-82.
McCracken, L.M. and Morley, S., 2014. The psychological flexibility model: a basis for integration and progress in psychological approaches to chronic pain management. The Journal of Pain, 15(3), pp.221-234.
Riekert, K.A., Ockene, J.K. and Pbert, L. eds., 2013. The handbook of health behavior change. Springer Publishing Company.
Sharma, P., Chua, J.H., Park, K.M., Jung, K., Noh, K.C., Huang, M.C., Chiu, Y.P., Li, Y., Ashkanasy, N.M. and Ahlstrom, D., 2014. In this research, we study the issues of corporate sustainable development in China. Based on relevant research, we propose a theoretical model showing the relationship among business environmental commitment, cultural value, employee training, and firm performance of sustainable development. It is argued that a cultural value (ie, organizational future orientation) should be a key antecedent predicting... Asia Pacific Journal of Management, 31(1), pp.195-213.
Thomson, I., 2016, December. Commentary: A proposal for theoretical models of stakeholder perceptions of a new financial reporting system. In Accounting Forum (Vol. 40, No. 4, pp. 316-318). Elsevier
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