The current business environment is dynamic and uncertain which forces all the business organisations to adopt new changes and brings it to the organisation by replacing the old system for improving the efficiency of the organisation. Organisational change is a process that helps the organisation to deal with the unexpected situation and ensures that significant changes are implemented and controlled in a systematic way to attain the organisational goals (Burke, 2017). Change management is a collective term that includes various steps to help and support individuals, teams, and organisation in bringing change in the organisation. The major drivers behind bringing change in the organisation include technological advancement, economic crisis, process reviews, change in consumer habit and preferences, high competition in the market, acquisition, mergers, or organisational restructuring. Organisational change management considers the whole organisation and all the people and teams may affect by the organisational change management (Batras, Duff, and Smith, 2016). A successful change management requires a healthy communication between an organisation and its people. Therefore, it is essential for an organisation is not only implementing the change in the organisation rather understanding how people process change. There are various change management theories that are given by a number of scholars can be the driving factors in the success of the organisational change. There are various current change management models and theories and each one have its own positive and negative aspects depending on the type of organisation (Hornstein, 2015). These all theories are described in detail in the next part of the assignment.
Current Change Management Theories
There are numerous theories of change management, which are widely adopted by experts, and business professionals at large and each theory have its own positive and negative aspects. The positivity of change management theories depends on the nature of the organisation, type of change, and the needs of the organisation (Davis, 2012). Some important modern change management theories are as follows:
Lewin’s Change Management Theory
Lewin’s theory of change management the most popular change management theories in compare to other change management theories, which splits the change management into three stages. The three stages of this theory are Unfreeze, Make changes, and Refreeze.
According to the Lewin’s model, the first step involves proper preparation for bringing change. At this stage, an organisation must ready and prepare for bringing change in the organisation and change is compulsory, crucial, and needed for the organisation. The unfreeze stage is necessary because normally it is the nature of people to resist change. The important thing here is to talk with those people in the organisation about the change and explain to them why this change is necessary for them and why the existing ways should be changed to increase the profitability of the organisation. This step also involves an organisation to look back in its core and re-examine it (Cummings, Bridgman, and Brown, 2016).
In this stage, real exercise is done by the organisation to bring change in the organisation. This is the time taking stage where change may take time to happen because people usually take extra time to adopt the new changes, developments, and happenings. In this phase of the change process, the role of leadership, reassurance, and managerial skills have lots of importance because it is essential to manage all the process of change carefully and according to the organisational requirement. Quality leadership skills make it easier for the individuals or staff to make the process easier who involved in the change process. Communication and time also play a significant role at this stage to take place successfully (Matos and Esposito, 2014).
At this stage, where change has been accepted, embraced, and implemented by the organisational, the company and staff started to work, and the work is stable again in the organisation. This is the reason why this stage is called the refreezing stage. This is the time when people are well familiarized by the people working on the organisational and things are back to their normal stage. The refreeze step requires the commitment of people to make sure that organisational objective has been achieved within the pre-determined framework and changes are used all the time even after achieving the goal. After this stage, the staff and people of the organisation feel a sense of stability and they get comfortable and confident.
McKinsey 7S Model
This model was developed by McKinsey & Company in the 1980s and they disrobe about the seven-step or stages for managing change in the organisation. These seven stages are strategy, staff, systems, style, systems, structure, shared values, and skills. GUO and GONG, (2018) said in their article that this theory considers both emotional and practical components of change that are somewhat significant to create a stress-free way of the change process for employees (Fuchs, and Prouska, 2014). This model helps in to recognise the organisation and it works so closely. Thus, it does not leave those parts that may be unimportant. This model also offers a directional factor of organisational change.
The drawbacks of this model are that it is too complex as compared to the other change management theories and variances are not fixated upon in it. The greatest disadvantage of this model is that all refactors are interdependent and interconnected with each other thus failing of a particular part may cause failure of all process and works which are connected (Mitchell, Fredendall, and Cantrell, 2015). Organisations that have used this change management model have faced more failure cases and these are also considered as one negative point associated with this theory McKinsey 7S theory.
Kotter’s Change management theory
The change management theory of John P. Kotter is an essential element change management studies. The theory of Kotter based on eight steps, which are Increase urgency, Build the team, get the vision correction, communicate, get things moving, focus on short-term goals, do not give up, and incorporate changes. These all eights factors are considered in this theory (Neumeier, 2013).
This is a very easy and systematic process to follow in bringing change in the organisation. The main idea behind this change management theory is to accept the change and prepare for it rather than change itself. According to Raineri (2011), the Kotter's change management theory by inspiring a sense of urgency and maintaining the momentum is one of the most effective theories used in the current business climate. The theory focuses on short-term goals and setting the changes in the step-by-step process by sustaining acceleration. The major drawback of this theory is that it is a systematic process model; no phase can be bounced during the change process. This model is so time-consuming and given extra burden on the organisational management to implement the change in the organisation.
ADKAR Theory of change management
ADKAR theory of management is mainly focused on the organisational goal. ADKAR model stands for Attentiveness, Desire, Knowledge, Skills, and Fortification. In the words of Boca, (2013) this model is a goal-oriented tool, which makes it possible that the organisation mainly focus on those activities that are rightly linked with the organisational objectives. The goal and result of the organisation derived and defined on the basis of this model. This means by using ADKAR theory, an organisation gets the results in systematic order thus the change can be continued and applied in various activities in the organisation. This model supports in identifying the different loopholes and gaps in the change management process so that actual training can be offered to those employees who involves in the change process.
The ADKAR theory offers the capability of identifying the gaps and deviation in the change process that why changes are working according to the desire in order to achieve the desired results. The ADKAR theory breaks the change into parts and then checks every part of the change and its effectiveness. It offers both people dimension of change as well as the business dimension of change.
Nudge theory is a concept that is used in behavioural science and economics.
But it also applied in the business organisation in change management. Arno and Thomas (2016) describe nudge theory that major focus of this theory is to inspire and encourage someone about adopting change. This theory based on using the positive concept where it helps in understanding and exploring existing influences.
Nudge Theory is more erudite in its approach in comparison to other theories and it is different from other ways of transitioning. This model helps in to eliminate the traditional approach of change management, which includes punishment enforcement and direct instructions. This theory takes into account an individual's feelings, nature, opinions, knowledge, and behaviour during the change process in the organisation (Steigenberger, 2015). Therefore, it is helpful to minimize resistance from people in a business organisation and is very useful in several industries.
Bridges’ Transition Model
This theory came into existence when it was published in a book "Managing Transitions.” The theory focuses on transition and not change as such. Dima and Skehill (2011) define as there is very little difference in transition and change, but it is important to understand it. According to this theory, the transition is an internal process where change effects the people even they do not realize it. Change can be instant and affect people and they may resist it, the transition may take time and it considers the people's interest and belongs to the internal. The model focuses on three main stages of the change process. The first stage focuses on introducing change and dealing with the emotions of people that include anger, fear, sadness, resistance, and frustration (Thaler, 2018). The second stage called Neutral zone that focuses on creating a bridge between old and new change during adopting the new change, and one may experience nervousness and scepticism in experiencing the change process through this model. The third stage starts when the second phase finished that is a new beginning which helps people to understand and adopt new changes in the organisation. This model of change linked more enthusiasm, strong commitment, and keenness to learn.
Importance of Change Management in Today’s Organisations
In the era of rapid change in technology and innovative way of doing and accomplishing the task, the modern business organisations are in a perpetual state of flux. The modern organisations are trying to adopt new changes to compete with other market players in their industry (Dasborough, Lamb, and Suseno, 2015). The change management theory applies to almost every modern organisation because there are no industries where the new technology not emerging on regular basis. For example, the manufacturing sector irreversibly changed by the rapid developments in 3D printing. The change management helps in understanding the demand of time and a regular adopting change helps an organisation to survive in the market for a long time-period by competing with its competitor. One of the great examples of change management was British Airways (BA) when they decided in the 1980s to bring change in their culture and competing with other small players in the aviation industry. BA Restructuring the organisation to bring cultural change in the organisation and limit the facilities they availed to their customers to introduce changes. The resistance of employees against innovation and initiate their work is another cause of bringing change in the organisation (Kuipers, et.al, 2014). Although the people always resistance to change because it is human nature. Therefore, it is essential for adopting the right approach for introducing change in the organisations. Nokia in the last 5 years continuously tries to change their culture to fight against its competitors such as Samsung and Apple, who destroy the market of Nokia mobile phones. Therefore, it is Necessary for Nokia to adopt proper change management process, which bases on adequate modern theories, such as BA to compete with its competitors and should try to survive in the market. The above change management theories are applied in the different condition in the different organisation. All the theories have its own positive and negative aspects but Lewin’s theory of change is one of the most popular model and successful in most of the organisation where it has practised. In the modern business organisation, the success of a change management based on the proper communication between employers’ and employees and if the people are well managed and trained for the change; it will be beneficial for the organisation to bring new changes.
It is evident from the essay that change is a continuous and ever-present element that most probably affects all the organisation of modern days because of technological presence. The current dynamic business environment forces the organisation to adopt changes at regular basis when it needed. However, the successful and proper change management required highly skilful people and change agents in the organisation otherwise, the chances of failure is increased if the change is not managed properly. The modern change management models need for a fresh and practical framework of change management because there every theory has their own positive and negative side and cannot be applied in every organisation in every situation. Therefore, it is crucial for the organisation to adopt a suitable change management approach among all the currently available theories and adapt which is suitable for the organisation.
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