Implementing Strategic Change With Complexity Theory, Resistance To Change, And Employee Involvement In Essay.

Element  1 : Strategic Change - How and why can managers apply complexity theory to implement strategic change?

Element 2 : Resistance to Change - How and why does resistance to change affect the implementation of planned organizational change?

Element 3: Employee Involvement - How and why can employee involvement help to achieve effective organisational change?

What is Complexity Theory?

Complexity theory is defined as a study of non-linear dynamic systems and a conceptual framework that resolves the unpredictable outcomes of industries and emerges some unique patterns. This system was first developed in the perspective of physical and biological science. However, the social, economic and ecological aspect of this theory was developed later and evolved dynamically overtime. A company utilizes this set of ideas from the study of different natural resources such as weather conditions, animal behavior and then defines the behavior of the organization through several mathematical expressions (Battiston et al. 2016).

There are three key theories related to complexity theory for organizational change management. These are:

• Chaos theory
• Dissipative structures
• Complex adaptive systems

Due to the complexity involved in the organization, there are several moments when a random chaos can be created within that organization. The random situation can be created of normal equations which can be further explained with the help of the chaos theory. The theory explains the deterministic dynamics which causes such situation. In organization, it is a lack of order in the system, which never obeys the rules and regulations. The dissipative structure is a thermodynamically open system and has a dynamic steady reproducible state. Depending on several complexity and chaotic events, the stability decreases or increases within an organizational process. The third part, complex adaptive system is a system in which a perfect understanding of individual parts does not reflect the understanding of the entire organization.

Strategic plan is the process by which, an organization define its strategy to implement any change for the betterment of the organization or its employees. The process involves the strategy, its direction, decision making and allocating resources to achieve the strategy. Setting goals for the organization, determining the flow of actions and utilizing the resources available to implement the plan is the process of execution of the strategy. The strategic change needs the employees of that organization to come up with ideas to implement the change. Different processes can be strategic implementation, empowerment, restructuring and many more. An organization can utilize these complexity theory and strategic plan to implement change in the organization (Van Aartsengel and Kurtoglu 2013).

Managers of organization can utilize the complexity theory to implement change in the organization. With the help of planned strategy, the complexity theory makes the organization aware of the nature of the system and the situations that can create a chaos within the organization. Complexity Theory is an important tool that is used in businesses as a path to encourage employees with innovative thinking and ideas with real-time responses. These ideas help to change the organization by allowing business unit to self-organize. The organizations are currently working with non-linear work culture and therefore, to apply the complexity theory in the workforce. The managers should utilize the rigid control of the system from the higher spot of the organization. The managers need to allow the employees the space and state to evolve as per their capacity. Through this process, letting the organization organize itself does not need any strategy, as the need for change should be random and after that any strategy can be implied to implement that change in the organization (Hill, Jones and Schilling 2014). For these, after the need of change arises, every employee will be asked for their valuable feedback about the change they want to implement. Depending ion the feedback, the further step will be taken. Further, the manager needs to take a corporate strategy because it is important to dissolve the chaos in the system. The manager should know the way to push an employee so that he cannot feel burdened or rigidly pressurized and no chaotic situation can arise. In recent times, the primary concern of the organizations is related to their organizational rules and regulations as maximum of the employee are suffering from these issues. Hence, the best management model should not stick to the new models of the new economy, they should emerge a newer model as newer and innovative concepts are winning nowadays (Chiva, Ghauri and Alegre 2014).

Theories related to Complexity Theory for Organizational Change Management

Managers can use an alternative approach to understand and manage the changes that has emerged from the need the change. These changes may be large changes, or changes of the variables, changes in the decision making, in the direction and relationship, changes in the leadership or change in the outcomes. The outcome changes are measured based on the responsiveness of the organization towards the environment. Creating a positive working environment is the priority of any organization as healthy interaction between every department of the organization leads to create an unbreakable team, which can combat with any hurdle or adverse situation for the betterment of the company. One of the organization, which has implemented the complexity theory in the organization and successfully driving their workforce towards excellence, is Google. This has elevated their level of competency in the market and the employees can work in the smooth and stress-free work environment and remain dynamic in any situation (Grant 2016).

Complexity theory and strategic plan are the emergent changes that focuses a strong cultural shift to the entire set up of the organization. The changes it brings about in the organization is helpful in strengthening the organization, its people, its resources, its technologies and its market place. The change implemented in the organization is intentional and is the result of different strategic or planned changes. However, some changes are non-predictable and sometimes affect the workplace or the employees for short span of time. Hence, it is the duty of the managers to maintain the organizational culture so that the smooth functioning of the organization does not become affected. Implementation of change management in efficient manner help the organization to overcome the situation and the change can be adapted within the organization in an effective manner. Such incidence can be seen in Google Inc. as the change management occurred in this organization was done systematically and the assimilated changes was adapted to the institute and the employees adapted to the changed organizational structure efficiently (Al-Ali et al. 2017).

Resistance to change is the action taken by employees of any organization, when they think that the change is happening is not for their betterment and is a threat to them. The employees perceive that the change is occurring is threat to them. However, the change may not be a threat, or may not be real or large that cannot be resisted. Resistance is a form of objection that the employees possess due to disagreement to the change management program the company follows. Such resistance may take different forms such as active or passive, covert or overt, organized or individual, aggressive or calm (Hon, Bloom and Crant 2014).

Applying Complexity Theory for Strategic Change Implementation

On the other hand, planned organizational change is the event that occurs after several researches and experiments that the organization conducted to change the infrastructure or working culture of the organization. This is important, as the proposed change will be affecting several aspects of employees, which they may find positive or negative. Organizational development is special efforts that depends on the organization, managers and employees and increase the effectiveness of the organization with planed interventions. The planning should result from proper data analysis and documentations (Popovi? 2016).

Planned organizational change is an event that effects the set working culture of the organization, previous working norms and regulations. Therefore, if the change does not have positive results then the employees of that, organization feels cheated and then they start resisting the change. The prime reasons due to which, employee resist the change are Loss of job security or status, biased reward system, fear of the unknown events, pressure of the peer, Organizational politics, mistrust and lack of understanding (Prochaska, Prochaska and Bailey 2013). Organizational politics is something, which the employees do, to resist the positive or negative change, the manager has decided to perform. On the other hand, if the manager tries to force any change on employees, they resist the change despite of its long lasting positive effects.

There are three types of change that can be proposed to an organization, to avail positive effects. First one is initiative change, in which, the change agents brings new projects or rules-regulations in the system of the organization. This change can be implemented by strategic level. The second change is the process change, in which the organizations process is changed. The change agents in this process, determines the tasks that are performed in the organizational structure. The third change is the cultural change, which repositions the structure of the organization (Shirey 2013). However, resistance to change by the employees affect the positive effects of these changes. Hence, the managers need to find out the ways by which, such resistance can be minimized. The prime impact of change resistance on the organization is the disruption of the change process that takes longer time to finalize, analyze and implement. Therefore, to minimize the effects of change resistance, several skills need to be implemented by the managers.

As mentioned earlier, there are reasons due to which employees resist the change organization want to implement. Political behavior is one of them. It involves factionalism, disobediences and resistance of change by the stakeholders of the establishment. Therefore, to counter this, change agents need to use skills such as negotiation and communication. Communication is an important tool that can be used to finish any dispute among organization. Using effective communication, the change agents can convey their mission, vision and objective and eventually they win the support for the change process.

Resistance to Change and its Effects on Planned Organizational Change

In case of Fiat and Chrysler, the CEO of the company Sergio Marchionne acts as a change agent for the company. Prior to his entry in the organization, the organization was suffering from difficulties of the market. The employees were feeling cheated as their remuneration was being decreased. Then Sergio came up with new ideas and leadership skills (Tandel 2013). He made the employees feel grateful to the company, and increased the commitment of the employees towards the organization. The prime focus of the Fiat CEO was on job roles of the employees, which made the elite range of employees, believe on his proposed change. He was capable of managing adverse circumstances and by introducing innovative strategies that helps the organization to involve the employees. According to Ciravegna and Maielli (2012), the key role Sergio played, to implement the change in the organization was by involving the stakeholders in the conversation so that if any dispute present in the employees, they can speak up about it in the conversation. He visited almost all the factories and directly interacted with the workers present there. This helped Sergio to win the trust of the lower level of employees, which resulted in the successful implementation of change in the organization. Other skills such as enthusiasm, flexibility, responsibility, priority, diversified knowledge and training can also be used to reduce the resistance of the employees (Burnes 2004).

It is important to use different skills to reduce the negative impact of employee resistance, because if it is not resolved then the implemented change process can be failed. According to Tagg (2012), if the change has been proposed suddenly, without any prior notification, then the employees resist the change. The political behavior of employees and other stakeholders affects the morale and motivational level of the employees and ultimately the change management becomes stalled. This is the reason, resistance, being positive or negative should be dissolved using different skills, during organizational change (Vorster, Ungerer and Volschenk 2012).

For example, the change management plan of the CEO of HP failed because the CEO was not been able to resolve the disputed among his employees. The plan of the CEO was for the betterment of the company, by acquiring the autonomy of this British software company. However, the employees, stakeholders and board of directors were not satisfied with the data the CEO presented. Hence, the CEO had to resign from his post in 2011 (Pathak, Hoskisson and Johnson 2014). This incidence determines that beside strategic plan, the change agent should have dynamic personality and analytical skills to win over the employees trust. Both the internal and external change agents should have to play key roles to combat the political behavior during organizational change.

Importance of Employee Involvement in Achieving Effective Organizational Change

Employee involvement is known as the direct involvement of the organizational staffs in the growth, development and benefits of the company. This involvement can be with voice, participation, engagement and in democracy (Anderson and Anderson 2010). These factors help the organization to improve its decision-making, improve the attitude of the employees towards work, increase the job satisfaction, and empower their employees with facilities for better health and life. To engage the employee in the organization, they should be given with the authority to become effective to take participate in substantive decisions, providing the training for appropriate decision-making skills and provide them rewards or incentives with successful participation (Corporate Planning and Strategic Management 2013).

On the other hand, the organizational change is a process that refers to the modification or transformation of the organizations structure, work culture and goods. It has impact on the working of the employees and can also affect the work culture, infrastructure or to the process of the system. This change can be continuous or episodic; it is a common thread that goes through every kind of businesses.

Engagement of employees in the organization is the asset for any successful organization as the involved employee is devoted to the success of the organization. Therefore in any change management process every employee has to have a voice or point of view, as it is beneficiary for the betterment of the organization. Having no voice or point of view affects the workflow or the output of the process. Therefore, involvement of the employees in the organizational change is beneficiary as the employees are aware of the reason of the change and the outcome. This helps them to tolerate the few days or weeks problem that occurs due to the change implemented in the organization. Secondly, if the employees are aware of the change process or are communicated by the manager about the change that is going to be occurring, then they feel important of theorganization. They feel that they are important for the organization and hence, supports the organization and the manager with every possible supports (Ryan et al. 2008). For example, if the manager discuses about the change that is going to be implemented within the organization, the employee should help the manager by pointing out the weaknesses of the proposed change, as they are the one, who will be working in the process 24X7 for the betterment of the organization. Further, they feel motivated, as the higher authorities are concerned about their valuable feedbacks. Therefore, the managers should implement strategies, to involve the employees in the organizational change management process (Rainey and Jones 2014). The strategies to involve the employees in the organizational change plan should include a plan, where the change team along with the manager and higher authorities decides upon the particular employee who will describe the process to other employees. Listening to proposed change from another colleague will help the other workers to understand the complexity of the process and authorities will win the health of employees. Secondly, all the employees should involve in meetings so that every kind of suggestions to overcome the shock period of change management can be taken into consideration. The organization should provide time to the employees to overcome the implemented change shock, as they will take some time to adapt to the change (Anderson and Anderson 2010). For the implementation of the strategic change there is a need to understand the behavior of the complex variables such as employee resistance, middle manager resistance and support.

Creating a plan to involve the employees in the implemented change process is important. However, early involvement of the employees is seemingly more important. The planning, learning, research and implementation level need to be inclusive of the employees. This process is important as this will help in removing any resistance that can occur in the process (Hughes 2015). Encouraging employees to be a part of the change management team or force will help to motivate the entire range of employees to do better for the organization. Other than that, the employees, who has provided suggestions which can be helpful for the organization in implementing the change will be rewarded (Deichmann and Stam 2015). They should be provided with opportunities to join higher positions, as their success story can inspire others to come up with ideas that can change the company’s status and increase the revenue. This is important in an organizational structure, as peer structure in the organization affects the decision making of employees and employees trust their peers more than anything else. Hence, picking up change leaders or conveyers from these groups will help the other employees to understand the process and lead the changes in a positive way (SørensenHasle and Pejtersen 2011).  Employees not necessarily should be provided a post in the change management team. However, it is necessary to encourage them to provide meaningful insights related to work. Therefore, the employees, who take active part in the change management process and helps others to become a part of the same, should be recognized. The management should take charge that the employees feel dependable and important for the organization, as it will be beneficial for both the organization and for the employee (Corporate Planning and Strategic Management 2013). The application of greater democracy and power equalization by the manager within each step of the organizational process can help in the generation of positive and cooperative work culture, where the feedbacks provided by the employees are valued and taken into consideration. Self organization at the team and the group level can help in bringing about long and short term radical changes (Chiva et al. 2014).

The management needs to ensure that the employees are honest and devoted to their work for betterment of the company through implementation of employee benefit programs. Therefore, their involvement will increase their sense of responsibility and they will be able to perform their work accurately. Not involving employee will increase the level of mistrust and anger in them, which will create resistance among them and ultimately the organizational change process will become a failure (Cummings and Worley 2014).

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