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Organisation Change Management: Management Add in library

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Question:

Describe about the Organisation Change Management?

 

 

Answer:

Introduction

The aspect of the change that we will discuss in this literature review is the Business Process Change/Accountability. Nowadays businesses do not have to manage change but they have to champion the change. One of the major leadership accountabilities is managing change.( (Anderson& Anderson,2001).  It is still thought that managing change is important for a leader but these days the business and the rapid changes that they are going through are changing this perspective as now it is not enough to manage change.( Western,2010) As now due to the advances in technology the global marketplace is not waiting for organisation or people to adjust to change. Thus it is important to analyse organisational change and its related concepts about management of change and resistance to change. (Bradford&Burke, 2005)

 

Literature Review

Change management is an approach to ensure that the changes that are taking place are smoothly implemented and thoroughly done this ensures the lasting benefits of change. Since the 19th century with the industrial revolution the organisations are going through rapid scale of changes. As the technology is developing, huge amounts of information and products are generated that force the organisations to change accordingly.( Child, 2005) When the organisation goes through change the management needs to ensure that the people, job tasks and technology is coordinated and combined effectively according to the organisations objectives. Waldron in the year 1994 suggested that the management has to have a common approach and philosophy towards the changes that are taking place in the organisation. According to him:-

  • The management should develop and clarify objectives, mission and policies of the organisation
  • They should establish informal and formal organisation structures as a way to share responsibilities and delegating authority
  • They should set priorities and review objectives
  • It is essential that the management maintains an effective communication within groups and employees of the organisation
  • Staff should be trained, selected, motivated and appraised
  • It is essential that the management is accountable to the staff

These functions can be further categorised into lists that were given by Bonoma & Slevin in the year 1978 and also Gulick and Urwick in the year 1959. They categorised it :-

  • Planning :-in this the management has to outline philosophy, objectives, policies that have to be accomplished
  • Organizing:-through this they have to establish systems and structures through activities that are coordinated, arranged and defined
  • Staffing:-it this category the human capital of the organisation has to be fulfilled and this also includes training and selecting the staff
  • Directing:-the management has to make decisions and embody these decisions into instructions
  • Coordinating:- in this step the coordination of all the parts are essential
  • Reporting:-the management has to ensure that employees are informed
  • Budgeting:- in this step the financial plans have to be made and maintained

In the beginning of the 90’s increased competition on a global scale and expanding markets caused an exponential amount of changes in the organisation. Peter F Drucker who is a well known management Guru has written in his book “Management in the 21st century” that businesses have to transform and revise their corporate goals and missions due to change. But to achieve any business success we need to ensure that accountability is the foundation of our organisation. Many organisations use processes and technology but forget to consider the norms of accountability.

 

Accountability

In an article by Carolyn Aiken and Scott Keller titled “The irrational side of change management” they talk about the failures of change programs. (Aiken&Keller,2009)They point out how the success of change management in organisations can be improved when employees take accountability and they choose how to act. In the year 1996 Kotter published “leading change” a research that showed that only thirty percent of the changes succeed.( Kotter, 2008) Many practitioners and academics have agreed that “accountability” is one of the building blocks in management behavior and employee attitudes. Colin Price and Mckinsey’s Emily Lawson provided a perspective in their book “The psychology of change management” by suggesting four conditions:-

  • A compelling story:-how the employees can be accountable when employees must see that why the change was needed
  • Role modeling:-the management has to act like a role model for the employees to follow
  • Reinforcing mechanisms:- as incentives, systems and processes must be according to the change in the organisation
  • Capability building:-employees should have the skills that are required for the changes

We all talk about accountability. Managers want accountability in their employees along with stakeholders who demand it.( Marshall, 1992) For performance improvement and effective change management accountability is fundamental. It is the guiding principals that how people make commitments to others in the organisation. It is about how people take ownership of the things that are done.( Thompson, 2014) If in an organisation accountability is not taking place that effective organisational change management will not take place. Unproductive behavior and wastage of time is prevented when greater accountability occurs in an organisation. Many surveys have shown that in all levels of a firm or organisation suffer if there is a lack of accountability. (Davenport,1993)

In the 1990’s when many organisations managers faced financial crisis they had to go through changes.( Mulgan,2000) These dramatic and fundamental changes to business systems, structures and processes were a result of a changing marketplace and increasing competitors. Peter Block in the book “stewardship” talks about output and productivity which can be achieved by values like:-

  • Control
  • Predictability
  • Consistency

These values are common to the military hierarchy as in businesses. The managers want outcomes and predictable performances as they control and value consistency in day to day activities in work performance. In this traditional value system the change is managed accurately by a strict chain of command. The managers in the organisation have full control over the employees and they want everyone to be compliant to any changes that take place. This is similar to the military when soldiers react to every change that is made. They simply follow the changes and act according to these changes.

It was in the early 90’s that the focus on customer and quality emerged.( Stevenson, 1989) Many examples were created that started the era of change management and accountability. Some of these examples are :-

  • Xerox (benchmarking)
  • Ford(Quality is Job 1)
  • Toyota(Quality circles)
  • AT&T(statistical quality improvement)
  • Motorola(six Sigma)

The focus of the organisations shifted from mass production to mass personalization and customization. These changes asked the employees to be more:-

  • To improve the every day processes
  • Take ownership of their actions and work quality
  • To be more responsive towards their customers

New values were formed that created a shift from control, consistency and predictability to:-

  • Empowerment and flexibility
  • Accountability on the part of the employees
  • Ownership of work processes and work output

It was then that the managers started placing more control to the employees by empowering them to make decisions that will impact customers. Employees were responsible and accountable for their work quality and output. They were responsible and took ownership for the service and product along with delivering service and producing products. (Romm, 2001)

The goal of creating a culture of accountability is to form an organisation that is creating a learning organisation. (Senge, 1990)An organisation that is learning uses new knowledge and promotes knowledge acquisition as a way to cope with change. Thus to support a accountable culture an organisation should be able to create, manage and access the knowledge to improve its processes and also to allow its members to enjoy the advantages of accountability. In all levels of the organisation it is essential that leadership exemplifies accountability. The change process has to involve individual managers and leaders that inspire change within each unit and department. Thus in this case transformational leadership principles that are based on commitment enhance employee morale, trust, cooperation and responsibility.( Williams, 2006) Accountability is maintained when the turnovers of the employees are reduced and the human capacity is increased. Resistance, fear and anxiety are often the causes of change in the organisation. Thus the management has to ensure that the human dimension have to be supported to minimize these negative feelings.

 

Theories And Models For Change Management

Once accountability is achieved in the organisation change management is much smoother. So let’s study about some leading models and theories about change management.

There are many change management models some of these models are:-

  • McKinsey 7-S Model
  • Kotter’s 8 step change model
  • Lewin’s Change Management model

Lewin’s Change Management model:-was created by psychologist Kurt Lewin who suggested that most of the people operate and prefer to work within some zones of safety.( Lewin,1958) According to him there are three stages:-

  • Unfreeze:-it is about the efforts of people to resist change. This can be prevented whne this tendency is overcame by unfreezing or thawing which can be initiated with the help of motivation.
  • Transition:- this stage is about change after the initiation as transformation start occurring. This stage can take some times as reassurance and adequate leadership can ensure that the transformation process takes place successfully.
  • Refreeze:-after the change in an organisation has been accepted and implemented, the organisation becomes stable. This causes the employees to refreeze again and operate under the new changes or guidelines.

This change management model is used widely all around the world these days but there is one major drawback as this model is slow as it takes time to implement. (Phillips, 1983)But due to the fact that it is easy to use many organisations prefer this model over any other model for change management.

Mckinsey 7-S Model:-this model provides a holistic approach for a company or organisation. It was created by Tom Peters, Anthony Athos, Robert Waterman, and Richard Pascale in the year 1978 that has seven factors on which it operates:-

  • Strategy
  • Skills
  • Shared values
  • Style
  • Systems
  • Staff
  • Structure

There are four advantages of this model as it is an effective way to understand and diagnose an organisation, it is very essential in providing guidance during organisation change, it combines emotional components with the rational components, and all of its parts are integral thus it should be always addressed in a unified manner. But there are some disadvantages as well as when one of the part changes, all the other part change as well as all the factors are related to each other, differences in the model are ignored, it is a pretty complex model and many companies who have reportedly used this model have failed. (Schultz&Schultz, 2010)

Kotter’s 8 Step Change Model:-

It was created by John Kotter who is a Harvard University Professor.( Kotter, 2011) This model talks about the fact that employees accept the change only after the leaders are able to convince the employees that there was a urgent need for these changes. This model involves eight steps:-

  • The leaders have to increase the urgency for change
  • They have to build a team that is entirely dedicated to change
  • They have to give vision to the employees
  • They have to communicate to the employees that change was needed
  • They have to empower the staff to change
  • Creation of short term goals
  • Ask the employees to stay persistent
  • Changes are to be made permanent

Advantages of this model are that it is a model that is easy as it is step by step, the focus of this model is about accepting and preparing for change, and the transition process in this model is easier. There are some disadvantages as well as we cannot skip any of the steps, and the process takes a lot of time. (Kotter, 2008)

 

Conclusion

Every manager loves an employee that takes responsibility, owns her work and shows initiative as this shows that the employee is accountable. But accountability is intrinsic as people cannot be forced to be accountable. If a work environment is designed to be accountable the organisation will flourish and prosper. In an organisation that is responsible people will not be asked to keep quiet but would be asked to give their feedback.

 

References

Aiken&Keller, C &S 2009, "The Irrational Side of Change Management", McKinsey & Company, US

Anderson, & Anderson, D& L.A 2001, Beyond Change Management: Advanced Strategies for Today’s Transformational Leaders, Jossey-Bass/Pfeiffer, San Francisco

Bradford&Burke, D.L. & W.W 2005, Reinventing Organization Development, Pfeiffer, San Francisco

Child, J 2005, 'Organization Contemporary Principles and Practice', Blackwell Publishing, NY

Davenport, T 1993, Process Innovation: Reengineering work through information technology, Harvard Business School Press, Boston

Kotter, J P 2008, Power and Influence, Free Press, US

Kotter, J P 2011, Corporate Culture and Performance, Free Press, US

Kotter, J P 2008, A Sense of Urgency, Harvard Business School Publishing, US

Lewin, K 1958, Group Decision and Social Change, Holt, Rinehart and Winston, New York

Marshall, P 1992, Introduction to the management process, In Managing people at work, University of Guelph Press, Guelph

Marshak, R J 2005, "Contemporary Challenges to the Philosophy and Practice of Organization Development", Reinventing Organization Development: New Approaches to Change in Organizations, vol.1 no 1, 19–42

Mulgan, R 2000, "'Accountability': An Ever-Expanding Concept?", Public Administration, vol.78, no 3: 555–573

Phillips, J R 1983, "Enhancing the effectiveness of organizational change management", Human Resource Management, vol. 22, no 2: 183–99

 Thompson, D F 2014, "Responsibility for Failures of Government: The Problem of Many Hands," American Review of Public Administration, vol. 44, no 3: 259–273

Romm, N R.A 2001, Accountability in Social Research, Klower Academic, New York

Schultz&Schultz, D P. & S E 2010, Psychology and work today: and introduction to industrial and organizational psychology, Upper Saddle River, Prentice Hall, NY

Senge, P. M 1990, The fifth discipline: The art and practice of the learning organization, Doubleday, New York

Stevenson, W. J 1989,Introduction to management science, Irwin, Boston

Williams, R 2006, Leadership accountability in a globalizing world, Palgrave Macmillan, London

Western, S 2010, What do we mean by Organizational Development, Advisio Press, Krakow

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