Aspect of Organizational Change - Essay Example

Executive Summary Organizational change is an important aspect of business dealing which helps to keep with the evolving times. With increasing competition business are looking towards integrating these changes in their scheme of work so that productivity improves and the resources are used to better use. The report looks into the aspect of organizational change by first concentration on what organizational change is. It then dwells upon the importance of change specialist and the manner it benefits the organization. The report then looks into various reasons for the organization change and defines the strategic objectives based on those. The report then looks into the cost benefit analysis and the action program which will help to implement the change process. Thus it highlights the important areas and the manner in which organization can benefit from the organizational change which will improve their effectiveness. Contents Introduction 3 Purpose of the report 3 Organizational Change 3 Using change specialist 4 Reasons for strategic change 5 Strategic Objectives 7 Cost benefit analysis for change 8 Planning Process 9 Conclusion 10 References 11 Introduction Organizational change is an important aspect of business dealing which helps to keep with the evolving times. It is seen that employees on an individual basis are ready to change but when organization try to themselves on the whole it encounters huge problems which calls for measures to ensure that change is implemented successfully. (Weiner, 2009) In this evolving phase it has become imperative for organizations to change the manner in which business is conducted for their well being. The report looks into the manner an organization is benefited by having a specialist who helps to solve this problem. Further it also looks into the reason for a change and the manner in which the change will be implemented in the organization for its successful running. Purpose of the report To identify what organizational change is To identify the importance of consulting a change specialist and the benefits that accrues due to it To identify the reason for changes and the steps which will help to achieve those To develop a cost benefit analysis and a planning process to ensure effective organizational change Organizational Change Organizational change is a process which business units alter from time to time to ensure that they are on track to achieve their goals. (McNamara, 2008) This change could be in any direction like change in process, employees, technology or any factor that has a bearing on the performance of the organization. Organizations look forward to this so that it increases the ability of the organization to produce better result by improving the resources and abilities. This increases the efficiency and different organization look it in different ways though the crux of all remain the same. (McNamara, 2008) Using change specialist Change in organization can be small ones and major ones. When an organization looks towards a minor change the change is accompanied within the organization by taking the staff within the organization. Structural or major changes are those which require a lot of information and hard work to ensure efficiency. To avail the maximum benefit from those organization look at external sources as they are people who have the required skills and can play a major role in shaping the manner of change. Using a change specialist help the business organization is a number of ways and also brings certain problems along with it. Organizations need to gauge both the benefits and drawbacks and decide the manner in which change specialist can be used. Change specialist are person with “specialist knowledge and skills” (Mary, 2010) who can give the necessary impetus to the management. This can motivate the organization and their readiness to change becomes easy. Another benefit associated with change specialist is that “they review all aspect related to the change management and ensure that all corrective measures are in place”. (Mary, 2010) This will help to deal with the worst of situation and help the organization to come out of those. Another benefit is that “they coordinate and ensure that time frame is given importance”. (Mary, 2010) This will put the task in time and ensure that the changes take place readily. Also, since they are equipped with the skills to deal with contingencies they will ensure that all measures are taken to complete the changes on time. Another benefit is that “they have knowledge related to different aspect of business” (Mary, 2010) which can be utilized to understand the manner different areas will be affected due to the changes. Change specialist puts extra burden on the organization as the cost associated with them is high. When an organization looks towards an external agency they have to bore the cost and the cost for a change specialist is high. This makes certain organization to look at other ways to bring the change which makes the process tedious and cumbersome. Reasons for strategic change Organizations look towards change as it helps them to keep abreast with the revolving world. The decision to change is taken after conducting a SWOT analysis which helps to identify the weakness an organization had. Bringing the necessary changes help to keep apart the weakness and dwells on the strengths which thereby help the organization to achieve its objective. Some of the reasons which attribute towards an organization change are Changing its overall strategy as competitors have found a new way and the old methods are not reaping the same benefits. (McNamara, 2008) When a certain part of the process needs to be removed or altered as it is becoming a hurdle in growth To implement training and motivational programs for the employees to keep updated with the changes and create an environment where growth permits (Handbook, 2010) Some of the equipments and technology has become obsolete and needs to be changed makes organization look towards it An acquisition or merger with other which has brought a major change in the functioning and sharing of responsibilities A change in the structure of the organization also causes a major change in the working as certain structure needs to be accounted for making it important to change. (Seel, 2006) External conditions like government regulation, laws, enforcement agencies, economic condition, financial condition etc might force to bring certain changes in the execution of policies. (Seel, 2006) Thus, the above mentioned are some of the reasons which make organization to change and organization can have different reasons apart from the above stated one depending on the organization and the situation the organization pertains to. Strategic Objectives Organization look towards change as it helps to change the focus and provides the necessary impetus which will help the organization to be able to deliver better services and pursue its in objectives. Change helps the organization to achieve the following strategic objectives Firstly, “it helps to clearly define the goals and the process which will lead the organization towards achieving those”. (Seel, 2006) This will improve focus and will help organization to be able to deliver better services Secondly, “it will improve connectivity between the diverse inputs and interactions”. (Seel, 2006) This will thereby help to understand the goals better and will act as a guide. This will also motivate the employees and will help to work on areas which will help to improve the process and achieve the effectiveness of the change process. The above two strategic objectives are interrelated and it ensures that the organization is able to make the change work towards their advantage. To ensure that the strategic objective is achieved business needs to follow the following steps which will act as a guide and help to determine the key objectives Business units have to ensure that the “change is realistic, achievable and measurable”. (Chapman, 2010) This will ensure that the objectives set has a direction and can be persuaded. Firstly, “change should be realistic”. (Chapman, 2010) The goals set should be such that it is under human control to achieve. Setting unrealistic goals will de-motivate the work force. It will have negative repercussions so it is important that it is real. Secondly, “change should be achievable”. (Chapman, 2010) This confronts with the previous objective and helps to give direction. Following this will ensure that the organization is able to put work force in the correct direction. Thirdly, “change must be measurable”. (Chapman, 2010) This will help to check the validity and the will put in effect a system which ensures that performance is on track. This will boost the change process and bring larger benefits then warranted as a system to measure is in place. Lastly, it is important that while doing so attention is laid to a time frame. This will help to achieve the objective within it and will increase the effectiveness of the process. This will thereby create greater synergy which will guide the workforce better. Cost benefit analysis for change The cost benefit analysis while looking for a change helps to draw out the benefits that the organization gets and the cost associated with it. It is seen that change management doesn’t always facilitate growth if it is not pursued correctly. This stresses on the importance that change management needs to be directed in the correct manner. Change on different fronts helps the organization as the benefits it get regarding the process, system, work force and design help to increase productivity. This if directed in the right direction helps to achieve larger benefits that the costs that accrues to it. Planning Process The planning process forms an important part for the execution of strategic objectives and helps to achieve those. The following steps need to be followed in the planning process which is considering a time line of 6 months. Firstly, organizations need to create urgency. The management should work towards making employees and people associated with the company realize the importance of change. This will help to create a conducive environment and facilitate the change process. (Kotler, 2010) Secondly, “it is important to convince people” (Kotler, 2010) regarding change. This will help to bring in necessary inputs and highlights different areas that need to be worked upon. This will thereby improve the effectiveness of the process. Thirdly, “setting the objective that needs to be achieved” (Kotler, 2010) through the process. This will help to bring all the work force together and will fall in line with the strategic objectives of the change program Then stress should be laid to communicate it. This will make ever one associated understand the areas that will be worked upon and will help to fix responsibilities. (Kotler, 2010) This will also provide the employees motivation and give them the time frame and other areas they need to adhere to. This will bring uniformity and also help to create a framework where the changes are measured and responsibility fixed. The next step “is removing the obstacles”. (Kotler, 2010) This is a vital step and will ensure that there is no problem from any direction. All steps should be taken to ensure there is no resistance either from the employees, government, suppliers, creditors, stakeholders and others associated with the company. This will thereby help the change process to pass easily. The organization should then look towards tools which will help them to achieve it. This could be training, allocation of resources, man, material and all forms which could act as a help in the change process and facilitate the process. This will bring better result and ensuring that all mechanism is in place will build confidence. The organization at this time should ensure that employees are motivated and all necessary steps before the implementation of the change are in place. This will highlight the benefit that organization will get and the areas which are an area of concern for them. It will highlight the sensitive areas and the manner which will affect the change process. Organization based on the above will decide whether having an external change specialist will be beneficial. It will also concentrate on the cost benefit analysis and help to draw important findings related to the change specialist. Finally, organization has to evaluate and monitor the changes continuously so that changes if any can be made. This will help to ensure that the transformation takes palce and the organization achieves its stated objectives. Conclusion Changes have become an important part of every business are looking forward towards specialist to bring the changes because of the knowledge they have. This helps to improve efficiency and ensure that the change process ensures maximum effectiveness. References Chapman A, (2010), “Change Management”, Leadership and management Handbook, (2010), “Human Resource, Training, and Labor Relation Managers and Specialist”, US Labor Bureau of Statistics Kotler, (2010), “Kotler’s 8 step change model”, Mind Tools McNamara C, (2008), “Organizational change and development”, available at http://www.managementhelp.org/org_chng/org_chng.htm (Accessed on October 4, 2010) Mary, (2010), “Change Management Description”, Change Management Tutorial Series, Global Conference Weiner B, (2009), “A theory of organizational readiness for change”, Volume 23, issue 3, available at http://www.implementationscience.com/content/4/1/67 (Accessed on October 4, 2010) Seel, (2006), “The nature of Organizational Change”, available at richard@new-paradigm.co.uk  (Accessed October 5, 2010) Read More