Managing and Leading Change - Essay Example

?Organisational Change of Multinational Company Managing and Leading Change Level 6 block Submitted by Emad Yaqoob Salim Al Jabri ID 7752 Submittedto Dr. Gina G. Jocson Submitted on 28 May 2013 Table of Contents Introduction 3 Critical Analysis of the Challenges 4 Kurt Lewin’s Stage Process for Creating Change 5 Management and Communication Plan 7 Conclusion 10 Analysis 11 References 13 Introduction Change is fundamentally regarded as an unavoidable circumstance in any business. To sustain in this competitive business market, an organisation needs to implement lots of change tactics. Change may be in terms of technological aspects, accounting principles, human resource planning and also of expansion programs among others. Organisational change is viewed to be a sort of structured approach from the viewpoint of organisational perspective. Smoother adoption as well as execution of making effectual changes may support a specific organisation to avail significant benefits. The benefits might comprise enhancing profitability along with overall productivity, mounting market share, competing with major rivalries and most vitally accomplishing superior competitive position. It can be stated from a broader circumstance that gaining momentum of globalisation and the constant changing technologies increased the business market competition amid the marketers by a greater level. Organisations must have to adopt change process in order to survive in this competitive landscape (Bollen & Emes, 2008). The principle objective of this study has been concentrated towards assessing the change process in an organisational context and its effects on organisational efficiencies. The study therefore takes into consideration, the implementation method of change process by applying the change model propagated by Kurt Lewin. Based on the assessment, the study ultimately aims to develop a management as well as a communication plan for mitigating the identified hurdles in change implementation at the organisational level. Change can be elaborated from various diverse perspectives. Relating to a particular organisation, change is fundamentally described as the movement of an existing or a current state to a future stated by undergoing through a transition based state. From a theoretical perspective, change is often viewed to a deliberate initiative of a particular company for the purpose of attaining its expected business targets by a significant level. While defining the perception of change, it has often been viewed that customers are largely influenced by various sales promotional based tools. Change may be in terms of capital structure which combines both debts along with equity. Change may be regarding the human resource policies that amalgamate the aspects like leadership and superior-subordinates interrelation among others (Bollen & Emes, 2008). Change is important in respect of the particular discussion in respect of the multinational company presented in this case wherein, a number of points need to be highlighted. Overcapacity is a kind of situation where any company fail to sell all its broad assortment of products. Thus, in order to overcome this critical situation, change plays a decisive part in supporting the companies to effectively selling their respective products with ease by adopting any significant measure relating to the change in corporate culture or strategies. Relating to the case, the manufacturing company faced certain significant pressures particularly upon its profit margins due to overcapacity especially in manufacturing. The aspect of change might certainly support this company towards lessening from such pressure in terms of changing its respective organisational matrix along with the functions of its various operational departments (Canada's Health Informatics Association, 2013). Critical Analysis of the Challenges According to the case, it can be critically analysed that the major manufacturing company faced certain crucial challenges or issues regarding various important aspects. The main challenge which faced by this company was regarding its management team. This team was formed to deliver better results for the company but in reality it failed in respect of performing efficient Human Resource (HR) related functions. Particularly, for a manufacturing unit, HR functions play a decisive part in developing overall performance of a company. Moreover, the other crucial challenge faced by the company was overcapacity particularly in its manufacturing units. This particular challenge can be considered as one of the major issues of the manufacturing company owing to the reason that its profit margins got largely affected due to this specific issue i.e. overcapacity. Apart from facing the issues concerning lack of managerial efficiency and overcapacity, the company has also been viewed to face another critical issue concerning customer development. It can be stated that this specific critical issue has unfavourably affected the company in terms of attracting as well as retaining its existing customers by a greater level. It has also been apparently observed that the major manufacturing company also faced huge problems regarding the execution of effectual leadership techniques. It is to be stated in this similar concern that the success of a company is partially depends upon the skills of its business or strategic leaders (Economist Intelligence Unit Limited, 2009). Relating to the case, the leadership quality of the leaders of the company was quite weak and for which the company have hired other external agencies in order to mitigate the aforesaid critical issues or challenges by a certain degree (The Center for Theory of Change, 2013). Kurt Lewin’s Stage Process for Creating Change Kurt Lewin is better known as founder of social psychology. His one of the vital concerns has been viewed to be examining the role of change towards different organisations (Mather & Brand, 2012). His model for creating change describes the journey of change. As per this model, it has been apparently observed that there are three main stages for generating change namely freeze, unfreeze and change. Unfreeze: The first stage, i.e. unfreeze, represents realising the need for making changes. In accordance with the case study, the above stages can be applied by citing actual circumstances from the case. In this similar context, associating with the first stage, unfreeze, the need for the major manufacturing company to make effective changes in order to mitigate the above discussed challenges can be cited. Change: The second stage, i.e. change, signifies advancing innovative behaviours, attitudes as well as values for the purpose of conducting effectual changes within a specific organisation. In the second phase of change, the company developed an innovative attitude of constructing an effectual team concerning change management which can be cited. Freeze: The third phase, i.e. freeze, denotes forming stability after necessary changes have been made. In the third phase, freeze, the approach of the company towards adding responsibilities regarding change management can be cited. It is worth mentioning that Lewins’ change process have been further elaborated as forming an urgency sense, developing an effectual strategy, creating short-term wins, revolutionising new practices and communicating the changed vision (Hickman, 2009). Furthermore, the remaining steps have also been argued for relating with this particular case. Forming an Urgency Sense: In the phase of forming an urgency sense, the approach of the company towards developing different leadership functions, can be cited. Again, when assessing the stage of developing an effectual strategy, the company can be observed to take initiatives towards restructuring corporate culture. Creating Short-Term Wins and Revolutionising New Practices: With regard to the phase concerning creating short-term wins and revolutionising new practices, assessment of leadership competencies by the multinational company can also be observed in the referred case scenario. Communicating the Changed Vision: Finally, relating to the phase of communicating the changed vision, the company has been observed to be designing an effectual curriculum development. Management and Communication Plan An effectual change management and communication model helps an organisation in building effective communication especially with different stakeholders and also carefully managing the communication among the employees of the organisation (Russ, 2007). For the successful implementation of management and communication plan, there needs to follow a regular process of gathering input, developing strategies, preparing and executing effectual plans. For the preparation of management and communication plan, initially information needs to be gathered regarding the problem happening in the major manufacturing company. As per the problems of this respective company, there may be a problem of over forecasting of demand, as they have produced excess products. In order to build up better communication and most vitally to execute the indispensable changes, the company needs to become more publicise. For the better performance of the management, apart from making any structural change, the company needs to change its various policies and principles with the changing scenario. Another managerial problem of this multinational company has been recognised to be regarding its leadership quality of the team. Leadership quality of this company needs to be more flexible to guide and motivate its employees time to time. Sales department of this company needs to globalize more of its exposures to its customers and investors, so that they feel confidence while linked with the company. Speedy implementation of strategies and more innovative thinking needs to be initiated. Company should have an ability to cope up with a large scale change. Initially, set up team needed to support its front line leaders to help them on implementation of the strategies. It is obvious that coordination forms an effectual team within a particular company. Thus, there lies the requirement of superior synchronisation and communication between the leaders, team members along with the employees by a significant level within the major manufacturing company. This can be better understood with the help of the following table or matrix. KRA (Key Result Areas) Objectives Activities Responsible Person Time Frame Decision-making To mitigate the challenges Gathering data regarding the problems Managers 4 days Problem-solving To ensure that the challenges does not erupt in future Bringing flexibility in the leadership qualities Business leaders 7 days Effective functioning of Management To enhance profitability along with overall productivity Forming coordination amid the entire workforce Top managers 3 days Conclusion Change makes an organisation to attain its predetermined business targets at large. It is worth mentioning that the organisations generally makes changes for the purpose of mitigating different critical issues or challenges that mainly arises while performing different operational functions. Relating to the case study, it has been viewed that the major multinational company faced critical challenges or issues due to overcapacity, problems in leadership qualities and customer development among others. Referring to the case scenario analysed in the study above, it can be affirmed that the multinational company needs to be more cautious at the time of implementing change where only preparation of change policies is not enough. The multinational company should have to employ and motivate productive team and a group of leaders to implement them in the real circumstances. Moreover, relating to the case, the management of the multinational company must bear the responsibility to efficiently perform different HR related functions. More practical and fast business solutions is an essential pre requisite of setting up a business unit. Application of Kurt Lewin stage model hereby gives an edge to this multinational company that has been mentioned in the case. Persons working in the company should be therefore made adequately aware and motivated to follow this stage model for the growth of the company at every level. Maximization of profit required a lot of parameters to meet. It is a kind of process where each and every parameters need to be met. For the maximization of sales, the major manufacturing company needs to develop its customer base. It is quite easy to adopt any sort of change but seems to be a quite difficult task while implementing changes in the real behaviours. Analysis On the evaluation of the change process, it is important to discuss both the practices as well as the theories linked with human behaviour. On discussing the theories relating to the Kurt Lewin’s different stages model for creating change, it can be said that change in an organisation can be adopted quite strategically. Change theory actually explains the way of conducting businesses for the attainment of organisational objectives. In the context of determining organisational change, behavioural and personal characteristics play an imperative part. The term ‘change’ indicates total transformation of the organisational policies or principles and related behaviours of the investors, personnel and different stakeholders. In practice, application of change theory can be quite complicated as it possesses the facets of conducting effectual leadership practices along with huge developmental power (Bollen & Emes, 2008). Relating to the case study, it has been viewed that the major manufacturing company faced certain crucial issues or challenges due to the lack of possessing quality skills of the leaders attached with the company and most does not possessed the capability to adopt as well as to execute effective business strategies. It can be affirmed from a broader outlook that practical exposures of the company can develop its customer’s base by a significant degree. With the implementation of change behaviour in practical scenario, a leader of a team can help an organisation towards accomplishing higher productivity. It is to be stated that when productivity of each and every single employee increases, then the total productivity also rises by a greater level. Having strong customer and sales developments, the major manufacturing company mentioned in the case study can maximise huge profits along with attaining its expected business targets at large. In addition, global marketing needs to be conducted for the growth of its brands. Active participation of a team with more practical and clear strategies and tactics needs to be developed at large. Thus, on the basis of the above discussion, it can be affirmed from a broader perspective that change is regarded as one of the significant approaches which an organisation needs to be taken into concern for the purpose of accomplishing its expected business goals along with mitigating any sort of critical issue. References Bollen, A. & Emes, C., 2008. Understanding Customer Relationships. How Important Is The Personal Touch. [Online] Available at: http://extranet.ipsos-mori.com/newsletter/egov2/pdf/Customer%20Relationships%20Report.pdf [Accessed May 24, 2013]. Canada's Health Informatics Association, 2013. Change Management Implementation Steps. Getting Ready for Change. [Online] Available at: http://www.coachorg.com/en/ctf/resources/ChangeManagementImplementationSteps.pdf [Accessed May 24, 2013]. Economist Intelligence Unit Limited, 2009. Organisational Agility. Economist Intelligence Unit. [Online] Available at: http://www.asb.unsw.edu.au/executive/Documents/organisational_agility.pdf [Accessed May 24, 2013]. Hickman, G. R., 2009. Leading Organizations: Perspectives for a New Era. SAGE. Mather, R. D. & Brand, S., 2012. Foundations for Experimental Social Psychology. Journal of Scientific Psychology, pp.12-75. Petrescu, R., No Date. Organizational Change Process – Steps to a Successful Change. Abstract. [Online] Available at: http://feaa.ucv.ro/annals/v3_2010/0038v3-025.pdf [Accessed May 24, 2013]. Russ, T. L., 2007. Communication Strategies for Implementing Organizational Change. Fordham University. [Online] Available at: http://businesscommunication.org/wp-content/uploads/2011/04/25ABC07.pdf [Accessed May 24, 2013]. The Center for Theory of Change, 2013. What is Theory of Change? Home. [Online] Available at: http://www.theoryofchange.org/what-is-theory-of-change/#3 [Accessed May 24, 2013]. Read More