Management and Change: The Oc Experience - Research Paper Example

Management and Change: The Océ Experience Introduction Contemporary business organizations are faced with greater challenges posed by the demands ofthe environment. The ability to survive depends on factors within the capabilities of the organizations’ leaders. The competencies of leaders enable them to realize that organizations need stability and continuity as well as innovation and adaptation. Without some stability, any organization cannot function, yet, without adaptation it cannot survive. Organizational change is the essence of adaptation and innovation. People, processes and systems need to be flexible to respond to conflicts and changes in the environment. Change is a necessary component in an organization in order to respond to inefficiencies, conflicts and environmental developments. As the necessity for change looms larger than ever, a more positive attitude toward it is essential. Managers need to plan and control change to give direction and consistency to it. As change agents, their aim is to raise the level of performance of people and groups. Managers must be open to continuous change if they are to be able to cause change in others. According to Martires & Fule (2000, 357) “change, no matter how elegant it appears to be on paper, becomes effective only when it results in people and group actually improving their collective performance”. In this regard, the objective of the essay is to address and discuss the response to the question: when undertaking a planned change, it is the process of change rather than the outcome that requires managing. In developing the response to the issue, theories of change and theories of management, as well as examples of planned change in an organization would be used. For this purpose, the experience of Océ, a multinational organization primarily engaged in providing document management, output and printing solutions would be examined in the light of contemporary perspectives in management and change. The Nature of Change A change is any alteration in the present state of a system. For physical systems, the change is typically induced from outside the system. Thus, an external force may be applied on a physical object that is in a state of rest which puts it in a state of motion. Social systems can be changed in a similar fashion. In social organizations, change is initiated, implemented, and maintained to achieve a new and higher level of performance by the system. Changing involves the deliberate introduction and management of discontinuity. The purpose is to increase the organization’s level of adaptation to its environment. The change model depicts notion that excellence, growth, and development, as well as satisfaction and high morale are achieved through adaptation and innovation. The organization is seen as a system with at least an array of interconnecting variables: strategy, structure, technology, products or services, and people. People are considered the most critical resource in the organization because it is they who link all other variables in a productive way (Martires & Fule, 2000, 352). The Process of Change Lewin (1951) in his book on Frontiers in Group Dynamics identified three steps in the process of change, to wit: (1) unfreezing; (2) changing; and (3) refreezing. The unfreezing stage is the initial step involving awareness and recognition of the need to change certain aspects in the current situation. The changing stage involves the introduction and application of the new patterns of behavior (Martires & Fule 2000). This stage encompasses orientation, training and learning the new system or aspects which were initially identified as needing change. Finally, under the refreezing stage, those new patterns, systems, or behaviors must be stabilized and sustained for it to be effective and considered successful. At this stage, a full integration of the new aspects is finally ingrained into practice. Company Background: Océ There are a multitude of increasingly highly competitive and productive organizations all over the world. However, there are also a limited few that survive through time. One of the most successful organizations that survived enumerable challenges in the environment is Océ. Océ’s origins are traced from its incorporator, Lodewijk van der Grinten, who initially opened a pharmacy in Venlo, Netherlands, in April 1857. With 153 years of experience, Océ can already boast of its vast corporate experience in management and change. When a shortage for raw materials for their butter coloring occurred during the first world war, the need to change resulted in the discovery of a more productive product, the blueprint, which paved the way for their entry into the copier market (Océ: Timeline, 2010). Today, the organization offers diverse range of products, to wit: “office printing and copying systems, high speed digital production printers and wide format printing systems for both technical documentation and color display graphics” (Océ: Organization, 2010, par. 1). Current Situation at Océ As part of this Dutch organization that has over a 100 year history, one is faced with an uphill task of managing a change in organizational culture. With a team of people from various departments, the organization provided opportunities for lean training; and a group has been assigned to pilot this task. The change process necessitates cascading and spreading the training to the rest of the organization. However, one is faced with the adverse effects of resistance to change due to a variety of factors, of which merger, is one. Further, in most parts of the organization, people don’t like change because they are afraid of losing their jobs. In most Dutch organizations, people tend to work there for a long time, say, 20-30 years. Most of the personnel have developed competencies in their area of work, but there is almost never a procedure set in place. Hence when asked what sort of procedure they have in place, it is difficult to evaluate and improve the system due to its nonexistence. Strategy for Managing Change A change strategy is necessary for any type of change. Change managers need to develop an explicit strategy in order to increase the likelihood of successful change. The strategy will consist of a number of activities that should be carried out to help managers initiate and implement changes effectively (Leadership-And-Motivation Training, 2010; For Océ, the most essential components as strategy for making changes are as follows: (1) determine the real need for change; (2) look for an idea that suits the need; (3) consider the benefits and costs of change; (4) obtain support for change; (5) change by small steps at a time; (6) assign an idea champion; and (7) determine any post-change problems and address them immediately (McNamara, n.d.). 1. Determine the real need for change The change should focus on the real need: the need to establish a protocol for human resources functions of organizing, recruitment, training, development, and maintenance. In this case, the need manifests itself in terms of a challenge felt by managers and employees. Generally, a need for change exists when there is a gap between actual and desired performance. Since there was no policy for training for the personnel there is no way to measure results. Even if actual performance either equals or exceeds desire performance, a manager cannot safely presume that there is no need for change. Fule (1986, 7) avers that “success itself should also direct attention towards making possible changes”. It is necessary to examine the basis of success to determine whether the present way of doing things would continue to be effective. Given a dynamic environment where the firm operates, what succeeds today may not succeed tomorrow. The acceptability of change proposals increases as the real need for it increases. Management and personnel would be more willing to invest time and effort to adapt new behaviors and techniques if they themselves perceive that those are needed. 2. Look for an idea that suits the need An idea is another way of doing things. The old way must be replaced by the new one. Finding the new way may involve formal or informal search procedures. As the pilot team searches for ways to implement training to other personnel from different departments, the employees, themselves, can share information on what training methods could be appropriate for them – in addition to what management has suggested. 3. Consider the benefits and costs of change The benefits of change in terms of improved task performance, innovativeness, and organizational effectiveness should be balanced against the costs that such change would entail. The decision to initiate and implement change should be made with a careful consideration of its costs. Some costs are economic in nature and therefore, are easily computed. But, other costs are psychological and social and they do not readily yield to computations. Proposing policies for training and development for all personnel at Océ would have the benefits of increasing morale and productivity, providing opportunities for promotion, learning new tasks and responsibilities, and satisfying personal and professional goals. The costs that management must consider would be: training costs in terms of training materials, fees for external trainors (if required), venues, among others. A cost-benefit analysis is always helpful with emphasis on long term benefit for the company. A financial investment, in terms of developing training programs and modules for all levels in the organizational hierarchy, would be carefully reviewed after evaluating the following factors: (1) price of the investment; (2) benefits and cost analysis; (3) adaptation of personnel to the new system; (4) available funds or capital of the organization; (5) financial or economic desirability and returns on the investment and (5) salvage value of the old system, if any. According to Viscione (1977, 425), “a firm uses funds and must obtain sources of these uses, and thus, financial management can be viewed as the management of a firm’s sources and uses of funds”. The responsibility of change managers is to effect successful change while minimizing the disruption which may be caused by it. Too much change at any one time may cause chaos rather than productivity improvements. Too little, on the other hand, may not have any effect at all or even diminish the level of task performance. Change must be introduced with sensitivity to the reactions of those who would be affected by it. 4. Obtain support for change A frequent cause of failure in implementing changes is lack of support. Proponents, therefore, should obtain the support of other personnel in the organization besides themselves. The scope of support required depends on the nature and extent of change contemplated. For large-scale changes, like that which is required by Océ, top management support is essential. For other changes, support of key managers is necessary. Since training would be undertaken in various departments, the support of key managers of these departments is required. On the other hand, employee support for change should be encouraged and resistances overcome. In fact, all people who would in one way or another be affected by the change should be encouraged or persuaded to support it. If support cannot be obtained, then at least resistance should be reduced. Open communication, participation, and sharing of rewards provide means to make implementation of change easier. 5. Change by small steps at a time It is preferable to carry out changes one manageable step at a time, rather than all at once. That way, should the change process falter at any stage, it is a lot easier to take corrective measures. Besides, changes in multiple directions may create so much tension and anxiety that can only increase resistance. As manifested at Océ, the merger proposal already increases tension and stress for employees in terms of fear of loss for their job and the demands for new tasks and responsibilities. Therefore, management should prioritize the change that is to be implemented. Since there was no policy on training yet, this change proposal could be effected first so that any subsequent merger proposal can be accommodated with ease. When employees are trained for new tasks and expectations are set and prepared for, resistance for change would be minimized. It is good that the training was initiated in one department first and served as a pilot group for training. Success in the early stages builds support for subsequent changes and creates a momentum for further success. This can make early resisters change their attitudes and give support to the changes. 6. Assign an idea champion Idea champion are people in the organization who take it upon themselves to initiate and implement changes (Martires & Fule, 2000, 378). They are mavericks who seem to be unable to accept things as they are. They are dreamers. They are energetic and impatient but above all, they take action. If the manager himself cannot assume the role of idea champion, this role can be assigned to somebody else who embodies the abovementioned qualities. People accept this role because they are enthusiastic and highly committed to the proposed changes. 7. Diagnose post-change problems and solve them Changes are made to boost the performance of people. If the desired levels are not being reached, something must be wrong. The problems remaining after the change should not be left unattended for people would simply revert to their old ways. Resistance To Change The employees in any organization develop an adherence to organizational systems which had been used for a long time. The traditional maintenance system at Océ had been utilized since incorporation. Therefore, being habituated to this system, the employees naturally resist a proposed change in the system because these are seen as threats to the status quo. The supervisors who received the messages indicating resistance to change should employ the abovementioned strategies for managing change. Some supervisors could actually call in group meetings to explain the changes that were critical and necessary to improve the human resources system at Océ. Any personnel who openly resist change and relay that the new system would be difficult to implement should divulge their reasons for resistance. The managers should assure them that the proposed system would require extensive training and orientation to all members of the organization. Senior members who expressed fear in learning a new system or process in training should be assured that there is relatively no difficulty in adapting to a new system. The newly graduates and newly employed members of the organization are likely to be supportive of the change. They are more adept in structures processes, systems and technological advancement as exposed those accorded by the computers and the internet era. Further, they acknowledge that the old system do not provide opportunities for employee development especially those had been with the organizations for years. However, it was immediately eminent that by soliciting feedback from the employees who openly resist change, the supervisors would be able to immediately address the problems through clarification of points discussed and by enumerating the benefits of the new training system. The supervisors should not take sides but clearly and objectively enumerated costs and benefits of both the traditional system and the new training program, as the alternative. Supervisors and managers were fully aware of the resistance to change. Martires & Fule (2000) identified four bases of resistance to change: rational, emotional, social and political. At Océ, the possible resistance could be a combination of emotional and social. There is the desire to retain the status quo so that there wouldn’t be any job dislocation or movement. The group forces and teams that have been established over time support the status quo for their own personal objectives. In addition, older personnel are apprehensive of the new training system for fear that they could not adjust and adapt to the new methods. To manage this possible resistance, management can employ the following strategies: (1) information and communication prior to the change to prepare the employees of the new training program; (2) consultation and participation by soliciting employees’ comments, suggestions, apprehensions, and the like; (3) emphasis on benefits of the new system; (4) orientation and training to show easy use of the new training program; and (5) assurance that the new program would not disrupt employee’s security but rather contribute to a higher level of productivity and morale (Wynn, 2010). Likewise, as averred by Cartwright (1951), the change efforts should make use of group forces constructively by treating groups as a medium of change. The chances for change are increased whenever a strong sense of we-feeling is present. If both management and workers share a strong sense of belonging to the organization, then changes initiated by either group is more likely to be understood and accepted. Projected Outcome of Change Process An organization’s level of adaptation is not improved until many of its employees have adopted new patterns of behavior in relation to each other and to their jobs. In other words, adaptation is accomplished through the adoption of new behavior patterns by individual members and groups that comprise the organization. Individual change in behavior involves a complex process of personal and social learning. It is a process whereby people unlearn old patterns of behavior and adopt new ones. The learning process comprises much more than the mere acquisition of new cognitive and intellectual skills through a classroom lecture. Instead, the change process which involves the three steps of unfreezing, changing and refreezing, is in fact a journey that requires managing. Various literatures have identified the roles and responsibilities of managers as those encompassing the basic functions of planning, organizing, staffing, leading and controlling all aspects of organizational responsibilities (CliffsNotes, 2010), including change. With goals of improving productivity, enhancing the development of human resources by providing opportunities for personal and professional growth, training proves to be an indispensable function of human resources. The present fast obsolescence of knowledge and skills in any area and increasing number and complexity of jobs render it proper for workers to be hones for their specialties with new concepts and applications. The development program provides motivation for meeting self-realization, status and recognition needs. Resources should be committed for the development action-based programs and projects (Martires, 2004). Further, despite the low-turnover at Océ, management should foresee at in a number of years, those personnel who developed competencies in their respective endeavors need to be replaced upon retirement. Therefore, there is still a need to create training programs to acquire the skills needed for the tasks at hand. The development of structured training at all levels of the organization (at entry point, upon regularization, upon promotion, and even during managerial levels) need some amount of training and career planning to assist these personnel as they move towards greater personal and job growth and responsibilities. Analyses When undertaking a planned change, it is the process of change rather than the outcome that requires managing. The outcome of change is already the product of a well managed change strategy in the organization. The discourse initially explained the nature of change and the process that change has to undergo before the organization’s objective is achieved. Management needs to understand that there is indeed a strategy to manage change, as a process. With management’s functions of planning, organizing, directing and controlling, the change process is effectively managed. Change disturbs the existing equilibrium in order to attain a new one. As such, it creates tension and anxiety among people that makes them respond in various ways. The one that most concerns change managers is resistance to change for it has to be minimized if change is to succeed. To facilitate change, management creates a climate for it through adequate consideration of human needs. This climate is characterized by open communication, consultation, participation, shared rewards, and employee security. The dynamics of group behavior can be used constructively to effect changes in individual behavior. To this end, groups may be used as a medium of change. As exemplified by the pilot group to show the results of the new training program, the group’s successful improvement in the conduct of both personal and professional tasks proves to be the impetus for others to change. Through positive example and results, the change process could be replicated in other departments of Océ. The natural reaction for the change process was resistance from the personnel – especially those who are used to the traditional system where no active training programs were instituted. The objective principle of clearly indicating cost-benefit analyses of both alternatives paved the way for a better understanding of the change process. By soliciting feedback, all points of apprehension and fear were clearly communicated and properly and immediately addressed. The change process would be successful and sustainable because the present system had its loopholes and was already outdated. The practice of gaining competencies through experience over time would eventually take a toll in terms of lowering morale, productivity and affecting profits. By keeping pace with technological advancement and new methods in training, the benefits provided by the new program would be realized by the personnel and by management as viable, feasible and practical. Since the new system would not displace any personnel and can in fact produce returns in investment in a very short time, this change can definitely be considered successful and sustainable in the long run. Conclusion In creating an environment for performance, organizations must continuously innovate to survive and to lead as well. Innovation deals with searching for creative solutions to human relationships, structures and processes, and ability to assess and adjust to the changing environment. An explicit strategy for initiating and implementing changes should be adopted for any type of change in organizations. After all, it is the process of change rather than the outcome that requires managing. A strategy for managing change is especially needed for large-scale changes, like those proposed by Océ, where the stakes are high so as to minimize the risks of failure. As identified in the strategies for managing change, these prevent haphazard initiation and implementation of change that only creates confusion and frustration. By managing resistance to change, the new processes, systems, or technology, can be implemented smoothly. Further, managers cannot afford do overlook the fact that groups exert considerable influence on members’ behavioral patterns. The influence of groups on the behavior of members is a subtle but powerful one. Any attempt to change must consider the dynamics of groups or the forces operating in groups. Change efforts can be supported or blocked by pressures on members coming from the group. Change is initiated, implemented, and maintained in organizations to increase the level of competitiveness and boost the productivity of its people. Changes can be made in strategy, structure, technology, products and services, or people. The relevant thing to remember is that effecting the necessary changes in the organization could temporarily disrupt existing equilibrium. Management can minimize any resistance to change by emphasizing that the benefits for all far outweigh any costs associated with it. To reiterate, it is the process of change rather than the outcome that requires managing. Change is an intricate and complex process that needs to be managed and addressed. The need for change has to be established despite success in an organization. The demands of the changing environment necessitate parallel appraisal of the organization’s adaptation to the clients’ needs. Managers, therefore, must be vigilant of the various forces in the environment that interplay and affect the operations of the organization. Adaptation can be achieved in a reactive or pro-active way. Organizational change can be reactive in the sense that the internal changes are made in response to external forces. As it happens, constant environmental change is the reality of modern life. The markets and industries develop, grow and mature. Industry competitors come and go, increasing or decreasing the intensity of competition. All these require appropriate responses from the organization or it will simply be left behind. Complacency is the enemy of effectiveness. In order for people or organizations to succeed, they must be willing and able to change. Changing for the better seems like an old cliché. But in today’s competitive world, usually, nothing else will suffice. The role of the manager is to manage change skillfully. 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