The Concept of Change Management - Essay Example

Running Head: СHАNGЕ MАNАGЕMЕNT АND ОRGАNISАTIОNАL THЕОRY Litеrаturе Rеviеw оn Сhаngе Mаnаgеmеnt аnd Оrgаnisаtiоnаl Thеоry Introduction Change is a vital component of any organisation that aspires to be competitive and to survive in the ever-changing business environment. How organisations manage change is therefore critical for their survival and wellbeing. This review of literature will discuss the concept of change management and how it relates to organisational theory. The focus of the review is on organisations in the tourism industry. Issues in change management in organisations Change management can be defined as the practice of constantly renewing an organisation’s course, structure and capacity to serve the continually changing needs of internal and external customers (By, 2005, p. 369). Continuous change is important for organisations since it is a prerequisite for gaining a competitive advantage and dealing with changes in the business environment (Amagoh, 2008, p. 1). In particular, the need for change is necessitated by the change in accepted work practices and increase in the levels of knowledge among the workforce. As such, change is perceived to be becoming a ubiquitous feature of organisational life (Barnard & Stoll, 2010). However, it has been argued that in spite of many organisations being aware of the need for change, as many as seven out of ten change programmes do not meet their anticipated results (Barnard & Stoll, 2010; By, 2005, p. 370). The challenges that cause many change programmes to perform sub-optimally relate to the speed and intricacy of changes needed today (Pryor, Taneja, Humphreys, Anderson, Singleton, 2008, p. 1). For instance, tourism organisations have to cope with changes caused by globalisation, climate change, and other global phenomena such as terrorism, contagious diseases (such as Ebola) and natural disasters (such as typhoons, hurricanes and tsunamis). As a result of these phenomena, the practice of change management today has greatly changed from what it was in the past. Pryor et al. (2008, p. 1) have presented major differences in change today compared to what the process entailed in the past. These difference are reflected in (1) the instantaneous way in which the changes occur, (2) the pace at which the various kinds of changes happen, (3) the complexity of events that happen, (4), the instantaneous communication as well as the influence of the changes the world over, and (5) the need for people and leaders of nations and organisations to come out and without delay make determinations and address existing issues and problems. Around the world today, there are many issues which affect the tourism industry and necessitate critical changes in organisations’ operations and structures. For instance, terrorism threats and diseases like Ebola compel governments to issue travel advisories on visiting some countries. Some airlines have even withdrawn from some routes because of the risk of Ebola. This has an impact on various organisations in the tourism industry such as hotels, tour companies, and tourism parks. At the same time, globalisation implies that an issue in one place is reported widely through various types of media and thus affects tourism organisations the world over. As well, a change in a tourism organisation that operates globally is likely to affect its operations across the world. Therefore, organisations in the tourism industry need to approach the issue of change management while considering the complexities surrounding the concept. Сhаngе mаnаgеmеnt аnd оrgаnisаtiоnаl thеоry Change management in all organisations is the core responsibility of managers, employees and executive (Myers, Hulks & Wiggins, 2012, p. 1). The kind of leadership style employed, implementation strategy and analysis of organisational change adopted are therefore critical issues relating to the management of change in organisations. This means that each individual in the organisation needs to be involved in change management in order for the change to be successful. Based on Bandura’s concept of collective efficacy, change can be viewed in terms of organisational members’ shared beliefs in their joint capacities to organise and implement the courses of action that are involved in the implementation of change (Weiner, 2009; Luc, 2009, p. 37). The terms ‘shared beliefs’ and ‘joint capacities’ are used because implementation of any change involves collective action among interdependent individuals, teams or departments. While some changes can be planned, there are many situations in which change is unpredictable, and tends to be kneejerk, sporadic, impromptu and often instigated by a situation of organisational crisis (By, 2005, p. 370). For instance, advisories by some governments to their citizens not to visit certain countries because of the threat of terrorism can cause hospitality organisations in the affected countries to lay off some of their employees because of a decline in the number of patrons. Similarly, airlines are adversely affected when there are regional conflicts, communicable diseases, and natural phenomena such as volcanic ashes or sandstorms along travel routes. All these events require tourism organisations to implement rapid changes, referred to as step changes (Evans, Campbell & Stonehouse, 2003, p. 299) in order to survive and remain competitive. There are also incremental changes (Evans, et al., 2003) that tourism organisations have to implement on their own volition, such as new technologies and innovations (Breen, Bergin-Seers, Roberts, Frew & Carlsen, 2006). Whether change is planned or sudden, tourism organisations always need to be prepared to manage it, especially where complex change is involved (Pechlaner, Abfalter, Raich & Dreyer, 2007). It is argued that failure to establish adequate preparedness for change accounts for 50 per cent of all unsuccessful organisational changes. Some change models (such as Kanter et al’s (1992) 10 commandments for executing change and Luecke’s (2003) seven steps) envision the need for preparedness (Barnard & Stoll, 2010). They indicate that an organisation should analyse itself in terms of the need to change and develop a shared vision of how to work in order to become competitive (Barnard & Stoll, 2010; By, 2005, p. 376). This can be linked to the concept of collective efficacy and systems theory, which views organisations as a series of subsystems (Kast & Rosenzweig, 1972; Pugh, 2007, p. 38; Amagoh, 2008, p. 2). These subsystems (e.g. individual employees, teams and management) must work collectively in order for a change management process to successful. Conclusion The themes are arising from the review of literature are as follows. First, change in the tourism industry can be planned or unplanned. The change can be step or incremental. Secondly, many change programmes fail because of the complexities surrounding change. Thirdly, whether change is planned or otherwise, organisations need to be prepared for it. Fourth, the concept of collective efficacy and systems theory can be used to explain the need to involve every organisational member in change management. References Amagoh, F. (2008). Perspectives on organizational change: Systems and complexity theories. The Innovation Journal: The Public Sector Innovation Journal, 13(3), 1-14. Barnard, M., & Stoll, N. (2010). Organisational change management: A rapid literature review. Short Policy Report, No. 10/01. Centre for Understanding Behaviour Change. Retrieved from http://www.bristol.ac.uk/media-library/sites/cubec/migrated/documents/pr1.pdf Breen, J., Bergin-Seers, S., Roberts L., Frew, E., & Carlsen, J. (2006).Innovation and change management for small and medium tourism enterprises in the tourist park sector. Gold Coast, Queensland: CRC for Sustainable Tourism Pty Ltd. By, R.T. (2005). Organisational change management: A critical review. Journal of Change Management, 5(4), 369-380. Evans, N., Campbell, D, & Stonehouse, G. (2003). Strategic management for travel and tourism. Burlington, MA: Butterworth-Heinemann. Kast, F.E., & Rosenzweig, J.E. (1972). General systems theory: Applications for organization and management. Academy of Management Journal, December. Luc, E. (2009). Unleashing your leadership potential: Seven strategies for success. Lanham, Maryland: Rowman & Littlefield Publishers, Inc. Myers, P., Hulks, S., & Wiggins, L. (2012). Organizational change: Perspectives on theory and practice. Oxford: Oxford University Press. Pechlaner, H., Abfalter, D., Raich, F., & Dreyer, A. (2007). Crisis management and tourism organizations: A comparative study in the European Alps. In E. Laws, B. Prideaux & K.S. Chon (Eds.), Crisis management in tourism (pp. 157-169). Wallingford: CABI Books. Pryor, M.G., Taneja, S. Humphreys, J., Anderson, D., & Singleton, L. (2008). Challenges facing change management theories and research. Delhi Business Review, 9(1), 1-20. Pugh, L. (2007). Change management in information services. Aldershot, Hampshire: Ashgate Publishing Limited. Weiner, B.J. (2009). A theory of organizational readiness for change. Implementation Science, 4(67). Read More