Why the Organization Needs to Change - Essay Example

CIPD DIPLOMA A Short Introduction to the Organization The organization concerned operates in the hospitality industry. It has five branches in the country, and implements a centralized organizational structure. The organization has 600 employees, and the branch that has the biggest number of employees has 160 and the one having the lowest number of employees has 90 employees. The organization is owned by shareholders and is headed by a board of directors. The vision of the organization is to be the most favoured hospitality organization in ownership and management of restaurants and in quality delivery of services. The mission of the organization is to attend and exceed the needs and expectations of its customers with its services and variety of offerings of products. In the last two years, the organization has witnessed high employee turnover that has left it with more elderly than young employees. Despite this, the organization has maintained a turnover of $4 million annually. The organization’s head office lies on a vast land a few kilometres from the city centre, and most of that space lies unutilized. It faces stiff competition from other businesses in the industry. The company maintains a remuneration system based on the employee’s relations with the managers. The recruitment process also faces a lot of bias as the top management dictates the persons to be employed, who mainly come from specified colleges. Additionally, the organization maintains an autocratic form of leadership, and The levels of motivation among subordinates are quite low, given the minimal salaries paid by the company. An Explanation of why the Organization Needs to Change Constant developments in today’s’ world compel this organization to change for it to remain relevant in the industry, and maintain a profitable trend. Both external and internal factors contribute to the need for change as below: External Reasons Increased competition – competition from rivals forces the organization to become more innovative in the services they give to their customers, such as tastier and global cuisines. The organization must also improve on the quality of customer service given to their customers to retain them. Advancement in Technology – the management ought to adopt current forms of advertising its business, such as click and pay advertisement. This is an element of PESTLE that calls on this organization to embrace a move such as installing wireless internet in its premises in order to appeal to its young-generation customers. Customer Requirements – Some customers who dine late at night may require transport to their destinations, thus necessitating the availability of taxi services in the organization. Internal Reasons Expansion opportunities – given the vast land at the head office, the organization can transform the space to a social ground where social activities and other events can take place. This increases the fame of the organization, promotes the sales of the hotel, and thus earns the organization an extra income. According to SWOT analysis, the organization should recognize that this an opportunity that would pay off quickly if exploited well. Employee Strife – demotivated employees cannot give outstanding performance. Consequently, the organization ought to motivate them as they play a vital role in the success of the organization. Poor Leadership Style – allowing employees to participate in the decision making process of the organization draws them closer to the organization, and boosts a cohesive culture that can lead to organizational success. Explain at least 3 Ways Change Affects Organizations Change in an organization usually advances the organization in the following ways: It facilitates the adoption of a suitable organizational culture – using the organization being discussed, allowing employees to participate in the decision making process endears them to the company. More to this, streamlining, and improving their compensation packages motivates them to work for the organization’s success. Therefore, they own the organization, feel part of it, thus promoting a clan culture that allows employees to cooperate and work as a team to achieve organizational objectives. This is an element of transformational change that makes employees to go beyond their organizational mandate because they are happy working for their organization. It optimizes the performance of the organization – adapting new technologies improves the efficiency of the organization, since technology speeds up, and eases the way things get done. Additionally, current technologies enable an organization to minimize costs, and facilitate prompt communication. Strategic change calls for an organization to incorporate relevant latest technology in improving and upgrading its mode of operation. Increase the competitiveness of the organization – expansion of the existing business can make the organization more competitive as it serves a wider customer base. Organizational change especially one seeking to expand the business can come through acquisition or merging. More to this, changes that cater for the unique needs of customers improve the relations between the organization and customers, which leads to customer loyalty. Consequently, the organization achieves a competitive edge that makes it easier to face market rivalry. A Description that Compares at Least 3 Approaches to Change with the Process in Use within the Organization A successful approach to change should recognize the broader changes in the environment. It should also help the organization to adjust to its various needs. More to these, employees ought to be trained about the change, and their support to implement the change acquired. This organization employs Lewin’s three-step approach to change. It involves unfreezing, Moving, and refreezing. Unfreezing relates to the process by which the organization communicates to the subordinates of the shortcomings in the organization. It further elaborates the need for elimination of the shortcoming, so that the organization can accomplish its goals. Therefore, unfreezing develops driving forces that allow employees to anticipate, and embrace change. Moving – this transforms the organization from the current state to the expected state. It involves resource finding, so as to ensure employees have the required facilities, training employees about the change, as well as changes in various structures. It also develops new values, and attitudes, and eventually implements the action plan. Refreezing – this stabilizes the organization so that it operates based on the new values, rules, and procedures. This model compares to Kotter’s 8 step change model. Kotter’s first step relates to establishing a sense of urgency. This compares to Lewin’s unfreezing stage as it seeks to inform the organization on why it ought to change. Kotter also develops a vision and strategy, which aligns with Lewin’s moving stage. Kotter’s last step of anchoring new approaches in the culture also correspond to the refreezing stage as the two reinforce the new changes. Harris’s five-phase approach also compares to Lewin’s approach. It begins with a planning phase that corresponds to the unfreezing stage. The momentum phase uses resources to accomplish the set goals, just like the moving stage in Lewin’s approach. The termination phase allows the organization to proceed with the new changes, given that arising problems are dealt with efficiently. This corresponds to the refreezing stage as the organization adapts to the new mode of operations. Lewin’s approach also matches Fullan’s Change orientation. Fullan advocates that change should be accompanied by learning (Lunenburg, 6). This exhibits itself in the unfreezing stage where management communicates the need for change, and the benefits it gives to the organization. The moving stage also supports learning as employees get trained to work in a different way. Describe 3 Behavioral Responses Seen when Change Occurs in an Organization Changing from a system that one is accustomed to, to a new mode of operations can cause a number of varying reactions. Anxiety – According to Lewin’s model of change employees tend to be anxious of what the change may mean to them. Some fear inability to grasp the new system leading to ineffectiveness. Others fear losing their job to more competent individuals, while others fear the unknown. Enthusiasm – This is an element of Kotter’s eight-step model where employees who perceive change as an opportunity for their career growth and development welcome changes in the organization. Advancements in technology, for example, provide them with a means to improve their technical skills as they learn how the new technology works. More to these, changes in the remuneration and reward systems boost the morale of employees, thus increasing their commitment to the organization. Disengagement – This is exemplified by the appreciative inquiry model which explains that employees who do not support the introduction of a given change may lose interest in their job. Such employees do not concentrate on understanding the change. They lack commitment to the goals of the organization, and some even leave the organization. Explain at Least 3 Ways that HR can Support Individuals during Change The human resource department plays a critical role in the way employees responds to the changes taking place in the organization. Consequently, this department should assist the employees to manage the changes, thus promoting their effectiveness in the organization in the following ways: Participation – involving employees in the change process allows them to be part of the team that introduces a new perspective in the organization. It gives them an opportunity to contribute ideas on how the organization can improve for the best, thus developing a feeling of belonging. More to this, when unfamiliar concepts get introduced in the organization; participation allows them to ask any questions that could make them fear the perceived change. Properly answered questions enhance their ability to adopt the change, thus boosting their commitment to the new system. Training – setting time to train the employees on how the new change operates improves the confidence that employees have in the new system. The process also ought to be continuous to ensure employees who learn slowly catch up with the change, without unnecessary pressure. Open communication – communicating about the change to employees at the earliest possible time can be vital. This helps them to adjust their minds accordingly, as well as understand the need for the change in advance. It also builds on their trust as they appreciate the openness of the organization. Once change has been introduced, giving them an opportunity to discuss the various challenges imposed by the change enables them to access help, thus ensuring the effectiveness of the new system. Empathy and support – given that some employees fear the introduction of change in an organization, the human resource manager can walk with the employees during the period of change. They can hold meetings where they listen to the complaints of the employees. On listening to their fears, they can answer their questions, and clarify any misunderstandings that the employees could have concerning the change. Moreover, they can encourage them, and assure them of the best. They also ought to make them realize that organizations cannot afford to remain static in the face of stiff competition. Works Cited Lunenburg, Fred. “Approaches to Managing Organizational Change.” International Journal of Scholarly Acdemic Intellectual Diversity 12.1 (2010): 1-10. Print. Read More