Managing&Leading Change - Assignment Example

Task Article Review Andrews, J., Cameron, H. and Harris, M. (2008) ‘All change? Managers experience of organizational change in theory and practice.’ Journal of Organizational Change Management, 21(3): 300-314 The applicability of change management theories in practice has been the main issue of the study of Andrews et al. (2008). The significance of the specific article can be identified in the fact that both the literature and the empirical research have been employed in order to prove the interaction between theory and practice in the case of change management. The authors have used the concepts of change management theory along with the views of postgraduate students – currently managers – who have studied change management and had to apply theory in practice. The specific study can be therefore characterized as quite effective addressing the entire key issues using appropriate theories and empirical data; its potential use by teachers in the change management field could be considered to be one of its distinctive advantages. As in any study, weak points also exist – as analyzed below. However, they cannot be considered as having a major influence on the study’s effectiveness in the change management sector. The structure of the specific study is clear; it is also aligned with its priorities – as set by the authors. The views of the literature are presented at the first section of the study which is clearly distinguished by its second part – under the title ‘study approach’. Despite the fact that material within the study is appropriately placed - the concepts highlighted are valuable, still there is a significant weakness: the analysis of the literature presented in the first section is limited – in fact in the first section the views of the authors on the issues mentioned in the literature cannot be identified. The views of theorists are just placed one after another with no analysis of the content. In this way the interpretation of the definitions and the concepts presented in the literature section is not available to the reader of the specific article; it could be assumed that the reader is offered the chance to make his own assumptions on the material presented in the literature section – especially after studying the findings of the empirical research presented in the second part of the article. The definitions and the concepts of the literature are only discussed in the ‘discussion’ part of the article - which is placed at the end of the article along with the conclusion section; however, this analysis is not sufficient as it is limited to the comparison between the findings of the empirical research and the views of the literature. On the other hand, the empirical research conducted for the specific article can be characterized as quite effective – even if the number of participants is only 18. The participants represent mostly the public sector – only 2 participants work in the voluntary sector/ possibly private organizations, it is not made clear. Parts of the responses of the participants are presented in the article in order to help to the analysis of the article’s main points. Ethics are strongly supported in the specific study; the participants have been contacted through the mail, only those that clearly stated their willingness to participate in the study were contacted by phone. Moreover, all issues developed in the study are clearly examined as of their effects on the organizations involved (in which the participants work). Under these terms, the article under examination could be proved particularly valuable to the teachers of organizational change helping them to identify the weaknesses of organizational change theory and highlight to their students the key points of the specific field – i.e. the points that will help them to resolve practical issues on change management. Task 2 – Case Study Flairtex Fashions: An Opportunity for Renewal Summary The introduction of changes in modern organizations is a common phenomenon; in most cases, changes schemes are used in order to establish radical organizational restructuring; in other cases, the changes attempted are just partial aiming to serve temporary organizational needs. In Flairtex the need for changes is emergent; the firm is going to enter a challenging project – removal of its centre of operations out of town in order for the firm’s expenses to be gradually reduced. However, a relevant plan of action is necessary making sure that the funds necessary will be available; the level of success of the specific project should be also estimated in advance. The review of firm’s current organizational structure and culture has led to the assumption that the attempted changes are likely to lead to the improvement of the firm’s performance; however, the effects of these changes on the firm’s employees will be rather extensive; the development of specific plans could help to minimize the above effects without affecting the success of the firm’s project - as described above. 1. Introduction In modern organizations, the effort to introduce changes in various operational activities is not an easy task; in most cases, the resistance developed because of these initiatives is so strong that the relevant plans are postponed. However, managers should try to eliminating the negative reactions to changes introduced in their organizations using appropriate strategic plans. In the case of Flairtex, the need for changes in the various organizational activities cannot be doubted; currently, the firm faces a series of problems mostly related with the lack of cooperation and communication among its employees. The firm’s managers, have tried to control the reactions of employees using different techniques; Thwaite and James support the use of traditional HR policies – the increase of the firm’s performance is set as a priority while the future of employees is almost disregarded. On the other hand, Robertson and Rana – newly appointed managers – have tried to introduce plans of changes that are more favourable for the employees – still the firm’s performance remains a priority but the means chosen for the improvement of the firm’s profitability are less destroyable for employees (in terms of the redundancies resulted because of the changes introduced in the organization). The analysis of the firm’s structure and culture – as developed below – leads to the assumption that the increase of the firm’s performance can be achieved even by measures that protect the employees’ interests. However, appropriate customization should be made on the firm’s existing policies; the methods used for the organizational restructuring – necessary for the achievement of the targets set in the context of the change attempted – should be also carefully reviewed as of their appropriateness. A series of recommendations are made regarding the elimination of resistance in the workplace – as a result of the plan of change introduced in Flairtex Fashions. It is concluded that the change of the firm’s existing HR policies could be achieved only with the active participation of employees; the communication of the latter with the firm’s managers should be improved – the lack of respect and trust for the firm’s management team has led to severe conflicts between employees and management and resulted to the gradual deterioration of the employee’s performance. In this context, the changes required as a result of the firm’s relocation should be appropriately planned and monitored ensuring the promotion of fairness and equality across the specific organization. 2. Flairtex Fashions – overview of the organization – suggested changes Organizational structure The development of appropriate strategic solutions in Flairtex Fashions – in the context of the relocation of the firm’s centre of operations – has to be based on specific criteria taking into consideration existing organizational structure and culture. Both these concepts are related with specific features. More specifically, it is noticed in the literature that ‘organizational structure is measured by features such as organizational degree of hierarchy, organizational connectivity, organizational least-upper-boundedness and organizational communication level’ (Carley et al., 1994, p.124-125). In Flairtex Fashions the organizational hierarchy is not effective - a fact that causes problem in the organizational connectivity. The sale of the firm to Ashdawn led to the replacement of most of the members of the board; only two persons, Thwaite and Gaites represent Flairtex in the board of Ashdawn; the cooperation with the existed members of the board of Ashdawn presents many problems. Even the cooperation between Thwaite (Flairtex) who is managing director with James (Ashdawn) who is financial director is extremely good there is no such case with the other members of the board – as well as the firm’s managers at lower levels of the organizational hierarchy. Both Thwaite and James have tried to keep the traditional methods of production, a decision that has adversely affected the performance of employees and the firm’s profitability. Moreover, the poor communication between these two members of the boards (Thwaite and James) and the other members of the board has led to severe delays in the introduction and application of plans of change in Flairtex. If current situation in Ashdown does not change – with a potential retirement of Thwaite-James who are over 60 or other change in existing board structure – then the success of the attempted strategic initiative – relocation of the firm’s operational centre out of town – will be put under threat. Organizational culture Organizational culture is of significant importance for the development of various organizational plans. In accordance with Boselie et al. (2005, 11) ‘culture management, strategic decision-making, fast change, and market driven connectivity – together comprise the HR competency domain of Strategic Contribution’. Despite its importance for the success of organizational strategies, the culture of modern organizations is not taken into thorough consideration by managers in all levels of organizational hierarchy. At a next level, it is supported that ‘organizational culture is an important factor influencing relationship skills, defined as a firm’s ability and behavioral tendency to actively cultivate and manage its ties with other firms’ (Beugelsdijk et al., 2006, 833). At this point, it could be supported that the elements of organizational culture are not fully appreciated by strategic planners in firms around the world; however, there is also the case that no significant intervention can be made on a firm’s existing organizational structure and culture because of the norms and ethics that have been already established across an organization. The change of existing organizational practices – possibly by attempting the firm’s socialization (see Figure 1, Appendix) or by other strategic plan is not an easy task especially if the success of the specific plan is depended on the participation of managers that are opposite to the suggested changes. In the case of Flairtex, both the firm’s directors, the managing director and the financial director, do not wish to change existing organizational practices and ethics; they would rather keep existing organizational framework and proceed to plans for the improvement of the firm’s performance; however, these plans cannot be completed before radical changes are made on the firm’s existing structure and culture. The personalization of the workplace (as suggested by Wells et al., 2007) would be an appropriate solution – among with other changes focusing in the improvement of communication between the firm’s managers (especially the members of the board) and employees. Leadership The concept of leadership is of significant importance for the success of a firm’s various strategic decisions. In fact, a charismatic leader can strongly support the development of a particular organization keeping the communication between the employees at high levels. The above assumption is verified by the findings of a research conducted by Johnson et al. in 2007. In the particular study in which 13 executives participated it was revealed that ‘the autocratic leadership style can be a predictor of passive – aggressive (PA) behaviors in the workplace’ (Johnson et al., 2007, 130). Towards the same direction, Ellis (1991) supported that ‘charismatic leadership, far from being a disruptive force, serves an integrative function in egalitarian organizations hampered by disagreement on facts and values’ (Ellis, 1991, 305). In Flairtex, the denial of the firm’s top executives – referring to Thwaite and James – to introduce the required changes (as identified and proposed by the firm’s Sales and Marketing manager and the Production manager) has led to the development of a strong conflict between managers and employees across the organization. In order for the plan attempted – the relocation of the firm out of town – to be completed successfully it is necessary that the application of a series of changes is promoted in all organizational departments. The measures required – as explained below – should focus on the improvement of communication and cooperation among employees at various levels of the organizational hierarchy. 3. Changes required - Resistance to changes in Flairtex Fashions In accordance with the issues presented above, managers in Flairtex should promote a series of changes focusing on the restructuring of the firm’s existing HR policies. Flexibility should be one of the criteria used for the development of the relevant plans (Parnell, 2003). Within this context, the identification and the evaluation of the firm’s strengths and weaknesses should be conducted using the reports released through the various organizational departments. At a next level, the measures suggested should be appropriately customized using the concept of ‘fit’ (as explained in the study of Korman et al., 1999, referring to ‘fit’ as a criterion of the successful response of a firm’s employees to the tasks delegated to them, i.e. a ‘fit’ between skills required and employees’ competencies). In this context, the following changes should be introduced in the firm’s existing HR policies: a) the firm’s existing payment scheme should be reviewed and updated; more effective criteria of payment should be introduced balancing employees’ performance and its effects on the organizational performance, b) the introduction of a series of benefits for the employees (in accordance with their overall performance) should be also promoted – taking into consideration the firm’s financial status, c) a board of managers should be appointed for the control over the application of the firm’s HR policies in various organizational departments – the relations between managers and employees in all parts of the organization should be monitored and relevant reports should be thoroughly examined and d) the application of changes and the monitoring of their progress should be delegated to a specific person who will be appointed after the relevant decision of the firm’s board. The specific person will have the power to proceed to all the necessary initiatives in order for the success of the relevant plans to be ensured. In any case, employees should be informed on the plan of changes and given all the necessary details in order to be sure that their position in the organization is not under threat. Even for those employees that they will have to leave the organization (the firm’s strategic decision to relocate is relating with a significant percentage of redundancies) the support given should be fair taking into consideration the period of their presence in the firm but also of their performance – a fair monetary amount should be paid as compensation. Of course, the development of resistance within the organization cannot be avoided. In a relevant study it is noticed that ‘change efforts are often conceived as waves of initiatives that sweep through an organization from the top down, or the bottom up, or both, and flow across functions’ (Katzenbach, 1996, 149). However, if the above procedure was followed, it could be easier for employees to be adapted at the organizational environment having understood the necessity of the changes promoted in the firm’s various departments. 4. Conclusion Many different views have been stated in the literature regarding the appropriateness of the strategies followed for the implementation of changes in modern organizations. In accordance with the study of Greve (1998) change in modern organizations can be characterized ‘as an outcome jointly determined by motivation to change, opportunity to change, and capability to change’ (Greve, 1998, 59). Within the above context, managing change in modern organizations is a challenging task (Anson, 2000) despite the potential development of theories and practices that help towards the easier implementation of the relevant plans in firms within various industrial sectors. In any case, it has been proved (Rand, 1999) that in order for the plans of change to be successfully implemented it is necessary that the communication and cooperation in a firm’s internal environment are satisfactory. The potential effects of conflicts and disputes among employees in various organizational departments can be severe. If a firm’s managers do not understand the needs of employees (Bunker et al., 2005) it is quite possible that all efforts for change in a particular firm are led to failure. All these issues should be taken into consideration by the managers in Flairtex – especially the members of its board. The success of the firm’s strategic plans is strongly related with the satisfaction of its employees – for this reason the improvement of communication between managers and employees in the particular organization should be the main criterion for all the firm’s strategic decisions. References Akkermans, H., Aken, J. (1992) Process-Related Problems in Operations Strategy. International Studies of Management & Organization, 22(4), p. 6-12 Anson, B. (2000) Taking Charge of Change in a Volatile Healthcare Marketplace. Human Resource Planning, 23(4): 21-24 Beugelsdijk, S., Koen, C. (2006) Organizational Culture and Relationship Skills. Organization Studies, 27(6): 833-854 Bunker, K., Wakefield, M. (2005). Changing Workforce: Leading Effectively When Change Is the Norm Canadian Government Managers Discover How to Weather Draconian Layoffs and Budget Cuts by Turning Inward to Become More Authentic. The Public Manager, 34(4): 9-17 Carley, K., Prietula, M. (1994) Computational Organization Theory. London: Routledge Ellis, R. (1991) Explaining the Occurrence of Charismatic Leadership in Organizations. Journal of Theoretical Politics, 3(3): 305-319 Greve, H. (1998). Performance, Aspirations and Risky Organizational Change. Administrative Science Quarterly, 43(1): 58-63 Johnson, N., Klee, T. (2007) Passive-Aggressive Behavior and Leadership Styles in Organizations. Journal of Leadership & Organizational Studies, 14(2): 130-142 Katzenbach, J. (1996). Real Change. The McKinsey Quarterly, 1: 148-153 Kliem, R. Ludin, I. (1999) Managing change in the workplace. London: HNB Publishing Korman, A., Kraut, A., London, M. (1999). Evolving Practices in Human Resource Management: Responses to a Changing World of Work. San Francisco: Jossey-Bass Parnell, J.A. (2003). Five Critical Challenges in Strategy Making. SAM Advanced Management Journal, 68(2): 15-25 Rand, T. (1999). Why Businesses Fail: an Organizational Perspective. Emergence, 1(4): 97 Wells, M., Thelen, L. (2007) Workspace Personalization and Organizational Culture. Environment and Behavior, 39(5): 616-634 Appendix Figure 1 – Socialization of modern firms (Source: lecture notes) Read More