Impact of the Change Management over the Organization - Research Paper Example

Management of Change Word Count: words Executive Summary The researcher through this research is about to analyse the impacts of the change initiatives taken by the management in an organization. The organization needs to adopt strategies for betterment of the products manufactured by it in order to increase its brand loyalty and attract huge customer base. The research has indicated that the change has some beneficial as well as harmful impacts on the organization as well as the employees. The employees within an organization that underwent a change are trained by the managers of the organization which makes the employees more competitive. However, the modifications within the organization often pressurises the employees to change their work ethics. The employees often find it difficult to get accustomed with the change that takes place within the organization. The researcher considers two theories in this research in order to understand the modes of organizational change. The changes that take place within an organization can be planned as well as unplanned. Usually, the organizations choose to plan their management strategies but often due to changing scenarios an unexpected change can occur within the organization. This research provides an opportunity for the researcher to discuss the various strategies taken by the managers to implement the organizational change. It also explains the ways in which the managers handle unforeseen situations that the organization may face due to the modification in the organizational protocol. Introduction Organizational Change refers to the change in activities within an organization that has either a positive or a negative impact on the organization. It comprises of a large field covering all the aspects of serving the customers, production and logistics (Aladwani, 2001). Organizational changes also consider the changes in work processes of the employees that have an impact on the employees. The employees within the organization need to be habituated with the change and hence it becomes a time-consuming process. The research aims to analyse the outcoms of organizational change. The strategies that the authority takes to bring about a change in the organization are to be studied (Baines and Langfield-Smith, 2003). In case of negative impact the strategies to be taken by the authority to overcome the challenges are to be analysed through this research. This research offers an opportunity to the researcher to study about the strategic changes that the different organizations bring in within the companies. It allows the researcher to know about the impacts of the changes brought about within the organization. Impact of the change management over the Organization Organisational changes are often categorised into various aspects that is the changes may take place in the origin or the changes may take place in process of running a business. There can be changes in the environment of the organizations where the employees work or the basic process in which the organization functions (Burns and Scapens, 2000). There may be changes in the actions taken by the employees in the organization that may be intentional or deliberate changes within organisations. The changes have an impact on the employees of the organization they may be satisfied with the change or these may impose burden on the employees (Chrusciel and Field, 2006). The changes can be of lower level like the changes in job descriptions of the employees, whereas, there can be major changes like the structural changes within the organization. Macro changes within the organization even involve restructuring of the work process and setting up a new vision for the organization (Cadle, 2008). Changes within an organization can be planned as well as unplanned (Cadle, 2008). The planned change is considered as formal that takes place within an organization and the random change is informal and takes place outside the organization. Planned changes are actually designed by the higher authorities anticipating a change in the environmental conditions or as a result of new opportunities that the organization is facing. The main aim of a planned change is to anticipate a new opportunity in the market and plan out ways for the betterment of the organization (Hall, 2002). In order to bring a planned change, the members of the organization efficiently engage themselves in planning and implementation of the change. However, the random change is exactly opposite to the planned change which does not take place within the organization frequently. This kind of change occurs gradually as the organization faces several challenges that are needed to overcome. Due to the volatility in the business environment, the organizations undergo changes in order to bring in stability within the market conditions (Kontoghiorghes, Awbre and Feurig, 2005). The organizations undergo some technological change in order to make the employees get accustomed with the technological changes and the new innovative products that are emerging in the market. These innovative products are expected to reduce the work load on the employees. However, the researcher believes these changes also have some negative consequences on the organizations (Cadle, 2008). In case the organization sets a new rule for the employees, it sometimes seems that the employees are not happy with the new rule. The new rule may create pressure on the employees and they develop a sense of dissatisfaction with the organization (Langley, et al., 2013). Further, if the organization introduces a new technology to the employees, the employees may have difficulty in accessing the new technology. The organization has to spend a lot of time in training the employees about the new technology. In case the employees are not able to use the technology, it reduces their performance within the organization (Cadle, 2008). Often the change brought within the organization creates a lot of controversy among the employees regarding the proper implementation of the change and its after-effects on the organization’s reputation. Strategies taken by the managers to introduce a management change Figure 1: Steps taken for the organizational change management (Source: Cadle. J, 2008) Most of the organizational changes are planned and they are basically introduced by the management.. Most of the theories are from the perspective of the managers within the organization which consists of an explanation for implementing a change (McIvor and McHugh, 2000). The researcher has considered two models. The first one is by Harold.J.Leavitt where the structure dealt with the authority, communication within the employees and the work relation within the organization (Payne and Frow, 2005). The employees were considered as the players of the organization. The technology was considered as the techniques used by the managers to achieve the goals of the organization. These were the four variables in the model which represented four types of changes (Cadle, 2008). These variables had a strong inter-relationship among them which indicated that in case if a variable changes the other will also change (Sturdy and Grey, 2003). This results in the consequences that if one variable is modified it will lead to a modification of the other variable. Figure 2: Organizational model by H. Leavitt (Source: Tripon and Dodu, 2011) Another model that the researcher has studied is by Kurt Lewin. According to him, the change occurred when the forces within the system underwent some modification (Styhre, 2002). The situation within the system depends on two types of forces that are those that tend to remain constant and the other forces within the system that has the tendency to vary. According to the researcher, there are three processes to the change (Todnem By, 2005). The first stage is that of the unfreezing that involves reducing the forces that ensures the current status within the system. The next phase is that of bringing a proper change within the organization that is developing the organizational structures that would be beneficial for the organization’s growth prospect. The ultimate step is that of the refreezing which involves stabilization of the new change that has been brought within the organization (Todnem By, 2005). Thus the model is helpful to analyse the strategies taken by the managers to introduce a change in the management. Each of the organisations involves changes based on the cultural environment and from the perspective of the stakeholders. The change management comprises of the following steps such as: Planning Preparing for the change and setting the goals to achieve it (Tripon and Dodu, 2011). Defined Governance Establishing the well-planned structures for the organisation and practising the newly designed roles and the responsibilities for the organization that is concerned with the desires of the stakeholders of the organization (Tripon and Dodu, 2011). Leadership by the managers The organisational behaviour is actually controlled by the higher authorities who act as team leaders and control various teams within the organization (Tripon and Dodu, 2011). Inviting Stakeholders The stakeholders are encouraged to participate within the organization for the change initiative taken by the organization. The changes made within the organisation must be shared by the managers with the stakeholders to create awareness and gain some knowledge regarding the change that has taken place (Tripon and Dodu, 2011). The companies use the stakeholder analysis matrix that has been discussed in Appendix 1. Engagement of the workers The workers are to be informed about the change that took place within the organization and the workers should be trained in order to get them used to the change such that they perform well even when a change is initiated within the organization (Tripon and Dodu, 2011). The researcher has conducted this research on the wine producing industry of the US named Constellation Brands which had lost its brand loyalty. The managers within the organization undertook changes in their business strategies by producing low cost quality products and thus could expand its business again. Challenges for the managers during the management of Change Once the managers realise the need for a change within the organization, they face various challenges (Turner and Muller, 2003). The managers have to be extremely efficient in planning and incorporating the change because the change is for the benefit of the organization. The change often creates controversies within the organization and the employees find it difficult to adjust themselves to the change. The leaders within the organization who realise the need for the change and plan to implement them rapidly are able to cope up with the challenges faced during implementation. The organizations which are fast enough in inventing new technologies survive in the changing world (Turner and Muller, 2003). In case the managers are unable to understand the type of change that is to be undertaken within the organization, they fail to succeed in the changing atmosphere. The managers within an organization generally plan for a long term change and they need to set the goals according to the change that is implemented. They need to propose an idea that can change the vital aspects of the organizations such that it can position itself in the new market (Turner and Muller, 2003). Another important aspect for a change management is that of convincing the stakeholders to support the change because the stakeholders are considered to be important for the organizations. Further, the change must also be favourable to the employees otherwise they would lose their self-confidence and fail to perform well. According to the researcher, the managers are expected to deal with these challenges with full efficiency and confidence (Turner and Muller, 2003). They need to design strategies in order to overcome the challenges that the organization faces due to the change that is to be implemented. The managers are needed to take quick decisions that are risk averse and favourable to the organization. The team leaders within the organization are expected to set up teams that are well-trained to meet the challenges due to the organizational change (Turner and Muller, 2003). Further, the employees need to be accustomed with the change, and the customers should also be well informed in case if the change is likely to affect the customers as well. In order to understand the company’s strengths and weaknesses, the managers often undergo SWOT analysis that has been discussed in Appendix 2. Conclusion The research allows the researcher to gain some knowledge regarding the various change management strategies taken by the organization. The efficient and well experienced managers are expected to identify the necessity of a change within an organization and plan for a rapid change. Planning a change takes a longer period of time and hence the managers must encourage the stakeholders to participate in the change management process so as to accelerate the process. The change can have an impact on the cultural work environment of the organization, for example, it is expected to invite controversies among the managers and the employees. It may even pressurise the employees to get accustomed with the change rapidly. The employees may not find the change to be favourable and they lose their dedication towards the work. According to the two theories studied by the researcher, a change can take place anywhere within the organization and the modifications have an impact on the employees and the entire organization. In case the change is favourable, the employees perform well and the organization gains reputation in the market. The researcher has also considered a real life scenario of a company named Constellation Brands is considered as one of the largest wine producing industry in US which started losing its business in the market. The organization undertook strategies like selling their products at lower prices and improving the quality in order to attract the customers. Thus, the company could regain back its position in the market. Reference List Aladwani, A. M., 2001. Change management strategies for successful ERP implementation. Business Process Management Journal, 7(3), pp. 266-275. Baines, A. and Langfield-Smith, K., 2003. Antecedents to management accounting change: a structural equation approach. Accounting, organizations and society, 28(7), pp. 675-698. Burns, J. and Scapens, R. W., 2000. Conceptualizing management accounting change: an institutional framework. Management accounting research, 11(1), pp. 3-25. Cadle.J, 2008. Organizational change management methodology. [pdf] Jones and Barlett Learning:USA. Available at: [Accessed 18 April 2015] Chrusciel, D. and Field, D. W., 2006. Success factors in dealing with significant change in an organization. Business Process Management Journal, 12(4), pp. 503-516. Hall, R., 2002. Enterprise resource planning systems and organizational change: transforming work organization?. Strategic Change, 11(5), pp. 263-270. Kontoghiorghes, C., Awbre, S. M. and Feurig, P. L., 2005. Examining the relationship between learning organization characteristics and change adaptation, innovation, and organizational performance. Human Resource Development Quarterly, 16(2), pp. 185-212. Langley, A., Smallman, C., Tsoukas, H. and Van de Ven, A. H., 2013. Process studies of change in organization and management: unveiling temporality, activity, and flow. Academy of Management Journal, 56(1), pp. 1-13. McIvor, R. and McHugh, M., 2000. Collaborative buyer supplier relations: implications for organization change management. Strategic Change, 9(4), pp. 221-236. Payne, A. and Frow, P., 2005. A strategic framework for customer relationship management. Journal of marketing, 69(4), pp. 167-176. Sturdy, A. and Grey, C., 2003. Beneath and beyond organizational change management: Exploring alternatives. Organization, 10(4), pp. 651-662. Styhre, A., 2002. Non-linear change in organizations: organization change management informed by complexity theory. Leadership & Organization Development Journal, 23(6), pp. 343-351. Todnem By, R., 2005. Organisational change management: A critical review.Journal of Change Management, 5(4), pp. 369-380. Tripon, C. and Dodu, M., 2011. Change management and organizational development. [pdf] Pranctice Hall: New Jersey. Available at [Accessed 18 April 2015] Turner, J. R. and Muller, R., 2003. On the nature of the project as a temporary organization. International Journal of Project Management, 21(1), pp. 1-8. Appendices Appendix 1 Figure 3: Stakeholder Analysis Matrix (Source: Tripon and Dodu, 2011) This matrix indicates how stakeholders of the organization are to be analysed. The managers can categorise the stakeholders from different perspectives so as to encourage them to support the change that is to take place within an organisation. Introducing a change within the organization affects the interests of the stakeholders and therefore the matrix helps the organization in measuring the impact of change on the stakeholders (Tripon and Dodu, 2011). Appendix 2 Figure 4: SWOT Analysis of a company for change management Strengths Weaknesses Efficient Managers. Healthy Work atmosphere. Well trained employees. Frequent controversies among the employees and managers. Unable to get accustomed to the organizational change. Opportunities Threats Organizational change can make the employees highly competitive. The change within the company helps in expanding its business and the company can raise its market share. The change can create pressure on the employees and they may deliver a bad performance. The higher authority within the organization may not find the change to be favourable and may return back to its traditional system. (Source: Tripon and Dodu, 2011) Through the above analysis, the managers try to measure the company’s potential to handle change. It becomes necessary for every organization to carry out this analysis in order to understand whether the change would be beneficial for the company or it would damage the company’s reputation. Read More