Organizational Change & Change Management - Assignment Example

?Organizational Change & Change Management Briefly discuss Introduction to Organizational Change & Change Management  Organizational Change 1 Definition Organizational change can be defined as: “Organizational Change is a framework for putting new business process in affect, making changes in the structure of organization or employing any cultural change within the organization. A systematic approach to organizational change requires people to learn new sets of skills and behavior.” (McNamara, n.d.) Organizational Change Management can be defined as: “Organizational change management is essentially same as Organizational Change but the only difference is of implementation. The way change is implemented and managed in an organization, such practice is known as organization change management.” (McNamara, n.d.) 1.2 Explanation For every individual, change is always scary. Most of them time, people are afraid if change because they don’t have believe in unseen or anything new. In most of the cases, people feel incompatible with change and always try to shun it. On other hand, in today’s era, many people think that change will cause insecurity for instance if an organization attempts to implement change by adopting new technologies, then employees would be afraid of this change as new technology and software has chances to replace employees. (Turner, 2011) This paper seeks to highlight how organizations manage change and strive hard to become more sustainable after implementing change because the condition of most of the organization becomes vulnerable after applying change. This paper also mentions some methods and techniques by which organizations can cope up in handling change successfully. Organizational change helps an organization in agreeing on a unified vision. Strong level of leadership is required for communicating the vision to each employee of the organization. Change can affect day to day strategies and activities of an organization. Moreover, a concrete plan is required to measure the degree of success of change. Monetary and social rewards are awarded to employees so as to encourage their new responsibilities and roles. (Turner, 2011) 2. Briefly discuss methods & techniques to identify and solve problems and how it would affect after implementing the change.  Change doesn’t happen by change but in fact organizations invest huge amounts in research and development in order to determine if the change is necessary or not. Change comes along with many challenges and problems to tackle. In order to solve those problems, some wide range of applications is required. The most common problems and solution are mentioned in subsequent paragraphs. They include: Problems: Ineffective management of change can cause lower level of job satisfaction and confidence Organizations failing to manage change are four times high at the risk of losing talents Ineffective management of change adversely affect the ability of an organization to attract new talent Just less than half of the total employees feel confident in the change process of the organization Solutions: Organizations require to utilize assessment tools to measure the readiness of change among employees Leaders need to cultivate key behaviors which are required for managing change in an effective manner Leaders need to ensure that employee engagement is very high in the process of change management 3. Discuss how to develop a change strategy by using different types of methods and techniques.  3.1 Change methods in general. Countless techniques, models, theories and tools have been established in order to implement change in organizations in a successful manner. There is no hard and fast rule in implementing a specific theory, method or model because the internal structure, condition, financial position and culture of every organization differ from others. In this regard, it depends upon organization what method or technique is suitable as per the given condition of an organization. Most of the methods have some steps in common. These steps have been extracted from the change procedure as explored by Kotter. Kotter 8 Step Change Model The eight step model as determined by Kotter consists of the following important 8 steps. Most of the other theories are elaborated form of Kotter’s 8 step change model. These steps include: 1. Create Urgency 2. Form a Strong Association 3. Create a Vision for Prospect Change 4. Communicate the Vision throughout the Organization 5. Remove Hurdles/ Barriers 6. Create Short Term Successes 7. Build the Change 8. Infuse the Change in Organizational Culture (Kotter's 8-Step Change Model, n.d.)  3.2 Change Template Before implementing change, every organization conducts some procedures for getting aware of the employee’s perspective. In order to do so, many organizations construct templates and ask their employees to fill that. By doing so, organization get acquainted of the mental, emotional and psychological condition of employee in adapting that change. It also helps organizations in getting aware of the condition of those employees who are highly reluctant in adapting change and in this way organization conducts seminar or one on one meeting with those employees in order to improve their condition and perspective for change. An example of such template has been attached in appendix. 3.3 Organizational culture towards any change procedure.  Organizational culture and change have strong correlation between them. The implementation and preparation of change is very culturally sensitive. If change is implemented without acknowledging its impact on organizational culture, then there are huge chances that change with collide with culture and ultimately both will collapse. An organization must ensure that change is coherent and aligned with the philosophy, beliefs, values and norms of the organization. Change itself is a difficult task to implement, and when it collides with culture, then the survival of that organization can be at stake. Therefore, organization should ensure the coherency and harmony between change and existing culture of the organization. (Mecca, 2004) 3.4 Change techniques that may facilitate the change among and within the organization.  Change Management Techniques There are some simple techniques for managing and implementing change successfully. If there tools and techniques are implemented on a consistent basis, then there are huge chances of making a successful change. These techniques include: Planning Implanting belief Repetition Motivation Honesty Planning refers to determining the resources required for implementing change, identifying risks associated with change, formulating contingency plans for dealing with uncertainties and also acknowledging what needs to be done before executing the change. After the plans are made, people of the organization must understand the fact that why change is necessary? A big picture must be painted so as to let the people know the benefits of this change. Once people/ employees understand the importance of change, they must be motivated to adopt the change. Motivation can be brought by recognition, responsibilities, rewards, advancement, achievement, personal growth etc. Employees must be let know their importance and role in the change process as it will motivate them and they will feel themselves as an integral part of change.at the end, honest communication is required between leader and followers as it will increase support of employees, when they believe what is being told to them is authentic and true. 3.5 Leadership style that must support and adopt the change and how may effect positively or negatively towards the change process.  Impact of Leadership Style on Change Management Leadership always plays an imperative role in implementing change successfully. Without effective leadership, it is not possible to harmonize the change in the organization successfully. Leadership style that is most suitable for change management is Motivational Leadership and Transformational Leadership. Motivational Leadership comes under the head of transformational leadership and transformational leadership is much broader term. Motivational leadership keeps employee in one direction and lets them keep moving in that direction. For implementing this type of leadership, a leader himself needs to be motivated and active. Thinking of desires without taking action is not a part of motivational leadership. (Kezar, 2001) Transformational Leadership is an umbrella which takes motivational leadership under its shades. Transformational leaders are flexible, adaptive, and innovative and possess entrepreneurial skills. Their values lead them and they inspire their followers to follow them which ultimately motivate them. Transformational leaders have the ability to appreciate others, promote creativity and team orientation and honors employees through rewards and recognition. (Kezar, 2001) 3.6 Reaction towards the change process or procedure from the employees.  Reaction of Employee in the Change Process During the process of transformation, employers need to consider the needs of their employees. Good managers always know that needs and responses of employees vary. Both positive and negative feedback must be solicited and employees must be given a role in executing the change. Some common responses of employees during the change process include: Fear Anger Enthusiasm Ambivalence (Travis, n.d) Fear Not just for employees, but for every human fear is a common response to change. However, fear of change for employees can be in terms of job insecurity, pay cuts or demotions and non-satisfaction. Moreover, in such situations some employees believe that they are incapable of making the change. It often hampers their health condition resulting from stress and panic. (Travis, n.d) Anger When changes occur in the status quo, it generally sparks hostility in employees. This anger in employees is often visible and can result in a form of repression, emotional outburst, resignation of an old employee etc. Employees who get angry also start doing backstabbing and gossiping which ruins all the efforts of implementing change. If employees’ anger is mismanaged or ignored, then it often results in destruction of the change process. (Travis, n.d) Enthusiasm Despite of the unpredictable stance of employee in change process, some employees warmly embrace their leader’s change process. The reason for this is that they see this change as an opportunity and a natural next phase in the life of the company. Many employees do understand this fact that change is essential for the survival of companies. Business leaders thereby should encourage and support such employees. Moreover, leaders can delegate important tasks to these employees because they can prove to be helpful in positively influencing the undecided workers. (Travis, n.d) Ambivalence As mentioned above, it is not necessary that response of all the employees towards change is negative. Some employees remain slightly positive or neutral to change. If the leader manages the change process effectively, then this group of employees can participate in new policies and procedures. When employees observe commitment from leaders and management and receive regular notifications from the company, they get more committed because they feel themselves as a part of change process. (Travis, n.d) 3.7 The criteria that must put in place in designing a change strategy.  Change Management Strategy Change management strategy is essentially broken down into three categories. They include: Supporting Culture Situational Awareness Strategy Analysis Supporting Culture Supporting strategy includes: A diagram consisting of all the necessary sponsor association The team structure of change management has been formulated and all the parties agreed upon it. Situational Awareness A brief assessment of characteristics of change has been completed Analysis of organizational attributes have also been conducted An index of groups that will be impacted by this change has been formulated Strategy Analysis Risk assessment has been conducted in a proactive manner Areas where resistance is anticipated have been highlighted Special tactics required for dealing with change have been formulated by the team members In implementing change methodology, formulating a strategy is the most crucial and first step. The strategy helps in providing direction to the company and pre-planned decision making for contingency programs. Change management strategy also helps in formulating change management plans. Each of these change management plans are designed for dealing with any critical situation. 4. Explain how to monitor and control the change process and how it would effect on the final results, this should include the following as sub titles:  4.1 Principles of the control procedure of change  Principles to Control the Procedure of Organizational Change After the change has been implemented, it is very important to measure the performance before change and after change. If there is not much difference, then essentially change has not proven best for this organization. If any deviations arise, then it is essential to control and get back to the track. The process of controlling change management process is very simple. The control process for organizational change includes the following steps: i. Establishing benchmark for measuring performance ii. Measuring the actual performance iii. Comparing actual performance with benchmark performance iv. Taking corrective action For every organization, managers often set benchmark or standards for making it easier to measure the performance. This change is first measured and the intensity of change can be measured by reviewing the actual performance for instance, if a company wants to measure sales growth, then necessary data should be gathered to determine the growth of sales of assuming last 10 years. After that, the actual performance must be measured with the benchmark. In this example, let’s say the company has set the benchmark of sales of $100,000 per month then actual sales must be determined and compared with the benchmark or standard. The last step is to take corrective measures. If the target or benchmark has not been achieved then company should set new plans and tactics for achieving that target all over again. 4.2 Analytical tools to measure the process and the impact of the change and the extent of its suitability and validity.  Before executing change process, it is necessary to ensure whether the change will suit organizations or not. For this reasons, some tools and techniques are required. They include: i. Organizational Enabling Survey This tool is primarily built for culture building and cultural diagnostic. It helps in gaining insights of an organizational culture and also in order to explore and discover what ways are required for supporting and encouraging high performance. In this way, change process can be compared with this tool so as to determine if the change is suitable and valid for the organization or not. ii. Organizational Commitment Diagnostic This tool explored the depth of the organizational commitment of people and provides useful insights that enable the organization to take suitable interventions to enhance the commitment of people in accepting the change. 4.3 Possible strategies to reduce the negative effect of the change process.  Reducing the Negative Effects of Change Process As discussed in a detailed manner earlier, change brings lots of negative effects which include low morale, disruptive work environment and lessened efficiency therefore it is necessary to make appropriate strategies for managing and reducing the negative effects of the change process. 1. From the very beginning, employees must be involved in the change process and must be understand the need of change. 2. Employees must be provided training for their new roles. Employees might feel insecure due to change but they must be provided job description and should be ensured the importance of their new role. 3. Follow-ups must be carried out to ensure that compliance of changes is being implemented. 4. Also informing the clients about the upcoming change so that they also accept the expected outcome. Failure to educate the customers can shrink the size of targeted customers. 4.4 How to conduct a report of the final results of the change and its affects.  The only way to get final results of change from employees is through Assessment Templates. Just like the way, a template is constructed before implementing change similarly after implementing change, assessment forms and templates must be filled by customers so that they can provide their insights about whether the change went successful for not. Other ways through which employees can report effects of change includes: Complaint Box Assessment Form One on one meetings Apart from the above mentioned tools, the most important tool to check the effects of change is by analyzing the financial position of organization. Financial position and change process are directly proportional to each other. Financial position before and after implementing change must be evaluated. If financial position of organization has improved substantially, then it is the most considerable sign that change has proven to be positive. 5. Recommendation  Companies need to consider the needs and responses of employees. There must be a separate cell where employees can discuss about key issues relating to the change process. Management should cooperate with employees as much as they can so as to improve their psychological and behavioral condition. Managers should provide rewards and recognition for the previous efforts of employees in order to let them know that their efforts are still valued. 6 Conclusion Change is the only constant phenomenon. Without implementing change, organizations cannot be successful in such dynamic business environment. This paper has briefly analyzed the change process, tools and techniques required for managing change etc. Organization needs to implant change in any of their business component every other day. For this reason, it is important to be aware of the negative effects of change and all these affects must be handled very carefully. Any mistake can lead to cause of huge time and money. In this regard, organizations invest heavily in research and development to make sure that change will be beneficial and will boost the performance of the organizations. The primary measure of organizational performance is by observing the financial condition of the company. If the financial performance of the organization has improved then eventually the overall performance of the organization will improve. Appendix 3.2 Change Template  Sources which cause Resistance Very Likely 5 Likely 4 Not Sure 3 Unlikely 2 Very Unlikely 1 Loss of Expertise Low tolerance in adapting change Perceived threat to job security Require to learn new skills Shifts in control, authority, influence Shifts in pattern of communication Perceived threat to loss of status Change is customs, habits Limited awareness about change Other Score Works Cited Kezar, A. J., 2001. Understanding and Facilitating Organizational Chnage in 21st Century. ASHE-ERIC Higher Education Report, 28(4), pp. 1-177. Kotter's 8-Step Change Model, n.d.. Mind Tool. [Online] Available at: http://www.mindtools.com/pages/article/newPPM_82.htm [Accessed 12 April 2012]. McNamara, C., n.d.. Organizational Change and Development. [Online] Available at: http://managementhelp.org/organizationalchange/index.htm [Accessed 12 April 2012]. Mecca, T. V., 2004. BASIC CONCEPTS OF ORGANIZATIONAL CHANGE FOR ADMINISTRATIVE LEADERS. [Online] Available at: http://www.pcrest.com/PC/FacDev/2010/FI_reading.htm [Accessed 12 April 2012]. Travis, Eryn. n.d. Employee reactions to Organizational Change. [Online] Available at: http://smallbusiness.chron.com/employee-reactions-organizational-change-17732.html [Accessed 12 April 2012] Turner, D.-M., 2011. Creating an Organizational Change Tool Kit. [Online] Available at: http://www.thinktransition.com/organizational-change-articles/159-creating-an-organizational-change-tool-kit.html [Accessed 12 April 2012]. Read More