Organizational Change Theory - Research Paper Example

? ORGANIZATIONAL CHANGE THEORY goes here] [Your goes here] [Due the paper] Organizational Change Theory As Richards (n.d.) states, “change is important for any organization because, without change, businesses would likely lose their competitive edge and fail to meet the needs” (p. 1). Managers can handle their businesses properly by understanding the theory of organizational change. Organizational change theory is also important for managers because this theory deals with required changes that may occur in an organization due to the influence of various internal and external forces that affect organizational policies, as well as the major functions of management. In this paper, we will explore some key issues related to the theory of organizational change. Importance of Organizational Change Theory By understanding organizational change theory, managers can explore various external and internal forces of change. Two main external factors of change include competitive environment and technological development. Competitive environment is such a factor that forces an organization to ensure development of high quality products to increase customer base, as well as to improve customer satisfaction. Technological development, on the other hand, refers to the use of latest technology to remain competitive in the market. If we talk about the importance of organizational change theory with respect to internal forces of change, we can say that this theory helps managers understand changes in the working atmosphere, changes in employment rules and regulations, and required changes in employee retention strategies. As Rasing (2010) states, “the key to organizational change and development lies in the understanding of people's requirements and work towards it” (p. 1). When managers will have a good understanding of organizational change theory, they will be able to take appropriate steps in accordance with the anticipated changes in internal and external environments. Demands of Organizational Change: From Employers’ Perspective The organizational change theory demands different approaches towards the need for change from both employer and employee perspectives. “Organization change is both critical for managers in terms of effective implementation and for employees in terms of acceptance and engagement” (Avey, Wernsing, & Luthans, 2008, p. 49). From employers’ perspective, the readiness to adapt to ongoing internal and external changes is the biggest thing that organizational change theory demands from employers. Moreover, managers also need to show willingness for organizational changes, as well as for developing strategies for implementing those changes. A higher level of organizational readiness for changes results in more effective implementation of required changes. The reason is that when the level of readiness is high, employers take quick actions to initiate the process of change, as well as display a highly cooperative behavior with all members of the organization. Organizational members need to be committed to towards implementing essential changes to organizational policies and functions in order to maximize the levels of productivity and efficiency. Employers also need to assess the key determinants of change implementation, which include situational factors, task demands, and availability of required resources. These three determinants play a vital role in determining whether an organization is ready to implement required changes or not. Based on assessment, employers develop suitable strategies to put required changes into action. Demands of Organizational Change: From Employees’ Perspective If we talk about the requirements of organizational change from employees’ perspective, we can say that willingness to work according to modified policies and eagerness to get trained accordingly are the biggest requirements. Employees always play a critical role in bringing positive organizational changes. As Avey, Wernsing, and Luthans (2008) states, “one of the most important aspects of positive organizational change is how the employees respond in terms of their attitudes and behaviors” (p. 50). Positive employees having positive emotions and approach towards organizational change facilitate implementation of the required changes. Employees of any organization need to modify their work approaches in accordance with the internal and external changes that their employers may bring in organizational policies and business functions. Moreover, employees need to show their personal involvement and commitment in implementing organizational changes in order to make the change process successful for the organization. Employee involvement not only increases individual role in the implementation of changes but also puts a positive impact on the motivation and dedication of other employees. This collective enthusiasm and motivation helps an organization implement required changes in a more effective manner. Working of Organizational Change Theory Organizational change theory works by forcing managers to change their organizational policies and business functions in accordance with the ongoing changes in the internal and external environments of the business. The theory incorporates the influence of all factors that may have some kind of effect on the development of business policies of an organization. The arising threat of new competitions and technologies make managers modify their approaches towards work in order to cope with new circumstances in an appropriate manner. The theory of organizational change helps managers predict the future conditions of their businesses and bring required changes to their strategies in order to find a balance between the current and forecasted business positions. According to Consador (n.d.), during the process of organizational change, the theory helps managers balance the need to improve current business functions with the need to counter unpredictable events. There are four main steps in the organizational change process. In the first step, managers identify the business functions or policies where some problem may exist. In the next step, they find out the actual change that they need to make along with the barriers that may come in implementing that change. Next, they apply the required changes and decide whether the flow of change will be top-down or bottom-up. In the last step, they evaluate the effectiveness of change by comparing the before-change and after-change business positions. This is the way organizational change theory works to improve the efficiency and productivity of any organization. Benefits of Organizational Change Theory The theory helps managers improve the productivity and efficiency of their businesses by making necessary changes where needed. The theory also helps managers identify the areas where problems may exist, as well as the sources that may have caused those problems. Making right organizational changes at the right time also saves money and time as the company becomes able to follow the pace of technological and climatic changes. Moreover, organizational change theory also helps managers in improving their organizational structures and corporate relationships. Deficiencies in Organizational Change Theory Along with a number of considerable benefits of understanding organizational change theory, there are also some deficiencies related to the use of organizational change models. Some of those deficiencies include lack of proper training of employees, lack of managers’ ability to identify the areas that need some change, and lack of adequate planning regarding implementation of changes. Let us now point out some core deficiencies in some main models of organizational change. Deficiencies in 7-S Model: Changes to all relevant parts need to be made in case of making a change to one particular part. This model of change does not give attention to differences which results in affecting the performance of the company. Deficiencies in Lewin’s Change Model: Lewin’s change model is a very timely model which means that managers need to be very efficient in predicting changes. It can be seen as a deficiency because it may affect the performance of an organization if managers lack the ability to forecast changes at the right time. Quick occurrence of organizational changes sometimes makes employees less effective or less efficient. Deficiencies in Kotter’s Eight Step Change Model: One deficiency is that if managers skip some step thinking it to be of no use, whole process of change shatters. Another deficiency is that this model of change takes a huge amount of time for the complete implementation of changes. Recommendation: After studying the significance of organizational change theory in detail, I would recommend managers to understand and use the organizational change theory as it would help them improve the levels of organizational efficiency and productivity by applying suitable changes to the business functions and strategies which are performing lower than expected. I would also recommend managers to choose the most appropriate organizational change model to keep organizational processes and functions up to date and in line with the external and internal business factors. References Avey, J, Wernsing, T, & Luthans, F. (2008). Can Positive Employees Help Positive Organizational Change?. The Journal of Applied Behavioral Science, 44(1), 48-70. Consador, K. (n.d.). Organizational Change Theory. Retrieved from http://www.ehow.com/about_5389727_organizational-change-theory.html Rasing, M. (2010). Organizational Change and Development. Retrieved from http://ezinearticles.com/?Organizational-­Change-­and-­Development&id=3892833 Richards, L. (n.d.). Why Is Change Important in an Organization?. Retrieved from http://smallbusiness.chron.com/change-important-organization-728.html Read More