Organisational Change Management - Essay Example

?Organisational Change Management Introduction Any organisation or firm that does not accept change advances towards its own peril. Change is considered to be the approach of shifting from the present condition to another condition, which is for the betterment of the organisation. The objective behind every change is to eliminate the barriers and escalate the benefits (Paton, and McCalman, 2000; Clegg, Kornberger, and Pitsis, 2005). This study is based on the theme of management of change in organisation, taking into account the challenges that the change agents face while proceeding with the process. The objective of this study would be to utilise the 5D framework in order to evaluate the planned and unplanned challenges that can be seen in organisations, while conducting this change process. Further, concepts like why, how, and what of change process would be studied, and different types of change would be scrutinised in order to analyse the case study of D2, an auto component manufacturing company. Apart from this the crucial role of leadership in this framework would be also discussed. The 5D model is also known as the Appreciative Inquiry (AI) framework, which is mainly a organisational development system that focuses on enhancing the positive activities of an organisation by eliminating the negative or poor ones (Flamholtz, and Randle, 2008). In this study the AI method would be used to process the change framework for D2, which want to manage its operational functions and control cost due to financial crisis around the world. D2 has two factors, one at Blois in France and another at Didcot, UK. The factory at Blois has advanced technology and manufacturing equipments. It has better production capacity and not working up to its capacity, so the management of the company want to shift their production function to Blois factory, while the plant of UK would be closed (Alvesson, 2002). This is because the factory at UK has outdated machinery and technology. However, the management have not informed the employees handling these factories. Situations like these are common in organisation which is planning for change. Closure of the factory in UK will cause redundancies in large scale and there will be less scope for the employees of this factory to be reemployed at the plants in Spain and France. These are the challenges that the organisation face when they do not plan their change program (Flamholtz, and Randle, 2008). Generally it has been noticed that the flawed decisions of the management are responsible for creation of such barriers. However, in case of this study, the change process would be viewed from the perspective of 5D AI method. The AI method comprises of 5D, namely, 1) Define, 2) Discover, 3) Dream, 4) Design, and 5) Deliver. However, before discussing the case study of D2, the basis of AI model has to be understood, so that the readers can understand how this model would be useful in meeting the objectives of the study. The model of AI is based on the hypothesis that the question that is generally asked by someone, focus towards a particular direction (Armenakis, and Harris, 2009). Other methods evaluate and assess the situation and propose solutions on the basis of the deficiency model. Generally it has been noticed that changes and other prerequisites related to changes are seen as a challenge in the deficiency model, while AI model consider it as a deficiency and it takes an alternative approach (Bauer, 2011; Barry, 1997). Through this process change becomes easy and all the members in the organisation gets motivated and also understand the importance of change and value that it might add. Appreciative Inquiry AI approach in change management is different from simple problem solving method. Problem solving begins with the identification of the problem, while this model begins with appreciation, and identifying the best things in the system. Problem solving analysis the cause of the problem, which AI envisions what should have been the cases, which reveals a positive attitude again. Problem solving involves identification of the solution and implementation of the solution through an action plan, but AI simply involves discussion, dialogue with employees, and innovating ideas (Wallis, 2004). The method which D2 undertook was a problem solving approach. However, as the situation predicts the company is bound to face severe resistance if it follows the discussed path for change because no where are the employees involved in this decision making (Beer, Eisenstat, and Spector, 1988). Keeping in mind the implications of AI, now the focus of the discussion would be shifted towards the 5D model of AI. Define The first step of the 5D model is defining the area of study and inquiry. The fundamental concept on which AI functions depend is that the focus should be on the positive aspect of the inquiry. In this case the positive aspect is that D2 has options through which it can eliminate unnecessary cost and face the financial crunch, unlike other companies. It has a factory which has the capability to produce more through its latest technology and machinery. These are the qualities of the company that will guide the organisation towards formulation of interview questions that would assist in conducting a discussion in the next phase. Generally three to five areas of inquiry are considered for formulation of interview questions and discussion. In this case the questions can be on increasing productivity, optimum utilisation of available resources, allocation of human resource in the right place, teamwork, etc. However, this phase can be only considered as complete for D2, when the management in the organisation develop a planning group which has an apparent agreement on the issues or ideas that the company want to flourish (Hamel, and Prahalad, 1994; Kay, 1993). In this context the theory of Kurt Lewin can be proposed. There are three steps in Lewin Change model, namely unfreeze, change and refreeze. Unfreeze is the first step, which signifies that the organisation should be prepared for the change first. In order to prepare the organisation for change successfully, the core beliefs and attitudes need to be challenged first. D2’s management will have to motivate their workforce to shift from their comfort zone towards change for the betterment. The same function is also undertaken in the first step of the 5D model. The next step is change, which signifies the actual transformation and the third step is refreeze. Refreeze stabilises the organisational status by adding balance or equilibrium. Discover The second phase in the D5 framework is discovery, which is considered as the lifeblood of change management approach. In this phase interview is conducted for identifying what are the elements that acts as lifeblood for the organisation, which means to consider the strategies and business model during the time the organisation have performed the best. The management should enquire about the hidden success stories within the factories of D2 in UK as well as in France to identify he life forces that the worker remember as good memories and also draw examples from (Oreg, 2003). Stories of extraordinary accomplishments such as technological advancement, leadership inspiration, relationship, loyalty that assisted in successful completion of complex projects are noted down and discussed. In this case, D2 should inspire its employees to discuss about their leaders and how their leaders in the factory inspired them to solve complex problems, and face challenges in turbulent situations. Even the success stories of the employees would be discussed both the factories, especially in UK factory. An example of the interview questions that might be asked to the factory workers in D2 factory is, when was the time you felt proud of your company? Or tell me your favourite success story in this organisation. In this stage the leadership theories can be discussed because the employees can be only motivated towards change when they are reminded the motivational stories of their leaders. The leaders in factory of UK should be trained and explained the concept of path-goal theory. Path goal theory explains that a good leader is one who listens to his subordinates and understands their issue to identify solutions. The stories of transformational leaders within the organisation should be referred to motivate the employees. Dream The third phase of the AI is dream, which means the objective or vision of the company, which they want to achieve through the change process. For example in case of D2 the dream is to eliminate cost and utilise the best resources, while discard the obsolete technology and equipments. The participants in this phase are requested to confront the status quo by eliminating the preferred future, and presenting the reality before them. Here the workers, who are the participants of the Dream phase, should be asked to confront their status quo, and put in a positive effort to identify the guiding path that would lead them towards their dream, which is combined with the organisational goals and objectives (Sadgrove, 2005). Proactive propositions are the shared visions that decide the future of the organisation. However, the proactive propositions are decided at the macro levels, which mean that the propositions considered by the group are at a broad level. For example, the organisation should be segregated in term of its operation in France and UK, but it should be considered one and it is dedicated towards serving both the external and internal customers in all its production sites. In this context, Kotter change model can be discussed. However, in this stage the discussion would be on Kotter’s take on the managers and their dreams or objectives because the managers are responsible for making the employees live the dreams of the organisation. Managers should have predictability, stable performance, order and consistency. Then only they can achieve short-term results, and present zero deviations from the objective. Design Design is the fourth phase of the AI model, which is useful in development of shared images of the future that has been preferred and put forward by every group member. The proactive proposition which has been discussed in the previous phase would be discussed, examined and then framed at micro level in details. A three dimensional model would be prepared and both the design and dream phase would be fitted in order to create images for future. This is because in reality, dreams can be only given shape through proper framework or design, so both these phase have to go hand in hand. In case of D2, the dream that has been stated by the workers of UK factory after confronting the present status of the factory and productivity would be put forward along with the available options. In this context, the socio components and technical systems are also examined. In case of D2 UK factory, technology and equipment are not up to the mark, which are off course affecting the productivity of the factory. In manufacturing organisations, technology and technical components needs to be considered in the transformation process. Also the management has to consider the type of leadership that is required in such situations, and what should be the behaviour of the organisational leaders in such situation. All these factors in this phase will assist the management to make the dream come true (Eaton, 2010). In this stage the eight step change process by Kotter can be discussed. The stages of this model includes generating urgency, forming a powerful coalition, developing vision, communicating it to the workforce at all levels, removing the hindrance, achieving short-term goals, properly structuring the change process and finally linking those achievements to the corporate culture. Downsizing will also not provide D2 the results that they want to achieve because human resource generates revenue and there are many other drivers of cost than just payroll expense. Following a chain of systematic steps as discussed in Kotter’s model would engender the desire outcome. In this context the leadership theories would also assist the management to guide the employees through each stage of change. Deliver Delivering the dream is also sometimes considered as the destiny phase. This is the last of the five Ds, and it is the implementation phase. Successful delivery of the proposed plans ensures fulfilling the dream or vision of the organisation. The motive of D2‘s management was not closure of UK’s plant, but the dream was to survive by eliminating excessive cost of maintaining the low productive plants. The plant at UK had outdated machinery, and technology, which were increasing the operational cost of the company in comparison to its profit. So the decision of increase of productivity of the factory at France was the right decision because the factory at France was well equipped with latest technology supported machinery. Moreover, the factory is underutilised, so it has the capability to produce much more. Now closure of the plant at UK would be considered as a drastic step for the employees because they would lose their jobs. In this context it can be said that employees at the UK plant should be equally appointed at the D2 plant sites, such as in France, Spain and other places. The employees would be explained and discussed the reasons of such closure, and the growth prospect for them would be discussed considering their new workplace. Employees would be reluctant to relocate, but they need to be motivated and all their quarries should be discussed in a brainstorming session in which everyone will have an opportunity to place their opinion, so that nothing is hidden from them. The present job market in UK is not encouraging, so if the employees are explained the positive aspects of relocation then they would surely understand the importance of having a job rather than being unemployed. However, downsizing is not the solution for a change process in organisation. Recession is also a phase of the business cycle, which will soon shift to boom, but at that time human resource, would be really costly, and hiring would be costly task (Eaton, 2010). The change process of D2 has been discussed in detail with the help of AI method, which is also called the 5D model. However, after from 5Ds there is an important element that has a major role to play in organisational change management that is leadership. The 5D model mainly depends on the attitude and behaviour of the leaders in the company because the entire process of defining the problem, discovering best solutions, dream about the right scenario, designing provocative proposition, and delivering the vision or dream cannot happen without effective leadership. The senior managers of D2 know about the decision of the management, but the employees are not told about the decision. This is the first mistake which the leaders of D2 have made, because the people for whom this decision is vital and not included in the discussion. This shows the incompetence of leaders, and also their autocratic nature. However, autocratic form of leadership does not go well with AI method because the AI method is all about identifying solutions for organisational change by highlighting the positive aspect. Leaders following the AI method for change, consider the process of transformation as change for good, rather than change to survive. Another important aspect that is also associated with organisational change is the challenges that organisational leaders face during the process (Wallis, 2004). Challenges are faced during unplanned as well as planned change. It is a wrong notion that leaders do not face challenge if they go for plan change in their organisation. Firstly, resistance from employees even before the change process is implemented is a major challenge in both cases. Even in D2 the leaders will face the resistance when they will disclose their decisions to the employees. The leaders in the organisation have a critical role to play in this situation, as they need to prepare the people of D2 UK plant for the change. In case of unplanned change, the leaders do not have a step wise strategy to deliver the change process. To some extent the change decisions of D2 is an example of an unplanned change. During the change process leaders will faces complex situations, where they might face hindrance. For example the employees at France or Spain might resist accepting employees from UK plant, and work with them. If the company plans to relocate the employees then they need to be provided the due facilities to those human resource too, which the company should consider in to their relocation cost. However, these challenges cannot be eliminated by leaders alone, as they need to consider at organisational level, team level, and individual level. At individual level, the employees need to participate in the change process, rather than resisting it. They should assist the leaders to make change a positive process, rather than negative such as downsizing. At team level, the employees need to discover the success stories, and ascertain visions, so as to identify solutions for achieving such visions. Teams in UK plant of D2 can take up responsibility to identify solution for different issues. Employees in the plant can even come up with excellent ideas to revive the plant at UK, rather than relocating, without increasing the cost further. This might drive the management to change their decision of closing the UK plant. At organisation level the leaders will have to monitor and control the change process. They are also responsible for motivating the teams and individuals for identifying solution for the problem that the management is facing, and not because they might be laid-off. It has been understood through this study that organisation change is off course is difficult but not impossible. The though-process, human resource, architecture, and capabilities should be streamlined in order to accomplish the impossible. This trait is called leverage and connectivity. These are the two major dimensions of achieving successful change in the organisation (Carnell, 2007). References Alvesson, M., 2002. Understanding organisational culture. California: SAGE. Armenakis, A., and Harris, S., 2009. Reflections: Our journey in organizational change research and practice. Journal of change management, 9(2), p. 127–142. Barry, D., 1997. Telling changes: From native family therapy to organizational change and development. Journal of organizational change management, 10(1), p. 30-46. Bauer, T., 2011. Organizational change. [Online] Available at: [Accessed 16 May 2013]. Beer, M., Eisenstat, R., and Spector, B., 1988. The critical path to corporate renewal. 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Paton, R. A. and McCalman, J., 2000. Change management: A guide to effective implementation. 2nd ed., London: SAGE publications ltd. Sadgrove, K., 2005. The complete guide to business risk management. Farnham: Gower Publishing Ltd. Wallis, C., 2004. The new science of happiness. Time magazine, [online] Available at: [Accessed 16 May 2013]. Read More