Nature of Change Management and Theories and Models - Term Paper Example

MANAGEMENT THEORY & PRACTICE Contents Sr.# Topic Pg Introduction 2 2. Nature of Change Management 3 3. Theories and Models 5 4. Conclusion 7 References 9 Tables and Figures 10 1. Introduction “It must be considered that there is nothing more difficult to carry out, nor more doubtful of success, nor more dangerous to handle, than to initiate a new order of things” – Niccolo Machiavelli Change has been one of the most frequently studied and researched topics for several decades. Philosophies, theories, techniques and models associated with “change” and “change management” exist in abundance, all of which strive, with varying degrees of reliability and success to offer meaningful insights into the means and modes of achieving sustainable organizational development. Organizations as well as managers are often confronted with highly dynamic and multifaceted operating environments. These challenges may include a range of factors such as sudden change in technologies, making the existing ones obsolete; or the launch of new innovative product ideas; or the change in customer’s tastes and preferences on account of change in the external global environment. While on one hand, organizations and managers, congregate with the markets in which they operate, to deal with such revolutionary transformations, there is on the other hand, an increasing sense of realization which indicates the need for adoption of a holistic approach for marketing of their products in order to cope with the market demand. All this combined with the universal capability to imitate both hard as well as soft innovations within the rapidly shrink time frame, places the ability of effectively adapting to the changing market demands, at the top of the “must have core competencies list”. The 21st century internet age which is ably sustained by a well integrated business infrastructure for marketing of their products, complete with state of the art technologies and an effective supply chain network, change is here to stay. This new “e-world” in the electronic age, is highly fragile which has no place for preset plans, or predefined change management techniques, and wherein age old conventions and set rules are continuously being challenged and threatened. It is hence imperative for organizations to adapt themselves to the dynamic external environment in order to sustain their competitive positioning in the industry and retain their hold on the markets as well as their consumers. Although almost all organizations have a proactive approach towards change, with detailed and precise mission and vision statements and future goals that determine their prospective aims, these organizations often react on the basis of the challenges faced by them as a result of the ever changing external environment. Hence in my view, change is more often than not, a reactive response to an organization’s operating environment rather than a predetermined effort to safeguard its vision of a shared future. 2. Nature of Change Management: Change Management can be defined as: "a systematic approach to dealing with change, both from the perspective of an organization and on the individual level" (Maruca, 2007, Pp. 64). Change management can be both reactive as well as ‘proactive’. In the case of the reactive approach to change management the change usually takes place on account of a change in the external environment or the macro environment, while in case of the proactive approach, change occurs as a result of a preplanned and well defined management initiative, in pursuit of a common organizational goal. Change, however, need not be forced or as a reaction to a change in the environment, external or otherwise, it may be carried out on a continuous basis, or in accordance with the management plan, as and when desired. It can hence, be identified and administered as a proactive initiative or executed as a reactive response. Advocates of proactive approach towards change management may argue that one of the greatest benefits of reacting proactively towards change is that it provides more flexibility to the organizations in managing their resources and dealing with unforeseen situations. However, advanced planning may not help when situations are unforeseen, since predicting the future trends is a rather difficult task. For instance, with the rising awareness regarding global warming the customers tastes and preferences took a major turn. Several automobile companies had to adjust to such a drastic change in customers tastes and preferences and no amount of forethought or planning could have helped in adjusting to such a sudden turn of events. The swiftness with which change that is taking place in the organizational environment, i.e., social, political and / or economic environments is causing a significant impact on not only the organizations but individuals (here, it refers to managers) as well. Although, change has always co-existed with human existence, the rate at which it is taking place has increased significantly in the past couple of decades, with revolutionary transformations on the technological front. According to Harigopal (2006): “…most of all the developments that we see now, have occurred over the span of a hundred years - and these developments are likely to be accelerated in the new millennium” (Harigopal, 2006). Lawler (1986) argued that: "….planned change is not impossible, but it is often difficult. The key point is that change is an ongoing process, and it is incorrect to think that visionary end state can be reached in a highly programmed way" (Paton, McCalman, 2008, Pp. 9) 3. Theoretical Perspectives and Models Organizations must try to adapt to the changing environment, since those that choose to ignore or resist such change, more often than not, tend to perish. In order to survive such highly volatile environment, it is essential for organizations to develop robust management strategies that can most realistically adapt to the changed environment, and sustain their competitive standing in the industry. Drucker (1997: 20 - 4) argues that: "Increasingly a winning strategy will require information about events and conditions outside the institution ... Only with this information can a business ... prepare for new changes and challenges arising from sudden shifts in the world economy and in the nature and content of knowledge itself" Bamford and Forrester (2003) agree stating that "a realistic approach to change must take into account multiple and varied forces" (McCalman, Paton, 2008). Several authors in the past have severely criticized the proactive approach to change management, since in their view, the external environment is highly dynamic and nothing can prepare the organizations to predict and hence cope with such rapidly changing environment (Dawson, 1994; Dunphy and Stace, 1993; Harris, 1985; Miller and Friesen, 1984; Schein, 1985). One of the greatest challenges to initiating and executing change is identifying, developing and implementing a conventional, controllable process that can be followed in order to accomplish the desired organizational goals. Bullock and Battens Phases of Planned Change R.J. Bullock and D. Batten developed their ideas from project management and they propose the use of four key factors i.e., explore, plan, implement, and incorporate for planned change to succeed. Exploration occurs when managers substantiate the necessity for change and obtain necessary resources required for it. Such resources include both physical as well as mental, for instance, capital required adapting to the change, or the skills and expertise of the management staff. Once the necessary resources have been acquired, the next logical step is planning which involves developing of a specific map that serves as a guide for the management to deal with prospective changes. Action, indicates the actual implementation of the plan, and must involve adequate arrangements for feedback which can later on be used for improvising the plan, if and when need be. Once the action has been initiated, the next step involves integrating the changes made, and aligning the same with the overall organizational objectives and goals (Bullock, Batten, 1985). Kotters Eight Steps John P. Kotter developed an eight step approach which every organization must adopt and implement for successful change management. These include: creating a sense of sense of urgency; form an influential guiding alliance; build a clear vision and strategy; communicate the vision; authorize others involved to take action on the vision so developed; facilitate short-term wins; merge progresses achieved so far and instigate further change; and institutionalize the new approach (i.e., adopt and integrate the same to be a part of the organizational culture). 4. Conclusion McCalmon and Paton (2008) have rightly described “Change” as one of the few constants of recorded history. And only those organizations which have managed to adapt to the dynamic environment and exploit the changing environment, have truly succeeded to stay afloat and the same goes for nations as well. What strikes as the most common aspect among all the success stories that history has to offer, is the ability of those groups or organizations to adapt to change, be it on the technological front or in terms of economic, political, social or environmental change. History bears testimony to the achievement and domination of such organizations, which include Toyota (for bringing about a revolutionary product called the Prius, a hybrid environmentally friendly car, launched amidst the hype surrounding environmental degradation and global warming) or Coca Cola (for launching diet sodas, a simple yet rare innovation that threw most of its competitors out of the industry). Examples such as these, further assert the belief that rather change is primarily a reactive response, it responds to the demands of the environment that surrounds it, rather than an act of a forethought or preplanned initiative. It is indeed true that, change must be a result of a thorough and systematically planned approach, but it is primarily a reactive response to a crisis in the organization’s operating environment, and beyond. Hence, if managed appropriately, it may lead to the overall growth and development within an organization, thereby helping in achieving its desired goals and visions. References: Bullock, R.J., and D. Batten (1985). Its Just a Phase Were Going Through: Group and Organizational Studies, Pp. 383–412. Harigopal, K., (2006). Management of Organizational Change: Leveraging Transformation, SAGE Publications, Pp. 19 – 20 Kotter, John P. Leading Change (1996). Boston: Harvard Business School Press Lorenzi, N. M., Riley, R. T., (2004). Managing Technological Change: Organizational Aspects of Health Informatics, Springer, Pp. 115 Maruca, R. F., (2007). The Way We Work: An Encyclopedia of Business Culture, Greenwood Publishing Group, Pp. 64 Paton, R., McCalman, J., (2008). Change Management: A Guide to Effective Implementation, SAGE Publications, Pp. 5 – 7 Figure 1: Table illustrating proactive and reactive approaches to change management Source: Lorenzi, N. M., Riley, R. T., (2004). Managing Technological Change: Organizational Aspects of Health Informatics, Springer, Pp. 115 Read More