Organisational Change Management - Essay Example

Organisational Change Management Part A Section 1 Introduction: Suffolk County Council is known asgovernmental authority situated at Suffolk, England. It is operated by 75 elected county councillors on behalf of 63 division. It is an associate of the East of England Local Government Association.A continuos and rising cost and the huge gap between the revenue and the cost figures has led this organization to curb cost by any mean. Though the authority have an idea for bulk redundancy program, but this method would not help this oeganization to make a bridge between revenue and the cost figure, they have to figure out some other methods to get the desired outcome. Organizational change policies can sufice the solution. What are the underlying and wider case study problems and key issues facing the Suffolk County Council? The Suffolk County Council has not been changed since its inception time, and continued to operate in more or less same manner since then. After recruiting as the new CEO of the SCC, Andrea Hill proposed for certain organizational changes which will lead it to a better horizon in the near future. The underline problem of SCC is the huge gap between its actual cost and the yearly turnover. According to Andrea Hill the organization would not bring extra capital to invest for balancing the gap, but the cost for the service they produce would be out of the hand much sooner. To stand at the safe point, the organization can go for a huge redundancy program, but it would not be enough to pull up the profit figure at the comfort zone. The key issue that the organization is facing now is the wider old system implied through all the organization’s structure. For this reason the day to day expenses are rising with the same pace too. Moreover, they have numerous service verticals which they provide their consumers. Merging or removing any service verticals would harm the organization’s image to the consumers. So, in this context Hill suggests to curb down the demand for their services in two ways that is – stating the root cause of the local and social problem a change for which will be implemented overall and would be acceptable for a longer period of time. On the other hand, building communities by gathering sufficient capital from the people also would help the organization to pull down the costs. Another issue this organization is financial slowdown of the economy which also have been stretched throughout the whole world. This issue is a striking matter for any organization to cut down the unnecessary and extra costs to balance its financial budget and to sustain in this world as longer as possible too. As the organization is operating since 1974, it may be possible to notice a little touch of resistance to change among the present employees. Resistance to change is generally is a major constraint which does not accepts further changes beyond the existing routine work. To sustain in the market and keeping its operation nonstop, an organizational change framework is needed to be implemented. People and their abilities and motivation are one of the main wild cards in business transformations (Laclair and Rao, 2002). Business transformation often involves a change of, or introduction of new elements to, the corporate culture which may lead to a misinterpretation of corporate signals and values, and a shift in power structures, both of which may entail serious constraints to the success of a business transformation unless adequately managed (kotter, 2010). Addressing and managing these human elements through organizational change management therefore forms an integral part of every business transformation. Specifically, change management deals with the people who have to change their ways of working because of a business transformation. It deals with their expectations, their needs, their liabilities, their motivations, their concerns and their resistances. In general, we believe that organizational change management efforts should involve specific interactions, interventions and coaching, as well as broad and personal communication with the aim of aligning executives, involving management, and engaging employees (Drucker, P. F. 1995). Envision: set up a foundation for an effective organizational cahnge management with respect to governance and asset organizational change readiness. Engage: Initiate a definition of a comprehensive communication strategy and performance management that is related to both the particular transformation project team and the organization at large. Transformation: Apply and adopt stakeholder management, communication management, and performance management. Optimize: Receive feedback about the level of success of already implemented interventions. To get a clear idea that what environmental elements are nurturing the organization and leading it right to this position a thorough analysis would be fruitful enough. The environmental issue is based upon two of its hands named, 1) Internal environments and 2) external environment. 1) Internal environment comprises of few elements, that is:- Stake holders, Resources, communication flow through all the hierarchy. Stake holders are known as the employees, the managers and the owners. An organizational change program may reduce the cost either by cutting of some stakeholders from the organizational population or leverage them with the lower pay cheque by keeping the total population intact like before. In both the cases, further recruitment of employees should be put in a hold. The resources also would be modified with the pace of change that the organization is implying. The communication flow would also get affected through the change, as some of the designation can be merged or removed in the organization for costing issues (Pugh, L. 2007) . 2) As per the external environment elements, A PESTEL analysis would be needful to understand the standpoint of the organization. PESTEL stands for, Political, Economical, Social, Technological, And Legal environments. This analysis helps to monitor the macro environmental elements which is related to its operation and organization also gets affected by any movement happens to these elements. According to above said elements economical issue has a greater impact for which a changed framework can be implemented further. This organization is running through a time period when the financial slowdown loomed through the world. As the inflation is more or less high in almost every single country, this organization also could not safeguard its back from it. According to technological environment, this organization surely needs to uproot the old system and implement new technological advancement to pull down the cost. The social environment is positive and has the chance to grow further in the future. Purpose of the report Proposal: Change in organization. 1) Eliminate Underutilized Space, 2) Eliminate Non-Performing Assets, 3) Reduce Energy Costs, 4) Eliminate Non Efficient Processes. Organization of the proposal: This headline comprises of the synopsis of each section in this report. The report is started from a thorough introduction about the case study, finding problems from the bird eye or wide view, and a relevant objective for the change in the framework of the organization. Part B Section 2 Background: Suffolk county council which was established in 1974, formerly it was based upon Suffolk county hall, generally depending upon a old system framework, and also is engaged in entertaining about 1800 people who are the employees of this organization. Currently this organization is facing budget deficiency and planning for cutting off a portion of its total existing employees to meet the budget gap. This organization generally provides services in business and trading standards, Education and learning, environment, Leisure and culture, Public safety, Registration of births, marriages and deaths, Social care, Transport and streets countrywide. Again this organization is facing a problem relating financial slowdown for which it has to keep an eye upon the overall cost of its service providing. Problems finding: The following problems have been found after screening out the case study. 1) The major problem is that this institution needs changes as soon as possible, but the authority is not giving importance on this issue. They are still thinking that the “burning platform” is still standing far enough for a movement to be taken regarding that. 2) The organization has several plans for betterment of its service program, but the implication is still delaying, for which proper and strict changes cannot be applied throughout the whole system. The more this situation continues to be like that, the more impossible it will become regarding changes (Huber. P.G. 1995). 3) The internal people are not much serious about the necessary changes which hardly any organization can hide itself from it or escape from it. These people are resistant to change and are not at all flexible if the total system gets moderated. 4) The organization can make its redundancy plan executed; but by doing this , the cost reduction plan would be effected a little. A redundancy plan would not be enough to reduce the whole cost. 5) The company is too elaborate, too slow, too complex, much closer to a bureaucratic administration, and not has a tendency to change with the time. It should be much leaner, innovative, smaller and cheaper to sustain in this market and to fight against its rising costs. American John P Kotter (b 1947) is a Harvard Business School educator and heading scholar and creator on organizational change administration. Kotter's profoundly respected books 'leading Change' (1995) and the catch up 'The Heart of Change' (2002) portray an accommodating model for understanding and overseeing change. Each one stage recognizes a key rule recognized by Kotter identifying with individuals' reaction and methodology to change, in which individuals see, feel and then change. Kotter's eight stage change model could be summarized as: Increment direness - move individuals to move, make targets genuine and applicable. Manufacture the controlling group - get the right individuals set up with the right passionate duty, and the right blend of aptitudes and levels. Get the vision right - get the group to create a straightforward vision and system, keep tabs on passionate and imaginative angles important to drive administration and proficiency. Impart for purchase in - Involve however many individuals as could reasonably be expected, convey the essentials, basically, and to request and react to individuals' requirements. De-clutter interchanges - make innovation work for you instead of against. Enable activity - Remove snags, empower valuable criticism and heaps of backing from pioneers - remunerate and recognise advancement and accomplishments. Make transient wins - Set points that are not difficult to attain - in chomp size pieces. Reasonable amounts of activities. Complete current stages before beginning new ones. Don't let up - Foster and empower determination and perseverance - progressing change - energize continuous advancement reporting - highlight accomplished and future points of reference. Make change stick - Reinforce the worth of great change by means of recruitment, advancement, new change pioneers. Weave change into society. Identified with Kotter's thoughts, and especially supportive in understanding the weights of change on individuals, and individuals' responses to change, see a definite translation of the particular change handle in John Fisher's model of the methodology of individual change. Findings: Solution Focus 1. Elimination of Non-Performing (Lease) Contracts The whole CRE portfolio is either possessed or rented. Especially in Lease Administration there is an agreeable refinement between performing and non-performing lease contracts. The expenses for every square foot (office space) are a great sign for association's execution. Guarantee that association settles on quality choices on what standard expense for every square foot it need to accomplish for its portfolio. 2. Dispose of Underutilized Space Research has shown that at any given minute an amazing 40% of association's spaces are unused. This is inadmissible and has a tremendous expense investment funds potential. Recognize which space is really utilized and which is most certainly not. Great signs are the degree between Usable Space and Not Usable Space, Office Space and Shared Space + Commons. 3. Actualize a space portion charge back system The point when the association needs to begin sparing on its space expenses guarantee to actualize a space chargeback strategy right away. The point when plan holders are responsible for their space utilization the association will decrease its space inhabitance requires overnight. This likewise serves to dispose of underutilized space. 4. Take out Non-Performing Assets Some of its holdings are mission discriminating. Assuming that we contemplate the HVAC (warming and ventilation in Air condition) establishments, without this it is not conceivable to work in an office building. However some of those establishments are failing to meet expectations while their expenses are gigantic. What an association requirements to know is which specialized administration appeals are connected straightforwardly to a benefit. Also, to think about the specialized and prudent lifecycle, maybe its discriminating establishment is performance as stated by association guidelines and necessities to be traded. 5. No-show Charging All information laborers necessity to meet once in a while to examine about their undertakings, have group gatherings, create systems, and so on. Despite the fact that gatherings are getting to be more virtual a substantial bit of the gatherings are still physical gatherings. No-show is amazingly unmanageable and about 25% of all arranged gatherings are no-shows. This hinders the restricted gathering room limit for different gatherings constraining to contract extra gathering limit or far more atrocious to change over office space to gathering space. To cut expenses right away actualize a no-show charge when wiped out past the point of no return. This has both a positive effect on association's space use and also association's gathering room inhabitance rate. 6. Drop contracts with non-performing suppliers Particularly in the upkeep of its basic possessions association need reliable suppliers. To diminish costs association requirements to have the capacity to measure the amount of specialized administration solicitations to the agreement and SLA. In the event that the supplier doesn't meet the agreement, wipe out the agreement. Again responsibility is key here. Association has necessity to know which possessions cause interferences Organization's essential process and requirement to recognize the causes of intrusions. 7. Execute Virtual Meetings In the course of the most recent five years virtual gathering innovation has leaped forward. Webex, Go to meeting, Saba, Microsoft, and different merchants give phenomenal gathering innovations that can diminish the amount of flights breathtakingly. 8. Decrease Energy Costs Vitality is exorbitant and will get significantly all the more so in the following couple of years. LEED and BREEAM are cases of standard assessment systems which can help the association to recognize its most exorbitant vitality expending structures. Notwithstanding lessening expenses it can enhance associations carbon foot shaped impression. 9. Take out Non Efficient Processes In every association there are various procedures which don't help the association’s business objectives. These wasteful method requirements are to be wiped out from the associations today as they have an extensive expenses way. As an exhortation the association can utilize the 20/80 guideline. By Identifying its twenty most utilized demands then it will have about eighty percent of the procedures. Assuming that the association assesses these procedures it will have the ability to kill the non proficient methodologies. Conclusion: The limitations of the project are: Change Might Not Equal Progress Numerous organizations underscore a society of consistent change. While never being fulfilled by the norm can drive brilliance in your association, there is some knowledge in the old maxim, "Assuming that it ain't broke, don't alter it." Mistaking change for advancement is like the regular issue of confused movement for profit. Each association might be enhanced, regardless of how well it is performing, yet a chief ought to dependably pose the question, "How is this proposed change going to enhance my association's capability to accomplish our key objectives?" Cost-to-Benefit Ratio Change is never free. Changing the oil in your auto requires some serious energy and materials, which require cash. Changing the telephonic framework in organization’s building expenses time, cash and preparing. Each change likewise has chance expense; using your gear plan on new PCs implies you need to hold up to redesign the telephones. Furthermore there are elusive expenses, for example, assurance and client fulfillment throughout the conformity period. Figure out if the expense of a change is exceeded by the profit that change will make. Internal Resistance As stated by an article by organizational change master Garrison Wynn, the main two reasons individuals oppose changes are absence of information about nearing changes and dread of the obscure. You can want some level of imperviousness to any change, regardless of how little or what amount profit it may guarantee. The key instruments for dealing with this issue are finished, fair, and convenient correspondence with your work energy, clear correspondence of the quality of the change, and tolerance with your group as they experience an unavoidable modification stage. Choosing the Wrong Solution Associations regularly start change in light of the fact that they have an issue that needs to be unraveled. In any case its risky to expect you know the underlying driver of an issue and execute an answer rashly. Here and there administration doesn't sufficiently examine the correct reason for an issue, the stakeholders influenced by the result, and potential unintended results of progress. This methodology makes all the expenses of progress without the proposed profit, in addition to it can make issues in ranges that were working appropriately (Basil, D. C. and Cook, C. W. 1974 ). Two of the best instruments for maintaining a strategic distance from this exorbitant slip-up are a "5-why" examination that helps pinpoint the underlying driver of an issue, and Design of Experiments, a factual technique for testing potential results before they are actualized. Recommendations: Recommendation is that organizations conduct scenario/ strategic planning exercises, even if they have already decided that incremental methods will suffice to solve their problems. Shaping and expecting what's to come: At this level, association begin with few suspicions about the business itself, what it is "great" at, and what's to come will be similar to. Re-building (structurally transforming) its process: Re-building keeps tabs on making significant structural progressions to regular with the objective of significantly enhancing gainfulness, productivity, quality or client fulfillment. Incrementally changing process: This issue centering in making a lot of people little changes to existing work forms. Regularly associations invest significant exertion into getting each worker concentrated on making these little changes, frequently with impressive impact. Goal: In view of whatever level one works in, the chances that are discovered requirement to be assessed to figure out which of them best suit the existing and future capacities of the association. Objectives additionally required to be SMART: Specific, measurable, Attainable, Realistic and Time bound Contents Introduction: 1 Part B 5 Section 2 5 Problems finding: 5 Findings: Solution Focus 7 Conclusion: 10 Recommendations: 12 Referencs: 14 Referencs: Shao-Hsi, C, Ying-Fang, S, & Shao-Wen, S 2012, 'THE IMPACT OF COGNITIVE FLEXIBILITY ON RESISTANCE TO ORGANIZATIONAL CHANGE', Social Behavior & Personality: An International Journal Burke. W.W. 2002. Organization Change: Theory and Practice. New York: SAGE Publications  Poole. S. M., Andrew H. Van de Ven. 2004. Handbook of Organizational Change Management, Oxford University Press. Lewis.K.L., 2011. Organizational Change: Creating Change Through Strategic Communication. USA :John Wiley & Sons,. Czarniawska. B. et al 1996. Translating Organizational Change , Berlin:Walter de Gruyter,  Burke. W. W. et al. 2008. Organization Change: A Comprehensive Reader, USA: John Wiley & Sons,  Pasmore. A. W. et al. 2013. 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