Organisational Change at Poma - Research Proposal Example

Organisational Change at Poma Executive Summary The objective of the following report is to demonstrate the range of factors that are likely to affect the implementation of change at Poma, and determine whether the company can reasonably expect to make headway with its evolution through direct engagement with its employees and other stakeholders. The methodology applied in this paper is quantitative. The analysis of secondary literature and online sources has shown that the change management is a key aspect assuring the companies continued success in posterity. In addition, Lewin’s change management model proves that for effective change implementation, employee involvement is inevitable. The analysis concludes that essential for management to lead the change process through setting the trend rather than simply giving instructions. Table of Contents Executive Summary 1 Introduction 4 Methodology 5 Discussion and Analysis 6 Conclusion 14 Recommendations 16 References 17 Introduction The contemporary business community faces a myriad of changes most in various sectors ranging from economic, political, and technological development. These have forced many companies to initiate change accordingly in order to remain competitive and relevant. One of the companies that have been on the forefront of change implementation is Poma; a cable transport company established in 1936. Throughout its extensive history, Poma has developed a reputation for being a reliable partner in the cable transport industry with bases of operations every continent (Poma, n.d). Because of its diversified operative portfolio, this company has had to undergo numerous changes to ensure that, it not only keeps up with the changes taking place across the globe, but also is also always capable of fulfilling the needs of its customers. Despite its determination to remain flexible, Poma has faced numerous handicaps since change is neither easy spontaneous to achieve. Consequently, it is always necessary to make a study of the change process to ensure that all the variables affecting it have been taken into consideration. This paper seeks to consider a wide range of factors that are likely to affect the effective implementation of change at Poma, and determine whether it is possible for this company to continue its evolution through direct engagement with its employees and other stakeholders. Poma is an international company that has to deal with individuals from diverse cultures and this creates a situation where it has to be as flexible as possible in order to ensure that all the changes necessary for its continued progress are effectively implemented. To this end, establishing an understanding of the company position in the global market is essential to provide insight into the context of the study. The information can then be effectively applied to the company’s projected growth plan bearing in mind the particular circumstance under which it functions. Poma’s success strategy has been largely dependent on the initiative bot its managers and other staff. A study of the various means through which the company has been able to create change initiatives and convince all its stakeholders to take part of these changes is necessary to determine how the company is likely to fare in future. The various factors that have brought about change at Poma will be considered in a bid to determine how both internal and external factors have contributed to ensuring that the company changes in such a manner as to increase its influence in the market. Methodology The research for this report was conducted using qualitative methodologies with the intention of gathering both accurate and up to date information (Franklin, 2012), not only accurate but also a reflection of the conditions in the market that the subject had to work within. Through a study of this condition, it became possible to develop an accurate analysis of how the changes took place and how it was managed to guarantee their efficiency within this company. In order to collect data on change management at Poma, it was critical for both primary and secondary sources to be consulted and critically reviewed. This is because it would ensure a better understanding of the manner in which the change process is conducted and how changes are received at all employee levels. Through the collection of data from secondary sources, the results were applied to the process that took place at Poma and guided it to become and remain a global player on the cable transport market for almost eight decades. Furthermore, there was a study of Poma’s website as well as other websites online that discussed this company and all of this information was synthesised according to the reliability of the sources. The secondary sources, consisting of books and journals, were considered more accurate, and were given priority because they provided information that allowed for the development of conclusions based on previous studies made on change management (Moballeghi and Moghaddam, 2008). On the other hand, online sources were moderately used because they did not include information, which was not considered complete since in some cases, names of the authors, and the sources were not present. As a result, the findings in most online sources were only used to supplement information from books and journals rather than as main sources of information. A presentation made by a Poma manager was utilised as a primary source in a bid to enhance the credibility of the research and at the same time to get in-depth information about the company involved. In addition, several change management models were used to show how the change management process could be undertaken. The first was Lewin’s change management model, which allowed for a better perspective of the change process at Poma. Secondly, the situational leadership theory as proposed by Hersey and Blanchard was also used to develop an understanding of how change could be midwifed with minimal interference with the achievement of its mission. The findings that were made from the chosen sources can be regarded as reliable because they provide an in depth analysis of change management that are driven from a leadership and organisational perspective. These findings were vital in ensuring that the report was accurate and giving insight into the changes that have periodically taken place. However, the findings were to some extent limited in their scope since they relied almost exclusively on two primary sources. Owing to time constraints and the company’s website, which was not very reliable because it was self-promotional, it was difficult to form an accurate picture of the company’s history. Discussion and Analysis One of the most important factors that facilitate successful implementation of change in many companies is the recognition that it is not the responsibility of employees to manage change, but rather that of management. This is a key point because it is the management of a company that has to take the initiative to ensure that changes are implemented according to its vision. Over the years, this has been the practice at Poma since it is the management of the company, initiated but and drove changes in various aspects of its transport business to ensure that its effective operations in different environments without losing focus on its mission. According to Phillips (1983), one of the most decisive factors for the successful implementation of change is that it allows management to control the entire process in such a way that it can mould it according to its wishes rather than according to the wishes of other stakeholders. In most cases, when management only initiates but does not take an active role in the change implementation, the initiative will most likely fizzle out. It will fail because employees will not have the guidance that they need to ensure they work achieve the said change. It is the management of the organisation, which has the necessary authority to steer changes, and these tend to be brought about because of the environment both inside and outside the organisation. Since for the most part employees, who are not always involved in the day-to-day decision making process, tend not to know what is happening within the business environment, they are not in a position to propose major changes within the organisation. This task is the onus on the managers as they are the only ones capable of assessing all issues that are taking place both externally and internally and take the necessary action to adapt. Hersey and Blanchard (1969), posit that the situational leadership theory applies to the way that the management of Poma manages change within this organisation, and this is done in a manner that ensures that the former is able to steer all the decisions concerning all major areas of change that are needed. In the first part of this process; the leader or manager informs employees of impending changes, and this allows the latter to mentally prepare for adjustments that might take place in the workplace. Moreover, during the period where employees are informed, it is essential to note that they do not participate in the process of decision making, which is left in the absolute control of management. The second step is that of the giving direction. During this is the core of the process because it is through its guidance that the change process can begin in earnest. Bockerman and Ilmakunnas (2012) state that not only does management take an active part in steering changes through the provision of direction, but is also helps employees to adapt to changes through the provision of moral and emotional support during the transition. This process helps employees to adjust to the new situations without much resistance and helps in the development of trust between them and management. The third step involves management allowing employees to participate in the change process and this is through the latter coming up with ideas and recommendations concerning how best to conduct the process. It allows employees to gain confidence in their abilities to contribute actively to some of the initiatives set by management, thus ensuring less resistance. The final step involves the delegation of responsibility where management gives the groups of employees the tasks of implementing certain aspects of change although management remains the principle decision-maker during the entire process (see figure 1). In this way, the situational leadership theory applies to Poma because, despite it’s having operations across the world and under different conditions, the main decisions concerning change within this organisation come from management. Telling This is communication directly from management to employees without any input from the latter. It defines how employees are going to handle different tasks and why they have to do it. Selling This is the process where management is still providing direction while at the same time initiating a two-way means of communication between itself and employees. This allows management to use its influence to provide emotional support for employees to accept and promote the proposed process. Participating This involves shared decision-making and this is through the direct participation of employees in the process. Management allows employees to make some decisions and largely undertakes the task of maintaining morale. Delegating Management delegates responsibility to employees while still being involved in decision-making. Management further takes a monitoring role in the process to ensure proper implementation. Figure 1 Showing the various steps involved in the situational leadership theory. Management is tasked with the role of providing direction to be followed by employees. While it may delegate some of these responsibilities, it still has to make the final decision. Consequently, despite its far-flung operations, the management of Poma has successfully steered the organisation through many changes over the last eight decades. However, this style of management might be considered risky especially in the modern corporate world where employees expect to be made part of the decision-making process before any changes are instituted. The situational leadership theory still relies on a horizontal structure of authority and decision making which prevents all stakeholders from contributing towards the furthering of the goals of the organisation. This is especially the case in Melançon’s (2007) argument that in the modern world, a significant number of companies has come to favour a horizontal structure where employees are allowed to make contributions towards the achievement of organisational goals. Management in the modern world is more accessible than in retrospective decades and this allows for a rich vertical exchange of ideas. Therefore, a vertical decision making structure, as encouraged by the situational leadership theory, makes it extremely difficult for change to be effectively implemented because there is always a high likelihood of resistance or complications where employees might have great ideas which are disregarded. A consequence of management controlling the entire change process is that it takes place irrespective of the opinions of some stakeholders, which might cause the process to fail. Nonetheless, the situational leadership theory is still efficient because it allows management to have control of the entire change process therefore giving them both power and scope. This way it is able to keep employees focused on the achievements of the company’s mission and reducing the possibility of internal squabbles that might harm its reputation. There are instances where management might feel that it is necessary to impose changes in order to ensure the company is able to remain competitive. According to Kotter (2011) the imposition of changes tend to take place as a result of emergencies where management has to take steps to make sure that the company does not collapse, especially during crises when quick decisions are imperative. However, the imposition of change is often accompanied with myriad of problems, the most critical of which is resistance to change from various levels of employment. This is especially the case in a situation where the company either is undergoing a merger or is going to change ownership. Under such circumstances, it is normally critical for management to ensure that employee are made aware of all decisions that have been made as well as the probable changes that are likely to ensue. If this is not done, there is a possibility that employees are going to resist changes because they will feel that their way of life in the workplace as well as their position within the organisation is likely to change for the worse. Furthermore, there are instances where some managers might go as far as supporting employee resistance or promoting it themselves to ensure their security and this creates a dire situation within the organisation because its activities come to be affected. Therefore, in order to avoid the challenges resulting from blocked lines of communication with employees open, it is essential that management take the initiative to ensure that employees are kept informed of all decisions that are likely to affect them directly. Through such communication, the possibility of resistance is greatly reduced and there is little need to oppose change because employees understand what is at stake. However, communication from management to employees about change is not always enough, especially in a situation where employees feel that changes are being imposed on them without their input. Meisinger (2008) state that the feelings of grievance from employees might result in a situation where they refuse to cooperate with management in the implementation of changes even though it might be useful for to the organisation in the long term. This is where Poma has taken the initiative to ensure that employees are not only made aware of possible of proposed changes, but seminars or workshops are often organised to ensure that these individuals know what is at stake and how they can help in implementing the changes. The ability to steer its employees in the right direction is what allows Poma to be a leader in the cable transport industry because it helps in ensuring that these individuals understand and work actively towards the achievement of the mission of the organisation. Moreover, management training for managers is organised on a regular basis because it has been recognised that these individuals are crucial in the change process because without their contribution, it is most likely that the process will fail. Bakker (2010) states that management training allows managers to be introduced to the proposed changes and made to understand why the changes are essential for the organisation. Furthermore, training makes it possible for managers to learn firsthand how they can help in the steering process of change implementation, and this is in a manner that ensures employees accept them readily. To ignore the contributions of managers and to keep them in the dark concerning change tends to lead to serious problems during implementation because they end up feeling powerless due to their not being called upon to give advice in the decision making process. This is usually bad for morale and if managers lack the motivation to help in the implementation of changes, it is communicated to employees and this creates a situation where the organisation becomes less productive. Tracy, Myers, and Scott (2006) argue that when changes within an organisation are initiated, it is normal for employees to be resistant since changes often take people out of their comfort zones. That the employees will feel aggrieved is a factor that has to be put into account to ensure that steps are taken to hand down changes in a manner that is as gentle as possible. According to Lewin’s (1947) change management model, there are three steps that have to be followed in the process and this is to ensure that there is limited resistance while at the same time making it possible for change to be implemented with the full cooperation of employees. The first step is known as the unfreezing process which involves employees in the decision making process so that they get to understand how the new changes are going to affect them and the reasons behind why it is necessary for these changes to be implemented for their own good and that of the organisation. This process is normally designed to ensure that there is minimal resistance from employees and that they are motivated to support the proposed changes. The second step is known as the transition process, which involves the period where changes are allowed to take effect within the organisation. During this process, according to Gotsill and Natchez (2007), it is essential for management to keep up the motivation of employees and other stakeholders to ensure that they stick to the decisions made concerning the changes and that they continue to support it until it is fully implemented. The transition process is the most crucial period because it is when individuals within the organisation get out of their comfort zones and work towards their feet within the new order. The final step of Lewin’s model is the refreezing process, which is the period where change has been accepted and fully implemented and this in a manner that ensures that it has become a part of the culture of the organisation (See figure 2). During this step, the organisation regains its stability because all employees within it are able to work within a new set of guidelines, which have been fully accepted and become a part of their work environment. Figure 2. Lewin’s Change Model (Source vijeydhinesh.wordpress.com) Lewin’s model has received a lot of publicity in the business world of today’s business world. At Poma, it is used to ensure the successful implementation of change. However, it has been suggested that it is not enough to provide motivation for employees to accept change especially in a situation where the managers do not take an active part in showing them the way. Barnard and Stoll (2010) posit that it is the duty of management to lead the change process by example, and this involves ensuring that managers participate in the proposed changes without expecting exceptional treatment from other employees. This will show employees that they are not alone in the change process and assist them to adapt to the new trends quickly. Motivation is extremely important in the change implementation process because it allows for the development of employee initiatives to adapt to the new environment as stated by management. In a situation where it is difficult for employees to accept change, managers have an obligation to encourage them to be more flexible because this is the only way through which these changes can get an opportunity to work. Moreover, Waddell and Sohal (1998) recognise that employees tend to react in an emotional and illogical manner whenever changes affecting them directly are proposed and this often leads to resistance. This situation can be changed especially through the active participation of managers who should have the capacity to look at changes in a detached manner so that they can logically determine whether the proposed changes are good for the organisation. This way, managers can be in a position to communicate these changes to employees in such a manner that the latter are also able to understand the issues involved and choose to follow the initiatives that have been proposed by management. It is only through the cooperation of all the stakeholders within the organisation that changes can be implemented because it allows for the creation of better means of achieving its mission. Without the cooperation of stakeholders with management, the possibility of failure in change implementation is quite high and this might lead to a crisis from which it might be difficult for the company to recover. Conclusion The discussion above has revealed a wide range of factors that could affect the effective implementation of change at Poma, and determine its growth projectile. Through a direct engagement with its employees and other stakeholders. The methodology that has been used is quantitative where an analysis of secondary literature as well as online sources has shown that the management of change is an important aspect of ensuring that the company remains successful. The analysis has shown, through the application of the situational leadership theory that among the most important factors for facilitating change is competent and change oriented management. The paper concludes that management of change is not the responsibility of employees but rather that of management. It is management that should give guidance on all the directions that are to be followed by employees and while it may delegate some of these responsibilities; it still makes the final decision. The discussion has recognised that there are instances where management might feel that it is necessary to impose changes in order to ensure that the company is able to remain competitive. Despite this, communication from management to employees about change is not happen often enough. Consequently, employees feel that changes are being imposed on them without their input. In addition, Lewin’s change management model has been used to show that changes have to be implemented with employees mind because they are a critical part of the process. That the employees might end up feeling aggrieved must be put into account to ensure that steps are taken to hand down changes in a manner that is as gentle as possible. Finally, the analysis has shown that is it essential for management to lead the change process by setting a trend for their subordinates. This process involves ensuring that managers participate in the changes that have been proposed without exemptions so that they can motivate employee to do the same. Therefore, changes have to be implemented carefully and with great patience to make sure that all stakeholders are onboard and that they continue to support the changes until such a time as they have become a basic part of the culture of the organisation, hence a step closer to its achieving its objectives. Recommendations Before developing change initiatives, management should ensure that is has a long-term strategic objective for the company so that, when changes are made, they advance the achievement of these objectives. It is essential for management to create forums and open communication between all levels of employment within the organisation to help in the communication and understanding of the different changes that have been or might be proposed. There should always be a committee including representatives from all stakeholders in the organisation to assess the changes that have taken place within the organisation as well as their effectiveness. Despite the importance of management steering the change process, it should delegate responsibility as much as possible to ensure that other employees also feel like active participants in the process. The delegation of responsibility will ensure that all proposed changes are taken into account by employees and gain wide acceptance. 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