Models and Theories of Change Review - Research Paper Example

 Table of Contents Page 1 Abstract 3 2 Introduction 4 3 The Problem 4 4 Literature Review 4 4.1 PEST Model 5 4.2 SWOT Model 5 4.3 The Evolutionary Cycle Model 5 4.4 The Six-Box Model 5 4.5 The 7S model. 6 5 The Critique 6 6 Effects of Change on HR 7 6 Effects of Technology on HR 8 7 Recommendations 8 1 Abstract Walt Disney is undergoing a Change in its busness model with the introduction of a B2C model in the virtual environment. This has been discussed and analysed with five different Change Theories and the conclusion drawn is that it will impact Human Resource policies both due to the Change as well as the Technologies. It has been recommended that the Change should be managed through training of the employees. Moreover adoption of more open and teamwork policies will bring maximum benefits to the company. 2 Introduction Walt Disney’s venture into virtual environment to generate a B2C presence brings about a new business model and requires a refocus of the business vision and mission statement. It broadens the scope and brings forth new challenges, particularly related to Human Relationship Management. It generates new problems that need to be understood and handled with care. 3 The Problem The major issue is the dynamism this will bring in to an otherwise static function of website management. Under B2C environment there will be a need to train the employees to respond to clients in a different way to satisfy their demands and to offer satisfactory support that may be required from time to time. 4 Literature Review The literature review will attempt to cover various models to handle change management as suggested by different writers and will try to find their applicability in the Disney case. A Diagnosis Having decided to change to a new vision and mission statements, the organization faces the crucial stage of managing the change in terms of human resources. However, prior to taking any step in this direction, there is a need for organizational diagnosis, which has been described by Posma and Kok (1999) as being the research of the functioning of an organization. It is argued that such a diagnosis should be done for the whole organization and not just the individual components, as otherwise the larger picture will remain incomplete (Nadler & Tushman 1980). B Diagnostic Models An organization can be examined from different perspectives. There are a number of diagnostic models that provide many different views, emphasizing a variety of aspects, but in the end a complete picture emerges. 4.1 PEST Model. PEST stands for Political, Economic, Socio-Cultural and Technological analysis (Armstrong. M. A 2006). This is essentially composed of external factors that affect a company. Normally, a company has no control over these events and has to adapt itself to these external circumstances (PEST). 4.2 SWOT Model On the other hand, SWOT stands for Strengths, Weaknesses (internal factors), Opportunities and Threats (external factors), all of which are events that can be and are controlled by the organization for optimum results (Dibbs, Simkins, & Lyndon,1996). 4.3 The Evolutionary Cycle Model The Evolutionary Cycle of Competitive Behaviour advocates that change takes place only when one of the competitors come out with an innovation and others follow it and improve upon it until it becomes an industry standard, at which time the cycle ends. The two ends of the cycle are Innovation and Efficiency. Then, with the introduction of another innovation, the cycle recommences. The performance of all players is evaluated vis-à-vis the efficiencies they are able to achieve. 4.4 The Six-Box Model Another model comprises of the Weisbord’s (1978) Six-Box Model. This Model creates six boxes or areas and examines the associations and communications between these six elements of the organization. These are Purpose, Structure, Leadership, Rewards, Help and Relationships. Under this method, a major output or result is examined to determine the satisfaction or dissatisfaction levels of the customers and the bearing these six elements or boxes have had on this output or result. This will point to the need for change for the ultimate satisfaction of the customers. 4.5 The 7S model. The 7S model by Pascale and Athos (1981) actually raises questions in seven areas to arrive at a conclusion for this need or requirement. They are: Strategy, for establishing purpose of the business; Structure, for establishing division of work; Systems, which are various procedures for measurements of performance, communications etc.; Staff, for ascertaining demographics like age, education, ethnicity etc.; Style, for determining behavioural patterns; Shared Values, for ascertaining common goals and objectives; and Skills, for finding out core competencies of individuals. The answers to these questions assist the change managers to assess the needs and set the methods of change. There are other models too but we will apply the above five models to the Disney case to evaluate the impact they have on human relations in the company. The above literature review leads to a logical consequence – the Critique about Diagnosis. 5 The Critique No one concept from the above diagnostic methods is suitable in all cases, and in most, two or more are applied to bring forth a solution that will suit the occasion to solve the problems for which the change was sought. The PEST reveals that, politically, the B2C is an acceptable concept and Economically, the opportunity exists for this growth in the industry. Socio-culturally, the habit going online for business and pleasure is well established and technologically the software and hardware solutions are easily available for this purpose. A SWOT analysis shows that the strength of the company in that it already has a large customer base and a remarkable brand image which will easily strengthen on-line business. On the other hand, the weakness is that it promotes its own culture and is unmindful of cultural diversity. Furthermore, the opportunities are the possibility of getting a larger share of the growing markets by promoting local content, while the threat is from competition which has local flavour and content. The Six-Box and the 7S models point to the inefficiencies due to both the lapses on the part of the management to show any leadership quality and a denial of the opportunities to those skilled workers who could contribute to the company’s efficient workings. This is borne out of the fact that the leadership takes its brand image to be strong enough to ride out any resistance. Hence they employ a lot of part time help during the summer months by way of appointing free apprentices to carry on the extra load of work. This ignores the skills of the permanent workers and erodes value propositions for the newcomers. The result is a callous attitude towards labour and inefficiencies all around. Part of these inefficiencies was being covered by increasing the labour force which in turn adds to the loss. 6 Effects of Change on HR Change is universal, and it is the law of nature that every static thing begins to deteriorate. Organizations too must change to remain vibrant and effective. Over a period of time, the routine, however efficient, becomes monotonous and dull, and hence becomes redundant. “An enterprise’s competitive advantage is developed through improvements in the way it organizes and performs its sourcing, production and distributing activities” (Porter, 1990). Apart from affecting assets, position and price changes, the biggest impact change has is on the role of the human assets of the company, that is, its employees. Therefore, the culture of the company is required to undergo a change to suit the new vision and mission. The culture of the company is a collective way of how it thinks and works and executes its various functions. Human Relationship Management (Armstrong, Michael 2006) is a strategic function of the management, and has drawn many thinkers and writers to bring forth theories of how and why people react under given circumstances and the ways and means of bringing about affinity in the workplace. 7 Effects of Technology on HR Human efficiency has always increased with tools. This is a historical fact. In the knowledge environment too the same rule applies. Dissemination of knowledge and the use of knowledge become more focussed and faster when technological support is available. Today the web has become the core area for acquiring and distribution of knowledge and the knowledge workers, those who work with these tools are indeed more productive than ever before. B2C websites are an interactive mode of marketing activity and the advent of technologies has made it both possible and profitable. These technologies have enhanced the knowledge, output and productivity of those workers who are engaged in it. 8 Recommendations Training is the key to success and Disney should undertake to train its employees to cope with the demands of B2C activities. This will involve both CRM, and data management. It is also recommended that Disney approaches this issue by incorporating a more open communication system and encouraging the employees to work as a team and participate in making suggestions. Indeed their suggestions will be more in tune with requirements as they can feel the pulse of the clients due to the interactive nature of the business mode. Read More