Models of Change - SWOT Analysis of Piecemeal Model and DADs Workplace Change - Case Study Example

Running head: Models of Change Models of Change [Name of Students] [Course] [Tutor] [Date of Submission] Models of Change Introduction Changes in organisations happen all the time and above all these changes are commonly evolutionary or gradual improvements and incremental steps to change part of the larger system (Burke 2010, p.78). For this reason, models of workplace changes were developed such as John Storey’s five models of change that represents different ways by which changes can occur in a particular workplace. The first section contains the description of real-life organisation selected as an example of workplace change. This workplace which is located in Thailand is the core of the recent case study conducted by Chaiwat Riratanaphong & Theo van der Voordt which was presented in the 10th EuroFM Research in Vienna, Austria in early 2011. After a careful analysis of the case study, the workplace change can be best described as Piecemeal as there is flexibility, shared ownership of ideas, open communication, attempt to create quality circles, reactive and incremental response to circumstances as they develop. To evaluate and justify the most relevant model that best describe the workplace change, SWOT or Strengths, Weaknesses, Opportunities, and Threat provides the opportunity to systematically analyse the different aspects of change as it occur in the example workplace. Discussion on the applicability of the selected model is presented in the final section including potential implications of the arguments presented in response to the essay question. Example Workplace Change The example workplace is Dhanarak Asset Development Company Limited or DAD which before the change was sharing its workplace with the Thailand government’s Ministry of Finance’s Treasury Department. The workplace was perceived as crowded, not conducive to productivity, and tending to cause bad working conditions for their employees. With increasing demand for office space, growing number of employees, and timely completion of Bangkok Government Complex, DAD management took the opportunity to move to one of the buildings of the complex. The change started when management decided to separate the policy, administration, business development, and marketing and finance departments (in the first building) from the operations department which will occupy the second building. The office was then re-arranged by functions and job titles where high ranking employees occupy cellular type offices while ordinary employees work in partitioned spaces. Meeting rooms of different size are strategically places in several locations while the remaining vacant spaces are reserved for future use. The Relevant Model Implementing a new working environment by rearranging or acquiring a new office have been considered by some organisations in response to organisational change such as growth, better business opportunities, cost reduction, maximizing efficiency, sensitivity to employee satisfaction, and increasing productivity (Riratanaphong & van der Voordt, 2011, p.2). There is therefore a relationship between workplace change and employee satisfaction and perceived labour productivity. The result of the study suggests that most employees appreciate the functionality and comfort of the workplace, opportunities to communicate, lighting in their new offices, and the accessibility of the office new locations. However, majority are dissatisfied with the indoor ambience, ICT and its corresponding services, openness and transparency, and the lack of opportunity to focus on their work because of the semi-open layout of offices allowing employees to socialize with their co-employees. Similarly, remote working is less appreciated while perception of the new environment supporting added productivity is lower than expected (Riratanaphong & van der Voordt, 2011, p.7). The case study demonstrates the different relationship between workplace change and employee satisfaction, productivity, and priorities at work as affected by the new environment. The organisational life cycle is one factor that contributed to these changes as the increasing number of employees and demand for space requires DAD management to re-structure and reconsider its standard procedures and practices in order to cope with its rapidly escalating responsibilities (Riratanaphong & van der Voordt, 2011, p.11). In other words, there was a need of order and stability, cost reduction and demand for space for new business activities. The study reveals the management’s weak uncertainty avoidance index suggesting that DAD’s top executives were more concern with strategy, less-rule oriented and likely to make decisions rather than ensuring rules and procedures are followed. The proximity of operation department to the other departments suggest the support of management for efficient communication as evidenced by the similar arrangement or the adjacency between high ranking and ordinary employees and consideration given to the subdivision of the buildings an important part of the work environment. In addition, employees themselves showed significant support to openness and transparency as evidenced by the low level satisfaction result on remote working (Riratanaphong & van der Voordt, 2011, p.11).. These clearly indicate that aside from significant interplay between the organisation’s essential parts, there is flexibility, open communication, and attempt to create a quality circle among employees and staff through semi-open office layout. Moreover, the high value of indexes for the five key dimensions of culture (Power Distance- 25, Individualism-100, Masculinity-83, Uncertainty Avoidance – 6, Long-term orientation -38) generally suggest that management is decisive and aggressive while subordinates are willing to get involve rather being told of what they should do (Riratanaphong & van der Voordt, 2011, p.11). Piecemeal Model: Theoretical Foundation The main difference between Piecemeal and Top-Down/Systematic model is the latter’s interest in adhering to the planned approach and imposition of established HRM solutions rather than developing new initiatives in the organization at a time. According to Needham (1999), top management using a Top-Down/Systematic approach has a clear vision and carefully designed approach to manage change but if this vision failed to reach or clearly communicated to its stakeholders, commitment to change is weak if not totally rejected. Similarly, managing change in a piecemeal way can create contrasting practices since too many people are involved (p.246). A Top-Down/Systematic change management primarily drive managers to work outside the negotiating machinery and away from opportunistic means of introducing change (Preece et al. 1999, p.76). In contrast, as DAD management did, Piecemeal change management is reactive and respond to circumstances as they occur (Griffin 2007, p.192). The Piecemeal model was created from the view that most strategic decisions were made in incremental, ad-hoc, incomplete, and negotiated (Mabey & Storey 1998, p.62) in the form of open communication, team briefings, quality circles, suggestion schemes as described by John Storey. The example workplace change is far from being Type 3: Bargaining for Change since there is no indication of concession and reward or compensatory payments offered for any work. Similarly, it cannot be Type 4: Systematic – Jointism or Type 5: Mixed Model as there is negotiation conducted and existence of any union intervening in behalf of employees on matters concerning workplace change. Moreover, there is no indication of any change in employee’s contract, pay, and so on but mere alteration of working environment and significant improvement in communication. SWOT Analysis of Piecemeal Model and DAD’s Workplace Change SWOT analysis often starts with a defined objective and in this case is identifying the most applicable model of change for DAD. The different characteristics of SWOT presented below suggest that the Piecemeal model is more relevant that any of the four model of change. Strength Enable Progressive Change and Continuous Refinement of Processes A “piecemeal” approach may be viewed as a trial and error approach to improvement and more as a practical move instead of being scientific. However, such approach is likely to enable progressive change which in the long run may acquire systematic scientific refinement (Grunfeld & Shibata 1973, p42). In the absence of a concrete plan, DAD’s sudden expansion and restructuring was an attempt to refine the system by gradually meeting the demand for more space, better working condition, and new business activities. The design of offices, proximity of inter-dependent departments, and low level uncertainty avoidance suggest that management is gradually trying to attain high level of efficiency and productivity. Along with the high rate of individualism among employees such as the eagerness to participate, DAD’s approach to change may finally lead to systematic refinement. Most common of all evolutionary types of workplace change approaches, progressive change can lead to better and stable profits because of assets created from experience and the learning effects as a result of repeated activities. Moreover, they may become more competitive because of the continuous refinement of links between activities (McGahan 2004, p.154). Open communication and employee participation Employee ownership such as open communication and allowing employee to participate in decision-making can lead to increased employee engagement which in a short period could result to lower turnover, and enhanced performance (Beyster & Economy 2007, p.68). Such organisational culture has a tendency to acquire high levels of loyalty among employees as employees generally like or enthusiastic about the idea about having responsibility for things around the organisation such as listening and accepting their suggestions (Heskett et al. 2008, p.176). The top management’s intention at DADs was not only to provide a larger working space but enable open communication, sociability, and employee participation as evidenced by the deliberate design of offices putting leaders and followers alongside each other. Flexibility Since most organisations today are exposed to more competition, modernisation and development is a common scene as the pressures for change is inescapable. One approach is to break the traditional centralised way of decision-making and information boundaries because greater integration between systems requires flexibility (Boekholt 2000, p.36). Similarly, DAD’s management allowed itself to be governed by circumstances which they intend to solve as it develops. This is the reason why Riratanaphong & van der Voordt (20110) labelled them as an organisation “better in invention, worse in implementation” (p.11) with managers who will apply rules when it is only strictly necessary. Their focus on ICT support facilities and remote working is an indication of massive investment on eradicating information boundaries, intensification of decentralized decision-making, and ultimately cover their deficiencies in implementation. Weaknesses Too many cooks spoil the broth (excessive employee involvement) As mentioned earlier, too many people creates contrasting practices and although participation may lead to better decisions, premises by which employees based their suggestions may be different. Similarly, once involved in decision-making or creation of a particular policy or procedure in the workplace, there is a strong possibility that they will reject any changes to them in future (Levine 1995, p.38; Storey 1996, p.45). Not all employees are creative Another weakness of such approach is the reality that not all employees are creative and interested in satisfying efficiency requirement of their job. Note that almost half of DAD’s employees are not interested in communication while their perception of individual and team productivity is low (Riratanaphong & van der Voordt, 2011, p.7). Moreover, along with time consuming decision-making (with different views coming so many people particularly when some of them are contradictory to common practices), such approach may be too slow to cope with business activities. Opportunities Quality Circle Development of quality circle is one of the most noticeable opportunities provided by this model. DAD’s developing quality circle may become a major driving force in improving many work practices, emergences of self-managing work teams, problem-solving task force, and others in the future (Ichniowski 2000, p.18). Reduced Operating Cost A pleasant working environment often results to higher rate of workplace productivity (Giacalone & Jurkiewicz 2010, p.163) and reduction of supervisors and middle managers required due to the presence of self-directed teams motivated by decentralised decision-making model (Ichniowski 2000, p.3). At present, DAD may not experience this benefit but as it quality circle is being developed and organisational communications being improve the possibility of achieving it in the future is high. Threats Consequences of inadequate understanding and commitment Any workplace change will encounter some form of resistance and a change effort without preparation and planning is more vulnerable to failure (Finkelstein 2004, p.152). Moreover, DAD’s management should be careful in taking superficial steps or reactive measures since excessive employee involvement can lead coercive relationships particularly when there is an existing cynicism on either parties about joint decision-making and workplace change. Conclusion The arguments presented above rationalized the relevance of John Storey’s Type 2: Piecemeal Model in relation to the example workplace change. Two of the most important justifications are the evident reactive attitude of DAD’s management in resolving difficulties being encountered by the growing organisation. Another is its lack of planning and managements reluctance to strictly follow the rules. The organisation’s life cycle forced the organisation to pursue immediate restructuring while prioritizing changes that has a direct impact on communication, decision-making, cost reduction, employee involvement and satisfaction. However, such change model entails a large amount of responsibility as change without considerable preparation and planning is likely to fail if not managed correctly. 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