US Perspectives on Organisational Change in the Global Marketplaces - Example

US Perspectives on Organisational Change in the Global Marketplaces Contents US Perspectives on Organisational Change in the Global Marketplaces 1 Contents 2 Introduction 3 Organisational Change 3 Reasons for Organisational Change 5 US Perspectives on Organisational Change 6 Strategy for Change on Global Level 8 Change through Organisational design 8 Change though Downsizing the Workforce 9 Change through Outsourcing 11 Change through Cultural Changes 11 Change through Change in Organisational Structure 13 Problems Dealt During Organisational Change 14 Ways to Ensure Effective Organisational Change 16 Model for Organisational Change 18 Conclusion 19 Introduction The growth in international business and intensified competition is forcing organisations to change with the changeable times (McNamara, 2008). Organisations that are able to understand the importance of change and keep molding the way work is conducted ensures efficiency in the organisation (Weiner, 2009). Organisational change refers to the alterations that organisations make in their working environment and include all individuals, groups and behaviour across the entire organisation (McNamara, 2008). Organisations during this process look for changes in either one entity or the entire entity to ensure that the work is accomplished in an efficient way (McNamara, 2008). The aim of this essay is to discuss the US perspectives on organisational change being witnessed in the global work place. Different views and perspectives in relation to organisational change are being looked into which helps to identify the implications and significance of organisational change in working pattern (Chapman, 2010). This thereby looks to present the manner in which organizational change is witnessed due to changes in organizational design, structure, outsourcing, downsizing, and cultural changes (Chapman, 2010). Along, with it the importance of dealing with the changes has been presented to ensure maximum efficiency to deal with the changing circumstances (McNamara, 2008). Organisational Change Organisational change is thus a topic which is catching the eye of many organisations (Saddler, 2001). To be competitive and being able to deliver quality results, organisations have to change (McNamara, 2008). It has witnessed that employees create problems during the process of change especially when changes are related to the entire organisation, but when employees find that changes will help them towards advancement in their carrier they readily accept it (McNamara, 2008). This brings to a notion that employees are willing to change on an individual basis (Weiner, 2009). This increases the importance of the human resource function as organisations have to find ways that will reduce the level of resistance and make employees readily accept changes (Weiner, 2009). Organisation change has to ensure that the objectives set by the organisation after changes are realistic, achievable and measurable so that the efforts are not wasted (Chapman, 2010). It will preserve the vital resources and will also ensure that the organisation is able to ensure that the change would motivate the workforce towards the accomplishment of the goal (Seel, 2006). It will help the organisation change in different directions like change in process, employees, technology or any factor that has a bearing on the performance of the organisation (Saddler, 2001). The major objective achieved through the above stated changes is that it increases efficiency and ensures that the results are achieved in a better way (Saddler, 2001). US economy has identified those organisations changes which are both small and big (Saha. 2010). Small changes are easy for the organisation as bringing minute changes in the way the work is accomplished now ensures that the efficiency in the work is accomplished. Big or structural changes on the other hand require a lot of input and needs to be considered from different angles (Saha. 2010). This increases the role of the management as they have to identify the appropriate strategy to facilitate the changes (Saha. 2010). Therefore, organizational change is an important aspect of business and the ability of the business to mould itself with changing times ensures efficiency in the use of resources and getting the results in the most effective way (Saddler, 2001). The changes might be small or big making organizations to understand the importance of it and making the changes according to the reuired situations (Seel, 2006) Reasons for Organisational Change Before moving on in the manner in which organisation changes with changing times it is important to identify various reasons which make organisations change (Saha. 2010). Organisations as identified by the US economy make changes to make the resources more effective (Seel, 2006). Organisations change with the objective of having clearer mission and goals of the organisations before the employees (Seel, 2006). This improves the inter-relation between inputs and interactions which ensures that the performance of the organisation greatly improves (Seel, 2006). This helps to identify the following reasons which make organisation change. Firstly, organisations change in order to be able to match the strategy adopted by their competitors. This is a structural change and organisations need to evaluate the cost and benefit to be able to garner positive results (Albert, 2010). Secondly, the organisational structure which the organisation has is becoming an obstacle in the path of growth (Albert, 2010). This requires that the organisation considers making changes in the entire organisational structure which is very risky as if the change doesn’t fetch the required results than moving back to the old structure becomes difficult for the organisation (Mary, 2010). Thirdly, to change the method of training; this requires employees to undergo complete change in the manner in which they work (Mary, 2010). This change also requires employees to leanr new strategies and methods as their past learning has little relevance (Penter & Pervan, 2009). Lastly, changes due to other factors like government regulation, laws, enforcement agencies, economic condition, financial condition etc might force to bring certain changes in the execution of policies (Mary, 2010). Along with it other factors could be changing technology, method of production and others which make organisation adopt new ways to function (Seel, 2006). These types of changes are seen to raise certain problems for the organisations as employees are prone to the old methods and learning and working with the changes becomes difficult for them (Mary, 2010). Hence, businesses have different reasons for changing and identifying the reason and changing according to it helps the business to keep ahead of times and ensures that the organization is able to dwell on factors which will improve the performance and bring efficiency in operations (Penter & Pervan, 2009) US Perspectives on Organisational Change The above points highlight the various reasons identified by the US economy which has made organisations to change at the global level (Penter & Pervan, 2009). Despite the organisational changes helping the organisation and the stakeholders to ensure effectiveness in their working, it is seen to face difficulties in implementing the changes (Kotelnikov, 2010). Major problems come from the employees as they want to continue to work in a similar way and don’t want new methods or system to be enforced on them (Penter & Pervan, 2009). Organisations making changes have to deal with the human factor in an effective way to ensure smooth transformation of business (Albert, 2010). The change in the working environment brings about a change in the working culture which has to be adjusted (Albert, 2010). Changes require both on and off the job training so that all the important learning’s can be used in the work place (Albert, 2010). Employees have to understand the new technology and being unable to deliver on the standards brings criticism (Kotelnikov, 2010). Organisational change also brings a change in relationship between the employees and a change in position for the respective employees (Dargan, 2009). Employees perceive that the chances of growth for their carrier have become obsolete (Dargan, 2009). This increases the role of the human resource department as they have to motivate the workforce and ensure that they accept the situation and work towards advancement in carrier (Dargan, 2009). Thus, organisations have to adopt the best strategy that will facilitate changes to be able to guarantee maximum advantage from a change in strategy (Franco, 2009). It is also seen that organisations adopt a mix of different strategy which ensures that organisation change benefits the organisation in the long run (Franco, 2009). Strategy for Change on Global Level Organisations adopt strategy which will work for their organisation and weighs the pros and cons of the strategy adopted by them (Albert, 2010). In this strategy the organisation takes different strategy according to the workforce requirements and matches the same with the performance (Atwood, Coke, Cooper & Loria, 2005). It has been seen that organisations adopt strategies like workforce reduction through early retirement, transfer, out-placement, and buy out package, golden parachute, attrition, and firing (Sridhar, 2004). The above strategy adopted by organisation is a top down approach where organisations bring about a change in the number of employees to ensure that they are able to gain efficiency in operations which helps reduce the cost and ensures that the organisation is able to gain efficiency in their operations (Atwood, Coke, Cooper & Loria, 2005). Therefore, organizations looking forward to change needs to do it at a global level so that the effect of changes is widespread and helps to bring the most positive result that the business is looking to encounter through it (Albert, 2010) Change through Organisational design Organisations make changes which are accompanied by changes in the organisational design (Franco, 2009). Organisations reduce the functions, hierarchical level, division, reducing some of the work by outsourcing and consolidating the work by reducing the working hour (Sridhar, 2004) to gain operational efficiency. This is a type of structural change that organisation ensures and using this method helps the business in the medium term (Franco, 2009). Organisations through this mechanism of change ensure that the work is accomplished quickly and help to improve the manner in which the employees were able to deliver the required results (Sridhar, 2004). As a result, businesses encounter changes through change in organizational design as it brings a change in authority responsibility relationship and also changes the working pattern in the organization which needs to be asscertined with utmost priority to gain maximum advantage (Bascal, 2004) Change though Downsizing the Workforce According to Penter & Pervan (2009), organisations when downsizing their workforce has to accompany the organisational change also changes in both the internal and functioning by bringing changes in culture, system of work, and the attitude of the employees operational efficiency improves (Penter & Pervan, 2009). Bringing changes that are worked on varied areas helps the organisation delivers better performance (Sridhar, 2004). While any changes organisations need to find out a way which will help to motivate the employees to a large extent (Penter & Pervan, 2009). An organisation that has made organisational change through downsizing its workforce should ensure that reducing the employees should still ensure the same quality, customer satisfaction, employee empowerment, trusts and loyalty for the betterment of the organisations (Stevens & Shi, 2009). Moreover, the organisational change should be accompanied by improvement in performances of the organisation which will end in better results (Stevens & Shi, 2009). Organisations policy of reduction in workforce as a tool of organisational change helps organisation to reduce the operational cost as they are able to remove the employees that are underperforming and have a pool of employees that magnifies the return for the organisations (Sridhar, 2004). This helps organisation to be able to generate better returns per employee (Sridhar, 2004). Downsizing the workforce also helps organisations to ensure that they are able to make timely changes in the organisational design which helps to improve the facilities (Bascal, 2004). This provides the organisation scope through which they can make timely changes to enhance the performance of the organisation (Bascal, 2004). The US economy has also seen that organisation working in the global arena adopts downsizing as a mechanism to bring organisational change and have downsizing across all levels and boards including the top management (Atwood, Coke, Cooper & Loria, 1995). This has helped organisation in ensuring that the transition phase is accepted by all and trade unions are unable to raise their voice that justice has been denied to the lower section of the employees (Bascal, 2004). This ensures that employees irrespective of their position are treated with equality and helps the organisation to ensure that employees readily accept the organisational changes (Jacob, 2003). Consequently, downsizing in a mechanism which organization adopts to bring the required changes in the organization and while implementing the change through this method the organization needs to ensure that the strategy of downsizing provide long term value to the organization ane ensures the required level of motivation within the employees (Bascal, 2004) Change through Outsourcing Organisations through the method of reducing the workforce also shifting their focus on other areas as outsourcing some of the functions (Kotelnikov, 2010). Organisations look towards outsourcing some functions like production, manufacturing, operation and accounting process to be able to use the advantage and core competency of the other organisation towards the development of one self (Stevens & Shi, 2009). This is a strategy which is commonly seen in the global arena as organisation aim at strategic change by changing their functions by outsourcing so as to benefit from it and ensure that they are able to use the workforce towards their advantage (Stevens & Shi, 2009). Thus, organization adopt the method of outsocurcing to ensure that they are able to pass on certain function to others who have core competency in it so that they are able to ensure better development and make the required changes in the organization so that efficiency mutliplies (Kotelnikov, 2010) Change through Cultural Changes Various studies and research carried out in the direction highlights that organisational change is influenced by culture (Jacob, 2003). This situation is called at “cultural consequences” (Jacob, 2003, p.3). Apart from the work habits there are various other factors like “skills, knowledge and learned behaviour” (Harris, 1998, p.15) which has an influence on the social culture and brings organisational change (Harris, 1998). This is due to fact that the culture prevalent at the work place has made organisations adopt new ways that will ensure that the organisation is able to gain maximum efficiency in operations (Harris, 1998). Another area which has caught the attention during the period of organisational change is witnessed when the organisation deals with employees belonging to different culture (Ralston, Hallinger, Egri & Naothinsuhk, 2005). Organisations have transformed the manner in which the work was carried out based on the different cultures to ensure that when the organisation is transforming its business it doesn’t have to face difficulties in implementing the changes (Ralston, Hallinger, Egri & Naothinsuhk, 2005). This has brought about major changes in the way organisation changes and look to incorporate the element of culture in their planning process and see that the change is readily accepted by the employees (Jacob, 2003). The US economy has also seen that organisations are changing in their working environment due to economic integration that is taking place (Harris, 1998). Different economies started to share different things like intellectual capital, goods, services etc. (Mcshane, 2008) which has made economies to bring a change in their working environment by making changes in the workforce diversity (Mcshane, 2008). Building on that, culture has resulted in organizations to change as having diversity in the workforce has made organization encounter the changes that will help all the culture to grow so that the employees understand the organization better are able to work towards a common goal (Stevens & Shi, 2009) Change through Change in Organisational Structure Organisations transforming their business by changing their organisational structure (Van, 2002). Organisations changes their organisational structure to find the appropriate structure than can be determined which will help the organisation to ensure effectiveness (Van, 2002). This brings in a change in responsibility and uthority relationship within the organisation (Visser, 2000). The change in organisational structure could also lead towards downsizing the workforce which might make employees doubt the manner in which they will be able to grow in the organisation (Kotelnikov, 2010). An organisation that has transformed its structure needs to ensure that the manpower hired by them is as per the requirements of the new structure and the efforts can be directed and motivated towards a common goal (Van, 2002). Organisations wanting change in the structure need to ascertain with clarity the structure which will provide them maximum advantage and incorporate the same in their working condition (Kotelnikov, 2010). The human resource management needs to make the employees understand the manner in which the change will benefit them in their carrier (Visser, 2000). The department should highlight the benefits of the change and draft a mechansim which will help the organisation in smooth transformation of the organzational structure (Visser, 2000). Thereby, organization look towards transforming their organizational structure which brings a change in authority and responsibility relationship need to ensure that they are able to weigh the pros and cons so that changing the organizational structure benefits them and help them to sustain growth (Kotelnikov, 2010) Problems Dealt During Organisational Change Despite the mechanism of organisational change chosen by organisation employees are seen to resist it. This makes it important that oganizations understand the manner in which organisational change will be done. It is important that organisation change through the mechanism of downsizing by adopting the top down approach where employees that are underperforming are eliminated; ensuring consistency in the vision and mission statement (Franco, 2009). The employees due to changes encountered by organisation have to bring a change in the manner they work (Saddler, 2001). This has resulted in employees handling more responsibility and the extra burden is making employees resist the changes (Labour Management Accommodation, 2005). The degree and magnitude of burden also makes labour union interfere in the matter as employees don’t have to face the consequences of downsizing and are able to ensure proper growth opportunity within the organisation (Franco, 2009). Unions put pressure on the employer to ensure that the task is accomplished correctly and employees are paid well (Labour Management Accommodation, 2005). Putting pressure ensures that if something goes wrong then the unions act to the rescue of the employees by ascertaining that the situation gets mitigated (Franco, 2009). Unions ensure a mechanism through which the working hours are fixed and it meets international standards (International Dimension of Human Resource Management, 2005) which ensuring wages to meet international standards. Despite the labour unions ensuring that the employees prosper they are seen as a barrier to change because they provide the support to the employees making it difficult for the organisation to ensure smooth organisational transformation (International Dimension of Human Resource Management, 2005). Organisational changing the manner in which they work also results in conflicts between the employees and the management that needs to be looked into (Bascal, 2004). Management needs to ensure that conflicts between the employees and departments are well handled (Franco, 2009). Difference in opinions and ideas will makes conflicts to arise so steps need to be taken to reduce it (Bascal, 2004). Management needs to do it as a competitive manner (Brockner, 2009). Management should look to take the best decision which works for the good of most (Bascal, 2004). Secondly, is the collaborative approach which looks into the needs of others? (Bascal, 2004). Thirdly, is accommodating who allows others to do what they feel and is acceptable to change (Brockner, 2009). Fourthly, is compromising which looks into decision favouring both (Brockner, 2009). Lastly, ensuring that conflict don’t arise by delegating responsibility (Bascal, 2004). Ways to Ensure Effective Organisational Change The US perspectives on organisational change highlight the fact that organisations changes in the organisational working needs to ensure that the employees are motivated (Latham, 2007). Motivation prior to 1990 was intrinsic (Latham, 2007) which changed with developments witnessed after the 1990. This makes it important that organisations have extrinsic rewards as well (Cuddihey, 2003). The motivation of employees changed from intrinsic motivation to extrinsic motivation (Latham, 200) where employees had to be provided incentives like commission, money and incentives so that the employees felt motivated and delivered the best results. The increased complexities and organisation having further changes have to ensure that they are able to ensure that employees accept the changes easily and build the organisation in a manner that look towards accepting the organisational changes (Visser, 2000). The manners in which organisational changes have influenced the behaviour of both the employee and employer has brought about maximum organisation accept the changes easily (Saddler, 2001). The changes encountered in the work culture have resulted in the employment relations to change (Latham, 2007). Employees also have a work culture of 8 hours and were reluctant to work for long hours (Mcshane, 2008). This has changed with the growth witnessed in the work culture. Employer and employees also raise their voice if they disagree to something resulting to changes in the work culture (Brockner, 2009). It is even seen that in the modern time a contract is entered between the employer and the employees and if any party breaches it then they can be punished (Stevens & Shi, 2009). One of the prime reasons which have resulted in employer employee contract is that employees today have to work 24/7 so balancing the work life with the personal life has increased the work load for the employees (Brockner, 2009). Also, the development of technology has enabled that the employees don’t have to be present at the work place bringing a change in work culture which has affected employment relations (Saddler, 2001). The manner in which the organisational change has an effect on the working environment and made employees towards working extra to accomplish the work has resulted in increased resistance (Brockner, 2009). The US economy has seen that organisation that is looking to make changes in the way they work have brought wide spread changes in the way the human department functions (Harris, 1998). The role and scope of human resource has increased with organisational change (Cuddihey, 2003). It is important for organisation to see that this department is performing its duties towards the wellbeing of the organisation and if any changes are required it should be dealt with. Human resource department ensures that the workforce help the organisation to achieve the objectives of the business by taking the necessary steps (Jacob, 2003). Another role for the human resource department is that the model on which the organisation is working should fall in line with the model used by the human resource department (Cuddihey, 2003). It is important that the organisation uses the model which helps the organisation to grow as it will increase the effectiveness of the department. The management must see that this is done in the correct way to increase the effectiveness of the organisation (Visser, 2000). Thus, organisations that are able to understand the importance of organisational change and have their different department perform according to the changing conditions are able to ensure smooth transformation of the process which has ensured growth and development on all fronts (Harris, 1998). Model for Organisational Change Organisations changing have followed a model to transform their business easily and with little resistance (Lewin, 2011). One such model is the Lewin’s 3 Step Change Model (Lewin Change, 2011). This model states that organisation bring a change in the way the work is conducted needs to ensure that they are able to use the 3 step process to ensure smooth organisational transformation (Lewin, 2011). They are unfreeze, change and refeeze. (Lewin Change, 2011). This model ensures that organisation is able to make the employees understand the advantage of organisational change (Kotter, 2011). This helps to win the confidence of employees and then change the required things in the organisation becomes easy (Kotter, 2011). This keeps the mood of the employees high and helps the organisation to ensure timely changes in their working methods of employees who feel a part of the organisation and contribute towards the wellbeing of the organisation is all possible ways (Kotter, 2011). The manner in which organisation have changed has made all players in the global environment make changes in the manner they perform (Richards, 2008). This has led to a situation where the importance of understanding the manner through which organisations are transforming their business is laid stressed on (Lewin, 2011). This has made organisation understand the importance of succession planning plan in relation to the human resource management infrastructure and ensure that the change in leadership goes in line with the hiring process (Dargan, 2009). This is an area which has grown due to organisational change as organisations are incorporating a mechanism which will ensure that they are able to change their business according to the changing times and ensure that they have the required workforce capability to deal with situations in the future (Richards, 2008). This helps to increase the importance of understanding the manner in which organisational change is affecting business world wide (Dargan, 2009). This makes it important that organisation is able to devise a mechanism which will ensure that they are able to ensure easy transformation of their business (Lewin, 2011). This will lead towards increasing consistency in the performance of organisations and will help the organisation to ensure maximum productivity for the organisation (Dargan, 2009). Conclusion This essay presents the manner in which organisational changes is being viewed on as a global perspective (Weiner, 2009). The US economy has been able to identify the different manner in which changes in the working culture has an effect on the working environment (Saddler, 2001). Organisations change to achieve better results with the same resources (Weiner, 2009). Also, being able to transform the business according to the changing requirements ensures that the business is able to gain maximum efficiency and achieve their stated objectives (Saddler, 2001). Organisations do face certain resistance from employees and other areas but the ability of the organisation to be able to mould this by having an effective human resource department ensures that they are able to ensure maximum efficiency in operations (McNamara, 2008). Organisations that are able to understand the changing scenario and change with the changing times are able to ensure maximum efficiency and better use of the resources (Saddler, 2001). This report thereby helps to establish the aim of the report and helps to understand the manner in which organization encounter change and the steps taken by them to ensure smooth transformation (Lewin, 2011). This thereby presents the manner in which organizational change is witnessed due to changes in organizational design, structure, outsourcing, downsizing, and cultural changes and the impact it has on the working culture of the organization (Chapman, 2010). References Atwood, J., Coke, E., Cooper, C. & Loria, K. 2005. 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