Causes of Organisational Change Failure - Essay Example

Manage Change Assessment Task Two Name: Manage Change Assessment Task Two Course: Tutor: Date: Introduction Over the years, organizations have resulted to increased management changes. As such, they have evolved and developed into new structures that seek to pose and lay increased market competitiveness. Globalization, emergence of new foreign markets and the eventual development of free international trade has necessitated the need for fundamental organizational changes. Consequently, multinational organizations resulted to changes in terms of their structures, production processes, quality management structures, as well as technology uses in the market. The change process is initiated by the respective organizational management executives. Once the management develops appropriate policies, the organizational employees are charged with the responsibility of implementing the change policies. However, studies have established that organizational changes in the market face increased failure rates. As such, in order to effect and enhance successful changes, it is imperative for organizational managements to establish causes of change failures (Clegg, Hardy and Nord, 1996, p.104). This essay evaluates the causes of change and the applicable resolutions that the organizational managements can apply to enhance successful changes. Causes of Organisational Change Failure Communication Inefficiencies As established, organizational changes in the market face increased change implementation challenges. In this case, a number of reasons have been developed as the theoretical frameworks causing organizational change failure in the market. One among the major contributors of change failure in organizations is the lack of communication in the respective organizations. Silver (2009, p.371) conducted a study to evaluate the causes of organizational change failures in the market. The study evaluated the relationship between organizational communication channels and the process of change. In its analysis, the study concluded that there exists a direct proportional relationship between organizational communication and change success rates. As such, the authors argued that increased communication efficiency enhanced increased organizational success rates. Organizational communication is an imperative tool in the management. Under organizational communication, there are two key components, both the internal and external communication. Internally, communication to the employees is conducted through memos, notices, circulars as well as workshops and seminars. Communication has a merit in the enhancement of understanding between the organization and the respective employees. It is through these internal communication tools that the organization passes on its policies to the employees. Understanding creates a blend between employees and the respective organizational interests. Human beings are naturally afraid of change. Therefore, such individuals resist any form of change either personal or at the organizational level. In order to inculcate a positive attitude towards change, such individuals must be guaranteed of their future safety and job security. Failure to effectively communicate with the employees creates fear of the unknown with the employees. As such, employees, resist against change in a bid to enhance job security and assurance in the drastically changing global economic uncertainties. A case study of change resistance in organizations due to failure of internal communication can be evaluated in the case of Arctic Gracier Company. The Company had sought to implement a production process change in the market by off shoring its services in the Asian market. At this period, the organizational venture, though an important approach in the market resulted to increased organizational challenges as the employees were unwilling to serve as expatriates in the foreign markets. The revolt was because the organizational management failed to communicate to the employees on the impending merits and benefits the employees would acquire as a result of the off shoring strategic change. Knowledge Gap An additional challenge to organizational change success in the market is the knowledge gap in the market. Changes are characterized by fundamental structural changes in both production and processes in the market. Changes such as business model change and technology developments demand for knowledge, skills and expertise in the market. Organizational operations, efficiency and productivity success, is based on the existence of relevant human resource skills and knowledge. Despite the fact that operations in a majority of the multinational organizations have been automated, a great challenge remains in the management of these automated processes as well as the development of strategies, policies and frameworks for their implementation. As such, such organizational functions require the input of human resource. Therefore, it is imperative for organizations to develop and establish a strong human resource pool of experts. Organizational recruitment and training processes are geared towards attaining a human resource that fits such requirements. Therefore, organizations in the market have acquired and recruited such a qualified workforce. However, changes in the organizational processes, cause a skill's need shift. Organizational changes such as the adoption of new technologies and change of the production process creates a skills shift in the market. As such, Edgley-Pyshorn and Huisman (2011, p.610) stated that organizations demand divergent skills and expertise from those they are used to. Therefore, this creates the risk of human resource redundancy. Such skills irrelevance by a majority of the key organizational human resource creates a labour shortage in such organizations. Consequently, the organizational changes lack the appropriate, relevant and sufficient structures to enhance the project implementation. This challenge can be strategically explained as a strategic management planning failure. Poor Human Resource (HR) Planning Strategic human resource management incorporates the concept of planning in organizational human resource management. HR planning incorporates the development of appropriate proactive measures. As such, organizations determine and recruit HR that is not only relevant and required in the present, but also for future applications. Failure by organizations to apply strategic human resource management principles on planning leads to the recruitment of personnel with skills failing to reflect anticipated organizational changes. Therefore, lack of strategic skills and knowledge in an organization can be attributed to poor or no application of strategic human resource management. As evidenced, this leads to the change process failure for the lack of supporting frameworks. Failure to implement strategic HRM practices can be alluded as one key cause of organizational change failure. Employee Culture Additionally, existing organizational and employee culture plays a significant role in influencing change. The existence o a rigid and bureaucratic culture in management and relationships contributes to increased organizational change failure. Montgomery, Panagopoulou, Kehoe and Valkanos (2011, p.109) conducted a study to evaluate the role and implications of organizational culture to the overall functioning of the organization. In this case, the study evaluated the implications of culture on organizational change process. In its analysis, the study established that indeed culture played a major role in influencing organizational change success. A further analysis on organizational cultures and change classified cultures into two broad categories namely competitive and teamwork based cultures respectively. On one hand, competitive culture implies a situation through which internal stakeholders function as respective individuals. Therefore, corporation is highly reduced. In such an organizational system communication is highly reduced and inefficient (Smith and Smith, 1988, p.21). Due to a competition spirit development both personal and organizational is inhabited. Individuals in the industry perceive each other’s strategies as a threat to their influence in the organization. Therefore, this increases the tendency by individuals to resist change not emanating from them. Thus, change attempts in these organizational cultures are increasingly resisted leading to increased failure rates. Carlström and Ekman (2012, p.176) in the evaluation of the competitive organizational culture established that individuals under this culture were increasingly self centred. Moreover, there exists an increased discrepancy between the organizational and individual interests. As such, individuals, seek personal advancements and development while resisting organizational changes that do not correlate with their interests. Therefore, based on this analysis, it is evident that the existence of an individualistic and competitive culture among the management and the employees respectively leads to increased organizational change failure as a result of dwindling employee commitment into enhancing long-term organizational changes. Instead, such employees focus on short term personal comfort of which organizational change is a major destabilizer. Reducing Organisational Change Failure As evidenced in the above analysis, organizational change process faces increased market challenges. As such, in order to promote organizational change success in the market, it is imperative for the organizational managements to develop structures, strategies and polices that enhance the reduction and eventual elimination of these challenges. This essay recommends arranging of approaches that the management can utilize to overcome organizational change failure causes. Such recommended factors include strategic HRM practices, communication efficiency and team work culture propagation. As evidenced, organizational communication is an imperative tool in organizational management success. As such, communication is categorized into both the external and internal communication. In essence, internal communication implicates on the organizational change success, especially the transformational change process. Bolt (2007, p.43) argued that efficient internal communication channels such as memos, circulars and notices facilitate increased organizational success. In addition, the communication process and feedback systems influence the functioning of organizational activities. In order to establish and empirical evidence of the communication efficiency merits, Daly, Teague and Kitchen (2003, p.155) conducted a study to evaluate this strategic concept. On its part, the study evaluates the role of efficient communication process in facilitating organizational change process. In its analysis, it established that organizations with efficient communication systems that allowed for the establishment of a feedback system experienced reduced change failure instances. Therefore, the study concluded that the efficient communication systems were an imperative strategic approach through which organizational management can enhance change success. Rational and enough communication systems facilitate increased understanding and knowledge to the employees. In this case, employees are made aware of the impending organizational changes. Through such mutual understandings between organizations and their employees, there is an increased instance of interests’ harmony that facilitates increased employees support on a long term organizational change processes. Knowledge and information circulation in the market reduces employee uncertainty challenges by guaranteeing them of future job and providing other relevant information on the proposed and anticipated organizational changes. Therefore, through the adoption of strategic organizational communication efficiency strategies, organizational management can increase change knowledge in the market facilitating eventual employees’ support of such organizational changes. An additional strategic recommendation hat organizational managements can apply to reduce on change failure instances is application of strategic HRM practices. As discussed under the cause’s element, it is apparent that strategic HRM practices comprise of the planning element. This HR function is charged with the responsibility of evaluating the organizational HR needs both present and future. As such, HR planning incorporates the concept of forecasting. The responsible specialists evaluate the organizational strategic objectives as well as the market trends and expected future trends. Organizational and market changes lead to resource needs change, inclusive of the HR. Therefore, upon the establishment of changes in an organization, it is imperative for the respective organizations to poses enough HR to support such changed systems. HR planning plays a significant role in facilitating these aspects (Smith and Smith, 1988, p.43). Pamela Lirio and Lituchy (2007, p.29) conducted a study to evaluate the role of strategic human resource management in facilitating increased organizational change. The study analysis, established that strategic HRM enhances the acquisition and retention of qualified workforce who not only supported the existing organizational systems, but also the future ones. In particular, strategic HRM enables the development of appropriate recruitment processes supporting the development of appropriate workforce for strategic change enhancement and success. An example of the application of appropriate HRM practices role in change management is the case of the Tesco Company in the retail industry. The organization sought to automate its customer care and services through the introduction of pay yourself where the consumers personally pay for their products upon purchase. In order to enhance this system success, the organization proactively recruited a qualified workforce with background in IT management that facilitated eventual organizational success. As such, the case of Tesco demonstrates an example of how the application of strategic HR management can enhance change process success. In addition, organizational management can enhance human resource management through training the existing human resource. As such, the organization can strategically train its existing staff prior to the change process. Through such a process, the organizational managements can increase the employees’ skills and expertise as required in the new organizational order systems. As such, this would reduce on the organizational employees’ redundancy, a major contributor in organizational change failure. Thus, this essay, recommends that through strategic HRM organization can reduce on resource shortages and instead facilitate increased change success rates. An alternative approach to enhance increased organizational change success is through the development of collaborative organizational culture. An organizational culture plays a significant role in influencing strategic organizational performance. Carlstrom and Ekman (2012, p.176) conducted a study evaluating the role of culture in facilitating organizational change success. The study analysis established that organizations with a collaborative team focused culture registered increased change success rates. As such, the study concluded that the development of this culture enhances increased organizational change success. In addition, Ogbonna and Harris (2002, p.34) established that the organizational culture influences the overall activities in the employees performance. A collaborative culture increases the organizational capability to function and effect changes. Through teamwork and working in groups’ respective organizational employees are able to support appropriate change structures as this enhances employee skills ad career development in the market. Further, collaborative culture increases the organizational relationships between employees and the organization. This is achieved through the harmonization of employees’ interests with those of the organizations. Consequently, employees in such cultures increasingly support strategic organizational changes in the market. Therefore, through the adoption of this approach, organizations can increase the overall organizational changes success rates in the industry (Smith and Smith, 1988, p.54). Finally, this essay argues that in order to reduce organizational change failure case, organizational management should develop and establish a strategic approach in its management process. Strategic management process increases the overall organizational success in the market through appropriate forecasting and planning. Organizational change incorporates the process of restricting the required resources. As such, organizational management should develop a strategic framework through which it forecasts on the market changes. A major contributor for organizational change failure is a disconnection between organizational strategies and market trends. Such disconnections render developed organizational changes strategies nonconforming with the market trends (Kandula, 2005, p.104). As a result, such a disconnection leads to increased organizational failure. This challenge can be remedied through the application of strategic management principles. In this case, organizational managements can introduce forecasting and planning tools to increase the overall market relatedness with the market changes. Through this application, organizations can reduce on failed strategies by creating strategies aligned with market trends. Through strategic management and the eventual development of market fitting strategies, organizational change process success can be facilitated. Conclusion In summary, this essay establishes that the organizational change process is an imperative organizational development concept in the increasing global economic challenges. As such, the essay establishes that in order for organizations to establish and retain strategic organizational competitiveness, they should engage in continuous change process. However, the essay recognizes that the change process faces increased challenges both in the strategic and operational fronts. As such, the essay argues that challenges in organizational strategic management, human resource management and poor communication processes increases organizational change failure. In order to remedy these challenges, the essay recommends a range of strategic approaches for organizational management executives’ adoption. In this regard, the essay recommends strategic approaches such as communication efficiency strategies, strategic human resource management, development of a team work culture and strategic management forecasting approach. Conclusively, this essay argues that the adoption of these recommendations would facilitate increased organizational change success rates. 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