Organizational Change at Dakama Company Limited - Case Study Example

Organizational change Student’s Name Institution Abstract Successful organizational change remains a very important element for any business that thrives to exist in the present very competitive business environment. Scholars have tried to develop several models that can lead to effective organizational change. The most notable models include Lewin’s force – field analysis (1951) and Kotter’s eight - stage model (1996). This paper will outline and discuss a recent change that occurred in my organization. Recently, my organization known as Dakama Company Limited decided to sublet a section of its office space to offset facility cost. In this regard, the organization asked the employees to share desks so that they could use the remaining office space. I will further describe how I could manage this change effectively. Introduction Change has become an inevitable event in the contemporary world and many companies are working hard to ensure this phenomenon never leaves them behind (Waddell, 2011). The bulging demand for firms to make a change is due to the constant changes in the environment set up and the rate at which these changes occur. Many organizations have therefore been restricting their organizations due to various reasons some of which Harvey and Brown, (1996) highlighted. Among the reasons that compels different firms to contemplate a change according to these two scholars are deregulated by the central authority, privatization of public institutions, technological renovation and innovations, expansion of services to other countries, changes in top leadership, social and even economic strain. In light of the previously mentioned sources of pressures for innovation, many firms may initiate a particular change or adopt a combination of changes that best suits them. According to Waddell (2007), some of these changes may include changes in organizational cultures, downsizing of the workforce, engineering various production methods, removing certain unnecessary structures, exploring foreign markets, adopting new technologies, introducing new products among others. Up to this point, it is of essence to comprehend the real connotation of the term change within the framework of organization as defined by various scholars. To start with, Jick (1996, p.1) gives the simplest and the shortest definition of the term change as a planned or unplanned response to external forces. In his definition, it is apparent that for a firm to initiate a programme in changing certain things in the organization there must have been pressure exerted upon the firm. The external forces that he uses in his definition have been discussed in the first paragraph of the discussion. Huber (1993) gives a candid definition of organizational change as the difference in how an organization functions, who its members and leaders are, what form it takes, or how it allocates its resources. His definition of change summarises everything on the forms of changes in a company. Robbins and Judge (2009) goes ahead to recognise the fact the company can never have a successful implementation of any programme without resistance, whether external or from within the organization. Organizational change in the context of Dakama Company Limited. Change can be planned or unplanned. Planned change takes conscious and diligent effort on the part of leadership. ( Tushman & Anderson, 2010)In this regard, a leader must focus on absolute need of the organization to change rather than focusing on benefits of the anticipated change. Cunning (2001) explains organizational change in terms of both its process and its content. Process refers to how change occurs while content refers to what actually changes in the organization. In this context, Waddell (2007) recognizes the fact that any change in an organization comes with its consequences such as employee resistance to change. Tushman and Anderson (2010) go ahead to confirm that if employee resistance to change is not properly handled, it may result in change failure. Gill (2003) also identifies resistance as a major obstacle to change. He points out that the main reason for resistance is that people fear change. They are not willing to abandon familiar and routine ways of doing their business in favor of the unknown new way. Normally, transition from known to unknown is always a difficult move. Resistance occurs at organizational as well as at individual level. (Jick, 1993). Organizations must therefore formulate appropriate measure to deal with any form of resistance. Some of these measures may include enhancing appropriate channels of communication and development of a reliable team to drive the process. (Kanter, 2005). It is also important to note that any organization that wants a successful change must establish effective leadership and appropriate change models. Scholars have tried to develop their own explanations as to why organizations adopt change. (Poole & Van de Ven, 2004). They have tried to give an in-depth explanation to change and how it is applied in modern day organizations. These theories have been very important in understanding how various organizations change and how such changes can be managed. For better understanding of change, these scholars have borrowed facts from other disciplines such as child development. Harvey (1996) pointed out that the study of organizational change is a very important issue to managers. Planning for change is also a very crucial factor that must be considered by an organization before it embarks on change process. Kanter (2005) Points out careful development of change strategies and formulation of proper mechanisms to deal with problems that come with change as a major tool for planning the change process. Leaders are always in the position of change campaigners. They are the people who see and recognize need for change and advocate for change. In order to make a change, leaders must therefore rally necessary resources and acquire support from the organization. They must therefore formulate appropriate visions that would be seen as good by the employees. (Waddell, 2011) Recently, my organization (Dakama Company Limited) decided to sublet a section of its office space. This was done in an attempt to offset facility cost and increase business revenue. As a result, employees were asked to share desks and use the remaining office space. This initiated a change in business culture. As large printing company that has employed more than five hundred employees, the move created tension within the organization as some of the senior employees were unhappy with this move as they were required to share desk with some employees who were considered to be junior. The change. Change will never take place unless there is greater need and essence for it to take place. This is because employees in any organization will always try to resist change. Typically, they will only welcome change if only they must accept it. Pain drives change. (Conner, 2000). Recently my organization (Dakama Company Limited) decided to change its culture of having middle level staff occupying their own office space by subletting a section of our office space and merging middle level staff with the rest of the staff to create an open office where all employees were to share desks. Top management saw this move as positive and that it would help raise our organization’s performance. The middle level staff that was relocated from their comfortable offices seemed not to welcome this move as they viewed this move as a way of lowering their caliber and power. This change took place in line with Lewin’s force field analysis (1951,) as described below. Unfreezing The strength of forces which maintain the current equilibrium must be reduced. (Lewin, 1951). In this perspective, the members of staff at Dakama Company Limited were first convinced of staff on the planned subletting of a section of office space. They were also informed on the expected benefits that would arise from subletting a section of office space. Some of these benefits included extra revenue to the company that would come from rent collected from rented section. Increased revenue would imply more profits to the company which would in turn improve their welfare through better pay and job security as the company would remain afloat. Employees were also be shown that the rented space was not so much needed as all of them could still be accommodated in the remaining space when they share desks. They were further told that sharing desks would help conserve space and assured that sharing would not interfere with their privacy as these desks would be designed in such a way that there is no congestion. Selected leaders who were changed with steering this change were informed to take an active role in communicating the change to all other employees and other relevant stakeholders whose participation might be significant Changing During the changing process, new organizational values, behavior and attitude are developed to help move the organization. (Lewin, 1951). The members of staff were familiarized with their new work station. The new office space was fitted with drinking water dispensers that never existed in the old duty stations. This move was to help them develop a positive attitude toward the new office space. During the transition period, a section of the staff was first relocated before the remaining group followed. During the move, the goals and objectives were clearly explained. Refreezing Refreezing involves the stabilization of a new equilibrium is stabilized created by a change. (Lewin, 1951) This involved implementing the change. Staff was settled in their new station and it was ensured that all the facilities that they required were in place. The team tasked with the relocation was required to make a follow up and ensure that the new way of doing things is properly established. Incentives such as free lunch were be provided to employees so as motivate them to work together in the new environment. Restraining forces such as fear for failure was eliminated at this stage through proper establishment and separation of roles. Handling the change Handling a change in an organization involves transition to new ways of doing things. It involves realigning people process and technology to conform to the new organizational strategy. (Tushman & Anderson, 2010)In some cases, changes can be stressful and cumbersome to implement due to the uncertainty that normally come with it. For the employees to accept the change with minimal disruption, it requires adequate preparation as a leader and effective communication. (Kanter, 2005). Strategies can be developed to introduce planned change. As a leader, I would employ the following measures and strategies to deal with the recent change at Dakama Company Limited. Effective and strategic leadership can be defined as the process of providing the direction and inspiration necessary to create and sustain an organization business or country in a globalised environment. (Dalgish & Miller, 2010). Drive, desire to lead, honesty, integrity, self confidence, cognitive ability and knowledge of the business as some of the most important leadership traits. (Dalgish & Miller, 2010). As a leader, it would be important to develop these traits to enable me handle challenges that come with organizational changes. Self confidence will enable me stay focused on the change while honesty will enable me explain reasons for change in an open and transparent manner. Establish a team of leaders who would help drive the change. Building a team will require clear understanding of the team. The four stages of team development include forming, conforming, storming and performing. ( Dalgish and Miller, 2010). Forming involves engaging the team and explaining to members of the team reason for subletting the office space. This would be useful for bonding the team members. Conforming involves reminding the team on its vision for change in an open and transparent manner and considering the effect of the planned change on the organization. Storming involves parting the actual change so that it becomes real to the members of the team who would in turn show the essence of change to the entire organization. During the storming phase, the roles of the individuals in the group are made clear and the importance of their participation explained. (Dalgish & Miller, 2010) The strength and weakness of the group is also determined at this stage. Performing involves formulation of a plan by the team on how it will meet the new objectives. At the stage, each member of the team will be required to clearly understand his/her role. The team leaders who successful implement the change would be rewarded. Patience and persistence is an important element of managing change. Benefits of change take time to be realized hence the need for patience. (Gill, 2005) As a leader, I would employ this norm to enable employees settle down in their new station. Patience would also diffuse unnecessary tension than normally accompanies organizational change. Revisiting the vision and change plan is also a very important element that comes with persistence. I would try to understand the reason, benefits and consequences associated with subletting section of the office space by revisiting the change plan. This would enable me gain clear understanding of the whole situation. According to Carless (2005) change process usually requires improvement of communication channels within an organization through constant communication to members of staff through organized meetings. In this context, I would maintain constant communication with the employees through emails, organized meetings, personal interviews and distributing newsletters clearly describing the change and the reason why it had to be done. . This would help build their confidence and enable them understand the new goals and objectives. Transition from the past to the present is difficult for both the organization and individuals. At individual level, people must be reminded that every change begins with an ending which must be accepted. (Carless, 2005). Some of the main causes of employee resistance include: previous negative experience from similar changes, need to maintain status quo lack of trust in the team mandated to handle the change and lack of clear understanding of the reason for change. (Carless, 2005) I would handle the problem of employee resistance by developing appropriate change models and create a learning organization where the staff complaints and proposals regarding the change are listened to. In this regard, I would try to ask the staff to suggest how they would like have their sitting arrangement. I would also provide the culture and environment that supports learning and change through developing the spirit of teamwork within the organization and encouraging responsiveness and flexibility. It is important for leaders to listen to employee views regarding any change or anticipated change within an organization this would be important in understanding their feelings regarding the change. (Cunning, 2001) For successful implementation of change, the employees need to be convinced to remove any doubt or fear about the change. As a leader I would identify what needs to be addressed to effectively implement the change. This would be done by interviewing some of the employees regarding the relocation and listen to their views regarding the subletting of the section of the office space. Their views would then be published in the organization’s website and newsletters to encourage them provide feedback on any future changes. Those who raise fears concerning the move would be encouraged through clear explanation of the reason and importance of subletting the office space. This could be done at individual level by inviting the worried employee for a private meeting. Attitude is a very important element during a transition period. As a leader, it is important to develop a positive attitude. This would be very important in determining the type of work environment exhibited by the employees after the change. Change can become very stressful, confusing and annoying. It is therefore very important to remain focused and positive throughout the entire transition period. (Gill, 2003) As a leader, I would foster the spirit of positive attitude so as to remain focused on the organizational goals and objectives throughout the transition period. In this regard, I would try to write a brief note of encouragement on their pay slips, take them aside and tell them how they are doing a great job and try to instill organizational change as a personal challenge that everybody can meet. These efforts would help build a positive attitude within members of staff Conclusion Organizational change occurs throughout the organization’s cycle. It normally affects the organization as a whole rather than one or some of its sections or departments. Change is increasing due to variety of factors such as increased business competition, inflation, change in technology, cultural diversity and environmental changes. The ability to recognize the need for change and implement change strategies effectively is an important requirement for any organization. It is therefore very significant for organizations to formulate appropriate leadership and change strategies to avoid change failure. References Benvensite. G. (1989). Mastering the politics of planning. San Fransisco; Jossey – Bass Bridges. W. (1988). Managing organizational transition. Organizational Dynamics,15: 24 - 33 Carless, S.A. (2005). Person – job fit verses person – organization fit as predictors of organizational attraction and job acceptance intentions: a longitudinal study. Journal of Occupational and Organizational Psychology. 78 (3): 411 – 429 Conner. D . (1990). The changing nation: strategies for citizen action. Atlanta: ODR, Inc Cunning, T. G & Huse, E. F (2001). Organizational development and change. San Diego; University Associates. Dalgish, C. & Miller, P. (2010). Leadership: understanding its global impact. Prahran: The university press. Foster, B. (1991) “Creating a vision that employees can see.” Presentation made at The University of Georgia Center for Continuing Education. Athens; GA. Generation Y goes to work . (2008). The Economist (US). Retrieved from Gill, R. (2003). Change management – or change leadership? Journal of Change Management May (3), 4. Harvey, P. H. (1996). New uses for new phylogenies. Oxford: Oxford Univ. Press. JICK. (1993). Manage change.Module 4 The Recipients of change Kanter, R. M. (2005). The change masters. New York; Simon and Schuster. Lewin (1951). Resolving social conflicts and theories in social science. Washington D.C: American Psychological Association. Poole, M. S. & Van de Ven, A. H. (2004). Handbook of Organizational Change and Innovation. Oxford: Oxford University Press. Robbins, S. P. & Judge, T. A. (2009). Organizational behavior. Upper Saddle River, New Jersey: Prentice Hall Inc. Senge, P. M. (1990). The fifth discipline: The art and practice of the learning organization. New York: Doubleday Currency Tushman, M. L. & Anderson, P.C. (2010). Technology cycles, innovation streams and ambidextrous organizations: organization renewal through innovations streams and strategic change. New York: oxford university press. Waddell, D. C. (2007). Organisation development & change. South Melbourne: Thomson. Waddell, D. C. (2011). Organisational change: Development and transformation. South Melbourne, Vic: Cengage Learning. Walters. P. G. (1990). Characteristics of successful organization development. San Diego; University Associates. Read More