Implementation of Organizational Change - Coursework Example

Organization Change Name: Institution: Organization Change 1. According to McFillen et al. (2013), organizational diagnosis is an important task that can be used to create a relationship between change and readiness in an organization by selecting the right directions of change that creates the readiness to accept change in the organization. McFillen et al. (2013) proposed that diagnosis of the causes of problems that an organization is facing can be achieved by neither understanding the systems in terms of areas where the components are nor functioning according to expectations. In respect to BTS, the main systems that affect the operations in the company includes the relationship between the management and the proprietors of the company which is not friendly, employees are not provided with fair treatment in terms of benefits and the production that was initially applied is no longer effective. In addition, McFillen et al. (2013) suggested that the second step of diagnosis is the knowledge of standards to which activities in an organization must conform in order to be considered successful in accomplishment of the vision of an organization. In the case of BTS, it is found that the main standards that the company must conform to include: providing employees with benefits and adequate salaries, and producing quality woolen and cotton fabrics that create a high demand both locally and internationally initially. Finally, McFillen et al. (2013) stated that the last stage of diagnostic process must involve determining the solutions that must be applied in order to meet the challenges currently experienced by the organization. The solutions should be in terms of operations strategies and managerial strategies. This supports the views that were suggested by Hayes (2014) who stated that employees and the proprietors should cooperate and communicate in better terms to reach a solution to the challenges faced by an organization. For example, in the context of BTS, the strategies can involve determining the best strategy for production of cotton and woolen fabrics that meets the demands of the people in Indonesia and abroad. It also involves employee management strategy such as satisfactory payment system and benefits so that they are motivated, and creating a positive relationship between the Board and the owners of the company. In addition Barratt-Pugh et al (2013), suggested that the relationship between change and readiness in an organization can be achieved by creating the right culture in the organization so that the employees become ready to accept change. This is where the HR focuses its strategic approach of leading the change and not eliminating casualties. Similarly, Hayes (2014) explained that readiness for change can be created though cooperation among employees and sharing ideas of change. This was not the case in BTS because, instead of leading the change, they dismissed some employees as a measure to save on costs of operations of the company. Barratt-Pugh et al (2013) also suggested that resources in an organization should be used to make the employees ready to accept the new changes in operations and organization of activities. At BTS, resources were conserved and the management risked to invest them on effecting change such as coming up with a new production strategy. According to Rafferty et al. (2013), the association between change and readiness can be understood by understanding antecedents to change. This is the willingness of an organization to accept change. This is also supported by the views of Hayes (2014) who suggested that change can be achieved by ensuring hierarchy in decision making process is eliminated. This is where the owners allow the management to make decisions in their areas of specialty without interference and employees are given the freedoms to contribute to the objectives of the company in a positive manner. In the case of BTS, it is observed that the management of the organization is not willing to accept change this is because they are not putting much effort to ensure employees are provided with enough benefits and the production methods suggested are not accepted by the Board while the owners insist on implementing them. Rafferty et al. (2013) stated that in order for an organization to understand the need for change, there must be a sense of discrepancy in the manner in which activities in the organization are carried out. In the case of BTS, it was observed that the board was contented with the previous methods of production of woolen and cotton fabrics, thus, it is concluded that the organization was not ready for change. In addition, it is stated that readiness for change can be understood by the extent to which an organization implements the most accurate response, create a sense of efficacy and provide the right support in terms of resources and financial support. In the case of BTS the board was uncertain about the strategy that was suggested by Tommy and Kahdija and did not provide support to enable the new strategy operate in the organization. 2. Readiness to change and implementation of change will be achieved by applying the following diagrams Figure 1. Readiness to change diagram The above ‘Readiness for Change’ diagrams can be implemented by BTS to ensure readiness of its operators to change. This is where the management of the organization can apply the ideas of ‘Need for Change’, Leadership and Direction’ and ‘Planning’. The sections marked with X illustrate areas where BTS did not put more effort to incorporate in their change endeavors. The outcome of this is that it results into successful change in the organization. If one of the above components of ‘Readiness for Change’ is not implemented, it is highly probable that achievement of change is also difficult. For example, in the case of BTS, it was observed that the Board were of the view that there was no need for change because the previous strategies of manufacturing cotton and woolen products was satisfying to them. This resulted into lack of preparation to accept change. In addition, it was observed that leadership and direction of BTS was not efficient because there were disagreements between the Board and Tommy and Khadija who are the owners of the company. This resulted into difficulty to start implementing change because there was no agreement on where change should start. Furthermore, the case of BTS showed that there was no planning of activities of the organization. This is because the management did not put in place measures aimed at introducing change such as the right knowledge on methods of conducting manufacturing activities and transitioning from the previous strategy of producing cotton and woolen fabrics to the new strategy. As a result, they experienced cases of false starting and there was no direction in the manner in which they conducted their activities. Figure 2. Implementation of Change diagrams The implementation of change diagram shows that Successful Change can be achieved in an organization when processes are devised using organizational resources that are subjected to systems control and behaviors that are focused to achieve the change. This organization resources component of the Change diagram requires that resources should be put in place so that activities involved in change management are performed successfully. If this is nit done, there can be paralysis and frustration of activities in an organization. Another observation that was made is that ensuring systems are controlled can result into performance of tasks of an organization with the aim of achieving a particular goal. In the case of BTS, it was not possible to achieve change because Processes were not adequately determined and no specific process was identified that could be used in the transition from the previous method of manufacturing to the new method. In addition, it was found that Organizational Resources were not aligned to the efforts towards change achievement such as production of the right products that were required in the market. Furthermore, it was found that Systems were not well controlled and activities of the organization were not performed with a particular goal or objective. Furthermore, it was found that Behaviors of the management did not demonstrate willingness to change. The employees were not introduced to new methods of production that were suggested during the change. Consequently, they were resistant to change from the previous strategy of manufacturing cotton and wool products at BTS. 3. The following Open system Diagram illustrates Inputs, processes and Outputs of BTS. Inputs: The main inputs problems that need to be addressed by BTS include the following Information: In terms of information, it is observed that there is lack of adequate information with respect to the effort to the right method of producing cotton and woolen fabrics that should be implemented. For instance, the Board believes that the traditional method that was used by Bessington should be applied but Tommy and Khadija believe that a new strategy of making designer fabrics would be more suitable. This has cause lack of understanding and there is no agreement regarding the best method that should be applied. Energy: The energy of management of BTS is focused on producing cotton and woolen cloths using traditional methods and facilities that are outdated. This is contrary to the view that the traditional methods cannot enable production of fabrics that can meet the present competition in Indonesia and in other countries. Thus, the company has not been performing well in terms of profitability to sustain its activities. People: The people in the organization are not well managed. The Board and and the proprietors of BTS did not inform the employees in the production department about the transition to the new technology of production and they did not provide them with training to prepare them for the new technology. This resulted into lack of preparedness and when the new technology was implemented, it was difficult to achieve success in production of cotton and woolen fabrics at BTS. They are not provided with benefits and the payments they receive are low and cannot sustain their lives. The management has not been concerned with the welfare of employees and they have opted to layoff some people so that they can reduce costs of operations in the company. Processes: The following are the main processes that need to take place at BTS Social Component: The main social component of input is that there should be communication between the Board, the proprietors and employees. The communication is important in the area of coming into an agreement on the right strategy that should be used during production of fabrics at BTS. It should also involve weighing the pros and cons of different methods so that the method with the highest number of benefits is implemented. During the transition from traditional strategies of production to new strategies, employees should be informed about the change and they should be given time to adapt to it before it can be implemented fully. They should also be provided with training on methods required to apply the new strategy during manufacture of cotton and wool fabrics. Technological Component: The main technological input is that new machinery needs to be incorporated into the activities of BTS so that the new strategy of producing cotton and wool fabrics can be successful. It also involves providing training to employees on the new technology and designing the facilities in a manner that allows processes to take place efficiently during production of cotton and wool fabrics. Outputs: The main outcomes that can be expected from the above processes include the following Goods: The above inputs will result into production of designer made cotton and woolen fabrics that can be sold locally in Indonesia as well as for export to other countries according to the wishes of Tommy and Khadija. Services: The services of employees in the organization will be efficient because they will have the right skills to perform their tasks. High output will be achieved in the areas of production of cotton and woolen products in addition to efficient use of facilities. Ideas: Ideas will be shared on how production needs to be improved and competence of employees will be enhanced. The management will be able to share ideas on strategies for managing the organization that will ensure success is achieved in solving managerial problems at BTS. Figure 3. Open System Diagram Illustrating Inputs, processes and Outputs of BTS 4. The use of Kotter’s Integrative Model of organizational dynamics Figure 4. Kotter’s integrative model of organizational dynamics of BTS. N.B: Green represents short term goals of BTS, Blue medium term goals and red represent long-term goals. Analysis of the above diagram using short, medium and long term goals of BTS Short term goals: The short term goals that will need to be achieved by BTS include investment in technology that is relevant to the proposed system of production. This is where the management and owners of the company will determine the machinery that can facilitate the strategy suggested by Tommy and Khadija in production of designer made woolen and cotton products. The technology used should be one that ensures the company is able to increase its output at reduced cost and labor. It should also increase the efficiency in terms of utilization of space and raw materials. Another short-term goal that will need to be achieved by BST is to ensure a formal arrangement is done in the procurement department as well as in terms of the right technology to use during production of cotton and wool fabrics. This is aimed at ensuring the management does not disagree with the owners of the company regarding the production technology to use. It has been established that lack of arrangement between the management and owners of BTS was the main contributing factor to its reduction in performance. Arrangements will also involve determining the right layout of machines during production so that employees are provided with a comfortable working environment. Medium term goals: An example of a medium term goal that will have to be achieved by BTS is to ensure external environment is studied and its demands complied to. These include understanding the level of competition in the environment and the strategies used by competitors. This is important because it will equip the company with the ability to come up with the right strategy of competing in the distribution of cotton and wool products. In addition, in the process of producing cotton and wool fabrics, it will be required that customer preferences are studied. This will ensure any changes in customer preferences are understood and the management is able to produce cotton and wool products that comply to customer tastes. Consequently, it will act as an assurance that the products of the company will remain relevant in future. Another medium term goal that the company must achieve is to observe the needs of employees and manage its assets such as machinery. It has been found that currently, the company is not providing its employees with enough benefits which has resulted into a reduction in the number of employees. The company has also laid off some employees as a measure of reducing cost of production. However, it is suggested that the company must ensure employee welfare is observed in terms of adequate salary, bonuses and benefits so that they are motivated to work according to their potential. The company also needs to ensure the main assets such as machinery are maintained and in good working conditions so that production activities cannot be brought to halt due to breakdown of machines. Long term goals: An example of a long term goal that needs to be achieved by BTS is to ensure it develops a social system that encourages collective decision making. This is because, it has been established that currently, there is lack of understanding between the proprietors of the company and the Board regarding the type of production strategy that needs to be implemented. The Board are of the view that the traditional strategy should be used while the proprietors have come up with a new strategy which they have imposed on the employees of the company. It is suggested that if a culture is developed where the management and the proprietors communicate to one another, it will be possible to solve many challenges faced by BTS. Another long-term goals that needs to be achieved by BTS is to ensure there is a Dominant cooperation between the management and the employees. This is where can agreement is reached in terms of the type of fabric to be produced, the form of marketing to be implemented and the type of customers that should be targeted in order to enhance competitiveness of the company’s products. 5. Lessons that BTS can learn from the failures of Norwegian Civil Aviation Industry The main lesson that BTS can learn from the collapse of Avinor is the the choices made by managers have direct impact on strategic change of an organization. This is because if managers make a choice that results into resistance from employees to accept, it is difficult to achieve change. In the Norwegian Aviation industry case, it was observed that managers imposed change that was not accepted by the traffic controllers (Lofquist, 2011). Despite the complaints by traffic controllers, they went ahead and implemented the change, thus resulting into strikes which greatly affected the performance of Avinor and its eventual collapse. Another lesson that BTS can learn from Avinor case is that when there is a mismatch between culture in an organization and the change strategy suggested, it is not possible to achieve change. In the case of Avinor, there was a mismatch between culture in the organization and the strategy for implementing change that resulted into a premature collapse of the change efforts (Lofquist, 2011). This is because the culture of consulting the air traffic controllers was implemented whenever there was the need to make changes in operations. However, the management involved in implementing change ignored this process and implemented change. Thus, there was resistance from air traffic controllers and the change never took place. The main managerial choice that affected the failure of the change process was consensus building. If the management is not able to come to a consensus with the employees, it is difficult to implement change. This is because those directly affected by the change are the employees and they know where change needs to be made. It was found that there was lack of consensus in the manner in which decisions were made in the change of Avinor from a government sponsored service provider to a government-owned service provider (Lofquist, 2011). For instance, the management made a controversial decision to close the second air traffic controller, a decision that was not accepted by the union. The individual traffic controllers made drastic decisions and they declined to accept new rules in traffic management. This greatly affected the services of Avinor and it incurred significant losses in the transition process thus leading to its collapse. Another factor was the manner in which participation was used during the change process It was also observed that there was a sudden reversal from participatory change process to a pure top-down process that resulted into lack of consensus among stakeholders involved in change implementation (Lofquist, 2011). This resulted into internal and external resistance to change among employees. As a result, the navigation services provider-Avinor collapsed prematurely before the change could take effect. References Bartel, C. A., & Saavedra, R. 2000. The collective construction of work group moods. Administrative Science Quarterly, 45: 197-231. Bartunek, J. M., Rousseau, D. M., Rudolph, J. W., & DePalma, J. A. 2006. On the receiving end: Sensemaking, emotion, and assessments of an organizational change initiated by others. Journal of Applied Behavioral Science, 42: 182-206. Baumgartner, H., Pieters, R., & Bagozzi, R. P. 2008. Future-oriented emotions: Conceptualization and behavioral effects. 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