Theoretical Analysis of Organization Change - Report Example

University> By Table of Contents Theoretical Analysis 2 Applications of Interventions 6 Managing Change 10 References 14 Theoretical Analysis Change affects all business organizations regardless of the industry, age of operation, or size. This is a clear indication even if a company is small or big, agricultural or manufacturing, new or old, change is inevitable. The world is changing in rapidly and organizations as well must keep this pace. Thus, companies that mange change effectively will be in a better position remain competitive while to rest will struggle to survive in the ever-changing world. There are two primary things that make companies different in their approach to change management. One of the most significant issues is the nature of business. Companies operate in substantially different industries and thus affecting their response to changes. Secondly, the changes or transformations vary and affect different people in the organization. It is crucial to understand the need for change before embarking on such changes in an organization. As such, the inspiration for change in Coles Company must be generated before undertaking the change processes. As well, it is crucial that the people affected by the anticipated changes are prepared to avoid conflicts, chaos, resistance, and associated challenges (Dapiran & Hogarth-Scott, 2004).. Organizational change is one of the most significant aspects of the organization. It involves the process of optimizing the performance of the organization through modification and alteration of how things are done. Three main things trigger organizational changes. Firstly, the management of the organization plays a vital role in the process of change. This is a clear indication that for successful change, the management of Coles Company must be in a position to support the anticipated changes. The next determinant of change is the environment. The business environment is considered as ever-changing. Therefore, Coles Company has to initiate necessary mechanisms with the objective of surviving and remaining competitive in the environment. Finally, change is substantially triggered the current crisis. For instance, there are an increased number of customers visiting the Coles Company outlets across Australia. As such, effective change strategies need to be implemented as a response to such situation (Gans & King, 2004 pp.313). Coles Company is one of the leading and competitive organizations in Australia. It operates more than two thousand outlets dealing with different products and services. The major outlets are supermarkets, hotels, convenience stores, liquor stores, and other businesses. Due to the larger number of branches, the company employs approximately one hundred thousand employees across Australia. It is very clear that the business outlets vary in what they sell and offer as such, there is a significant need for change to ensure that the performance is substantially enhanced. On the other hand, it is necessary that the people affected by the changes are informed the advantages associated with the changes to increase their acceptance levels (Chen & Suen, 2010). One of the most important pillars of the Coles Company is that it has incorporated advanced technology in most of its operations. Research reveals that eighty-five percent of the products such as liquor are bought online (Chen & Suen, 2010 pp.3). This is facilitated by their websites that enable customers across the nation to place orders, make payments and receive their items. As such, their online presence has substantially increased their clients and hence the level of profits. Despite all these, the company still faces some challenges. These challenges such as increased number of customers have led to the increased demand for their products and services calling upon the company to initiate innovative change strategies. On the other hand, the changes incorporated must be managed efficiently to ensure that the corporation is not negatively affected. One of the theories that this work is based on is Kotter’s eight stage process of organizational transformation. The first step involves developing a vision and a strategy. In this stage, Coles Company needs to develop an effectively vison and strategies with an objective of accommodating the anticipated changes. Secondly, the theory advocates for the creation of a sense of urgency. The management must ensure that the Coles company stakeholders such as employees and customers feel the need for incorporating change. The third step is to create a guiding coalition which ensures that all the procedures of the change process are followed correctly (Dapiran & Hogarth-Scott, 2004). Fourthly, there is a substantial need to empower broad-based action. In such a case, Cole’s company management must ensure that all the stakeholders are involved to ensure that the transformations are successful. In addition to the above, the next stage emphasizes the need to communicate the vision of change in the organization. This is primarily aimed at ensuring that every member of the organization feels like part of the transformation towards success. Then it is crucial anchoring new approaches in the organization culture. The management should be in a better position that all the stakeholders are conversant with the ever-changing business environment. Lastly, Kotter’s theory emphasized the need generating short term goals and consolidating gains and producing more changes within the organization (Jones, 2010). The second consideration is Kanter’s theory of executing change whereby there are some key steps that Coles Company management must ensure they follow. One of the most significant pillars of the theory is the analysis of the organization and its need for change. Cole’s company management and leadership must be careful when implementing changes. Changes should not be just implemented for the sake of implementing but must be accompanied by a strong need for them. The theory also emphasizes the need for crafting an implementation plan before the real transformation occurs. This is a clear indication that Coles Company needs to have the implementation plan ready before embarking on the change process (Pritchard, 2000). The other issue emphasized is communicating the need for the changes anticipated and the associated advantages. The management should try, to be honest as possible so as to maintain the trust of the customers, employees, and other stakeholders. Finally, there is substantial there is a considerable need to institutionalize and reinforce change through appropriate structures. For the case of Coles Company, the management can use incentive and rewards to inspire employees who are change oriented (Lea & Worsley, 2005 pp.856). Applications of Interventions Some specific changes need to be conducted in the Coles Company. One of the changes affects the Checkout machines/self-service. It is profound to note that the increase in population substantially affects the business environment in various ways. One of the most significant outlets of Coles Company is the supermarkets. People have to make long queues when purchasing and making payments of the items. The queues are very long especially on the weekends since people prefer to go for shopping at such times. As such, various challenges often occur making process tedious and time-consuming. One of the most common challenges is the failure or errors of the checkout machines. As well, the employees operating the machines may be having little skills to operate these machines. One of the most recommended changes is to purchase high-tech checkout machines. These are the machines with the latest technology and automated features. For instance, customers have the ability to serve themselves. There are advantages that the company will encounter once this change is implemented. One of the most significant advantages is that it saves time by increasing the efficiency in service delivery. These machines also are very reliable and accurate hence has minimal errors. As such, the company is a position to make higher profits as compared to using the current checkout machines. In addition to the above, the machines ensure that quality services are provided for the customers leading to increasing number of customers (Yang & Zhuo, 2009). The next anticipated change for the success of the company affects the stores. There is a substantial need to change the current situation of the company to simpler levels. There are several advantages of the change that is proposed. Firstly, the change of simplicity in the stores ensures that the available space is utilized effectively. Warehouses normally are used to store a wide variety of products and thus making the stores simply make more space available. As such this cuts down the cost of constructing other stores. Secondly, there is a substantially need to incorporate technology to ensure that the stores are smarter. For instance, management information systems should be used so as to track the levels of stocks. Once such systems are implemented, the management can be in a position to track the level of stock in a more convenient and faster approach. Such systems make work easier for the management. The information needed by various stakeholders such as employees, suppliers, investors, and others can be availed easily. This will be essential in building the brand of the company since information is one of the pillars of ensuring stakeholder trust and knowledge of the company operations. The systems also will be in a better position to enable the managers to make effective decisions affecting the overall performance of the company. However, implementing these changes is associated with various challenges. One of the most common challenges is the lack of funds. Resources will be needed to install the system and maintain it as it operates. As well, new employees will have to employ to run the system smoothly. As such this will call upon the management to set aside enough funds for the project. Another imperative change that needs to be implemented is simplifying store-support Centre. This change can be achieved in three main stages. Firstly, there is a substantial need to simplify the fundamental processes that are traditional in nature. The implementation of the computerized system, however, will play a vital role in streamlining most of the routine projects. The second aspect of change streamlines the decision-making process. The computerized warehouse management system will be instrumental in decision making in various ways. The generation of reports will enable the management to make an effective decision such as increase the stock. The simplification of the processes as well should be elemental in lowering of the operation costs (Dignam & Galanis, 2004). The Coles Company as well needs to initiate various training programs to ensure that employees take up various roles and responsibilities. The primary objective of the training should be to ensure that all employees are conversant with technology and the related machinery. Currently, most of the highly competitive organizations are leveraging technology. One of the basic training is to ensure that all employees are computer literate. This means that they can operate the computer at the core level. On the other hand, skilled employees should be trained in advanced areas such as security. Security is one of the challenges affecting organizations using technology and related application such as websites (Mecca, 2004). Security is one of the most sensitive areas especially when dealing with monetary transactions. There are several ways in which attackers can access the system without authority or by bypassing the security controls. One way of dealing with such issues is to install effective firewalls to protect unwanted entry to the system. This is because hackers and other attackers can hack into the computerized system leading to several implications. One of the implications is that they may have access to confidential information and sell them to the competitors. Secondly, they may input the wrong data into the system leading to errors and resulting in wrong decision making. Therefore, the training of the employee will play a vital role in ensuring that employees take up most of the roles in the company. As a result, the company will not be forced to use a lot of money hiring new employees to take up the new roles. Finally, there is a substantial need for the company to shift towards new and innovative products. The primary objective of this change is to drive a point of differentiation through new products based on three main pillars. Firstly, the company should be emphasis toward the sale and production of healthier products. As such, the products also should be biodegradable. For instance, they should towards the used of packaging materials that are biodegradable or can be recycled. The impact of this change is that it will be instrumental in reducing environmental pollution. The other two objectives are aimed at creating acceptable and exceptional quality in the market of competition (Winkler, Turrell & Patterson, 2006). Managing Change There are several potential obstacles to the proposed changes. One of the most significant obstacles is a lack of management support. The management is first people to accept or reject the various changes based on different reasons. One of the most common reasons is a lack of enough funds to support the change process and the related expenditure. Most changes in companies have failed due to the claims of the management that no funds are available to support the projects (Oreg, 2003 pp.680). Another obstacle occurs when the leaders are not change-oriented in an organization. To ensure the changes proposed for Coles Company are successful, there is a substantial need for the management to support the proposed changes. They must commit to funding all the process until the completion phase. The issue of lack of funds can be addressed by sourcing funds from other avenues such as bank loans. For the case of leaders who are not change-oriented, there is a substantial need to emphasize the need to embrace change in the organization. The next potential obstacle to the proposed changes is the resistance from the employees. Most employees may resist the changes such as the introduction of computerized systems for various reasons. One of the reasons is that employees may resist changes for fear that they will lose their jobs. In several cases where automated systems are introduced most employees end up losing their jobs since new employees with the required skills are employed. The other reason for the resistance is that employees may fear the unknown. The employees may not be convinced with the primary objective of the proposed changes. Thirdly, employee resists change due to bad communication strategy. The management may not involve the employees in strategizing the proposed changes in a formal way. The way changes are communicated to the employees play a vital role in their acceptance of the changes. Thus, it is imperative that the managers of Cole Company ensure that the employees are aware of the benefits of the proposed changes (Lyons, 2007 pp.157). Loss of control by the employees is another potential obstacle to the proposed changes. Employees are used to the way they typically carry out their duties and responsibilities. Informing them about the changes thus may make them loose control and get confused. However, this situation can be solved by keeping communication within the company open. For instance, the employees must be informed of the importance of them being trained. Another stumbling block to the implementation of the proposed changes is a lack of competence. Most of the changes especially involving technology and automation require new and competent skills. Most of the employees will fear that they will not be in a position to catch up with the transformation effectively. Others may be hesitant to try new and innovative operations which add up to their intensity of resistance. Most changes in the organization do fail due to poor timing. It is very crucial to introduce changes when no sensitive initiatives are taking place in the company. The management of Coles Company should time the proposed changes effectively. For the changes to be successful, the management must roll out effective implementation plans before the process of change begins. If the office bearers are not in a position to design these implementation strategies, they can hire the services of competent consultants. On the other hand, previous change experience can be a potential block to the proposed changes. If the previous change initiated by the Cole Company management were not successful, then there are high chances that the stakeholders will perceive the planned changes as a failure. Finally, lack of trust and support in the organization can be a substantial block to the successful transformation in Cole’s organization (Piderit, 2000). To overcome this challenge, the management should ensure that all the stakeholders are respected. Furthermore, Coles Company is one of the leading companies in Australia. Despite the successful operations, they still face various challenges that need to be rectified. One of the most significant ways of solving these challenges is to implement various changes in the organization. Some of the common changes include shifts in the checkout machines, training of employees, used to advanced computerized systems, the introduction of new and innovative products, and other changes. However, for achievement, all these changes must be managed well. This is primary to deal with the numerous potential obstacles to the proposed changes. Some of the most significant obstacles include lack of management support, lack of funds, poor timing, resistance to change, and lack of trust and support. As such, the successful implementation of these proposed changes will play a crucial role in the increased performance of the company. The other obstacle in change management is identification of the person in charge of the change process. Most of the projects of change in organizations fail simply because the right people to be in charge of the process are not well aligned. Most leaders push for various changes but once the process begins they start neglecting the whole process. Leaders of the company should play a vital role in ensuring that all the steps are followed correctly until the last point of the project. As such, this will be vital in ensuring that all the changes are effected as required The type of modification or the change is very essential at this stage. There are three main changes that can occur in an organization namely; organization, project, or change. To achieve success it is crucial that the upcoming changes are clarified and the departments affected in the Coles Company are well communicated. As such, it is imperative to note that team changes vary substantially form organizational changes. The main purpose of defining changes accordingly is to minimize issues such as chaos and confusion. As a result, it is necessary that the right people affected by the changes are involved while those not affected should be left out. For instance, if the adoption of technology will affect specific departments of sectors of the company, the other sectors should not be involved. Finally, in the management of change, it is crucial that support and guidance be offered to the affected. The main reason for this is to make the changes a commonplace. As well, these play a vital role in reducing the rate of errors especially when using the new techniques, equipment, and material. Hence, support and guidance enables the company to achieve the best out of the transformation put in place. References Chen, J.M., Suen, M.W., Lin, M.J. and Shieh, F.A., 2010. Organizational Change and Development. Organization Science, 12, pp.1-13. Dignam, A.J. and Galanis, M., 2004. Australia Inside/Out: The Corporate Governance System of the Australian Listed Market. Melbourne University Law Review, 28(3). Dapiran, G.P. and Hogarth-Scott, S., 2003. Are co-operation and trust being confused with power? An analysis of food retailing in Australia and the UK. International Journal of Retail & Distribution Management, 31(5), pp.256-267. Gans, J.S. and King, S.P., 2004. Supermarkets and shopper dockets: The Australian experience. Australian Economic Review, 37(3), pp.311-316. Jones, G.R., 2010. 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