Managing Organisational Change - Case Study Example

Managing Organizational change (Author’s name) (Institutional Affiliation) (Tutor’s name) (Date) Acknowledgements It has taken special effort to bring this pamphlet to completion. I gratefully acknowledge the efforts of scholars and analysts who have dedicated their time and energy to critically study and analyse concepts and perceptions in Organizational Change. I also acknowledge the contribution of my study mates for their endless compliance to my calls for help and discussion on this concept....................................................................................It is from them that I learnt more on this concept and was able to apply it in my pamphlet. They have also been very patient with me by reading my early drafts, their humour and friendship is always fresh in my memories. Heartfelt thanks to my parents..............................................................the heroes of my life who have made this possible by spending both their time and energy and also funds for my research and publication. And, as always, thanks to my instructors and professors who have been my mentors throughout my course and were always available for consultations. Most specifically thanks to the Almighty God who through guidance followed at a respectful distance has made all this possible. To God be the glory. Letter of transmittal (Insert author’s address) (Insert tutor’s address) Dear sir/ madam, REF: ORGANIZATIONAL CHANGE ASSIGNMENT I am a student, Reg. no……., Name…………..hereby humbly requesting for your time checking my assignment given on ………………………………………………………………. It includes all the criteria and instructions given in class. My contact address is…………….. (Insert address, telephone number). I look forward to your response. Yours faithfully, (………………Signature, name) Executive summary The Wilders Department Store is a bicycle selling store. This store picked up in its sales during the Christmas period and with the rise in fuel costs there was high demand for the bicycles. According to the George Nolan, the bicycle store manager, the business has tremendously picked. This store includes sales personnel who, continually, try as much as possible to keep the company on its toes by confirming sales from clients and making sure the deliveries happen on time. The demand for bicycles has taken an upward trend to over 100 bicycles per day and a growing need to expand its stores is being undertaken by the managers. Table of Contents Introduction…………………………………………………………………..……..6 Background…………………………………………………………………..……...6 Aims ……………………………………………………………………………..…. 7 Assumptions………………………………………………………………………….7 Body Need for change in an organization………………………………………..….…8 Nature of change ……………………..………………………….…8-11 Table of action plan……………………………………….…….…11-12 Models of organizational change Kotter’s model………………………………………………………..13 Contingencies model, OD model…………………………...………..14 Resistance to organizational change and proposed change strategies….14-16 Managing Resistance to change strategies …………….…………………16 Communicating change…………………………………………………16 Sustaining change…………………………………………………….…16 Conclusions and recommendations………………………………………………….…. 17 References…………………………………………………………………………….....18 Appendices……………………………………………………………………………….19 Introduction Background Various analysts have put forward their views on organizational development and change. Since an organization is a compilation of two or additional people undertaking a task, developments and changes have to be embarked on. This is basically for efficiency and effectiveness of the people working together. Weisbord, (2007), believes that organizational change should be multi-disciplinary and not inter-disciplinary just like other experts put across. According to Tsang (2009) organizational development is a contractual liaison between a change driving force and an organization with a need and is willing to embrace change for the purposes of improving the organization’s systems. He continues to argue that this process is a continuous one and cannot be alienated towards the success of an organization, incorporating psychological, sociological, motivational aspects, personalities, among others. Other scholars have also put across their views on organizational development notably Powell (2008), who defines organizational development as a continuous endeavor to change a system for upgraded performance and efficiency of the entire system. It is however important to note that organizational development is not only an intervention approach but also a complex procedure that aims to amalgamate all the apparatus that makes the organization run efficiently. These may include the quality systems, planning, human resource, team work among other functions. Prior preparation has to be done for the correct interventions to be achieved by the entire organization. Aims This essay will aim at; Identifying the need for change in an organization The nature of change in the organization Describing the diagnostic and Kotter’s models of change Proposing change strategies in the organization and how to manage resistance to change strategies Devising the best methods to communicating change in the organization and sustaining it. Assumptions Quite a number of assumptions relate to the effective functioning of an organization. According to Powell (2008), they include: The unit blocks of an organization are all concerned stakeholders. Urgent decision making towards change is vital for an institution’s success All sectors of an organization are interdependent Communication of changes in an organization is vital for success. Body Need for change Watkins and Marsick (2007) argue that for change to be applied there must be a need for that change to take place in an organization. From this, the drive towards change in an organization is resultant from the need for a change and the entire system admitting to existence of a predicament. Among the criterion used to depict need for a change include dissatisfaction in the organization. This is referred to as gap analysis which looks at the organizational vision. If the organization is constantly complaining about the manner in which the organization is being run and no satisfactory returns coming from the business then there is a dire need for change in that organization. Nature of change There are four major forms of change in institutions; Process transformations System transformations Structural transformations Organizational transformations In our case study of Wilders Department Store, it is evident that there is need for change. Basing our argument on the dissatisfaction criteria, it is mandatory that the business in question undertakes a quick organizational change to save the store from complete obliteration. Process change There is need for process change in the Wilders Department Store. Process change includes induction of change activities used to generate productive outputs for the organization. According to Richard (2000) these changes are a set of undertakings that aim at producing productive outputs to the recipients- the customers. Each activity is viewed as an independent variable which ultimately creates a holistic perception of the organizational verve. Among the processes include creating structural precincts such as departmental boundaries which would ensure free flow of the organizational activities. The business re-engineering process has for a long time been credited to total transformation of organizations over the time. The organization may undertake steps that that make that organization a working being. It involves interactions of people to deliver the organizational objectives. The Wilders needs this form of change due to much dissatisfaction from the fact that the store is not able to deliver its sales as well as manage the records of the same. According to George Nolan-the Bicycle Department Manager- the need to satisfy the clients growing demand on bicycles due to an increase in fuels prices has reduced the store to not being in a position to update its records. Systems change This form of change includes rewarding of members of the organization, recruiting members on the basis of merit, appraisal and advancement among others. The organization also needs to ensure that payrolls are delivered in time useful for attainance of organizational change (Richard 2000). It may include increasing the working hours of workers to ensure that the workload of the organization is minimized. The workers need to feel secure in the workplace and by all means reduce the probability of demotivation. Organizations need to fix all systems if real change has to be maintained. At the Wilders store these changes have to be put in place especially an increase in work shifts and pay so as to meet the client’s demands for bicycles. It is evident that bicycles put on display were not always sparkling and orderly just like in a normal business incident. At times, the store was left to call the warehouse for confirmation of their stock. The sales persons on the other hand were overwhelmed with the fact that they had to deal with a large influx of people into the store and sometimes could not satisfy all clients rendering the sore into making lesser sales than the ones ordered for. Not being in a position to satisfy customers’ calls for an immediate change in an organization to reduce the risks of complete collapse. All these issues can be fixed through systems processes. Structural change This form of change comes as a result of day to day interactions of people in the organization. Since people work together, relationships are bound to occur. Leadership functions emanate and the ones below the hierarchy have to obey the authorities. This creates a team of experts who are willing to work towards achieving the organizational objectives (Richard 2000). If the Wilders Department Store has to achieve its vision it has to undertake the structural change. From the Wilders Department Store case study, the top management has realized the existence of a crisis. Being aware of this and their urgent need to act, means that the vision of the Bicycle Store is being put under jeopardy. The Bicycle store has over the time of its operation needed to offer the best services to its clientele base by always delivering quality products in terms of efficiency reason being to always keep the clients coming back to the store. This vision has however not been attained because the bicycles have been noted with a lot of concern being always untidy and dirty. For this to change, then the structural changes have to be undertaken. Organizational change Organization is the utmost essential facet of a business, donations, communal service or further goal-directed anthology of populace. Organizational change includes co-creating prototypes of interactions among the members of an organization. The outward demonstration of association is what is over and over again has been referred to as traditions. This form of change includes relations among the major components of the organization-the workers and co-creating lasting relations among them. Below is a table of action plan by the Wilders Department store; ACTION PLAN: WILDER’S DEPARTMENT STORE CHANGE MANAGEMENT PLAN FOR: STAFF MEMBERS ONLY SPECIFIC AREA OF ACTIVITY OBJECTIVES SPECIFIC ACTIONS TO BE SEQUENCED RESPONSIBILITES RESOURCES DATE VARIANCES Planning Learning processes Promote a mood of teamwork, collaboration, and synchronized endeavor among people. Data gathering. Review of feedbacks. Filled questionnaires. Constant Sales Department restructuring Make reasonable profits for its survival. Improvement of storage facilities to make sales easier. Data gathered Change according to the results of the restructuring Public relations Effectively handle and balance precedence among numerous developments, and relationships with clients. Solidifying and uphold close client relations on the value of overhaul provided Questionnaires Constant Record management Solicits and responds to client feedback Filled questionnaires. Journals on improving management. Reliant to the client’s feedback Store’s management Offer a visualization of the future that incarcerates the assurance of people. Survey of feedbacks. Change with the alterations of the store’s management in order to fit client’s needs. SIGNATURE…………………………………. DATE………………… SIGNATURE…………………………………….. SIGNATURE………………………………………… HEADS OF DEPARTMENT.……………………………DATE…………………………….. …………………………… DATE……………………………. Fig. Action plan for Wilders Department Store Theories of change Change strategies differ but all are designed to ensure effectiveness of an organization. Some of the theories and methods deal with the entire organizational teams; others deal with only a section of the organization, maybe managers or sales persons. Some interventions will look at the roles performed by the organization and the manner in which they are being performed and their contribution towards achieving the organizational vision. Basically, these theories tend to emphasize change methods in the organization through education, communication or even interactions. Kotter’s theory One of the theorems is the Kotter’s theory that aims to mobilize the staff towards the need for urgent change in an organization, development of vision of the organization and that the change agents ensure that they drive the organization towards performance. According to DeKler (2007) this model is the best in terms of communication of the institution’s vision to the members. Contingency approaches Other approaches to organizational change include contingency approaches which are less familiar to the change management theories like Kotter’s. They are deficient in proper analysis which does not describe in detail the prescriptions towards reasonable change. Other scholars argue that this form of approach tends to discuss mostly leadership styles other than actions necessary to achieve change. What is reliable in terms of change is not clearly stipulated for instance the Dunphy-Stace model which stipulates at times the mode of change may result to being a coercive one. Resistance to organizational change and proposed change strategies According to Powell (2008), change is an undertaking most organizations have to undertake though a risky activity. Change may be as a result of pressure from within and outside the markets alike competition, need to adjust to current technological approaches, reputation, need to collaborate all members of staff among others. A major barrier towards change includes the inability to communicate the changes needed in an institution. The climate may not be sensible enough for learning of the change required. If the new behavior is acquired, the staff may not be in a position to adjust to the changes. For instance in our case study of Wilders Bicycle store, if the sales person is not computer literate and is forced to adjust to its use, may lead to many problems. This person is used to filling notebooks and use of an excel spreadsheet would overwhelm him and may end up causing more problems for the store by filling in the wrong data. The management of the store should undertake a major step of educating its staff on current technology in order to freeze the old technological ways. This may be done through organization of seminars for the staff to reduce the psychological threat prior to no proper training and exposure (DeKler 2007). In addition insufficient acknowledgment of interdependence of systems in an institution is a major barrier to change. According to Alstyne (2007), an organization works like a human body where all parts are interconnected for its functioning. We cannot alienate public relations to poor communication or poor marketing strategies as the cause of failure of an institution. These problems cannot be alienated but rather looked at in terms of total functioning. In our case study therefore we cannot only look at poor public relations as a source of problems in the store but also poor record keeping which all contribute to demeaning the attempts to continually make the store’s vision, a reality. The change agents are also at times barriers to change but not involving the staff on intervention measures. For instance the general manager, Mildred Green cannot alienate the other managers and staff if she needs a change in the business. The store should undertake a psychotherapeutical approach which actively involves all members of staff on identifying the problems and finding tangible solutions for them. With this, all stakeholders in Wilders store will be willing to take part in the change. Managing resistance For resistance to be adopted well, change has to be managed. If the organization’s management has to expect a lesser amount of hostility a greater degree of impotence has to be expected by the organization. The management should ensure that achievable goals are set so that the change can be implemented; also enable people get more linked with the importance of the need to have productive outputs. The organizations will mange change critically if these are followed to the letter. It will also enjoy readiness to change in case the need occurs especially if the stimulus comes along. The sooner the stimuli are triggered, the better changes of the organization to mange change. Communication change If change has to be effectively delivered various aspects need to change. First, the language used to deliver the change must be refurbished. Some of the phrases used by managers ought to be catchy enough to communicate the message in such a way that it will not look like it comes from the management but is something fashionable and needs to be embraced by all. Managers should avoid long confusing phrases that bore the staff who may be willing to change but can merely understand a thing. Another mode of communication of analysis, diagnosis and proposals influential for change in the organization is the appreciative inquiry. This intends to bring to the attention of all stakeholders that problems are caused by what they perceived. If the Sales person in the Wilders Bicycle store believes that computers are causative problems to recording of sales, then he is the problem and its source. This mode makes the staff wish and fantasize on the best office and actually make it happen. Sustaining change In order to sustain change, the organization should endeavor to instill feelings in its members that the changed was not coerced on them but they all worked collectively to bring about the change. Most importantly, the management may undertake the slogan of the system changed on its own and has to be sustained by the change agents who are the employees. In short, the management must incorporate all the simple systems to come up with an outsized assemblage of people towards change. Conclusion and recommendations Basically, organizational development retorts to welcoming change in terms of beliefs of a people, mind-sets, and ideals of an organization, latest technologies, or even the organization itself. The systems may be improved to adjust to the recent changes, individuals may be called upon to analyze themselves, or even the organization may be required to plan the whole system all over again. References Alstyne, M. (2007). The State of Network Organization: A Survey in Three Frameworks. Journal of Organizational Computing, 27(2007), (9), 56-75. DeKler, M. (2007). Healing emotional trauma in organizations: An O.D. Framework and case study. Organizational Development Journal, 25(2), 49-56. Powell, W. (2008). Neither Market nor Hierarchy: Network Forms of Organization. Research in Organizational Behavior 12 (2008): 295-336. Richard, T. (2000).Complexity and Culture: New Perspectives on Organizational Change. Organizations & People, Vol. 7 No. 2, pp. 2-9. Tsang, E. (2009). Organizational learning and the learning organization: a dichotomy between descriptive and prescriptive research. Human Relations, 50(1): 57-70. Watkins, K. and Marsick, V. (2007).  Building the learning organization: a new role for human resource developers. Studies in Continuing Education 14(2): 115-29. Weisbord, M. (2007). Productive Workplace: Organizing and managing for dignity, meaning and community. Jossey-Bass Publishers: San Francisco Appendices In this era, rapid organizational changes have to be undertaken. The world is constantly changing and there is need to change with it. Though changes are at time s unwelcomed, it is the responsibility of the managers to ensure they mobilize need for change at all costs. Read More