What Is Change Management, Challenges Involved in Change Management - Coursework Example

CHANGE MANAGEMENT Name Institution Professor Course Date Introduction The ability of firms to change and innovate is becoming increasingly essential in times of competitive, deregulation and globalisation pressure. Constant change in firms is the only hope for firms to survive. However, modern firms are challenged to uphold their identities and entities throughout the transition. Change is a transition through which a firm must navigate to evolve from its current state to a needed future state. Change is an inevitable portion of organisational life and needed for organisational growth. As a result, firms constantly try to re-assess their future condition and adapt change to enhance their productivity. Change in organisations is promoted by an opportunity or a problem. In this regard, effective change implementation calls for effective change management. Change management plays a significant role as it augments the success of change in a firm besides increasing organisation effectiveness. Notwithstanding the change scale, applying change management blueprint augments the likelihood of remaining on budget and schedule besides addressing resistance to change. Change management offers abstract scaffolding for process, people and the firm executing change. This essay highlights the impact of change on organisational effectiveness. The essay underscores what is change management, challenges involved in change management, current theories on change management, how change management effect organisational productivity and how current change management theories can be applied to support organisations. Change and Types of Change In the modern competitive and intricate global business setting, firms must adapt to changing environmental conditions through constant initiation of changes to remain profitable and competitive. Ramanathan (2009, p.20) explains that change entails ‘moving from the known to the unknown, from the familiar to the unfamiliar, from relative certainty to relative uncertainty’. Change refers to a pragmatic observation of disparity in state, form or quality over time in a firm’s entity. Organisational change is a procedure that unfolds overtime, disclosing periods of lesser and greater instability in which the agitation of a given system is an intuitive reaction toward survival in an incessantly changing environment. As a result, change represents a transition from the current organisational condition to a desired prospective position. According to Ramanathan (2009, p.20), change can entail one or numerous elements of organisational system. A change that affects a large portion of a firm is said to be strategic in nature while a change that affects specific organisational element is said to be incremental in change. There are different types of organisational change which include transformational, transitional and developmental changes. Developmental change improves or enhances an existing condition in a firm often focusing on enhancing processes or skills. Transformational change is radical in temperament and calls for a shift in the part of a firm and its staff. Transitional change occurs when moving from present state to a desired state. Other categories of change include operational change which centres in improving organisational performance and strategic change which alters a firm’s alignment with its environment. Change Management Change management is the silver bullet to organisational effectiveness. According to Ramanathan (2009, p.20), seventy percent of all change initiatives fail because change managers immerse themselves in an “alphabet soup of initiatives’ without completely comprehending the temperament and procedure of corporate change. As a result, it is important that firms comprehend how change takes place to ensure better change management processes that enhance organisational effectiveness. Kneer (2012, p.2) reports that change management implies to plan, initiate, realise, reflect and stabilise basic and extensive change procedures. It is a strategy of systematic and planned change attainable via the influence of the individual behaviour, corporate culture and organisational structure under the considerable possible involvement of employees. Change management entails the prearranged approach espoused to facilitate transformation of organisations, individuals or teams from a present state to a needed future condition. Change management makes smooth the journey of implementing change for attainment of future condition of a firm. Change management smooth the progress of change adoption by those affected by it. Xu, Tjoa and Chaudhry (2007, p.240) define change management as the procedure of helping firms in smooth transition from one define position to another through coordinating and managing changes to business systems and processes. Change management entails the productive communication with stakeholders concerning the scope and effect of the change on stakeholders and work functions. It involves goal setting, action planning, screening, feedback and assessing results. Challenges in Change Management Effective change management addresses challenges linked to implementation of change. Ramanathan (2009, p.37) confirms that managing change can be an intricate task. Some of the challenges linked to change management include control, human factor issues, complexity in organisational structure and culture, drivers of change such as globalisation, technology, political and legal dimensions and social-cultural dimensions, pace of change, technological aspects, cultural aspects and social aspects. Technological, cultural and human factor issues are the most challenging components in the change management process. Change impacts people besides affecting present practices and norms of a firm. In this view, change management involves aligning the organisational culture with novel approach to systems, technology, business, processes and legal requirements. However, understanding the temperament and drivers of change help in addressing most of the challenges affecting change management. Current Theories on Change Management Effective change management calls for understanding of the nature of change. Identifying the pace and magnitude of change is an essential aspect in change management. Identifying the change nature promotes productive change management. Determining the nature of change helps change agents in selecting the best approach to manage change. In addition, understanding the source and drivers of change facilitates selection of the most effective approach to change management and implementation. More so, change agents must assess and address the effect of change to the organisation, people, systems and processes. The way firms manage change depends on the business nature, the nature of change and individuals involved. Some of the current theories on change management include the Kotter’s 8-step change model, McKinsey 7-s model and Lewin’s 3-stage model of change. The Kotter’s 8-step model stresses the importance of buying into the transformation by the change agents. Change managers must create an urgency sense, establish a guiding coalition, establish a change vision, communicate the vision, empower broad-based activities, formulate short-term wins, never let up and incorporate the change into the organisational culture. Kotter’s change management model is founded on solid basis of focus, empowerment and communication. Screening, feedback and involvement are also essential parts of change management with respect to Kotter’s model. Lewin’s 3-stage model entails the unfreeze, change and refreeze stages. Unfreeze stage involves preparing the firm to accept the necessity of change; the change stage allows people to search for novel ways to conduct their activities while the refreeze stage entails embracing the novel ways of conducting tasks. Lewin’s theory allows people to manage change through three stages. Lewin’s three stages put forward certain actions that tackle motivation, execution and adherence to the implemented change. McKinsey change management model stresses that successful firms depend on the interdependence of 7 variables. Ignoring any variable affects the entire change management process. McKinsey 7-stage model stresses on the importance of understanding the factors that affects change management in a firm. These factors include shared values, strategy, structure, systems, style, staff and skills. The model offer direction to effective change management in an organisation. Change management and Organisational Effectiveness There is a close link between change management and organisational effectiveness. The objectives of change management are the growth and survival of an organisation. Sims and Quatro (2004, p.254) confirm that change management augments organisational effectiveness through assisting firms to attain their strategic objectives and goals. Change management increases a firm’s effectiveness through allowing firms to evaluate their overall effect of change. It offers a means to foresee challenges linked to change and respond efficiently. In addition, change management increases a firm’s effectiveness through reducing the dangers linked to change and controlling the cost linked to change. The application of powerful change management principles by change agents facilitates successful execution of proposed change. Effective change management augments productivity, promote high quality problem solving and augment organisational effectiveness. Change management promotes organisational development. According to Nastate, Gluclea and Bold (2012, p.16), change management offers support for strategy procedure and improvement of organisational effectiveness. Change management is utilised synonymously to the notion of organisational development. Organisational development and change management entails the use of planned, behavioural science-founded interventions in firms to enhance organisational effectiveness. Nastate, Gluclea and Bold (2012, p.16) assert that change management promote organisational effectiveness through involving ideas, skills and action plans of change agents. Changes and social systems are made by people. As a result, the human factor in change is a crucial aspect in change implementation. Understanding of change by change managers ensures that a firm attains its expected results besides enhancing organisational growth. According to Worley and Feyerherm (2003, p.97), organisational development is a crucial crossroad to organisation evolution. Organisational development concerns application of behavioural science skills and planned change. Organisational development also targets social and human processes of a firm and its aim is to establish the ability to settle in and renew firms (Worley & Feyerherm 2003, p.98). Change Management Theories and Organisational Effectiveness Bringing about and managing change is an intricate process in most organisations (Zell 2003, p.73). However, current change managed theories can be applied to ensure effective change management. This is attainable through addressing resistance to change that takes place in most modern organisations. For instance of Malaysian Airline employees and their unions resisted job cut. With respect to Lewin’s model of change management, change managers understand that change resistance comes from those in opposite direction. Lewin’s model helps managers to advocate for the unfreezing stage through improving the forces compelling change or removing or lowering resisting forces and refreezing in a novel equilibrium condition (Swanson & Greed 2014, p.32). Significant change takes place when firms undertake changes such as executing novel technologies, acquisitions or mergers, restructuring operations, downsizing, outsourcing or when establishing novel programmes. Changes in firms are triggered through a call to uphold or enhance organisational effectiveness. Organisational effectiveness entails the ability of a firm to utilise resources efficiently to attain immediate goals. According to Kwapisz (2014, p. 407), changes in rules, changes in globalisation, technology, new information, changing demographics, current business environment , suppliers, clients, and increased employee involvement are drivers of change in modern organisations. According to Nastate, Gluclea and Bold (2012 p.14), the responsiveness to change is not easy to attain. Positive experiences involving several changes are necessary before individuals learn to show positive attitude toward change. Lewins model helps change agents or managers to understand that change cannot take place unless there is evidence of motivation. The model also allows firms to understand that effective change strengthens new behaviours, organisational practices and attitudes that promote organisational effectiveness. The current change management models help firms to address resistance to change as they outline feasible steps to change implementation. The models help firms in addressing the fear of failure that hinders change adoption. The models also help firms to manage resistance to change particularly in engaging people to create apparent strategies, vision and direction. The Kotter’s 8-stage model helps firms to set in novel approaches that enable people not to relapse to old conducts and focus on the organisation goals and objectives. With respect to McKinsey 7-s model, organisations capitalise on the interdependence of structure, strategy, systems, shared values, skills, style and staff. This model helps firms to review their capabilities, realign to support change and attain a competitive edge. To ensure organisational effectiveness, firms must adopt change and manage the change effectively. For instance, the Malaysia Airlines cut 6, 000 jobs and restructured its operations in order to ensure organisational effectiveness. The company had a huge structural problem and restructuring helped the firm to operate effectively and efficiently. While the job cuts strategy implemented by firm was met with resistance by Malaysia’s union, the firm was able to address the resistance through effective change management. The change helped the firm to lower its cost and enhance its productivity (Fuller & Clark, 2014). Conclusion In the modern vibrant business setting, organisational changes and techniques of implementing them are crucial as business seek to sustain and stabilize transformation. The manner in which firms manage change and how effective businesses are depends on business nature, the transformation and people. Action plans, incentives, people, time and scales are essential in change management. Change management actions are essential in attaining unplanned and planned changes goals besides assisting to ascertain problems linked to transition before they become detrimental to the organisation. Current models of change managements such as the Kotter’s-8 step, Lewin’s-3 stage and McKinsey 7-s models offer organisation a framework and guide to effective change management. Effective change management promotes effectiveness in organisations through helping firms to attain their strategic objectives and goals as well as through allowing firms to evaluate their overall effect of change Reference List Fuller, T & Clark, N 2014, ‘Malaysia Airlines to cut work force and get almost 2 billion dollars bailout’, New York Times. Retrieved from http://www.nytimes.com/2014/08/30/business/international/malaysia-airlines-to-cut-30-of-work-force.html?_r=0 ? (7th January, 2014). Kneer, C 2013. Change management.UK: GRIN Verlag. Kwapisz, A 2014, ‘Triggers of organizational change: Duration, previous changes, and environment’, Journal of Change Management, Vol. 14, Issue.3, pp.405-424, DOI:10.1080/14697017.2014.885461 Nastate, M, Gluclea, M & Bold, O 2012, ‘ The impact of change management in organisations: A survey of methods and techniques for a successful change’, Review of International Comparative Management, Vol.13, Issue, 1, pp. 5.16. Ramanathan, T.R 2009. The role of organisational change management in offshore outsourcing of information technology services: Qualitative case studies from a multinational. UK: Universal Publishers. Sims, R & Quatro, S 2004. Leadership: Succeeding in the private, public, and not-for-profit sectors. UK: M.E Sharpe. Swanson, D & Creed, A 2014, ‘ Sharpening the focus of force field analysis’, Journal of Change Management Vol. 14, Issue.1, pp. 28-47, DOI:10.1080/14697017.2013.788052 Worley, C.G & Feyerherm, A 2003, ‘Reflections on the future of organisational development’, Journal of Applied Behavioural Science, Vol.39, pp.97-115. Xu, L, Tjoa, M & Chaudhry, S 2007. Research and practical issues of enterprise information systems II Volume 1: IFIP TC 8 WG 8.9 International conference on research and practical issues of enterprise information systems (CONFENIS 2007), October 14-16, 2007, Beijing, China. UK: Springer Science & Business Media. Zell, D 2003, ‘Organisational change as a process of death, dying and the rebirth’, The Journal of Applied Behavioural Science, Vol. 39, pp. 73-96. Read More