Rationale for Organizational Change - Essay Example

Name: Course: Tutor: Date: Rationale for change Introduction Change is essential in order for any organization to survive and retain its relevance in an ever changing and highly competitive market. Change should become a core organizational value that is mainly inspired by the need to improve the overall functioning, performance and profitability of an organization. Sometimes change can be positive or negative. However, in order for positive and beneficial change to occur in an organization, it should be driven by knowledge and implemented effectively (MDRC 1). This report seeks to provide a rationale for implementing change in an organization. Firstly, it will provide an overview of organizational change. Secondly, it will discuss the benefits of consulting a change specialist. Third, it will outline some of the factors that should be considered when identifying the need for strategic change and the steps that should be taken when developing the key objectives of change program. Moreover, this report will examine some of the necessary steps in risk management cost and cost benefit analysis for change. In addition to this, it will discuss what the planning process to introduce and facilitate change will entail. Organizational change Organizational change can be considered as the alteration of an organization’s core aspects of operation. It is also any set of actions that result to a shift in process or direction that impacts the way in which an organization functions. Organizational change can be deliberate or planned by the management of an organization or it can originate from external factors that are beyond the control of the organization. Change can impact on the leadership of an organization, its structure, culture, technologies used, its goals, strategies that an organization employs to conducts its mission, the functions of the workforce and the relationships between workforce members. Change in any of these aspects may involve the restructuring of a single department or an entire organization (Mills, Kelly & Mills 4). Organizational change is important to the functioning and performance of an organization since an organization that does not go through change cannot thrive or survive in an ever changing and highly competitive market. When organizational change is planned and implemented effectively it assures an organization of increased competitiveness, improved financial performance, customer satisfaction, continued survival and employee satisfaction (MDRC 1). Benefits of consulting/utilising a change specialist Employing consultants or change specialists to advice an organization on change is essential. Change specialists bring in expertise and new ideas that can be used to effectively initiate and manage change (Fryer et al 185). Change specialists bring also in specialist knowledge that may not be present in the organization. Specialists act as useful pairs of external eyes since they can be able to evaluate the current position of the company without any biasness or internal influence. Through their knowledge and experience change specialities can help an organization to identify key areas of weaknesses that require change. They can also help an organization to initiate and manage an organization effectively. In addition to this, through their knowledge and experience change specialists can help organizations to identify, prevent or manage risks associated with organizational change (Kelly 212). Identifying the need for strategic change There are certain questions that an organization should consider when identifying the need for strategic change. Some of the questions that a manager should consider include; what is the importance of this change to the organization? It is essential to establish why change is needed in a particular area, department or the entire organization. Secondly, it is important to question, who are the people, groups or stakeholders involved in initiating or implementing changes in the specific contexts that require change? How is the organization or other stakeholders going to be affected by this change? Change can impact on specific people in the organization, a particular department or the entire organization (MDRC 3). Therefore, it is essential to identify the people who are going to be affected by the implemented course of change. Moreover, questions that an organization should consider when identifying the need for strategic change include; what support is needed in order to implement change effectively and how capable or prepared is the organization to effectively implement this change? Support may be in the form of finances, infrastructure or skills. Other questions that should be considered when identifying the need for strategic change include; what are the potential internal and external impediments of change and how can these impediments be addressed? (MDRC 3). Strategic objectives in a change program In order for any change program to be effective, it is important to develop specific and realistic strategic objectives. Strategic objectives are the concrete goals that an organization seeks to attain. These objectives should be specific, measurable, attainable, realistic and time bound. Strategic objectives common to any change program include the need to improve the overall functioning, performance and profitability of an organization. Some of the key steps that an organization can follow in order to develop objectives for a change program include; examining the vision and mission of the organization. An organization’s vision and mission conveys the purposes of the organization. When it comes to developing the strategic objectives in a change program, the vision and mission statement of an organization provides direction for the change program (NetMBA 1). Secondly, it is essential to conduct a situational analysis on both the internal and external factors relating to the organization. Some of the internal factors that could be put into account include; the organisational structure, its culture, finances, resources, operational capacity and efficiency, its market share and nature of its workforce among many other factors. On the other hand, some of the external factors that should be put into account include; political, legal, economical and social nature of the business environment that the organization operates in. Once a clear picture of the organization and its environment is established, specific and realistic strategic objectives of the change program can be developed (NetMBA 1). Steps in a risk management/cost benefit analysis for change When evaluating whether or not to initiate a particular change in the organization, it is essential for decision makers and leaders in an organization to carry out risk management/cost benefit analysis in order to avoid any loses or failure. Identifying potential threats is the first step towards conducting an effective cost benefit analysis. Some of the factors that can pose as potential threats include; operational factors, human resource issues, procedural issues, political, technical and financial issues among many other factors. The second step involves estimating the threats. Once the threats have been identified it is important to evaluate the impact or costs that the threat is bound to cause to the organization. Subsequently, ways of managing the identified threats and their implications should be developed. In addition to this, the benefits and disadvantages of implementing a particular change should be carefully evaluated with regards to the financial and resource implications. Communication is also an important step in risk management/cost benefit analysis for change. Relevant workforce members, leaders and stakeholders should be informed about the identified threats and their implications and the management strategy develop to address these threats or risks. (Mills, Kelly & Mills 110-134). Planning process to introduce and facilitate a change program Organizational change brings about a great deal of unrest and uncertainty for the workforce and other stakeholders. It is therefore essential for the management of an organization to come up with a solid and effective process of introducing and facilitating a change program. In addition to this, the management should come up with ways of evaluating the effectiveness of the strategies used. Effective communication is important to the success of the change program. Therefore managers should develop effective communication plans that are embedded on the change process. Different means of communication can be used to reach different audiences, it is important for the management to put into account the preference and communication needs of their target audience. In some cases, members of the workforce may react more positively to interactive approaches of communication such as focus group and one-on-one meetings with the organization leaders. Moreover, the management should initiate regular education and training programs that will help employees to adapt effectively to the changes initiated. Lastly, it is imperative for the management to come up with regular mechanisms that can be used to evaluate or review the effectiveness of the strategies used (MDRC 7-8). Works cited Fryer Marilyn, Egbu Charles, Fryer Barry & Ellis Robert. The practice of construction management: people and business performance. New York: Wiley Blackwell. 2004, p.185. Kelly, Allan. Changing software development: learning to be agile. New York: Wiley& Sons. 2008, p. 212. Mills Jean, Dye Kelly & Mills, Albert. Understanding organizational change. UK: Taylor & Francis. 2008, p. 4, 110-140. Management Decision and Research Center (MDRC). Organizational Change. Washington, DC: VA Health Services Research and Development Service. 2000, p. 1-8 NetMBA. The strategic planning process. Retrieved on December 12, 2011 from Read More