Managing Organizational Change - Research Paper Example

Managing Organisational Change and Number ......................................................................................... Lecturer’s Name ....................................................................................... Date of Submission ..................................................................................... Table of Content Abstract 1.0 Introduction 2.0 Different Forms of Organizational Change 3.0 The Need for Organizational Change 4.0 Barriers to successful implementation of Organizational Change 4.1 Breakdown in effective communication 4.2 Wrong portfolio system 4.3 Distasteful Interpersonal Relationship between management and employees 5.0 Effective Organizational Change Management 5.1 Developmental transitions 5.2 Task focused transitions 5.3 Charismatic transformation 6.0 Conclusion and Recommendation Abstract This write up delved into the various forms of organizational change that are implemented in various organizations; especially in educational institutions. The write also analyzed some practices that defeat the successful implementation of organizational change. Finally, the paper discussed ways of improving organizational change to ensure the fulfilment of organizational goals. 1.0 Introduction Day in an out, companies experience different forms of changes in their organizational set up. Human resource management, finances, equipment, organizational structure and organizational climate are some of the general ways by which the running of organizations changes day by day. A very important factor to note however is that, organizational changes should not affect the successful running of organizations in any way. In situations where a major organizational change causes adverse effect on the successful running of an organization, we say the organizational change was not well managed (Palmer, Dunford, & Akin, 2008). This brings then to discussion, the issue of managing organizational change. Management of organizational change concerns the factors that organizational leaders put in place in the event of the implementation of any organizational change. Building on this, organizational change has been “defined as change that has significant effects on the way work is performed” (University of Western Australia, 2010). This means that in the event of putting in place any change that will have significant effect on the way work is performed, organizational leaders involved must be in the position to put in place factors that will ensure the successful implementation of these changes. 2.0 Different Forms of Organizational Change Three major forms of organizational change have been identified by Koduah (2009). According to Koduah (2006), organizational change may be human, technical or financial. Human changes concerns all forms of change that involve the movement, placement or replacement of human resource. This means that organizational activities such as promotion, recruitment, dismissal and retirement all constitute human organizational changes. Human organizational changes may involve massive shake ups, where almost every person in the organization may be affected. It could also be mild whereby only few people get affected at a time. Technical changes involve changes that affect facilities and infrastructure. This does not call for the change in portfolios but may influence how work is done in the organization. If an organization purchases and fixes a new generator plant, that is a technical change. A company that occupies a new office has also implemented a technical change. Financial change concerns change in the finances of the organization. It has to do with new capital injection, floating of shares or acquisition of new ventures. Financial changes are mostly taken at management level. 3.0 The Need for Organizational Change All three forms of organizational change come with massive benefits. Human change that is not aimed at witch-hunting or organizational terrorism should ultimately improve the human resource base of the organization. For example any recruitment carried out by the organization should aim at resuscitating the human capital base so that productivity can be increased. Effect human resource change should also succeed in improving the motivational level of employees and managers work harder. An example of organizational change that ensures this is promotion and upgrading of the professional knowledge of workers. Technical change should also be aimed at increased productivity whereby the organization will be stocked with new and innovative equipment that are needed for organizational growth. In most production based companies, technical changes bring about an increase in the daily production of products. Finally, financial changes are necessary in ensuring that the organizational financial base is solid and adequate. In today’s competitive economic environment, companies with strong capital base are able to succeed because they are the ones who are able to implement their strategic plans and programs. 4.0 Barriers to successful implementation of Organizational Change In the book, Managing Organizational Change, the authors take a look at the liquidation of Enron as a corporation. In the view of the authors, management of Enron where not tactical enough in the handing of major organizational changes in the company. The nightmare of Enron is likely to hit any other company that is not able to handle its organizational change policies well. Most of such companies habor practices that defeat successful implementation of organizational change. Some of these wrong practices are discussed below. 4.1 Breakdown in effective communication In the chapter 6 of Managing Organizational Change, the authors lament that “change initiatives often flounder because not enough attention is given to Developing and Communicating a Shared Vision” (Leban, 2005). This talks of the importance of organizational communication in the implementation and facilitation of organizational change. As much possible, there should be an effective communication system in place in organizations to ensure that all members of the organization are well informed on the impending change and how it will affect them. Companies who keep information on changes at the top levels alone always suffer organizational hitches with the implementation of the changes. The shielding of information on changes from employees can resolve in agitations and organizational conflict. 4.2 Wrong portfolio system Palmer, Dunford & Aikin (2008), in their book Managing Organizational Change: a multi perspective approach, view an effectively managed organisational change “as an artful skill that also requires a level of technical competence on behalf of the change manager” (Krekap, 2009). This means that the implementation of organizational changes must meet correct academic and professional knowhow of all people on board. In human resource changes for instance, organizations that put round pegs in square holds always fail. It is in this direction that Anderson et al (2005) posit that organizational changes “must be designed and implemented through organizational support structures and institutionalized through enhanced education, training, and implementation of information technology that improves work flow capabilities” In instances where employees lack certain expertise therefore, it is important to make plans to equip them with such expertise before fully taking off with major organizational changes. 4.3 Distasteful Interpersonal Relationship between management and employees An aggrieved organization is not likely to succeed with its organizational changes. Organizations that have distasteful interpersonal relationship among workers or between workers and employers are likely to fail woefully with any of the forms of organizational change. This is because in such a situation, workers do not see themselves as ‘moral’ owners of the organization and therefore see no need to put forth any sacrifices at aim at the welfare of the organization. Where there is effective interpersonal belongingness among workers and employers, workers as see themselves as ‘moral’ part of the organization and therefore see the success of the organization as their and its failure as well. Because of this, workers are sure to do everything possible to ensure that the organization succeeds in its organizational change. 5.0 Effective Organizational Change Management Palmer, Dunford & Akin (2009), associate an effective organizational change management to one that follows a contingency model of change. In their view, this model should present any organizational change with five main approaches, which are discussed below 5.1 Developmental transitions Developmental transitions concerns changes that are taken as a result of “the organization adapting itself to external, environmental changes” (Palmer, Dunford & Akin, 2009). This approach brings out the need to plan organizational changes to meet external environment changes. By external environment change, reference is being to the need to ensure that organizational changes are in consonance with present economic and social demands. The reason why it is important to factor external environment in organizational change is that most organizations are there to serve public interest and so must dance to the rhythm of the external environment. 5.2 Task focused transitions This approach is more in line with a democratic system of leadership. This is because as observed by Palmer, Dunford & Akin (2009), these organizational changes take place in an environment whereby the “change leader acts as a captain seeking the compliance of organizational members to redefine how the organization operates in specific areas” (Krekap Blog, 2009). With this approach, much trust is put in all stakeholders in the organization to ensure that they have a say in the organization’s change. It is worth stating however that this approach must be implemented with caution so that only members on the organization whose competence can be trusted are allowed a place in the decision making. 5.3 Charismatic transformation Charismatic transformation occurs with the consensus of all aboard the organization. The consensus is reached “when people accept that the organization is out of step with its environment and that there is a need for radical and revolutionary changes” (Krekap, 2009, Palmer, Dunford & Akin, 2009). This approach in organizational change also realizes the role of individual members of the organization. The change that takes place is also expected to be massive and thus ‘charismatic’. This approach is best used in cases where new acquisitions or mergers are made for new companies. The order approaches for organizational changes are ‘Turnarounds’, which aim at inspirational change and ‘Taylorism’, which is associated with “fine-tuning, paternalistic approaches to manage changes” (Krekap, 2009, Palmer, Dunford & Akin, 2009). 6.0 Conclusion and Recommendation Organizational changes will continue as long as the need for organizational growth remains necessary. Managers and organizational leaders are hereby admonished to continue in the implementation of tried and tested models and approaches that meet the present needs of organizations and their stakeholders. REFERENCE LIST Anderson J. G, Ramanujam R, Hensel D, Anderson M. M, Sirio C.A, 2005, US National Library of Medicine ‘The need for organizational change in patient safety initiatives’, accessed August 24, 2011 Koduah K. F., 2006, ‘Effective Organizational Change Implementation’, Journal of Institutional Development. Corporate Publishing: Toronto Krekap Blog, 2009, ‘Uncategorised’ accessed August 23, 2011 Leban B, 2005, ‘Managing Organisational Change’, 1st Edition, Wiley: New York Palmer, I, Dunford, R & Akin, G 2008, ‘Managing organizational change’: a multiple perspectives approach, 2nd edn, McGraw-Hill Irwin, New York. Palmer, I, Dunford, R & Akin, G 2009, Managing organizational change: a multiple perspectives approach, 2nd edn, McGraw-Hill Irwin, New York. University of Western Australia, 2010, ‘Organisational Change Guidelines’ accessed August 23, 2011 Read More