Organizational Change Management - Case Study Example

Factors that stimulate change in an organisation and measures that can be implemented in order to achieve the set goals. (2003 words) Table of contents Introduction 2 Task 1 2 Task 2 3 Task 3 4 Task 4 6 Conclusion 7 References 9 Introduction: “More and more organizations today face a dynamic and changing environment that in turn requires them to adapt,” (Robbinson, 1993, p. 663). Basically, there are different internal and external forces that act as stimulants for change (Amos et al 2008). The internal forces include the changing nature of workforce while external forces include, technology, economic shocks, changing social and political landscape and the nature of competition. Change can be planned or emerge in response to the situation obtaining on the ground. As such, this report seeks to analyse the change taking place at Blue Marina restaurant and it is divided into different sections. The first task looks at both internal and external drivers of change and the second task focuses on the nature of change. The third task critically examines possible types of employee reaction to proposed change and the forth task deals with recommendations that can be implemented to execute the planned change. The conclusion sums up the main points discussed in the report. Task 1: In this particular context of Blue Marina Restaurant, change is driven by both internal as well as external factors as going to be illustrated below. Schultz et al (2005) suggests that internal forces of change mainly concern the issues related to human resources in the organisation such as low productivity due to different factors. A close analysis of this case shows that there is lack of coordination between the waiting and kitchen staff and this is a major challenge with regards to maintenance of the desired levels of customer service. Customers are forced to wait for long hours to be served and in some cases they have to leave without being served their favourite dishes. In other words, employee productivity has significantly declined as a result of poor coordination among them which has stimulated change to be implemented in the operations of the company. On the other hand, profit margins have remained low and this can be attributed to external drivers for change. The poor performance of the organisation is mainly due to the economic crisis characterising the environment in which the company is operating in. The other external factor which has necessitated change is related to competition which has suddenly tightened as a result of new entrants into the market. These opened a pub and two new restaurants within the shopping mall and there is a growing cluster of similar businesses within the vicinity of Blue Marina. This entails that dissatisfied customers now have an alternative option rather than spending their precious time waiting to be served at Blue Marina. As such, both these internal as well as external drivers have stimulated strategic change that is aimed at turning around the fortunes of the company which are currently declining. Task 2: The nature of change facing Blue Marina can be described as planned change. The planned approach to change suggests that change is properly planned and a change-management programme is put in place in order for the initiative to be successful (Werner, 2007). The planned change initiatives going to be outlined below are intentional and goal oriented since they are proactive and purposeful. The new manager, Marcello is concerned with reversing the misfortunes of the Blue Marina as well as ensuring its growth and survival in the longer term. The proactive change strategy formulated by the new manager includes the following key components: Blue Marina has to be turned into a chain restaurant A revamped menu will differentiate the chain restaurant Around 60 employees are to be recruited A new information system linking up all the stakeholders will be set up The restaurant will seek promotional alliances with potential partners The restaurant will demonstrate social responsibility through sponsoring community projects All these initiatives mentioned above are properly planned and their goals are also clearly outlined. Carnal (2003) posits to the effect that there essentially two goals of planned change and the first one is concerned with improving the ability of the organisation to adapt to changes in its environment. The second goal seeks to change employee behaviour. It can be noted that all the change initiatives mentioned above reflect the characteristics of a planned change initiative. It is commonly believed that “failing to plan is planning to fail,” (Strydom, 2003, p. This approach is advantageous in that steps to be followed in implementing this change initiative are clearly outlined which makes it relatively easy for the management to implement the suggested change strategy. If an organisation is to survive, it must respond to changes in its environment. Task 3 According to Schultz (2003), various constraints are likely to be faced in response to employee reactions to the proposed changed. One major response by the employees is related to resistance to resistance to change which may negatively impact on the change initiative if there is lack of understanding among them. Various studies of individual as well as organizational behaviour have found that organizations as well as their members resist change. In this particular case, employees are likely to resist the proposed changes due to the influence of their habits. Robbins (1993) suggests that human beings rely on habits or programmed habits in most cases and they do not easily want to change from these. The employees are likely to resist change given that it threatens their feeling of security as technological changes are a likely to jeopardize their jobs. This also goes hand in hand with the aspect related to economic factors where certain changes will lower one’s income. The change initiatives mentioned above suggests that a new information system linking up various stakeholders will be implemented and the reaction by the employees is likely to arouse economic fear as they may not be able to perform the new tasks compared to their usual previous standards given that remuneration in some cases is closely tied to productivity. In other words, employee response to change can be negative as some of the employees would be afraid of losing their jobs or positions within the organisation. Conflicts are likely to emerge as people differ in their opinions (Kleynhans, 2007). There are likely chances that the employees are likely to respond by displaying an attitude of fear of the unknown. For instance, the new information system may require the employees to learn to operate the new communication dispensation whereby some of them may fear that they will be unable to do so. People usually feel uncomfortable by virtue of changing the status quo in their operations in preference for the new system of operation. Locke & Kirkpatrick (1995) suggest that organisations by their very nature are conservative. Thus, employees are deeply entrenched to the usual way of doing business in their operations. Attempt to change the usual way of conducting business is likely to be met with stiff resistance which can result in conflicts among the workers and their management. Thus, Kleynhans et al (2007) posit to the effect that a conflict can be an active disagreement among the members of a particular group. Change to an organisation is often regarded as a threat to established power reactions which is likely to provoke a negative reaction from the employees. For instance, the envisaged changes in this case cases are likely to result in the changes in the structure of the decision making authority which can threaten power relations within an organisation. Usually, those employees who have the power and authority do not want to relinquish them as they are a symbol of the much needed status in the organisation. People who have the authority feel insecure when it is stripped hence they are likely to resist some of the change initiatives propagated by the new manager. In most cases, employees are sceptical about any change initiative as a result of lack of trust of their management as well as the change initiative to be implemented. Any change initiative that does not have the support of the people can face some form of resistance from the employees. Whilst the change initiatives by Blue Marina are noble, it can be noted that there are likely chances that some sections of the employees are likely to resist some of the change plans as they do not have enough trust for them. Task 4: In order for the management to plan and execute the proposed change so as to ensure its successful implementation, the following recommendations are ideal for the situation. It is recommended that the management of Blue Marina should make efforts to reorient the workforce in order for them to share the same vision and goals of the organisation. This can be done through involvement of them in the decision making process within the organisation. According to Amos 92008), a change initiative that does not have the support of the employees is likely to be met with resistance by the employees hence there is need for them to be part of the change initiative process so that they can share the same vision based on mutual understanding. Concerted efforts from different stakeholders particularly the employees should be taken in as much as much as the need to overcome resistance to change by the employees is concerned. It is also recommended that in order for the implementation of the change initiative to be a success, there is need for constant training and development of the employees so that they can keep pace with the changes taking place within the organisation. According to Jackson & Schuler (2000), mentoring and training are important tools that can be implemented by an organisation in order to develop the employees to be competitive. Kleynhas (2007) suggests that mentoring is concerned with experienced people learning about different facets of work under the guidance of a senior person while coaching is regarded as a face to face affair between a learner and a coach. There would be likely chances that the employees would improve their performance which can lead to increased productivity if they are given the required knowledge to undertake the change initiative that has been suggested by the management. It is also recommended that there should be open channels of communication so that the change initiative can be a success. There is need for free flow of information where the workers will feel less alienated or disoriented from their superiors. An organisation which promotes an adaptive environment is capable of enhancing better performance of the employees while bureaucratic structures are likely to inhibit it (Kleynhans, 2007). Effective communication is a virtue as it is likely to promote mutual understanding among all stakeholders involved. It is also recommended that the employees should be motivated so that they can also buy the idea of the change initiative. According to Jackson & Schuler, (2000), motivation is described as the enthusiasm employees have for their jobs. It is therefore important for the management at Blue Marina to motivate their employees to have a positive feeling towards their work which can compel them to accept change initiatives as they would be in a better position to benefit from it. Conclusion Over and above, it can be noted that change in an organisation is mainly driven by both external as well as internal factors. A close analysis of the case study of Blue Marina showed that internal factors such as lack of coordination among the employees stimulated this change strategy. External factors such competition can also be attributed as major external drivers for this initiative. However, the nature of envisaged change can be regarded as planned change given that the initiative follows a carefully outlined structure which is proactive and is also designed to meet certain goals. However, the employees are likely to show some form of resistance to change in response to the change initiative due to reasons mentioned above. It has been recommended that there is need for employee reorientation, involvement of the workers in the decision making process as well as implementing training and development programmes in order to ensure its successful implementation. References Amos, TL et al 2008, Human Resources Management, 3rd Edition, JUTA, CT. Brand, A 1998, “Knowledge management and innovation at 3M,” Journal of knowledge management, Vol. 2 No.1. Carnall, C A 2003, Managing Change in Organizations, 4th ed, Harlow: Pearson Education Ltd. Jackson, SE & Schuler, R 2000, Managing Human Resources: A Partnership Perspective. South Western College Publishing, NY. Kleynhans, R et al 2007, Human Resource Management: fresh perspectives, Prentice Hall, CT. Locke, EA & Kirkpatrick, SA 1995, Promoting creativity in organization, Thousand Oaks: Sage Publications, London. Robbins, SP 1993, Organisational behaviour: Concepts, controversies and Applications, 6th Edition, Prentice Hall, NJ. Schultz, S et al 2003, Organisational behaviour, Van Schaik Publishers, CT. Strydom, J 2004, Marketing, 3rd Edition, Juta & Co Ltd, CT. Werner, A et al 2007, Organisational behaviour, 2nd Edition, Van Schaik Publishers, CT. Read More