Organisational Change Management 2

Organisational Change Management

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Table of Contents

1.Introduction32.Strategic Change32.1 External factors42.2 Internal Factors52.3 Complexity Theory and Strategic Change62.3.1 Dynamics of Complex Systems73.Resistance to Change83.1 Lewins Theory of Planned Change83.2 Reasons of Resistance to Change93.3 Impact of Resistance on Organisational Change113.4 Overcoming Resistance114.Employees Involvement134.1 How Employee Involvement Helps Achieve Organisational Change144.2 Increasing Employee Involvement155.Conclusion16References18

Organizational Change Management

1. IntroductionToday, companies are changing in response to external and internal business environment. Organisational change can arise from minor-scale modifications such as implementation of new software in a company, to large-scale organizational re-modelling, such as new business ventures, ending the old ones (CEFIMS, 2011, p. 3). Organizational change materializes in a response to continuous changes in environment, reaction to crises, or is promoted by a leader. Successful organizational change is not only a procedure of modifications, but it needs adequate and effective managing skills and abilities (Chen et. al., 2001, p. 1). The implementation of organizational change can be deliberate or unintended. Change resistance in organization can be experienced on the basis of individuals, groups and teams working on change in an organization (Senior and Swailes, 2010, p. 65). Leaders and employees play a key role in through involvement in change process. This paper discusses three aspects of organizational change: Strategic Change Resistance to change Employee involvement

2. Strategic ChangeIn organizations, the word change refers to the external change in terms of technological advancements, customers behaviour, market competition, market structure, or socio-political surroundings and reflects to in-house change, such as a policy of restructuring or re-engineering (Mutihac, 2010, p. 13). Many external and internal factors force organizations to change their processes or policies. According to Lunenburg (2010, p. 2), these factors are as follows:

2.1 External factors2.1.1 MarketplaceThe increased competition in the market causes the organization to think and strategize in order to survive in the market. This includes the strategies of change in organizational structures, reengineering, reorganizing and remodelling the internal processes of the business organizations. Innovations are required on each step due to the technological advancements in the marketplace and business environment (Lunenburg, 2010).

2.1.2 Government laws and regulationsGovernment laws and regulations are the powerful sources that cause frequent changes in policies and strategies in the organization in order to meet the achievement of business goals. Enforcement of legal policies and regulations on the commercial and industrial sectors influences the whole business sector of a country. So the organizations are forced to change their planned activities and structures accordingly to be competent in the current business environment (Lunenburg, 2010).

2.1.3 TechnologyToday, technology is changing and advancing on the daily basis. In order to be competent and thrive in the current business environment, organizations have to change and innovate frequently. If an organization is reluctant to the adaption of the technology advancement, it may find it difficult to survive in the fast growing business market (Lunenburg, 2010).2.1.4 Labour MarketThe instability in the labour market forces organizational change. One of the keys of success of organizations is their labour. The businesses rely on the effective and skilled professionals whose abilities and skills lead the organizations towards the achievement of goals. So the labour market should be the focus for business managers to implement change in their organizations according to the external labour markets (Lunenburg, 2010).

2.1.5 Economic ChangesEconomic changes force not only the organization but each individual to change in their professional activities. Economic environment of country influences the industry which leads the businesses towards change strategies and implementations (Lunenburg, 2010).

2.2 Internal FactorsInternal forces and internal environment of organizations also cause the organizations to change or restructure their business. Some of the common internal factors which cause the change are as follows:

2.2.1 Administration ProcessesManagement and administrative processes such as communications, decision making, leadership and motivational strategies can also force the organization to change. Breakdown or slowdown in these processes pressurises the business to change its structures in order to motivate the employees and not letting them leave the organization (Lunenburg, 2010).

2.2.2 Employees Issues Employees performances, employees activities and all those issues of employees which can cause an organization a failure in achieving the strategic goals force the business to change. Those changes can be beneficial for the employees directly and motivating for them to work efficiently (Lunenburg, 2010).

2.3 Complexity Theory and Strategic ChangeThe above factors which can cause the change in organizations have to be addressed and managed effectively to meet the organizational goals. Complexity theory should be implemented by the management of an organization to effectively implement the organizational change process. Complexity theory was developed by the meteorologists, biologists, chemists, physicists and other natural researchers in order to form quantitative models of structures in nature. The theory classifies an organization as a structure which is tangled by complexities of the system where companies are adapted to a sound environment while arguing about the uncertainties (Burnes, 2005, p. 73). Frederick (1998) debated that organizations which follow a way of continuous change flourish due to their operations at the edge of chaos and due to their implementation of innovations and change and their risk taking abilities (as cited in Burnes, 2004, p. 315-316). Complexity theory is a measure of variation or diversity in internal and external environmental features such as departmental sections, clients, suppliers, political, socio-cultural and technology. It emphasises on the impact of complex micro-level aspects on the macro-level factors in an organization (Amagoh, 2008, p. 6).

2.3.1 Dynamics of Complex SystemsA prime aspect of the complexity theory model is the notion of Complex Adaptive Systems (CAS). The systems which engross information of their environment and stores knowledge to assist activities in need are known as Complex Adaptive Systems (Amagoh, 2008, p. 6). These systems help in implementation of change through the transparency in information sharing. Information storage programs let the management and employees integrating with each other and interact frequently to work on innovations according to the environmental changes. Since, the organizational structures are complex to operate, these information sharing systems are essential to implement changes. There are a number of characteristics of complex systems in organizations. One of those features is the existence of numerous of interrelating factors inside the system. Those elements interrelate and communicate with each other mostly on the existing feedback mechanism in system. These communications in return cause non-linearity in the system.Another characteristic of the complex system is semi-firm configurations which do not get influenced by the outside forces. Third characteristic of the complex system is that it can self-organize and adjust. Chunks of the system can organize itself without any external pressure or imposition and the last characteristic of the complex system is that complex systems have inclined to revelation emerging properties (Amagoh, 2008, p. 7-8). Complexity reflects a more significant change in context of ontological and epistemological approaches. In complex systems, there is a network of interconnection of not only simpler, straight associations and acceptability of the inherited complexity of economic systems, rather than depending on the traditional reductionist models. The key role in adaption and implementation of the complexity theory is played by the leadership and the management of the company. Idea of change includes rise, dependency and interdependency, dis-organization, self-management endorsing communal progression. The part of leadership and management is vital in implementing the planned organizational change (Andrews, Cameron and Harris, 2008, p. 300).

3. Resistance to Change 3.1 Lewins Theory of Planned Change Kurt Lewins work on organisational change has been dominating the practice and theory of change management for over decades. The key elements of his approach to planned change include Field theory, Group dynamics, action research and his 3-step model of planned change (Burnes, 2004, p.977). Lewins 3-step model is his key contribution to the management literature (p.985). For Lewin, the integrated approach using all the four above mentioned elements was the key to analyse, understand and bring about change in an organisation.Successful change, according to Lewin, involves three steps; unfreezing, moving (or change) and refreezing. The model assumes that change will face resistance; therefore, implementing change without preparing the employees will most likely result in failure. Unfreezing is ensuring employees readiness and openness to change. Next step is moving towards change i.e. executing or implementing the planned change. Refreezing means making sure that the change is permanent and becomes a norm and a part of the organisational culture (Baesu and Bejunaru, 2014, p.150).

Figure 1: Lewins 3-step Model of Planned Change Source: Baesu and Bejunaru (2014 p.150)

3.2 Reasons of Resistance to Change There are three dimensions in which resistance to change can be considered, behaviour, emotional factors and beliefs or attitudes (as cited in Mutihac, 2010, p. 23). Resistance to change is considered as a risk of failure for the planned and systematic organizational change. It is a human behaviour of resisting the change, as it pressurises people to do something in a new manner. There are many reasons due to which the resistance occurs in organisations:

3.2.1 UncertaintyIn times of change, there is an uncertainty of being unable to work accordingly to the newly changed environment and effect on the performance. This is why employees usually hesitate to participate in change process. Since the change is generally because of the development and advancements according to the external surroundings, employees consider it difficult to adjust with those changes (Lunenberg, 2010, p. 4).

3.2.2 Fear of Personal LossSuitable change can be beneficial for the overall organization, but for few employees, the change is costly for them in terms of losing powers, respect, income, quality of work or other benefits which will not be adequately offset by the rewards of change. Employees perceive change as it will decrease their decision-making powers, approachability to information, independence, and the intrinsic features of the job (Lunenberg, 2010, p. 4).

3.2.3 Group resistanceThe employees can group themselves as their mutual understanding about the change is to resist. If the majority of employees are reluctant towards the change, it will become very difficult for an organization to implement change strategies (Lunenberg, 2010, p. 4).

3.2.4 DependenceToo much dependence can be very dangerous in any aspect of life. Dependence is also a reason of resistance to change. If employees depend on the leadership too much, they will resist changing as long as the leadership personally endorses the change (Lunenberg, 2010, p. 5).

3.2.5 Lack of Trust on ManagementChange process is totally based on the trust of management and employees on each other. Communication, networking and motivation from top management to employees are keys to building trust. If there is a lack of trust of employees on management or management on employees, the change process cannot be implemented which will develop the resistance (Lunenberg, 2010, p. 5).

3.2.6 Awareness of Weaknesses in Proposed ChangeEmployees may resist change due to their knowledge about the possible glitches in the planned change. In this case, employees should acknowledge the management about their concerns so the management can take their recommendations to reorganize their change procedure to be more effective (Lunenberg, 2010, p. 5).

3.3 Impact of Resistance on Organisational ChangeIt is unfortunate that the term resistance generally has a negative perception. It is obviously a delusion. Resistance is the most effective reaction sometimes in a particular scenario. If employees beliefs, values, attitude and behaviours are delivering with positive ways of meeting the needs of an organization as a whole, then it is appropriate and vigorous to resist the change. Certain changes, however, could disturb the whole organization and cause it to become less productive. In this case, it is not in the best interests of an organization to resist change. Therefore, sometimes resistance is considered as a problem and sometimes it is the solution to a problem (Lunenberg, 2010, p. 5).

3.4 Overcoming ResistanceAccording to Hultman (2014), resistance to organizational change can be generally overcome by following these steps: Figure 2: Steps for Overcoming Resistances Source: Hultman (2014, p.11)

3.4.1 Define the changeIt is crucial to be comprehensive, concrete and particular as much as possible in defining the change. Not only the outcomes and final results but the whole process and the long-term benefits of change should be described from top to the lowest level of the employees of organization (p.11).

3.4.2 Determine causes of resistanceAfter defining the change process, reasons of resistance to change should be determined. Management has an ability to sense the upcoming resistance before it arises in the process or change, so the reasons of the resistance in context of the organizational environment should be determined as addressed with the employees (p.11).

3.4.4 Develop the strategyThe third step to avoid the change resistance is development of a strategy. After determining the causes of resistance, a strategy should be developed accordingly to remove the causes of resistance so that the organization can overcome the possible resistance to the planned organizational change (p.12).

3.4.5 Implement the strategyThe implementation of the strategy is very important to avoid the probable resistance to organizational change. Application of the strategies successfully is based on the previous steps. If the definition, determination and development of strategy have been done correctly, it becomes easy to implement the strategy effectively (p.17).

3.4.6 Evaluate results of strategy Implementation of the strategy is not the end. The results and outcomes produced by those strategies are important and need to be evaluated. The resistance affects the whole process of change and the implementation of the planned organizational change can fail due to the resistance (p.18).

4. Employees Involvement In employees involvement, each employee is considered as a distinctive human being, not just a part of organizational machinery; and every employee is engaged in assisting in achievement of organizational goals. Employees contribution is sought and appreciated by the management. Management acknowledges the employees contributions and efforts in running the organization. Employee Involvement in organizational activities has become a very important topic in the last decade. Everyone has access to technology, finance and new processes of employment; it is just the level of involvement of an employee that makes the difference. If an organization wants to lead, it will have to include its employees in debates and in making decisions. Today, many businesses are paying attention towards involvement of employees so as to make their employees look important and consider environment in which they feel free to assist in the decisions and actions which influence their job (Zafar, Butt and Afzal, 2014, p. 206). Furthermore, it is not aimed, nor is it an instrument, as implemented in several organizations. Rather, it is a managements views of how people are most enabled to contribute in continuous improvement and the on-going successes of their work in organization. Involvement of employees is a lighter course of contribution and is emphasizes on being more flexible and assumes a harmony of anxieties between leadership and employees (Zafar, Butt and Afzal, 2014).

4.1 How Employee Involvement Helps Achieve Organisational ChangeSense-making refers to the activities to interpret and develop a series for events. Sense-making becomes very significant for management to accomplish for the purpose of managing change effectively, which in return makes employee involvement vigorous in the change process efforts as it can lead towards the required sense-making. Managers, though, have to communicate their perspectives, mainly in the mid of the change process in organization, in a manner which gives their employees certainty (Georgiades, 2015, p. 9-10). This sense-making causes the flow of efforts in organizational changes. As the employees are involved in organizational activities and decision making through effective information sharing and communications, the chances to achieve a successful organizational change are high. According to the Dunne (2013), there is a positive relation between organizational change management and degree of employees involvement in organizational activities. The implication for both managers and employees is the existence of hunger for active involvement in change management process and will be effective if the support and structures are offered to employees. Though, it is necessary that plans must be developed at top management level and must be considered as strategic objectives of the organization (p. 17).

4.2 Increasing Employee InvolvementEmployee involvement begins with a change in managements attitude (Dunne, 2013). Employees who are loyal, proud of their work and have valuable ideas are the ones who are involved by their management in the organizational activities and decision-makings. This helps in promoting a smooth flow of activities for the planned organizational change. Employee involvement can be achievement in the following ways:

4.2.1 Giving Employees ResponsibilitiesGiving the responsibilities to the employees is one of the key aspect by which the employees can be empowered and involved in the business and communicated by the management about the strategic goals of the organization. It will increase employee involvement as well as motivation, which helps in implementing the organizational change smoothly (Dunne, 2013).

4.2.2 Employees Training To Accept Change And Reduce ResistanceEmployees should be trained on a continuous basis in order to make them involved in organizational activities. Usually the employees in organizations lack the skills to change on the continuous basis even if the change helps the organization survive and thrive in the market. Management should implement the training policies by which the employees can be trained to accept the change according to the external environment. It can lead towards reduction of change resistance as well which will ultimately help the organization in implementing the change process effectively (Dunne, 2013).4.2.3 Communication and FeedbacksCommunications and feedbacks both from management to employees and employees to management side are necessary in order to successfully run an organization. Effective communication and feedbacks result in improvement in processes of a business. It will decrease the resistance of change and promote the change activities. Employees should be provided feedback from management as it can motivate them to work more effectively and make more efforts to achieve the organizational goals (Dunne, 2013).

4.2.4 Giving Rewards and RecognitionsProviding rewards and acknowledgement to the employees from their management is very important. It also assists in encouragement of employees to work and make efforts to innovate and change according to the outside business environment. Employees tend to work more effectively when provided the rewards and recognitions by their management.By above literature, it can be concluded that employee involvement is one of the key element in the achieving the organizational goals. Organizations generally work on long term goals. These long term goals can only be achieved by changing according to the external environment of the corporate world. Change is inevitable and organisations must be open to change. Today, change is considered only as to reorganize or reengineer the structure of the organization. It is a wide notion with the approaches of how and why the organization should change, and how it can be profitable for business in their long term goals.

5. ConclusionThere is a great role of leaders and managers of the organizations in implementing these concepts of change and execute the policies and strategies to achieve the shift efficiently and take the business to the next level. Involvement of employees in organization is very important. It can be increased by the trust between the management and the employees. The association between the management and the employees depends on the trust and reliability, which results in employees active participation in planned organizational change (Srensen, Hasle and Pejtersen, 2011, p. 417). The managers should keep all the external and internal factors in mind when developing a strategy for planned change and strategically and systematically remove resistance to change so that employees can be involved in the process of change.

References

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