Organizational Change

Introduction

The only thing that is permanent on the face of the earth is change; and this is also applied into different varieties of business. The change is somehow important if it is intended to begin the improvement. Every organization needs change in improving the business environment or managerial aspect. The change depends unto what extent it should reach and what difficulties it will cross. Sometimes, organization takes the changes to align in the economic variations and it is truly hard to pulse the wave of economic climate.

Organizational change is defined as the process by which organizations reach the desired goals. Organizational change occurs when an organization restructures resources to increase the ability to create value and improve effectiveness. A declining company seeks ways to regain customers; a growing organization designs new products. A well-planned organizational change creates value for stakeholders.¹

In a business manner, the organizational change is about a significant change in the organization, such as reorganization or adding a major new product or service. This is in contrast to smaller changes, such as adopting a new computer procedure. Organizational change can seem like such a vague phenomena that it is helpful.²

Specific Types of Organizational Change

There are different overall types of organizational change, including planned versus unplanned, organization-wide versus change primarily to one part of the organization, incremental (slow, gradual change) versus transformational (radical, fundamental), etc. Knowing which types of change the business is doing helps all participants to retain scope and perspective during the many complexities and frequent frustrations during change. One form of organizational change and development will be discussed below.

Unplanned Versus Planned Change

Unplanned change usually occurs because of a major, sudden surprise to the organization, which causes its members to respond in a highly reactive and disorganized fashion. Unplanned change might occur when the Chief Executive Officer suddenly leaves the organization, significant public relations problems occur, poor product performance quickly results in loss of customers, or other disruptive situations arise.

Planned change occurs when leaders in the organization recognize the need for a major change and proactively organize a plan to accomplish the change. Planned change occurs with successful implementation of a Strategic Plan, plan for reorganization, or other implementation of a change of this magnitude. The planned change, even though based on a proactive and well-done plan, often does not occur in a highly organized fashion. Instead, planned change tends to occur in more of a chaotic and disruptive fashion than expected by participants.³

Change Program Stakeholders

For an organizational change program to succeed, the business should depend upon a range of people. These people can be divided into five stakeholder groups.⁴

A stakeholder is any person with an interest in the process or the outcome of the proposed organizational change. There are five stakeholder group given, together with each description and examples of duty.

1. Change Recipients – They are the intended receivers of the products of change or change outcomes. Example: They are the end users of new software, such as a new accounting package, employees of two merged companies.

2. Decision Makers – They are the people that approve a change effort and decide its scope and direction. Examples: Steering Committee Members, Project Sponsor, or Chief Executive Officer.

3. Resource Holders – They are the people authorized to release financial and human resources requires by a change effort. Examples: Chief Financial Officer, Financial institution such as a bank, or a Line Manager.

4. Program Implementers – They are the people charged with the responsibility for bringing about the change. Examples: Program Manager, Project Manager, or Project Team Members.

5. External Parties – They are the people that are not the intended recipients but who are impacted by the change. Examples: Suppliers whose access to a business is restricted after a change in business hours, or a broader community impacted adversely by a new product that contaminates the local environment.

Once the business had identified the stakeholders, consider the key messages that a business will need to deliver to each group in order to gain their support. Once the business had settled on the key messages for each stakeholder group, start the communication.

Various Models for Change Management

There are numerous well-organized approaches (or models) from which to manage a change effort. There are Strategic Management Models, Action Research Model, Plan Do Check Act Model, Lewin’s Change Management Model, and Mckinsey 7S Model.

Lewin’s Change Management Model

Lewin’s Model for change which also called the Freezing Models has three phases; the Unfreeze, Transition, and the Refreezing.⁵ Unfreeze is where the problem should be thawed into pieces and needed to study each part. The transition steps in when the process is on-going to face the solution and transformation changes. And the last, the refreezing takes the place when the organization is already absorbing the new process. Kurt Lewin exampled this is the cube of ice; on how will you change the form of the cube of ice in to another type by not letting it evaporate.

Strategic Management Model

Many organizations undertake strategic planning. The implementation of strategic planning, when done in a systematic, cyclical and explicit approach, is strategic management. Strategic management is also one model for ensuring the success of a change effort. Simply put, strategic planning determines where an organization is going over the next year or more, how it's going to get there and how it'll know if it got there or not. The focus of a strategic plan is usually on the entire organization, while the focus of a business plan is usually on a particular product, service or program.

There are a variety of perspectives, models and approaches used in strategic planning. The way that a strategic plan is developed depends on the nature of the organization's leadership, culture of the organization, complexity of the organization's environment, size of the organization, expertise of planners, etc.⁶

The two kinds of models are very effective tools for the managerial change. If the models are going to apply on the stakeholders of the company, the proper assessment is needed to apply the models. The models for organizational change are presented as the basis on how to make the change in the management possible as the economic environment asks for change.

Conclusions

The organizational change is different in the other kinds of changes. Although it is necessary for the organization to adopt the prospect changes, it is advisable to first undergone through a series of investigation. Other approaches for a change also involve the technological aspect, like changing for the old technology and adopting a new kind of technological-based process. Other prefers to focus on the traditional way like on the factor of changing the customs of the employees or the rules inside the workplace.

References:

1. Hien, P., (n.d.). Chapter 10 Types and forms of organizational change [Online] Available at: http://www.scribd.com/doc/13754469/CHAPTER-10-TYPES-AND-FORMS-OF-ORGANIZATIONAL-CHANGE [Accessed 25 August 2009].

2. McNamara, C., (2008). Organizational Change and Development (includes the Field of Organization Development) [Online] Available at: http://www.managementhelp.org/org_chng/org_chng.htm [Accessed 25 August 2009].

3. McNamara, C., (2008). Organizational Change and Development (includes the Field of Organization Development). [Online] Available at: http://www.managementhelp.org/misc/types-of-orgl-change.pdf [Accessed 25 August 2009].

4. Allan, L., (n.d.). Managing Change in Workplace. [Online] Available at: http://www.businessperform.com/html/managing_change.html [Accessed 25 August 2009].

5. Change Management on Lewin’s Model [Online] Available at: http://changingminds.org/disciplines/change_management/lewin_change/lewin_change.htm [Accessed 25 August 2009].

6. Management Strategic Planning [Online] Available at: http://www.managementhelp.org/plan_dec/str_plan/str_plan.htm [Accessed 25 August 2009].

The Implementation of Change within an Organization

Introduction

In the middle of the challenges mixed with opportunities and uncertainties, the best way that an organization can do is to rely on the ability of the people to adopt the revolving changes. Accordingly, the practice of adaptation for changes is the most interesting evolution that will happen within the organization. Moreover, the leaders value the importance of the people, their techniques and the overall process in the industry and they surely won’t let anything happen on their founded efforts. Instead of disintegrating the abilities of the people and the organizational system, the employment of the organizational change

Reasons for Organizational Change

Organizations and the leaders understand that through the various challenges, the changes can happen. In terms of changes, there are varieties of businesses but each action for changes should be conveyed in order to facilitate the development. It is very obvious that the changes are only done to accommodate the room for improvements within the organizations.

Since the change is the start of the development, therefore, organization that aims for the improvement or development should look the change as it is the strategy. The business environment and the managerial aspects depend on the extent of the applications of the desirable strategies. Sometimes, organization takes the changes to align in the economic variations and it is truly hard to pulse the wave of economic climate.

The Organizational Change

Organizational change is defined as the process by which organizations reach the desired goals. Organizational change occurs when an organization restructures resources to increase the ability to create value and improve effectiveness. A declining company always seeks strategic ways to regain customers. Various approaches are employed in most of the growing organization designs new products. A well-planned organizational change creates value in every area of the organization and not be tormented in the middle of challenges (McNamara, 2008).

In a business manner, the organizational change is about a significant change in the organization, such as reorganization or adding a major new product or service. This is in contrast to smaller changes, such as adopting a new computer procedure and other technological opportunities. Organizational change can seem like such a vague phenomena that it is helpful.

Specific Types of Organizational Change

Appropriate implementation of change within an organization depends on the type or nature of the organization. There are different overall types of organizational change, including planned versus unplanned, organization-wide versus change primarily to one part of the organization, incremental (slow, gradual change) versus transformational (radical, fundamental), and many others. Knowing which types of change the business is doing helps all participants to retain scope and perspective during the many complexities and frequent frustrations during change.

Organizational leaders should understand the difficulties and consequences during the changes and after it. The organizational change is different in the other kinds of changes. Although it is necessary for the organization to adopt the prospect changes, it is advisable to first undergone through a series of investigation. Other approaches for a change also involve the technological aspect, like changing for the old technology and adopting a new kind of technological-based process. Other prefers to focus on the traditional way like on the factor of changing the customs of the employees or the rules inside the workplace (Allan, 2004).

Effects of Organizational Change

The effects or impact of the change in the organization might be seen in the people. Changes affect all areas of organization and the most important effects are mostly seen on the people and their respective workplace. People are the most important element of change and through times of tougher decisions. Ideally, changes in the organization can affect the workplace and their job preferences (Systematic Reform, 1994). In addition, the changes promotes the idea of improvement and the organization that is willing to go through the success must possess the strategy in how the people can adopt through the changes. One most interesting yet still effective strategy to implement the changes among the people is the use of the training and development. With that, there is an assurance that the organization can meet its objective with the right management of the people.

Conclusion

The organizational changes happen naturally and became one of the strategic actions of the organization to achieve the success as well as an answer through the challenges in globalization. Organizational change should be appropriate to the nature of business in order to facilitate the smooth changes.

References:

Allan, L., (2004). Managing Change in Workplace [Online] Available at: http://www.businessperform.com/html/managing_change.html [Accessed 22 March 2010].

McNamara, C., (2008). Organizational Change and Development (includes the Field of Organization Development) [Online] Available at: http://www.managementhelp.org/org_chng/org_chng.htm [Accessed 22 March 2010].

Systematic Reform (1994). People: The Most Important Element in Change. Perspectives on Personalizing Education [Online] Available at: http://www.ed.gov/pubs/EdReformStudies/SysReforms/stiegel2.html [Accessed 22 March 2010].

Comparison on Lewin’s Model and Chartier’s Model

Introduction

Change is a common thread that runs through all businesses regardless of size, industry and age. Our world is changing fast and, as such, organizations must change quickly too. Organizations that handle change well thrive, whilst those that do not may struggle to survive.

The concept of "change management" is a familiar one in most businesses today. But, how businesses manage change (and how successful they are at it) varies enormously depending on the nature of the business, the change and the people involved. And a key part of this depends on how far people within it understand the change process.

Lewin's Change Management Model

Concerned with social change and, more particularly, with effective, permanent social change, Kurt Lewin believed that the motivation to change was strongly related to action: If people are active in decisions affecting them, they are more likely to adopt new ways. "Rational social management", he said, "proceeds in a spiral of steps, each of which is composed of a circle of planning, action, and fact-finding about the result of action".

Action Research:

Action research is problem centered, client centered, and action oriented. It involves the client system in a diagnostic, active-learning, problem-finding, and problem-solving process. Data are not simply returned in the form of a written report but instead are fed back in open joint sessions, and the client and the change agent collaborate in identifying and ranking specific problems, in devising methods for finding their real causes, and in developing plans for coping with them realistically and practically.

Unfreeze-Change-Refreeze

Unfreezing: Faced with a dilemma or disconfirmation, the individual or group becomes aware of a need to change. Action research is depicted as a cyclical process of change. The cycle begins with a series of planning actions initiated by the client and the change agent working together.

Changing: The situation is diagnosed and new models of behavior are explored and tested. This stage includes actions relating to learning processes (perhaps in the form of role analysis) and to planning and executing behavioral changes in the client organization.

Refreezing: Application of new behavior is evaluated, and if reinforcing were adopted. This stage includes actual changes in behavior (if any) resulting from corrective action steps taken following the second stage. Data are again gathered from the client system so that progress can be determined and necessary adjustments in learning activities can be made.

Kurt Lewin describes his model through the representation on a cube of ice. The simple problem that he established is by simply, how you will create a cone shaped ice. The logic is by letting the cube ice to melt (unfreeze). Then form it to the shape you want (change). And lastly, let it freeze to stay intact in the way you want it (refreeze).

CHARTIER’S CHANGE MODEL

Another change model is formulated by Myron Chartier. The Chartier’s Change Model considers six steps in the process:

1. Being aware of a disturbance

2. Deciding (or not) to act on the disturbance

3. Defining the problem (Diagnosis)

4. Searching for a solution

5. Applying the chosen strategy (solution)

6. Evaluating whether the disturbance has been removed (satisfaction / dissatisfaction)

Chartier also discussed about the five different change agents or people who take responsibility for creating such change.

a) Process Helper (person or people who facilitate the process)

b) Solution Giver (person or people who find the solution)

c) Resource Linker (person or people or division which provides the needed materials and support)

d) Stabilizer (person or people or division which maintains the core functions and direction during the change)

e) Catalyser (person or people who promote / stimulate the change process to keep it on track).

In a small change project one person may fill all five roles listed above whereas in a large corporate change there may be teams of people assigned to each change agent role.

Comparison and Contrast

The change models are very useful if it suits to the team. Both models of change are equally used in different capacity and always pointing out to the view on how to create the change and how to make it possible. These Models are properly created and aligned for the purpose of helping one’s company, in more familiar, to make a difference. These models always involve the workers as a part of the sudden change. The decision lies on the shoulder on the higher position but the adaptation always lies on the workers or employees under them.

On the other hand, the difference between the two models is slightly recognized. Obviously, the Chartier’s Change Model involves “outsiders” in the represented model. These outsiders probably don’t feel the pressure much inside the company, but gradually paid attention in the problem and seen it in a view differs from the others. These outsiders might also be involve in the company’s organization and chose to give their support from the outside. The Agents believes in eyeing a problem in a different perspective. While, Lewin’s Change Model, stays in a simple process as he assumed that will be understand clearly and directly that soothes to the organizations narrow or broad management.

References:

Change (Online) Available at: http://www.mindtools.com/pages/article/newPPM_94.htm [Accessed: 09 July 2009].

Kurt Lewin (1958). Group Decision and Social Change. New York: Holt, Rinehart and Winston. pp. 201.

Understanding Lewin’s Model (Online) Available at: http://www.consultpivotal.com/lewin's.htm [Accessed: 13 July 2009].

Johnson, R. Management, systems, and society : an introduction. Pacific Palisades, Calif (1976).: Goodyear Pub. Co.. pp. 223–229. ISBN 0876205406