Research Articles Base: Organizational Change

Presentation

Introduction             Innovation has been the primary strategy from the first decade of the twenty-first century up to now. It helps many organizations over the world to grow faster as well as increase their market share and enhance and maintain their corporate positioning (2000).             As of today, for any organization to sustain their success, they must master the game of understanding how and when they will launch the initiative of revolutionizing innovation and revolutionizing organizational change (1997). As the number of vehicle variants flourishes as well as the demand for other vehicles and components of innovation grows, the ability of different organizations to identify and launch new products and improved or enhanced their available services has become one of the most important criteria for success (2005).             Innovation and organizational change comes hand in hand in order to attain and maintain success of different organizations in the world. Both of these aspects help different industries and enterprises to re-evaluate the products and services that they are offering as well as the current corporate culture that they are implementing such as their rules, policy and protocols. It is also believe that innovation and change is the only way to endure the pressure in face of rising competition ().             Innovation allows businesses to define and develop new products and services and eventually deliver them to market while change is the process of improving the overall performance of the company by focusing on their internal structure. Both are a great source of value creation in businesses and a vital enabler of competitive advantage. It is also inherently a vastly cross-functional activity that, when it works well, generates a beneficial pressure between competing objectives of development cost, product value, performance, quality and time to market ( ). Innovation Innovation is the overture of a fresh thing or method and the quintessence, permutation or fusion of knowledge in unique, pertinent and valued new products, processed or services (2003). All innovation begins with inventive ideas and end with the execution of creative ideas within the organization. Ingenuity by individuals and teams is a starting point for innovation; the first is essential but not adequate condition for the second (1996). It is just like many business functions, it is a management process that requires specific tools, rules and discipline ( 2006).             Innovation is the representation of the particular tool that is used by businesses as the means of exploiting change as their opportunity for a different products or different services (2006). It involves changing the value and satisfaction that is obtained from the company by the customers cited in (2006). (1990), describe that innovation adoption is more likely to occur when organizations is facing delimma about its internal and external environment about its high needs about change (2002).             Innovation is important because it is the greatest weapon that can be used by any business and organization against the constant change and increasing challenge from the changing needs of the customers, fast development and improvement of technology and growing competition due to globalization (2006).             Innovation is important because it serve as a continuous improvement to the side of the business. It will help the company to maintain their position in the market. Especially today that customer preferences, tastes and demands are one of the major challenges that all of the business are facing. New and improved product can easily catch the attention of the customer. It will also add to the interest and loyalty of the customer to the company. It is also important factor because we are now already facing the era of globalization. This large market will offer a vast and immeasurable target market therefore; vast ideas and innovations are also needed in order to cater to the demand and satisfaction of the market. Innovation also enables those products and services with short life cycle to maintain the stability of their business as well as to continue the flow of business.             Innovation does not only focus on the technological side of the business it also focus on the variety of products and services that they are offering. It focuses on how the business will catch the attention of their customer and how will they attract their market to come back and ask for more. Organizational Change             Organizational culture can help provide competitive advantage for any business and company; however it can also create obstacles to the innovation and change that is necessary for the company to succeed (1997). Nowadays, the world of business is facing the significant changes in technology, regulation and competition, organizational change is necessary to follow the fast flow of change in the internal areas of the company. It will include simultaneous transformation shifts in the firm’s structure and systems as well as its areas regarding its culture and competencies (1997).              (1985) wrote that change in any organizational culture and management is normal and healthy () (2006). Change in organization will help the company to adjust to the current situation of the global market as well as adjust their culture and other internal issues to the growing demand of innovation. Application of innovation also means implementation of change through different important areas of the company. Procter and Gamble             Procter and Gamble started its official operation on August 22, 1837 as a store that sells soap and candles in Cincinnati, Ohio. The first product that it had branded was The Moon and Stars. It was one of the few companies that have started to launch a department that will study and analyze the behavior of their customer regarding their product.             Procter and Gamble is one of the companies that have used innovation and organizational change as a tool and weapon to succeed. Its first innovation in terms of their product is the launching of their Ivory soap in 1879, it was a big hit during that time and enables the company to produce 200, 000 cakes of the said soap due to the demands of their customers. It was also one of the first few companies that have engaged in extensive marketing strategy targeting their national market by building different sales branches across the country (1983).             The biggest innovation of the company ever made was its introduction of the Tide detergent just after the World War II. It was the result of their extensive research about the chemical compound that will pull out grease, oil and other stain from the clothes. This major innovation helps to change the laundry habit of the Americans. It also gave them competitive advantage and edge against their major competitor that time, the Colgate-Palmolive (1983).             One of the major organizational changes that the company had implemented was the launching of Organization 2005 under its CEO, . It main objective is to have a cultural revolution that will cater to the position of the company in the global market. The plan was launched on January, 1999 was considered as the boldest change the company ever made in its entire history. It helped to remove and renew policies such as the dress codes. However, the launching of the said plan was not that successful and created uncertainty of the company’s local and global position. Because of the said failure, Jager have decided to resign in 2000.             After the resignation of  replaced his position. The main objective of the new leadership is to continue the missions and goals of the Organization 2005 but making changes about the aspect of the plan that did not work out well during the previous management. Under the new management, the company again faced new organizational change; it focuses on its new organization design. It created different interdependent global business units, market operations and global shared services strategy that will help them to attain interdependent geographic profit center.             This plan helps them to target global market but working locally. By doing this, it enables the company to have an autonomous authority for each country that they are operating to innovate and manage on their own. It helps them to meet the demands of their customers across the world by meeting their demand with accordance to their taste, culture and preferences.             The Internet, globalization and the consolidation of the retail production have combined to generate a dynamic global marketplace ( 2000). The company has decided to become a global company that operates like a small local businesses that operates in different part of the world for them to survive the present situation of the global market environment.             Because of this major changes and innovation, the company have maintained it position in their local position in US as well as its position as one of the biggest and most successful multinational companies in the world.           Credit:ivythesis.typepad.com

Presentation

Introduction Innovation has been the primary strategy from the first decade of the twenty-first century up to now. It helps ...

CAUSES OF RESISTANCE TO CHANGE

CAUSES OF RESISTANCE TO CHANGE   The meaning of organizational change can be generally considered as the process of performing changes in the organization for the better. It is a complex process that is difficult to define.  and  (2002) stated: “Organizational change cannot be easily defined. It needs to be managed proactively and yet the approach needs to be responsive to changing contingent circumstances” (). Change is not a drastic activity that would easily get away with difficulties. There are cases when a change is applied within an organization, employees either consciously or subconsciously resists against it, making it ineffective or dangerous to the normal operation of the firm. (1998) stated that many sees change as a threat because the outcomes are less certain than leaving things as they are. Resistance is defined as employee behavior that seeks to challenge, disrupt, or invert prevailing assumptions, discourses, and power relations (1994). While many claims many variables related to change resistance, none of them are still considered standard because most were not linked with more specific variables such as the type of industry the company is in, the nature of work, and so on. This study will explore the causes of change resistance based on those variables. It will interview employees of a company that recently changed its organizational process and will try to identify the employees’ view of change, and if they don’t like, to identify why they think of such opinion. Their answers will be analyzed with the nature and the difficulty of their work, and change specific tasks that have currently been integrated with their system policy. Credit:ivythesis.typepad.com

CAUSES OF RESISTANCE TO CHANGE

CAUSES OF RESISTANCE TO CHANGE The meaning of organizational change can be generally considered as the process of performing change...

Organizational Change of Procter and Gamble

Organisational Change of Procter and Gamble             Structural and organisational changes is a common aspect in any company may it be small, medium or large scale. An organisation undergoes change in order to ensure the products and services that will be given to consumers are excellent, as well as, the performance of the employees within the company. Change in an organisation can happen on the upper management, the employees, and products. Organisational Change, according to  (2006) is the idea in which the organisation changes its system in a wider scale, as opposed to smaller transformations in the company such as adding a new person, or altering a program. Changes in the organisation are provoked by external forces of the organisation; usually an organisation undergoes organisational change in order to evolve to a higher level of entrepreneurial activity. Procter and Gamble is one of the companies that utilised change in organisation in order to become one of the most well-known product producers in the whole world.             This paper examines the implementation of change that is concerned with the strategic development of Procter and Gamble. The current state of Procter and Gamble will be determined by applying the concept of External Environmental Analysis.             According to Procter and Gamble (2007) the company is one of the leading organisations in terms of producing household products. One of the most popular products of the company is the disposable diaper, due to the fact that Procter and Gamble was the first company to create and develop it. The company was established in the year 1837 wherein its main headquarters is in Cincinnati. The company has evolved into one of the most reputable manufacturers of consumer products. In addition, the company has already produced more than 300 brands world wide. Products of Procter and Gamble range from laundry detergents, beauty products, and dental care. The company was formed by the in-laws William Procter, who was a candle maker and James Gamble and soap maker. In the year 1859, the merged company of Procter and Gamble grew and became one of the largest companies in Cincinnati. From then on, the company became a success, spanning generations from generations and even across the world.             Even though, Procter and Gamble became a huge success in the household product industry, it has its own share of criticisms and controversies. One of the biggest controversies that Procter and Gamble has faced was the Toxic Shock Syndrome acquired from using the Rely tampon in 1980 wherein it resulted to 38 deaths. Instead of losing the business due to this controversy and other criticisms that plagued the company, Procter and Gamble have rose and become one of the largest manufacturers of cosmetic products. Procter and Gamble even introduced to the public the cosmetic companies Noxwell in 1989 and Max Factor in 1991. Although Procter and Gamble have surpassed one of the biggest challenges in their company, there are other aspects in business that pose as threats and challenges therefore a change in the structure of the organisation is needed in order to address those issues.             Prior to making a statement regarding the changes in organisation made by Procter and Gamble, an analysis of the current state in organisation will be determined through External Environmental Analysis. According to  (2003) organisations whether small or big are affected by the conditions in the external environment and the managers must be aware of these conditions so that the company would be able to take advantage of the opportunities that will eventually lead to higher profits and decrease the impact of threats that could be a great danger in the future of the organisation. External Environmental Analysis- in the external environment of Procter and Gamble there are two areas that needs to be analysed and these are the General Environment and the Competitive Environment.             General Environment- one of the aspects of the general environment that would have a huge effect on the business of Proctor and Gamble is the political and legal conditions of the country in which the company has established an office and factory. The legal conditions include the policies of the government towards business, the regulation of the business and labour, and the budget plans and conditions. The political stability and the legal conditions of the government in which Procter and Gamble have established their business plays an important role in the change in the organisation. If the legal and political condition is not good, Procter and Gamble may retrench employees or in worst cases close down the factories and set-up in another location. Another factor in the general environment is the demographics of the nation or society. The characteristics of the population of the country such as the size of the population, income distribution, education levels and geographic distributions play an important role in making changes within the organisation. If the country has a relatively young population with a high purchasing power, more products will be developed and created in order to address the specific needs of a particular nation or population. Third factor in the general environment is the Technology, the developments in the information technology is also significant in making a change in the organisation. The accessibility of a country in technology in which the company has invested in is important in order to address and identify the needs of the market. Relevant technological development includes the internet, telecommunications, product and process innovations, and on-line training. An example is, Procter and Gamble is able to enter new markets and develop new products that will suit the particular needs of every type of consumer because of new technologies, and the feedback from consumers can be easily received by the company through sophisticated computer programs and internet. The fourth factor is Macroeconomic wherein the economy of the country has a huge impact on the business; it includes the size of the gross domestic product, inflation rate, unemployment rate and interest rates of the country. In the case of emerging markets such as China and India, Procter and Gamble is setting up new factories and headquarters in order to ride and seize the opportunities of these emerging economies. Therefore, a change in the structure of the organisation could take place, more managers from the West will be sent in these Asian countries in order to supervise and transform the offices or factories of Procter and Gamble. The fifth factor is the Socio-cultural wherein the values, beliefs and lifestyle of the society have a huge influence over the functions of the business such as the attitudes of individuals toward work. Changing some aspects of the organisation especially if it is in another country is very crucial because their belief and values system is different from the main headquarters, example the attitude of a Chinese worker towards his or her job is different from that of an American or Indian, therefore any change especially in the human resource department must be with respect to the culture and attitudes of the worker.  The last, factor is the international developments that can have an impact on the business such as the rising trend in globalisation, emerging markets such as China and India, and political events. Changes especially in other factories of Procter and Gamble, due to the cheap labour from China and India, the company may outsource some of the jobs to these countries therefore there will transformations on some of the factories of Procter and Gamble in other parts of the world.             Competitive Environment- the competition of the Proctor and Gamble must be analysed and understood in order to keep up with the competition. The company can utilise the Porter Five-Forces Model of Competition. According to Horita et al (2007) Michael Porter’s Five-Forces can be utilised in order to give analysis of the industry and help develop and shape the competitive strategy of an organisation. In the Five Forces Model, Procter and Gamble must identify the following:             Threats of New Entrants- Procter and Gamble must identify the factors that make it easier for new players to enter, such as the low capital requirements, easy access to the distribution channels and little government regulation on these new companies. The company must identify the threats posed new players in the industry in order to make amendments on the products, services or some aspects of the business.             Supplier Power- the supplier of the raw materials plays an important role in the competition. The suppliers have a huge power over the firms that need the raw materials because only a few firms dominate the industry, the supplier does not care what company is the buyer of the product as long as they will have a great deal, the product of the suppliers are important in creating the products of the company and the supplier can become a future competition. Proctor and Gamble must know these factors in order to play their cards right in the industry; an example is having a great deal with the supplier so that they will not give the products to other buyers.             Threats of Substitutes- the market in consumer products is very stiff, and there are products that emerge in the market that could perform the same function at a lower price. In order to compete with these substitutes, Proctor and Gamble must identify the factors that indicate the high threat of substitutes and develop countermeasures. The factors include the price of substitute in the market which often times lower than the price of the company’s product, in order to counter this Proctor and Gamble must ensure the quality of their product so that the consumers would be loyal to the product. Another factor is that these firms have high profitability; in order to counter this, promos of the product must be done such as additional contents on the products in order to encourage the consumers to buy the products, thus gaining the company more profits.             Buyer Power- Proctor and Gamble must determine the reasons why the buyers purchase the products of the company. The factors that contribute to the high purchasing power of the company’s products must be identified in order to intensify the quality of the product and even eradicate the competition. Some of the factors include the indistinguishable products, in order to attract more consumers the packaging and content of the product must be good because most of the consumers buy the products due to attractive package and bigger contents. There are few buyers than sellers, in order to address this issue Proctor and Gamble must advertise the product more aggressively so that the consumers will be more familiar with the product. And the buyer has low profits, Proctor and Gamble must create products that specifically target this bracket of consumers.             Competitive Rivalry- Proctor and Gamble must identify the intensity of the competition in the consumer products industry. With more companies around the world emerging, competition is really tough in the industry. The factors that lead to the high competition among rivals in the industry are the numerous competitors, slow growth in the industry, lack of differentiation and many more.   Improvement in Procter and Gamble             The Procter and Gamble Company was only one of the few companies that have remained one of the top players of the field, over the past years. Procter and Gamble was able to surpass some of the world’s greatest challenge such as the World War II and the Great Depression. The approach of the management of the Proctor and Gamble was centralized, however having a centralized management have become more of a liability than an asset in the company. That is why Procter and Gamble have decided to decentralized the management and various representatives from different areas of the company were grouped in teams in order to create proposals which enabled Procter and Gamble to cut the costs of production, increase the sales, and research and development of the product. A good explanation on the changes that can be implemented in the organisation is through the Porter’s Generic Strategies.  Below is the Illustration of the Porter’s Generic Strategies Framework. Figure 1.1 Porter’s Generic Strategies Framework.   According to  (2007) the porter model is a category scheme in which it is composed of three forms of strategies that are usually used by the business, and the three strategies are outlined along two dimensions which are the strategic scope and the strategic strength. Based on the Porter’s Generic Strategies Framework, Procter and Gamble can use it in order to make modifications on the current organisational structure of the company. Cost Leadership Strategy             According to  (2007) an organisation that utilises cost-leadership tries to perform a competitive advantage through decreasing the economic costs below its competitors. In this particular strategy, Procter and Gamble must produce high bulk of their products at a low cost, and must be marketed at a large scope of customers. In sustaining the strategy, the company must first look for cheaper suppliers that can provide a cheaper alternative but the same quality of raw materials used in making the products. Another is supplier depends on the volume of the products, and in order to produce large bulk of products, Procter and Gamble must also order in high volume to achieve lower costs. If the supplier is not providing high quality raw materials then Procter and Gamble must shift to another supplier. Aside from the suppliers identifying possible cheap labours in emerging markets such as India and China must be done by Procter and Gamble. Apart from cheap suppliers and labour, the company must also guarantee that their products new or old must not be copied by the competitors or possible competitors. Differentiation Strategy             According to e-coach (2007) differentiation strategy is an incorporated actions that are created to provide and deliver products and services that customers view as being different in ways that are relevant to them. In this strategy, Procter and Gamble should develop more unique products that would differentiate it from the competition. Example, in the diapers Procter and Gamble must develop new styles and forms of diapers that would be more beneficial to consumers. In order for differentiation strategy of Procter and Gamble to become successful, the consumers must get the best value for their money. Moreover, if the prices of Procter and Gamble are new and one-of-a-kind products then Procter and Gamble will gain more profits due to the fact that the Price Elasticity Demand will decrease the prices of the products and the consumers will purchase and will even lead to loyalty to the products. This is a good strategy for Procter and Gamble; however it has its downside which is additional costs particularly in the research and development of the products. In addition, Procter and Gamble must assure their consumers that the products are cheaper than that of the competitors and it will not go up.  In sustaining this strategy, it must coincide with Cost Leadership Strategy, wherein the company must develop new cheaper products but have excellent quality, and this can only be done by having an excellent research and development. But, having a good product means a good supply of raw materials which can be more costly, and in order to achieve cheaper prices from suppliers the company must use the Cost Leadership Strategies. Market Segmentation Strategy             According to  market segmentation is the process in which the total market is divided into groups that is composed of people that have comparatively similar needs. Although Market Segmentation is often utilised by small and medium sized companies, a huge company such as Procter and Gamble could also utilised this strategy. Procter and Gamble have already done it, in the case of beauty products for females like the Max Factor. Aside from the female market, there is also a huge emerging market for Male products, therefore Procter and Gamble could develop new products for this specific market. Market segmentation is also correlated with the two strategies the cost leadership and differentiation. Procter and Gamble is developing new and unique products for a specific market but it must have a cheap price, at the same time, superior value. Conclusion             Procter and Gamble is one of the success stories in the business world today, spanning for almost a century and still continues to dominate and tap the market. The success of Procter and Gamble is due to the constant change of the organisation in order to meet the needs of the consumers. They identified the benefits of decentralising and advertising, and use different strategies in order to identify new markets and competitors. Procter and Gamble constantly provide the consumers quality products because of its good research and development program, and will continue to tap the untouched markets in order to deliver products that will suite the needs of particular portions of the market.   Credit:ivythesis.typepad.com

Organizational Change of Procter and Gamble

Organisational Change of Procter and Gamble Structural and organisational changes is a common aspect in any company may it ...

ORGANIZATIONAL CHANGE PAPER

Resistance to Change Introduction             Change is an inevitable part of the organizational life which is driven by internal and external factors. Every change can be seen as a threat to the organization mainly because it changes habit, present new materials and thus create uncertainties. It threatens the existing schemas and the manner in which members makes sense of their organization. These kinds of reactions may lead to a degree of resistance.             Resistance is a natural part of the any organizational change. Because of this, many of the literature found on the area of change management discussed the role of resistance in the implementation of change initiatives. While most argued that resistance is a disruption to the implementation of change, it must also be recognized that not all resistance is negative.  It facilitates strategic thinking that identifies the necessary steps to be undertaken by the organization. It also serves a source of information which is useful in learning how to develop a successful change process. This paper will explore the various literatures that explain the nature of resistance to change. It seeks to explain the sources of resistance and its management. Ultimately, this paper will broaden the understanding on the resistance to change as it presents the benefits that can be achieved through the proper diagnoses and management of resistance. The literature will be presented in thematic form that shall discuss the different aspects of resistance to change.   Review of Literature Resistance to Change             “People resist change.” This belief has been deeply ingrained within the organizational life. A number of organization theories has focused on the process of change and suggest that in most cases, organizations resist change.  Resistance to change occurs because organizations are embedded in the institutional and technical structures of their environment.  Structural resistance to change lengthens the time that is necessary to implement a change (, 1993, ).              (2000) summarized the research on resistance and explored how such information can be used to successfully navigate change. It has been emphasized that the resistance to change is the barrier to organizational change attempts. It encompasses a variety of behaviors from passive resistance to active resistance or even aggressive resistance. Resistance to change is an outcome and a natural product of change. Because of this, resistance to change or to the consequences of change (e.g. loss of status, alteration of work, discomfort, perceived disadvantages to work alteration) has been considered to be managerial pariah. Much of the change literature and management on the subject is devoted on forestalling or reversing resistance. However, the universal axiom that people resist change has been challenged. For example  (1995) argued that individual resistance to change is quite rare. Instead, the obstacles to change are often found in the organization structure, in its performance appraisal or compensation system which is yet to be aligned to the desired changes (as cited in , 2000, ). Moreover,  and  (1999) argued that the phrase “resistance to change” be dispensed altogether. These authors emphasized that people do not necessarily resist change but instead resist the lost of status, pay or discomfort associated with change. Additionally,  and  pointed out that ’s original concept of resistance to change as a dynamic system force rather than an individual predisposition and that recent research are turning to a system wide level of analysis. According to ’s model, change is both a freezing and unfreezing process. Like living systems, organizations have a tendency of maintaining a steady state. Change allows the movement of the organization from one state to another (, 1993). Resistance is often ascribed to negative notations. However, such notation is a misconception since there are instances when it is the most effective response. In fact, resistance can play a major role in facilitating organizational change. It influences the organization towards stability. While the internal and external pressures continue to encourage change, resistance is a factor that can balance these demands against the need for stability. In their empirical study,  and  (2001) concluded that resistance to change is not the fundamental problem that organizations must address. Rather it is usually an indication of more basic problems that underlie a particular situation. Thus, it can serve as a warning signal that may direct the timing of the proposed change. As such, resistance draws the attention to the aspects of the change that may be inappropriate, not well analyzed or plainly wrong. When individuals demonstrate symptoms of resistance, it is important to distinguish between the symptoms of resistance and the causes behind it.  Specifically, the management can use the nature of resistance as an indicator of the cause of resistance. It will be helpful if the management assess the causes when it occurs instead of inhibiting initially.  and  (1979) emphasized the importance of diagnosing human resistance prior to the implementation of change (as cited in  & , 2001, ). In order to diagnose the true cause, it is necessary to understand the individual. It is also widely acknowledged that organizational change can be effected by going through the individual’s behavior and addresses the unconscious motivations to achieve the change of attitude.  and  (1998) also argued that the management can actually benefit through the proper management of change. The resistance to change contributes in the influx of energy. Resistance generates energy and motivation to take serious consideration of the present problem. When there is lack of energy, it is likely that the change becomes uncreative and ineffective. Conversely, when resistance is present there is the need to examine the existing problems and the proposed changes. In addition to this, it also encourages the search for alternative methods to mitigate the conflicting options that exists.   Sources of Resistance The most fundamental concern in change is the process of change itself. It is associated with the notion of routine disruption, undermining relationships and requiring learning. With this premise, it becomes extremely difficult to introduce change especially to individuals who have become accustomed to their work. Thus, resistance is any conduct that tries to keep the status quo which makes it equivalent to inertia as the persistence to avoid change ( & , 2003, ). A study by  and (2003) analyzed the importance of the sources of resistance to change through empirical research. They have divided the sources of resistance into five groups. The first three groups are the sources of resistance that occur during the formulation stage because they deal with the factors that complicate the situation analysis and evaluation of alternatives. The last two groups deals with the implementation stage since they are the barriers during the formulation of the change strategy. The first group is called as the ‘distorted perception, interpretation barriers and vague strategic priorities’. Change is started with the perception of a need, thus wrong initial perception is the first barrier tot change. The second group is concerned with the low motivation for change. Among the causes of low motivation are the directs costs of change, pessimistic image of change due to past failures and the varying interest of employees and management ( & , 2003, ). The third group is the lack of creative response with regards to change. The lack of creativeness towards the appropriate change strategies is brought by three main reasons. First, the fast and complex environmental changes hinder the proper analysis of the situation. Managers and employees also tend to exhibit a reactive mind set, resignation and the tendency to believe that difficulties are inevitable during the change process. Lastly, the top management lacks the adequate strategic vision and commitment to introduce and implement changes ( & , 2003, ).             The fourth group deals with the political and cultural deadlocks to change. This concerns the personal and organizational values in relation to change and the departmental politics that is likely to affect the implementation of change. Lastly, the fifth group is characterized by the leadership inaction, embedded routines, problems on collective action and the lack of capabilities to implement change ( & , 2003, ) Readiness to change             The notion of readiness to change has been emerging in the change literature.  (2000) defined the perception to the readiness to change as the cognitive precursor to the behaviors that either resist or support a change effort. In assessing the readiness for change, the organization considers its capacity to make change and the extent to which individuals perceive the need for change. The distinction between resistance and readiness is argued to be a more dynamic and proactive view of change.             The individual readiness to change is defined as the extent to which an individual is prepared to participate in various organizational activities. Researches support the notion that the individual’s readiness to undertake change is a major precursor to successful implementation of change and a prerequisite to meet the objectives in a dynamic environment.  Readiness to change, being an attitude, deals with the field of forces that support and resist change. These forces need to be modified to facilitate change.             In his research,  (2005) established a framework for the study of the readiness to change by presenting an individual change model. He integrates theories and empirical research in regard to the individual’s readiness to change. According to him, individual readiness reflects the belief, attitudes and behavioral intentions of an individual towards change efforts. Readiness to change as an attitudinal construct involves three dimensions: cognitive, affective and intentional. These dimensions make up the tripartite view of attitudes. The cognitive dimension refers to the individual’s beliefs about the attitude object. The idea that change can be overcome cognitively suggests that it may include negative components about change.              (2000) review the studies of resistance to change and advocated new research based on the reconceptualization of individual responses to change as multidimensional attitudes. She suggested that what is often labeled as resistance is in fact reluctance. Resistance has been defined in behavioral terms but another state precedes it: a cognitive state that is called (un)readiness. The emotional dimension refers to the individual’s feelings in response to the attitude object. The most complex is the third dimension because studies have found out that only two dimensions.             The understanding of individuals’ attitudes about change is linked on the individual’s readiness to accept change. This is because organizational changes can take place through individual behavior changes. Individual behavioral changes are critical in linking the organization’s intention to change and the outcome of any change effort. It is an intermediate factor that links the change agent intervention in the work setting ant organizational outcomes. Also, change in the individual behavior of organizational members is a prerequisite to a meaningful and lasting organizational change (, 2005, ).Creating readiness encompasses the proactive attempts to influence beliefs, attitudes and behavior of the change participants. Management of Resistance             Leading the organization through change involves the constructive balancing of human needs with those of the organization. Since the organization consists mainly of people, organizational change essentially involves personal change. From this perspective, change requires the participation of people who must change first before the organizational change succeeds ( & , 2001, ). This argument is supported by management literature suggesting the participative techniques as the best method to handle resistance.             Classic studies by  (1991) and  and  (1948) both concluded that individuals’ involvement in the learning, planning and implementing the stage of the change process influences the commitment to change and lowers resistance (as cited in  & , 1998, ). The argument behind the participative management techniques is that a two way communicative process of information sharing and consulting leads the employees to become more committed to the change effort instead of simply exhibiting compliance.             Employee participation has been viewed in the literature in terms of the obligation of the members to work in the best interest of the group; as ego involvement; as a managerial style or as mandated approach that allows the employees to influence decisions. Much of the literature posited the argument that employee participation in organizational decisions facilitates an increased acceptance of change and commitment to the organization’s future (, 1991, ). Without entering the debate regarding the pros and cons of participative management styles, it becomes apparent that the goal to reduce high levels of resistance is to reduce the level of resistance encountered. Implications of the Literature             Much of the literature on change management has recognized resistance to change as a by product of change initiatives. However, the authors argued that not all about resistance is negative. In fact, it can contribute significantly to the organization if understood and carefully managed.              (2000) argued that the universal axiom of resistance to change is challenged. Individual resistance is a rare occurrence and what are actually resisted are the consequences of change and not change itself. The same argument has been suggested by  and  (1999) who argued the resistance to change be dispensed.  They also emphasized that people do not naturally resist change. Instead, they resist the consequences associated with the proposed change.              and  (2001) went on arguing that organizations must turn their focus away from the resistance to change. Instead, put their focus on the basic problems that characterizes the problem. According to them, resistance can be regarded as a warning signal that may direct the timing and the appropriateness of the change. Thus, it can be used by the management to its advantage. This argument is also supported by  and  (1998) who suggested that change must be managed properly to benefit the organization. Resistance to change contributes to the proper assessment of the problem and the changes to be undertaken. It generates energy that motivates the individuals to consider the problem seriously.             Based from the literature, it can be argued that resistance to change is not inherently negative. It can be an advantage if well understood and managed. To understand resistance, it is important to analyze its sources.  and  (2003) posited that sources of resistance occur during the formulation stage and the implementation stage. Aside from the sources of resistance, there is also the need to evaluate the employees’ readiness to change. The distinction between resistance and readiness to change has been regarded as amore proactive view of change.             According to  (2000) and  (2005), the individuals’ attitudes are essential in assessing their readiness to accept change. Thus, individual behavior plays a pivotal role in the organization’s intention to affect change. Creating the readiness to accept change involves the attempt to change the individuals’ attitudes towards change.  This can be done through participative leadership styles which are often used as a technique to reduce resistance and encourage commitment to change.  &  (1998) suggested that people be involved in a participative communication process. Conclusion Many authors stress that the reason for the failure of change effort is caused by the resistance to change. However, this review of literature largely emphasized that resistance is a positive aspect and that it can benefit the organization if understood and managed well from the individual level to the organizational level. The management of organization change is basically directed to a transitional state from the present to a desired state of individuals or an organization. Effective change can take place by incorporating organizational and individual management of change. This is because a change can take effect and result to desired outcomes only if the actors within the organization share the same vision.             Contrary to the universal notion that people resist change, research argued that individual resistance to change is quite rare. It is the consequences of change that people resist. Thus, it is necessary that the management diagnose the causes of the resistance on the individual level. For one, organizational change can be achieved through the individual’s readiness to accept change. This is so required because a change is deemed effective if it is acceptable to the members. While resistance to change is an evitable factor, the manager will have to handle such situation through participative management styles. The manager is compelled to motivate its employees to positive responsiveness to a proposed change and work collectively towards achieving the desired outcomes. This is achieved by getting the employees to be involved in establishing a shared strategy. This encourages the increased commitment of the employees towards the change effort and less resistance. Indeed, resistance must also be viewed positively. Most of the time, managers dismiss resistance as negative and disrupts the implementation of change. However, resistance signals the basic problems that underlie a particular problem. It encourages careful evaluation of the changes and search for alternatives that may otherwise become more effective than the proposed change. Resistance helps the management to assess the cause of resistance itself. Ultimately, it generates motivation to take serious steps as regards to the situation.  It also serves a source of information which can be used to develop successful change strategies.                 References   Credit:ivythesis.typepad.com

ORGANIZATIONAL CHANGE PAPER

Resistance to Change Introduction Change is an inevitable part of the organizational life which is driven by internal and exte...

Strategic Change in Scania Angers Plant

Strategic Change in Scania Angers Plant               Changes in the strategy of the company often happen in organisations whether it is a small scale or a large scale. The changes could be in the marketing strategy or corporate strategy. The strategic change could be either applied in a particular department or to the whole organisation.             This paper gives analysis on the change of management strategy in the plant of Scania in Angers France. Moreover, this paper examines the implementation of the new management strategies in the Scania Angers Plant and the impact on the organisational performance of the workers and managers. It also provides discussion on the significant challenges enclosing the management of change in the organisation.                Scania is a Swedish multinational company which is chiefly involved in the production and marketing of trucks and buses. The trucks for the French, Italian and Iberian markets are assembled and built in Angers which is a former harvester plant about 50,000 square meters. The production has significantly increased and because of more plans on production it suggested a continuous increase in the coming years. Scania’s (2006) ambition is to supply the world’s most demanding consumers with the most competitive and most desirable solutions for their needs. Scania’s products and services shall satisfy the organisation’s customer expectation. In order to attain the ambition, the leadership of Scania is focused on common values, principles and working methods. The identity of Scania is formed by values, principles and working methods in addition to the products and services of the organisation. The three core values that are the most important for the company are; customer first, respect for the individual and quality. These core values are the fundamental basis of Scania’s corporate culture and business behaviour. Focusing on the value chain is the key why Scania’s managers and employees are able to meet the needs and expectations of the customers.             Organisational change theories according to (2003) have a huge influence on business and not-for-profit companies. The author stated that the scope of the impact of the popular organisational theories like the culture change, total quality management, business process re-engineering, organisational learning and the recent theory the six sigma is very evident in the world of business because these theories are utilised by a number of companies and the results are often reported in various journals, business presses and books.             In the case of Scania, the company employed the change in the company’s culture. The change process includes the new mission and vision which redefines the organisation’s business. The previous statements focused on product orientation, and the company’s new statement gives attention to a broader meaning of the business wherein it embodies broader concept on transportation and customer service via creating a lucrative partnership between agents and dealers, and between Scania and its customers. The new mission of Scania states that “Scania is committed to providing optimum solutions to meet customers’ needs by building profitable partnerships driven by all quality in all we do.” And the new vision of the company is determined by the powerful environment and the existing and developing values and beliefs of the organisation. This vision is a great help in identifying and developing new direct value-added services and seamless value system, cultural reorientation and success-enabling mechanisms.             In Scania Angers plant the Swedish managers implemented a cultural change, in which according to  (2006) is a form of organisational change which is both radical and important. It includes the substitution of the fundamental values, norms and beliefs of the members of the organisation with the main reason of enhancing the performance of the organisation collectively.              In Scania, the company transformed its corporate culture starting with the change in the mission and vision statement of the company. From stressing on the products, the Scania’s mission changed into taking account the business collectively. Scania transformed its vision and mission in 1994 so that it could cope up with the competition as well as address the needs of its customers. As the trend of globalization occurs at a rapid pace paying attention to products mostly so that a good reputation could be developed is not enough. The management of an organisation must view other aspects in the business that is also valuable in building a good reputation such as the customer service and the relationship of the organisation with its consumers. Aside from the customers the organisation must also pay appropriate attention to its employees, and develop and implement new strategies and approaches in management that would be beneficial to the employees as well as the whole organisation in the long run.             In the Scania Angers plant the Swedish managers implemented the Teamwork approach. According to (1998) teamwork is an important feature in a wider trend of decentralised and flexible groups in which promotes a culture of involvement and expression, and currently the most famous form of restructuring an organisation. Moreover, teamwork develops lean production and workforces having a high commitment. Teamwork approach is a very effective method in developing strong communication and commitment among employees and managers, however upon implementation of the approach Scania faced a number of challenges before attaining their goal. The challenges are mainly because of the cultural differences between the French and Swedish. Teamwork is not common among French firms, that’s why implementing the teamwork approach is very challenging for both nationalities working in Scania Angers Plant.                                                 There are substantial discrepancies on the culture of the Swedish and with French people have high appraisal on hierarchy and looks at it as relevant in the work place, on the other hand the Swedish assays equality. The French people have a strong culture of masculinity than the Swedish. And individualism is very unmistakable among French while on the contrary the Swedish values collectivism. Furthermore, in France the French regards the distance between employees in higher ranks and employees in lower ranks in the workplace as substantial, on the other hand the Swedish people reduces the distance and as an alternative they seek for equality and desires equal opportunities whether it would be in politics, social, economic or civil rights. Another distinguishing feature of the French people which is different from Swedish are, the French have the tendency to be inclined with rules and bureaucratic processes in the work place, in other words they are authoritarian, on the other hand, the Swedish are more complacent and less organise in the work place.   Teamwork approach is new to the French workers and needed a great amount of effort and time so that all of the workers could assimilate in the new structure of the management. The teamwork approach the culture of the Swedish which is equality is very visible. Like in the clusters, all of the workers are equal except for the manager, and all of them have the opportunity to be promoted to a higher position regardless of the educational background. Teamwork Approach This approach has two key strategies which are the improvement of the skills of the managers and the employees and the relevant source of personal encouragement. Scania regard teamwork as a significant and useful tool in work processes of the plant and in wider aspects of the activities of the company. Moreover, according to  (1995) the teamwork approach has many advantages in an organisation such as it intensified the efficiency, enhances the quality of service to the consumers, fewer levels of management at the same time it raises the spirits of the employees. Cluster             In the new management of Scania the basic structure of work organisation is the cluster. According to the managing director the clusters are “technical units of production made up of workers who assemble components forming a semi-furnished or manufactured product.” The clusters in Scania are responsible for a specific part in the production of the goods. For example, clusters have various tasks and responsibilities, some clusters are in the area of manufacture, and another is for the quality control and some in marketing. What separates Scania Angers from other Scania plants is that the entire cluster managers defined clearly their objective which is to impose that all activities in the plant must be reasonable in terms of their value added to the operation of the cluster.             Scania determined the three factors that makes an effective cluster, these are: multi-skilled, training and job enrichment. The change of the management strategy which encourages individualism to teamwork is a huge challenge for any company, establishing a new strategy in a society where Individualism dominates is a difficult task for any manager. In order to face the challenges more efficiently, managing directors must understand first the culture of the society. A change in the work area will not be effective if the managers do not understand the culture, aside from it, the directors must talk with the managers of that specific organization in order to know the issues so that they would be able to create risk managements. A number of factors must be considered by both parties in order to implement the changes because the change made in the company might not be effective for another. Thorough deliberation of the organization, the culture of the society, the people and the new changes that will be implemented must be made to avoid a state of difficulty that needs major solutions.      Credit:ivythesis.typepad.com

Strategic Change in Scania Angers Plant

Strategic Change in Scania Angers Plant Changes in the strategy of the company often happen in organisations whether ...

Organisational changes in Apple, Inc.

Apple allows business and leadership restructuring by gaining access to extra distribution channels and sales outlets in the global market. Recognizing and applying processes for direct investments, exploiting research and development for innovation, creating good heights of organization responsibility and through effective change adaptation, Apple audits provision of Supplier Code of Conduct (, 2009) Do Apple Inc. readily and successfully change?, influential theories have assumed that organization is relatively malleable, able to adapt when circumstances change (,  and , 1993);  and ‘s (1984), depicted inflexible organizations in which change is difficult and hazardous, distinguishing among changes as adaptive or disruptive for Apple and distinguishing conditions that facilitate/ impede change ( and , 1991; , 1992). Apple’s change process can be disruptive and adaptive, and Apple based inertia can increase likelihood of organizational change. The literature on organizational change has focused on the content of changes: switch to more advantageous configuration is defined as adaptive, while switch to less advantageous configuration is defined as deleterious, Apple may strongly resist change, theories focus on linkages between the organization and the environment: Resistance to change occurs because organization is embedded in institutional and technical structure of Apple environment. Thus, Apple focus on factors internal to the organization, how change is opposed by management team, even when change is advocated by some Apple members, established roles and formal rules are difficult to alter quickly.  and ‘s (1984) structural theory offers model of process of organizational change that include internal and external constraints on organizational change, probability of organizational change as organizations exist because they perform with reliability and accountability for certain actions. Reliability and accountability are high when Apple goals are institutionalized and patterns of organizational activity are routinized, but institutionalization and routinization generate strong pressures against organizational change. In addition, the attempt to broaden and expand structural inertia model in network of Apple interactions to incorporate theories of organizational learning and innovation, result is broader model of change and momentum at Apple. Research themes or issues common to Apple change efforts will be discussed in lieu to content issues focus on substance of contemporary Apple changes, contextualissues, focus on forces or conditions existingin Apple’s external and internal environments, the process issues, which address actions undertaken duringthe enactment of Apple’s intended change, criterion issues, which deal with outcomes commonly assessed in Apple change efforts. Research dealing with monitoring affective andbehavioral reactions to change will be reviewed with literature base. General observations and suggestions for future research will beoffered, Apple’s organizational change literaturecontinues to be responsive to the dynamics of contemporary strategic demands. The level of analysis refers to entities which Apple change poses concepts and society, knowing roles of Apple’s information technology in change, structures can be seen in current theorizing increased awareness of strategic options, open discussion of Apple advantages and disadvantages, characterization of theoretical statements. Presence of improved interconnection and accessible databases are often the basis for deriving strategic advantage at Apple upon finding potential change model applications. The need to realize and discover Apple’s current business changes implying such strategy bases, how Apple Inc. is handling business environment and its management, learn about Apple’s organization assumptions and issues affecting change in the organization. People related change, work based change models for example, Apple eexecutives feed deliberate information into one part so that leak can be traced back to its source, workers on sensitive projects have to pass through layers of security once at their desks or benches, they are monitored by cameras and they must cover up devices with black cloaks and turn on red warning lights when they are uncovered (, 2009). References   Credit:ivythesis.typepad.com

Organisational changes in Apple, Inc.

Apple allows business and leadership restructuring by gaining access to extra distribution channels and sales outlets in the global marke...

Management and Change

Organizational Change             Let us begin our discussion with the definition of change in organizations. Change according to Jick (1993) is a planned or unplanned response to pressures and forces. Change is inevitable and organizations undergo change. Technological, economic, social, regulatory, political and competitive forces push organizations to change. Because of the ever changing business and industry situation and environment, change has become a requirement for organizations to remain strong and to succeed. Globalization has also made the pressures more intense (cited in Mills 2003). Organizations today operate in a fast changing environment. In order to survive organization must be adaptive and they must adjust to new demands and opportunities.               The new global market demands for an organization that is able to improve production and enhance competitiveness continuously. Organizational change must be managed effectively because it plays an important role in the achievement of company goals. Organizations employ different strategies in order to remain competitive and to succeed. The objectives of the organization are achieved through its people. The aim of organizational change is to improve and strengthen organizational performance.   Planned Change             The aim of planned or market-induced change is to gain competitive advantage in a fast-changing world. Planned change involves the organization of work processes, development of the skills of the organization’s people and alignment and commitment of key stakeholders. The values of planned change are embedded in economic approaches and organizational behavior (Buelens and Devos 2004). Through the economic perspective, the shareholders and customers are viewed as the most important stakeholders. In order to achieve success, the organization needs to improve its performance. The organization behavior perspective on the other hand view human resources as the key to the success of the planned change. The aim of planned change is to create economic value. Planned change constitutes a deliberate and premeditated intervention designed to alter some aspect of organizational life. The aims of a planned change are achieved through some methodology. Planned change usually involves some methodological approach or set of steps (Stickland 1998).   Managing Organizational Change             Management of change is described as a structured approach to individual, team, organization and society transitions that move the target from a current state to a desired state. Change management in organizations is a process for managing the people-side of change. It is the integration and adaptation of a new business model into an organization to transform the organizational relationships with all its constituents.  It is important that the management asses the current condition of the employees in order to identify the changes that the organization needs. It is also important to estimate the effect of management change on the employee behavior patterns, work processes, technological requirements and motivation. Management of change must be continuously monitored for effectiveness and must be implemented throughout the organization and must be adjusted in order achieve the desired goals.      Levels of Organizational Change Organization Level             Theories based at the level of the organization see change as a product of: interactions between the subsystems of which they are composed and interactions; and interactions and changes across their boundary with an external environment. Change analysis and intervention tends to be holistic in nature (Stickland 1998). Group Level             Another strand of organization change theory focuses on group and team behaviour. At the group level, the change dynamics are viewed in terms of group values, norms and roles and if effective change in to be achieves then these group characteristics should be identified and understood prior to attempting planned change. Organizational change is seen in terms of interactions, conflicts and relationships between groups, with particular functional or task groups exhibiting cohesive resistance to change (Stickland 1998). Individual Level             The last area of organizational change theory is centered upon individual behaviour. At the individual level, emphasize is given to individual needs and motivations in order to counter resistance to change. The individual perspective argues that individuals are best able to cope with and facilitate change if they are involved and empowered to design and initiate it (Kanter 1984 cited in Stickland 1998, p. 44).   Planned Change and Organization Dynamics             It has been argued that when an organization is facing a planned change, the biggest challenge is to manage the dynamics not the pieces. The biggest challenge in every change effort is the management of the dynamics or the subtleties. One of important factors that must be considered and must be emphasized in the organizational culture. Included in the dynamics, are the prevailing beliefs, behaviors and assumptions that each member acquire over time. Culture according to Kotter (1996) refers to norms of behavior and shared values among a group of people. Norms are common or pervasive ways of acting that are found in a group and that persist because group members tend to behave in ways that teach these practices to new members, rewarding those who fit in and giving sanctions to those who do not. Shared values are important concerns and goals shared by most of the people in a group that tend to shape group behavior and that often persist over time, even when group membership changes. Culture is shared, providing cohesiveness among people throughout an organization, and developed over time. An organization’s existing culture is the product of beliefs, behaviors, and assumptions that have in the past contributed to success. Conner (1992) defines organizational culture as the interrelationship of shared beliefs, behaviors, and assumptions that are acquired over time by members of an organization (cited in Gilley and Maycunich 2000, p. 284). The prevailing beliefs, behaviors and assumptions of an organization guide what are considered appropriate or inappropriate actions in which individuals and groups engage. An organization’s collective beliefs, behaviors and assumptions affect daily business decisions, actions and operations on two levels, overt and covert. The overt level represents observable, intentional, and direct influences on operations. The covert level is characterized by obscure, unintentional, and indirect influences on operations. These latter influences are difficult to change because employees are often unaware of them. On the overt level, an organization operates on beliefs and observable behaviors. At the covert level, the organization is influenced by employees’ collective assumptions. These combine to influence oral and written communications, organizational structure, power and status, policies and procedures, compensation and reward systems, and the design and use of physical facilities (Gilley and Maycunich 2000).               Organizational change, particularly changes in organizational culture is very challenging and problematic. Organizational culture is difficult to change because it is deeply embedded in the shared behaviors of organization members and working relationships, which have developed over time. The culture of the organization defines appropriate behaviour, bonds and motivates individuals and asserts solutions where there is uncertainty. Organizational culture functions at all levels from subconscious to visible.   The Change Process             The planned change follows a method. 1. Analyze the Organization and its Need for Change             The manager of change must first have a clear idea of the organization’s current situation. The manager must conduct any one of the following: <ul style="margin-top: 0in; margin-bottom: 0in" type="square"> <li class="MsoNormal" style="text-align: justify; line-height: 200%">A full financial audit of the organization</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%">A structural survey in which different departments and their staff are identified</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%">A skills audit of the organization’s personnel</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%">A marketing analysis of the business within the industry</li> </ul> The organization’s operations including the way it functions in its environment, its strengths and weaknesses must be studied before planning for change. 2. Create a Shared Vision and Common Direction             It is important to engage every member of the organization to make the planned change successful. According to Jick and Peiperl (2003), uniting the entire organization behind a central vision is important to the success of the planned change. The vision should reflect the philosophy and values of the organization and should help it to articulate what it hopes to become. A successful vision aims to guide behavior and to aid an organization to achieve goals (cited in Randall 2004, p. 138). 3. Create a Sense of Urgency             The manager must create a sense of urgency and appeal to employees’ self-interests by clearly explaining that their future well-being is at stake. 4. Support a Strong Leader Role             The transformational leader must turn employee compliance to commitment. 5. Craft an Implementation Plan             For change to become successful, the manager must embark on a programme of involvement precisely at the point where decisions are to be made about what is to happen and how it is to take place. 6. Communicate and Involve People             Real Communication requires a dialogue among the different change roles. By listening and responding to concerns, resistance and feedback from all levels, implementers gain a broader understanding of what the change means to different parts of the organization and how it will affect them. 7. Reinforce and Institutionalize Change             Throughout the pursuit of change, managers and leaders should make it a top priority to prove their commitment to the transformation process, to reward risk taking and to incorporate new behaviours into the day-to-day operations of the organization. By reinforcing the new culture, they affirm its importance and hasten its acceptance.             Company Analysis             I work in the acquitting department of one of the credit card centers in Hong Kong. The company employs approximately 300 employees. The company is family-controlled. The organizational structure is primarily hierarchical and departments are established to deal with different business aspects. I can say that the hierarchy of authority in the company is centralized. The decision-making power usually rests on the top management.   Power and Control             Power and control are exercised on the top level of the organizational hierarchy. The Chairman is the one who oversees the entire operation. A board of directors was established to oversee the aspects of the business.   Challenges Faced by the Organization             The organization is now planning to facilitate organizational changes in order to enhance the performance of the organization and to achieve its goals and aims more efficiently and effectively. Below are some of the obstacles that the company needs to overcome in order to ensure the success of the planned change.   1. Absence of Clear Change Leadership             If the leaders lack credibility or credentials and if they fail to bring the rest of the management team to consensus, the change effort is likely to be unsuccessful. 2. Change Initiative Burnout             Another source of challenges is the burn out that the members organization feel after so many changes that produced inadequate result have been done. The organization at present has gone trough a number of change initiatives. Every change initiative have was expected to produce positive results. However, the changing organizational goals has led to the supplementation of other change initiatives. This caused a confusing mix of approaches with distinct methods, vocabularies, deliverables, and teams of outside consultants, and these comoete for a shrinking share of the organizational mind. 3. Organizational Culture             Planned change faces problems and difficulties that are commonly attributed to human factor, particularly, employee resistance. Strategic or planned change is defined as the realignment between the organization and its environment that affects the achievement of the organizational goals. The main aim of planned changes is to enhance the organization’s capability to survive through improved fulfillment of goals. Changes are seen by the employees and to some extent by the management as a threat to corporate cultures and careers (Eneroth and Larsson 1996). Often the rules of conduct and practice throught to be behind an organization’s earlier success are codified into rigid operating standards and styles. A more subtle form of resistance arises when the employees or middle managers think they are doing well and regard the new program as an implicit criticism of their efforts. 4. Lack of Urgency             If managers and employees do not feel the change in urgently needed, other more pressing concerns will push it aside. 5. Poor Implementation             Implementation problems range from not allocating enough resources or time to the benefits and goals not being clearly understood by employees.       It is also very hard to sustain enthusiasm if there is a lack of early success or if successes are not celebrated properly.               The abovementioned obstacles point to the human factor that affects the success of the planned change. Employees and middle managers may be resistant to change especially if it threatens the established culture.  In order to achieve success the management needs to involve the employees in the change process.   Resistance to Change             One of the biggest obstacles in the success of any planned change is employee resistance. Resistance affects a change program. People generally resist change because of its negative consequences. Some of the perceived negative consequences of change are: <ul style="margin-top: 0in; margin-bottom: 0in" type="square"> <li class="MsoNormal" style="text-align: justify; line-height: 200%">Loss of status</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Alteration of work</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Discomfort</li> </ul>   Symptoms of Resistance             Bhutan (1995) that employees exhibit behaviors that can be considered as ‘symptoms’ of resistance to change. There are different causes of employee resistance to change. The resistant behaviors that employees exhibit during the change process can be categorized into two – active resistance and passive resistance. Employees who actively resist change exhibit the following behaviors: <ul style="margin-top: 0in; margin-bottom: 0in" type="square"> <li class="MsoNormal" style="text-align: justify; line-height: 200%">Finding fault</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Ridiculing</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%">Appealing to fear</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Manipulating</li> </ul>             Employees show passive resistance to change through the following behaviors: <ul style="margin-top: 0in; margin-bottom: 0in" type="square"> <li class="MsoNormal" style="text-align: justify; line-height: 200%">Agreeing verbally but not following through</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%">Feigning ignorance</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Withholding information</li> </ul>             It is challenging to affect a person’s state of mind. The success of the planned change depends on the support and commitment of the people. A person’s behavior and attitude towards change is affected by his beliefs, feelings and values.   Reasons for Resisting Change             One of the reasons why employees resist change is because they fear that they will not able to adapt to the changes. People usually are suspicious about the unfamiliar. Another source of resistance is the employee’s low tolerance of change. An employee who has a low tolerance of change resists change because he or she is not comfortable with doing his or her job differently. Employees may understand the importance of change but may have difficulties adapting to it. Another source of resistance is when the employees experience mistreatment during the change process. Employees who experience mistreatment often do not cooperate or even sabotage the entire process. The change process can also be seen as a treat to the ‘personal compacts’ between the employees and the managers (Bolognese 2002). There are different dimensions that make up personal compacts. These dimensions can be formal, psychological and social. The formal dimension is the most recognizable. The formal dimension includes job descriptions, employee contracts and performance agreements. The formal dimension establishes what is expected of both the employee and the management. The psychological dimension deals with the relationship that is established between the management and the employee. The psychological dimension entails the establishment of a relationship that is built on trust, loyalty and commitment. Lastly, the social dimension involves the culture within the organization. The organization’s mission statement, values, ethics and business practices are crucial in the social dimension. It has been argued that any disruption in the personal compacts will lead to employee resistance. Strebel (1996) points out that when these personal compacts are disrupted it upsets the balance, and increases the likelihood of resistance. People are said to exhibit resistance to change when: <ul style="margin-top: 0in; margin-bottom: 0in" type="square"> <li class="MsoNormal" style="text-align: justify; line-height: 200%">Change is seen as superfluous or when change is perceived to worsen the current situation</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%">Change is seen as a threat to security, finances, status etc.</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%">The employees are not involved in the decision-making process</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%">The plans for change are kept hidden from the employees</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%">The employees believe that the organization’s resources are not enough to facilitate the change (Wynn 2005)</li> </ul>   On the other hand, people will commit and support change when: <ul style="margin-top: 0in; margin-bottom: 0in" type="square"> <li class="MsoNormal" style="text-align: justify; line-height: 200%">Change is seen as an opportunity for personal gain</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%">Change is seen as a challenge</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%">The employees believe that change is necessary</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%">The employees are involved in the planning for change</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%">The change champion is highly respected</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%">Employees believe that it is the right time for the change</li> </ul>                  We can see from the above discussion that the dynamics or the things that are not readily visible are more challenging to manage during the planned change process. The employees’ behaviors and attitudes affect the planned change. Employees develop their attitudes and behaviors through their perceptions, values and beliefs. It is a challenge for the management to motivate the employees and make them committed to the change.     References   Bolognese, A F 2002, Employee Resistance to Organizational Change, New Foundations, viewed 04 March, 2008, <http://www.newfoundations.com/OrgTheory/Bolognese721.html>.   Buelens, M & Devons, G 2004, ‘Art and Wisdom in Choosing Change Atrategies: A Critical Reflection’, in J J Boonstra (ed.), J J Boonstra (ed.), Dynamics of Organizational Change and Learning, Wiley, Chichester.     Conner, D 1992, Managing at the Speed of Change, Villard Books, New York.   Gilley , J W and Maycunich, A 2000, Organizational Learning, Performance, and Change: An Introduction to Strategic Human Resource Development, Perseus Publishing, Cambridege, MA.   Jick, T D and Peiperl, M A 2003, Managing Change: Cases and Concepts, McGraw Hill, New York.   Kanter, R M 1984, The Change Masters, Allen and Unwin, London.   Kotter, J R 1996, Leading Change. Harvard Business School Press, Boston.   Randall, J 2004, Managing Change, Changing Managers, Routledge, New York.   Sims, R R 2002, Changing the Way We Manage Change, Quorum Books, Westport CT.   Strebel, P 1996, Why do Employees Resist Change?, Harvard Business Review, pp. 86-92.   Stickland, F 1998, The Dynamics of Change: Insights into Organisational Transition from the Natural World, Routledge, London.   Wynn, G 2005, Managing Resistance to Change, Change Management, viewed 04 March, 2008, <http://managingchange.biz/manage_change_resistance.html>.     Credit:ivythesis.typepad.com

Management and Change

Organizational Change Let us begin our discussion with the definition of change in organizations. Change according to Jick ...