Understanding Organizational Change - Essay Example

Understanding Organizational Change [Name Of Student] [Name Of Institution] The present age of business is extremely competitive and the only tool for survival is adaptability which comes through constant change. Vested deeply in leadership styles, culture and communication, successful change is vital and yet hard to describe. The role of human resource as an active partner, focusing on the company’s vision and ensuring open communication channels is fundamental for change in the organization. Change in any organization may be a result of a combination of elements; social, cultural, economic and/or environmental (Beer, 2002:38). Also, a lot of companies indulge in the change process to improve their overall efficiency. It is quite established that any kind of change in the organization, triggers emotions as the employees face the effects and end results of the transformation. The way and extent to which employees may experience emotions is largely shaped and influenced by the culture of the organization (Beer, 2002:38). Research suggests that when the employees’ values were consistent with the organization, they embrace the changes more easily (Beardwell, 2004: 44). However, the emotional response to cultural change is usually of a severe nature. It is known that when emotions were taken into account and respected the employees positively adapt to the change. This paper is an effort to understand organizational change in the global economy. In this paper I shall attempt to define and discuss the challenges for organisations in managing change, and how they might overcome resistance to it by its employees. Change management, which is the recognized method for bringing about any change in the organization, is defined as the procedural manner and implementation of skills and knowledge, resources and tools to control the outcomes of change (Beer, 2002:339). It implies defining and embracing corporate plans, procedures, technologies and configurations to handle the change which results from both internal and external events. More and more, change management is perceived as a vital part of every business to boost productivity and maximize profits by ensuring that the organization remains at par with the changes in the surroundings (Beer, 2002:345). Nonetheless, to bring about an all-encompassing and manageable change, there are usually few barriers that have to be overcome. Usually, these barriers surface because of the organization’s failure to address the vital elements of change management, which includes intelligent planning, proper communication and cooperation, often on many lines and varying cultures (Beer, 2002: 55). To carry out the responsibility of a strategic business partner, human resources must be incorporated in the change management process from the very first step. After a thorough understanding of change, from employee perspective to novel tools and techniques, human resources play a very significant role to bring about change in any organization successfully (Tayor, 2003: 44-5). It is also important to understand the significance of the organization itself and also its culture, as opposed to the market if we wish to comprehend the current economic transformation. The modern description of organizational culture encompasses the style of leadership, the language, the systems and procedures and most of all the contemporary definition of success that every organization targets (London, 2001, 67). Any organization’s culture is a set of values and ideals that are mutually agreed upon and shared by people in that organization. This determines the way of their interaction with each other and also with stake holders. Boundaries loose meaning in this age of economic development and globalization. This is the age of business that transcends all boundaries, where healthy competition is synonymous to collaborations across distance, time, cultures and companies (Tayor, 2003: 44-5). Organizations also have to strive harder to collect the right mix and efficiently assemble them to create the best possible team that suits their purpose. With a change in the environment and global settings, they also have to be able to participate in the process as quickly as possible and start afresh. (Kanter, 2003:21) It has become necessary for organizations to reduce their disadvantages and to adapt to the new conditions in the environment that are a by-product of the process of globalization. This is only possible through a properly implemented change process. A successful change mechanism includes structural readjustments, procedural change, cultural alignments and also technological up-gradation (Millward, 2007:99). This implies that the businesses must identify the opportunities offered by the change management process as the global market becomes more and more, an arena for competing with corporate giants. In order to survive the cutthroat competition and to gain an edge over others firms, timely and properly implemented change is essential (Patterson, et al, 2005:134). Organizations have to understand that international involvement is not merely finding consumers or suppliers in different nations; rather, it entails a strong concept, a far-reaching vision, commitment and long term strategy together with dedicated leadership to motivate a vibrant team. Global leaders are those who have the potential to steer through the intricacies of the transactional business world. (Kanter, 2003:22) They express the vision and plan in a multi-environment from a multiple functionality perspective so that they are able to pull along the entire team. This requires setting up examples thorough determined leadership and sharing the views of the team members. This implies fast paced development for individuals with potential along with a multi-cultural exposure, performance appraisals and developmental opportunities to keep them motivated. The teams led by global managers need a vision and a global fellow feeling (Kanter, 2003:23). This means that high performance global organizations should create an all-encompassing culture where employees feel that their interests match with those of the organization and hence they remain self-challenged. In such an environment, a sense of belonging prevails and motivation stems from common values and ideals, being involved in work that is both challenging and has meaning too. (Millward, 2007:101) Such organizations are not distracted by inward issues. They have a clear agenda and focus on competition, consumers and communities. When managing changes in organizations, owing to globalization, the role of a leader is extremely crucial (London, 2001, 66). It draws on one of the key notions of leadership literature, on interpersonal influences and also as the significant role that managers assume in the business as change agents. Their influence is reflected in the change process as they catalyze it. The primary feature of statistical understanding is the change that is inherent in each process, and the managers are required to make decisions on its basis (Tayor, 2003: 44-5). If for any reason the change is not recognized in a procedure, then the essential productivity of that process will be complicated to administer. Hence to comprehend the variability and the control of change, it is essential to know the fundamental statistical concepts. These are easy to implement and serve as influential tools to managers for superior productivity and outstanding service (Mintzberg, 2002, 39). It must also be kept in mind that failure to identify with change creates collapse to process control for which managers are accountable. Communication promotes changes and broadens support for the company’s goals. Communication has been emphasized throughout research as a key to successful leadership roles. Effective leaders understand the importance of communicating the company values and making sure that these values connects with followers and their needs. The management of change process also depends upon the type of organization under review. Different change management procedures are successful in different settings. In other words, success can be determined in terms of the organization’s capacity to fit and adjust well in its changing environment. An innovative organization is one in which forces of change such as learning is truly reflected, whereas the force of direction results from its environment, In today’s business world, organizations are faced with a multitude of challenges. They are required to keep up to date with the latest technology, upgrade their existing systems in order to cope with reorganizations, process initiatives for growth and improvement and overall mergers and acquisitions (Nadler, 2000:81). There are certain changes that have the greatest impact on managers. It is essential to understand how they adapt to and handle the change and how successful they are in doing so. New technology, downsizing, mergers and restructuring all contribute to create an environment of uncertainty (Knights, 2002:237). In such a dynamic scenario, it is required of managers to be the first ones to identify how that particular change process is beneficial for all and how the show must go on irrespective of the emotions of the staff (Nadler, 2000:82). A good manager will be able to align his staffs’ emotions to the change process and enable them to see its effectiveness for the organization. At each step in the implementation of any sort of organizational change, a good manager will question himself as to how he should react, respond and embrace the changes (Nadler, 2000:82). Leaders described as transformational concentrate their efforts on longer term goals; place value and emphasis on developing a vision and inspiring followers to pursue the vision; change or align systems to accommodate their vision rather than work within existing systems; and coach followers to take on greater responsibility for their own development, as well as the development of others (Knights, 2002:241). These leaders are often described by followers as inspirational. Such leaders frequently display transactional-leadership behavior as well. With time the reality and presence of the change is felt throughout the organization and the manager should be prepared to deal with any resistance to the change. Employees who continue to resist, remain agitated are often categorized as difficult ones (Pettigrew, 2000:267). But the truth remains that they feel more vulnerable and may need individual counseling or assurance from the manager to discuss the change and how it affects his performance expectations. It is also important to realize that change can be triggered from both internal and external elements. External triggers encompass developments in materials or technology, shift in consumer needs and demands, actions and innovations from the competitors, new regulations and laws, shifting local or global trade scenarios, political changes and/or changes in cultural and social values. Internal triggers can be innovations in service/product design, ideas to boost performance and morale, job restructuring, change in senior management, insufficient knowledge base, innovations due to training workshops, business relocation, identification of issues, better process of manufacturing and/or improved ideas for service delivery to the customers. Usually the actions of the top management are a reaction to some external agent; tougher competition, shifting market trends or better technology (Pettigrew, 2000:271). It is vital to realize the importance of change as the key to survival and growth in today’s fast paced global economy. Reluctance to change poses the threat of becoming stale and unresponsive (Sisson, 2003:5). The main challenge is to remain alive and move swiftly and easily. Organizations that are able to embrace and adjust successfully to the change process are the ones who involve their employees in it. It is an undeniable fact that the employees of the organization have to face and adhere to the change process and they are crucial in bringing about change. The rate of organizational change has not declined in the past years and with the current pace of economy, it not likely to decline in the near future also. This leaves the organizations with only one option; to adapt and embrace change as efficiently as possible. The swift and continuous developments in technology are leading organizations to change their systems and procedures. (Stickland, 2005:22) A lot of organizations take a lot of time to embrace and adjust to new economic trends while some implement them without difficulty. New trade ways require new ways for organizations to conduct business. Globalization has shrunk distances and has eliminated the former obstacles in the market. In such a situation, unremitting change has become the soul of organizational life. The irony is that in most of the organizations, despite the ever changing economic scenario and the thrift competition, the operational plans and structures still reflect upon the previous ideals and realities, making the inertia of the organization the most critical barrier to change (Beardwell, 2004:44). This failure is a result of a variety of factors, like the absence of a change custodian or the fact that the person trying to initiate change is at a junior position, poor support from the management, lack of appropriate project management skills, all hopes pinned to one solution, lamely or loosely defined objectives and/or the focus of the change unit on a lot of projects instead of the key project. (Knights, 2002:250)Such failed change initiatives leave behind skeptical and overworked employees who then hinder even more in any future change target. Also, it cannot be overruled that fear exists in managers to lead in a changing environment. References Beardwell, I. 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