Managing change

Q1. WHAT ARE THE DIFFERENT PRESSURES THAT FORCES ORGANIZATION TO CHANGE? A1. The different pressures that force an organization to change are of two types namely: Environmental Pressures and Organizational Pressures

Environmental Pressures for change: (Also known as external pressures) It often occurs when an organization¶s resource base decreases as a result of reduced demand for products and sales, decrease in market and bad investment decisions. It also turns around negative cash flow and avoids bankruptcy and organizational death. The environmental pressures for change are of six types: 1. Fashion Pressures: Organizational change can occur in response to the latest management fashion. In order to be seen as professional, modern or progressive managers may change their organizations in line with the latest innovation in management practices. Although some fads may assist organizations, other does not deliver their promise of better organizational performance. Fashionable management practices can go from ³boom to bust´. Also, there is influence of market forces: firstly, companies enter new markets up to a point where competitive effects on the market take hold and entry become less attractive. Secondly, it is unlikely that managers will succumb continually to pressures to conduct fashionable changes that do not have positive performance outcomes. Example: Nokia, Apple ± innovate new features to an existing products to meet the demands of customers. 2. Mandated Pressures: Change is forced in to the organization through formally mandated requirements. Organizations are forced to take on activities similar to those of other organizations because of outside demands placed on them to do so. Mandated pressures are of two types i.e. formal coercive pressures and informal coercive pressures. Example: Government rules on export and import trade, inflation, interest and tax rates etc o Formal Coercive Pressure It includes government mandates such as new laws and policies. Organization is forced to change to meet the new legal or other legislative requirements (pollution requirements, tax laws). Subsidiary organizations may be forced to adopt accounting standards, performance criteria and other practices to suit the parent company.

Managing change

o Informal Coercive Pressure ± It includes commitment to certain types of organizational changes such as empowerment in order to get the support of other organizations also committed to such programs. 3. Geopolitical Pressures: These may be in the form of immediate crises or long term geographic realignment. The 4 global environmental forced for change by Kotter are: - Technological ± require more globally connected people, faster communication and transportation. - Greater economic integration of currencies and international capital flows. - Maturation and slowdown ± of domestic market leading of greater emphasis on exports and deregulation. - Fall of socialist countries and their reorientation toward capitalist economies. 4. Market Decline Pressures : The declining market for products and services places organizations under pressure to remain relevant in the competitive market. When current market that the organization operates in begin to decline there is a pressure to find newer and more viable markets. Example: Intel Case Study- Barrett CEO of Intel, the demand was weak and there was overcapacity in semi conductor industry with some researchers expecting a 34% fall in global sales of chips. 5. Hyper competition Pressures: This affects the way organizations respond to their consumers and their competitors to cater for the increasingly rapid pace of business. New hyper competition pressures for change may not always be easy to anticipate. Example: Intel Case Study- Barrett CEO of Intel, Intel¶s rival i.e Advanced Micro Devices produced Athlon processor which turned out to be faster than Intel¶s Pentium III chip. 6. Reputation and Creditability Pressures: In the light of recent corporate governance scandals in organization, the pressure to maintain a good reputation and high level of creditability has increased. Change is associated with maintaining proper corporate governance mechanisms to ensure a positive corporate reputation. Maintaining and enhancing corporate reputation is an important part of managing firm survival.

Barrett CEO of Intel. pressures related to the need for integration and collaboration. Example: Intel Case Study. pressures around establishing and reestablishing organizational identities in the new eras. Example: When a new CEO arrives. Better coordination and collaboration across the multiple business units of the company in order to produce a customer oriented culture.They are likely to be able to create energy for change within the organization. An organizational change to assist in achieving this includes promoting people development and employee recognition schemes in order to enhance job satisfaction. recalls. Some decide not to grow because they are afraid that they might lose personal control of day to day operations. New Broom Pressures: New authority figures in an organization can herald a new era and often signal significant changes in an organization. the network operations and communication unit sometimes were in competition with each other selling similar products to same customers.Managing change Example: Intel Case Study.Barrett CEO of Intel. new broom pressures associated with the appointment of new CEOs and a variety of power and political pressures. the chip managers were being in charge of new markets and products. 2.e. Intel¶s case. it can act as a signal that the old ways are about to change. Mostly. Integration & Collaboration Pressures: Integration and creating economies of scale can lead to pressure for change in organizations. Growth Pressures: The existing systems and processes in a smaller organization may no longer be applicable went the size of the organization increases. The new CEO has advantages over their predecessors in the following ways: . . overpricing and even bugs in its systems. Identity Pressures: A common organizational identity and the unified commitment of staff in different areas departments of an organization can be difficult to manage and may encourage change. this had been compounded with problems such as product delays and shortages.Barrett CEO of Intel. 4. not all organizations continue to grow. During 2001. The organizational pressures for change are of five types: 1. Example: Intel Case Study. they needed to be reorganized to avoid duplication and create better coordination i. 3. there was 5000 jobs cuts. Organizational Pressures for change: (Also known as internal pressures) The pressures related to organizational growth.

They are likely to be able to tackle customer problems with credibility since they are not associated with previous problems that may have been part of the relationship the company had with its clients.Managing change - They are unhampered by adherence to past organizational practices. Some changes are made to alter traditional internal power relationships in order to speed up decision making and allow others access to engaging in it. This has significant flow of effects within the organization. 5. Power & Political Pressures: Power relationships and politicking can change internal processes and decision making. . Some power pressures leading to change relate to internal conflicts. They can focus on problems that may have been known but not able to named in the past as they were organizational sacred cows that could not be brought in to question.

It is change that enhances or corrects existing aspects of an organization. often focusing on the improvement of a skill or process. Characteristics of First order change y y y y y y y Adjustments within the existing structure Doing more or less of something Reversible Restoration of balance Non-transformational New learning is not required Old story can still be told Examples of incremental change might include continuous improvement as a quality management process or implementation of new computer system to increase efficiencies. but do not involve fundamental change in the strategy core values or corporate identity. . This type of change causes little stress to current employees as long as the rationale for the new process is clearly conveyed and the employees are educated on the new techniques. First order change also known as transactional change is small scale. Different kinds of change require different strategies and plans to effectively gain employee engagement and acceptance of change. Many times. organizations experience incremental change and its leaders do not recognize the change as such. teams and organizations face rapid change like never before. The two types of change that occur most frequently in organizations are first order and second order change. If a company decided to improve their processes. First order change occurs when a company makes an improvement to their current business. . Change management theories effectively support how to deal with the first order change. Companies are continually process first order change to some degree in order to stay competitive. but are less effective at dealing with successfully implementing second order change. First order change is doing more ± or less ± of something we are already doing. or structures. processes. First-order change is always reversible. methods or performance standards this would be considered developmental change. A critical step in determining which approach to use in overcoming resistance to implementing organization change is to determine which type of change the organization is experiencing.Managing change Q2. These changes many also involve adjustments in systems. FIRST ORDER AND SECOND ORDER CHANGE AND ITS CHALLENGES Today. incremental and adaptive in nature.

empowerment. short term staffing. Some of the major second order changes are delayering. which tries to take apart (at least on paper.Managing change Second-order change is deciding ± or being forced ± to do something significantly or fundamentally different from what we have done before. The challenges faced while implementing the second order change are: y y y y They are highly complex Traditional approaches offer limited value Require shifts in mental methods and behavior Require different change management approaches . hierarchical structure to a large amount of self-directing teams. it is impossible to return to the way you were doing before. Another example might be Business Process Re-engineering. reduction of internal and external boundaries and downsizing Characteristics of second order change y y y y y y y New way of seeing things Shifting gears Irreversible Often begins through the informal system Transformation to something quite different Requires new learning New story is told An example of second order change might be changing an organization¶s structure and culture from the traditional top-down. result in the creation of an organization that operates in developmental mode ± one that continuously learns. disaggregation. adapts and improves. Transformational change is sometimes referred to as quantum change. The process is irreversible: once you begin. flexible work groups. It may. Second order change can result in an organization that differs significantly in terms of structure. The second order change is designed to fundamentally alter the basic nature of the organization. therefore. It requires a shift in assumptions made by the organization and its members. processes. culture and strategy. at first) the major parts and processes of the organization and then put them back together in a more optimal fashion. networks/alliances. outsourcing.

c) Belief that the proposed change violates the core values of the organization: .Example: CSR of McDonald¶s talks about funding homes. .Workers may resist because of what they consider the true motivation g) Lack of belief that the leadership is serious about making changes: .Only upper level management may have access to information indicating the need for change such as financial or productivity records. d) Misunderstanding of the change and its implications: .Workers who distrust management may not believe in the stated reasons for change . e) Belief that the change is not in the best interests of the organization: Example: Purchase of new uniforms after layoffs Managers think one time expenses of uniforms will serve to unify staff Workers think money should be sued to re-hire the former staff (long term expense) f) Lack of trust in those introducing the change: . or a different sense of. .If manager¶s words and actions are inconsistent. WHY EMPLOYEES AND MANAGERS RESIST CHANGING? A3.Organization¶s mission is subject to interpretation . Dietician think program should be expanded in response to more eligible clients with increased needs and managers think program must reduce expenses in response to cuts in finding. the context or environment: . Employees and managers resist change due to the following reasons mentioned below: a) Lack of understanding of the need for change: . or opening up an education center instead they can focus on food nutrition which is related to their core values.Example: WIC during recession.Managing change Q3.Workers perceive change as pointless extra work because they don¶t understand its purpose.Employee¶s viewpoint and manager¶s may greatly differ .Example: Work given during free time is done is less stressful manner.May fail to perceive connection between their observations of the environment and the organization¶s financial health. . b) Lack of understanding of. .Manager¶s who seldom follow through are expected to repeat this pattern. workers question sincerity of order to change .Worker¶s job does not include conceptual thinking about the organization.

.Managing change h) - Lack of belief that the leadership is capable of making the change happen: Failure of previous attempts to change Perceived weakness of manager Change extends beyond manager¶s authority and span of control i) Perception that change is unfairly selective: . status. negative emotional reactions. Other reasons for resistance to change are: a) Dislike of Change: .Employees form beliefs as to the nature of the reciprocal relationship between them and their employer.People find it easier to be supportive of changes that they see as not threatening such interests and ma resist those that are seen as damaging to these interests. .Beliefs. rewards.The lack of supporting action is not due to over resistance or even apathy. which is conceptualized as a stable personality trait. .It is unwise to assume that dislike of change is an innate of human characteristics . For some. d) Attachment to the Established Organizational Culture/Identity: . autonomy and security.Individuals tend to vary in terms of how comfortable we are with ambiguity. opportunity to apply expertise. it is due to the lack of a clear understanding of what such supportive action would ³look like´. are less likely to voluntarily corporate changes in their lives ± if still imposed.Employees and the organization for which they work can be seen as involved in a personal compact.Individuals vary considerably in their dispositional resistance to change. . . the uncertainty is magnified by a lack of confidence that they have the skills/ capabilities needed in the post change situation.A breach or violation of this contract occurs when employees believe that the employer is no longer honoring its part of the deal. values and Artifacts e) Perceived Breach of Psychological Contract: . People that are high on dispositional resistance to change.The change might affect their interests a term that can cover a wide range of factors including their authority.Example: Layoffs among certain classes of workers but not others. c) Perceived Negative Effect on Interests: . b) Discomfort with Uncertainty: .

Those affected by the change will either think that it is good or a bad idea. . g) Lack of clarity as to what is expected: . .Managing change f) Lack of Conviction that change is needed: . . h) Belief that the specific change being proposed is inappropriate: .This will affect their readiness to change.Lack of clear information as to the specific implications at the level of action by individuals.People are likely to react negatively to change when they feel that there is no need for the change.The chances increase that employees will fail to convert a change initiative into supporting action at their level of the organization.

The more obvious forms consist of active resistance. it can undermine even the most well-intentioned and well-conceived change efforts.Managing change Q4. Some of the reasons why employees resist change are: (From slides) y y y y y y y y Dislike of change Discomfort with uncertainty Perceived negative effect on interest Attachment to the established organizational culture/identity Perceived breach of psychological contracti Lack of conviction that change is needed Lack of clarity as to what is expected Belief that specific change being proposed is inappropriate OR Lack of understanding of the need for change Lack of understanding of. If management does not understand. or refuse to cooperate with the change. Resistance to change is the action taken by individuals and groups when they perceive that a change that is occurring as a threat to them. Resistance to change occurs when an organization is pursuing several change initiatives at once and these are perceived by people in the organization as unrelated or even worse. accept and make an effort to work with resistance. HOW TO TURN AROUND RESISTANCE Resistance is an inevitable response to any major change. or different sense of. the context of environment Belief that proposed change violates the core values of the organization Misunderstanding of the change and its implications AND (From websites) y y y y . Other. however. are more difficult to deal with. in conflict. It also occurs when an organization introduces series of change and people in the organization feel that resources are being reassigned to new initiatives before the earlier ones are given sufficient attention for them to be effectively implemented. Any management's ability to achieve maximum benefits from change depends in part of how effectively they create and maintain a climate that minimizes resistant behavior and encourages acceptance and support. Resistance to change takes many forms. more subtle forms of resistance. where people will object.

Managing change y y y y y y y y y y y y y A lack of awareness about the change. Communicate the change to the employees in a positive manner. Tactics to overcome resistance to change y Provide time for the employees to become aware of this change. Upper management. middle management and lower management must receive the same messages in written and verbal meetings and correspondence. and plan strategies for dealing with resistance. Peer pressure. more deeply personal reason. Fear of failure. there may be multiple reasons. Feel overloaded and overwhelmed. This applies not only at the introduction of the change. understand it. Group participation in planning change can help the employees to suggest their own ways to manage the change. being alert for difficulties as they appear. All members of management must be aware of the vision for development changes in the organization. Sending mixed messages leads to poor communication. but there must be followthrough. Disruption of cultural traditions and/or group relationships. Introduce to the staff the problem as soon as it is identified. Lack of tact and/or poor timing. The management should make sure that there is a trustworthy relation with the employees. Personality conflicts. Comfort with the ways things are and fear of the unknown. Not seeing the benefits. Loss of status and/or job security or loss of authority or control. support it. Adding to this complexity is the fact that sometimes the stated reason hides the real. Minimize the stress during the change. Autocratic leadership style may work better if multiple y y . because understanding this allows us to plan strategies to reduce resistance from the beginning. this causes problems within management. become actively involved and committed to the change. Lack of trust in or dislike of managers. To manage the employee resistance managers should offer an adjustment time either before or after the change. For some people resisting change. It is very important that the change manager anticipate. so that the change manager monitors the change over the long-term. Fear they lack the competence to change. Provide clear and correct information and avoid sharing information prematurely and before the decisions are finalized. It is helpful to have an understanding of why people resist change. Encourage two way communications among the employee and the management. The individual's personal predisposition to change.

Participation and involvement: Where the initiators do not have all the information they need to design the change and where others have considerable power to resist. This approach will be appropriate where those resisting change are in a position of power. 4. According to Kotter and Schlesinger. Up-front communication and education helps employees see the logic in the change effort. or change resistors can be offered incentives to leave the company through early buyouts or retirements in order to avoid having to experience the change effort. time off work. Kotter and Schlesinger suggest that an effective manipulation technique is to co-opt with resisters. 6. 5. This approach is likely to lower resistance and those who merely acquiesce to change. counseling. One of the best ways to overcome resistance to change is to educate people about the change effort beforehand. Managers can head-off potential resistance by being supportive of employees during difficult times. 3. Co-option involves the patronizing gesture in bringing a person into a change management planning group for the sake of appearances rather than their substantive contribution. When employees are involved in the change effort they are more likely to buy into change rather than resist it. This can be done by allowing change resistors to veto elements of change that are threatening. These leaders can be given a symbolic role in decision making without threatening the change effort. 2. the 6 situational approach to change are: 1. Managers can explicitly or implicitly force employees into accepting change by . Education and communication: Where there is a lack of information or inaccurate information and analysis. Negotiation and Agreement: Where someone or some group may lose out in a change and where that individual or group has considerable power to resist. Still. The basis of resistance to change is likely to be the perception that there some form of detrimental effect occasioned by the change in the organization. Facilitation and Support: Where people are resisting change due to adjustment problems. if these leaders feel they are being tricked they are likely to push resistance even further than if they were never included in the change effort leadership. this reduces unfounded and incorrect rumors concerning the effects of change in the organization. Managerial support helps employees deal with fear and anxiety during a transition period. Managers can combat resistance by offering incentives to employees not to resist change. This often involves selecting leaders of the resisters to participate in the change effort. Manipulation and Co-option: Where other tactics will not work or are too expensive. Explicit and implicit coercion: Where speed is essential and to be used only as last resort.Managing change changes re introduced at once and participative leadership style works better if there is a series of sequential changes. This approach is concerned with provision of special training.

.Managing change making clear that resisting to change can lead to losing jobs. firing. transferring or not promoting employees.

competition of the food and beverage industries between local and international industries are high. as an international company. A5. Economic. a) The PESTEL framework It includes Political. There are six types of diagnosis model namely: a) b) c) d) e) f) The Six Box Organizational Model The 7S Framework The Star Model The Four Frame Model The Congruence Model and The Component Analysis The two models will be explained with an example of the organization The Component Analysis: The component analysis includes the PESTEL framework. Starbucks have no problem financially to stand on its own having many outlets in the entire world and never failing . Technological. The Malaysian government are now trying to encourage more local food and beverage industries and thus does not support Starbucks since it is a US based company and in addition to that owns each outlet outright by having a central office in Asia Pacific.Managing change Q5. c) Gap Analysis ± A very basic tool for reviewing an organization¶s position based on the following three questions. scenario analysis and gap analysis. EXPLAIN THE DIAGNOSIS MODEL. Environmental and Legal factors. b) Scenario Analysis ± A scenario is a description of some future state based on a set of assumptions about what is likely to happen in regard to a number of key factors believed to be key drivers of that future state. Social. Where are we now? Where do we want to get? How can we get there? Example: Starbucks Corporation Political In Malaysia. no subsidies are given to Starbucks. Thus. BY UNDERSTANDING THE MODEL AND APPLY TO AN ORGANIZATION OF YOUR CHOICE. However.

Besides that. It influences their decision and buying power. In early 2009. From 2008 onwards. This part of the legal factor does influence the consumer¶s point of view of the company which affects Starbucks¶ sales. Economy Economic is the activities related to the production and distribution of goods and services in a particular geographical region. contract issues as well as working hours. Starbucks has to submit to being inspected for cleanliness of their premises. they are playing a role as a responsible company. The cleanliness certificate grading is done by each health department of every city council. the halal status is needed because the majority of the people of Malaysia are Due to this social factor. He focused efforts on customer experience. Cleanliness Policy As part of the food and beverage industry and running as a café. recapturing some of the magic of the chain¶s early years. Legal All businesses have to abide the laws of the country which includes Starbucks in Malaysia. The other laws that applies to Starbucks can be found in Laws of Malaysia. Schultz. In order to become a local favorite. Howard D. to spread the news of importance of recycle Social Social environment is affected by consumers¶ and society¶s culture.But the fortunes of the chain and founder have improved greatly since then Research and Development department of Starbucks has come to a promotional strategy to help them to fight in the economic crisis. The man who built the chain. They have the obligation to submit their annual report of their financial statements in order to pay tax which comes under the Sales Tax Act 1972. businessman and white collars workers. presented by several guidelines and points granted. the legal factor is influenced where obtaining the halal status would greatly affect the business which it can expand their target market of young adults and adults of any religion.Managing change to become a local favorite. Starbucks announced it would cut thousands of jobs and close 300 stores due to the low sales and demand due to reduce of share price in the economy crisis . they also are ordered to follow the laws within the Employment Act 1981 which includes rights of employees. retook the reins in effort to revive the corporation during global economic crisis in 2008. 2007. Beyond that. The political factor does not really have much influence on the company but Starbucks are known to open outlets at more politically stabled countries. believes and religions. Starbucks releases seasonal beverages that will be released every year on the particular season. Most of Starbucks customers are coffee addicts. The law shapes the management of Starbucks in Malaysia. The main attracting point of Starbucks is the free .

The age group is between 15 to 64 years old. In addition to that. This service increases the number of sales as the branch does not only have customers having their orders at the location itself but added with customers from the drive thru. it becomes an external factor to Starbucks. it also reduces hassle in the branch and parking problems during peak time. Internet In this era where the internet is an essential part of a business. For Starbucks however. they have only recently started adapting drive thru technology in Malaysia. Students and businessman have stable internet connection. Starbucks has also taken steps towards using the internet to its full potential. the sales can be increased by 50%. they can have discussions or meeting in Starbucks. Starbucks have successfully utilized the use of the internet by having websites about their company and services.Managing change unlimited WIFI or WLAN service in any outlets. Technology The improvement of technology that is updated at a fast pace. One of them is the introducing of the Clover® Brewing System that uses the Clover® Coffee. WIFI Also due to the use of the internet. Drive-Thru Drive-thrus have been around in Malaysia and are especially done by McDonalds). They just opened the first Starbucks drive.thru in Klang Valley. In order to meet up the expectations of their customers. and thus. . Coffee Machines Through the years. better quality coffee was able to be produced and the method of brewing coffee changed with this new technology. Starbucks has also developed itself with the technology by providing wireless internet connection (WIFI) at the majority of its branches in Malaysia. Since its introduction in 2007. This facility has attracted more customers as it is more convenient and they can still do their work while having a nice cup of coffee. Starbucks is required to create changes in its services. This is also in conjunction with the consumers that go there are mostly students and businessmen that use the internet to do their work. Starbucks have replaced their coffee machines to more modern ones. They have a website for each country that has its outlets.

Employee from different departments and areas sit in a big room and write down ideas on the wall or the post it notes. The idea which seems to be attractive is chosen and implemented. This model sees organization as comprising four components i) ii) iii) iv) Tasks Individuals Formal Organizational Arrangements Informal Organization This model is based on the conceptualization of the organization as a transformation process. By using this model. This helps them to achieve good outcomes. Example: Google Brainstorming session is done once is a week in Google. employee productivity will improve and they will be satisfied with their job.Managing change The Congruence Model David Nadler & Michael Tushman have developed an open systems model of organizations based on the proposition that the effectiveness of an organization is determined by the consistency between the various elements that comprise the organization.Current Mission and Objectives Example: APITT . communicate and work with their team through formal and informal ways of communication. They discuss the pros and cons of the each and every idea. The 7 ±S Frameworks: They characterize the factors into 7 categories: a) b) c) d) e) f) g) Structure: functional /divisional Strategy ± to achieve short and long term objectives Systems ± technology used Style ± Leadership & Management style Staff ± Number of staff Skills ± Staff skills and experience Super ordinate Goals . Individuals work on their tasks.

a good change management practice should be emphasized. while also maximizing the effectiveness of the change effort. budgeting etc of the same.Managing change Q6. Today's business environment requires companies to undergo changes almost constantly if they are to remain competitive. The main 4 principles of change management are: y Urgency. procurement of raw materials. But when approaching any organizational change. Through this. If the change that the company was undergoing was an emergent change that required alignment of the company¶s strategy and resources in order to incorporate production of a new product. To change company management and structure that can help a company remain competitive. An organization should inform employees on a continuous basis of its plans for the future. an initial vision is created and the gap between this and the present circumstances is identified. Managing organizational change is the process of planning and implementing change in organizations in such a way as to minimize employee resistance and cost to the organization. customer requirements and the performance of its key competitors. then the change was seen as a continuous process that required management of it to be seen as a . Change has truly become an inherent and integral part of organizational life. Organizational change occurs when a company makes a transition from its current state to some desired future state. y Execution This involves alignment of systems and structures around the customers. y Vision The creation of a vision should be an iterative process whereby options are identified. HOW TO CHANGE COMPANY MANAGEMENT AND STRUCTURE TO REMAIN COMPETITIVE In an ever fluctuating market an organization needs to change in order stay competitive. Coca Cola had to introduce production of Novida into the production schedule/line and other departments that had to deal with marketing. there are steps that must be taken to ensure success. Then the organization considers its strategy options to bridge the gap and in so doing refines the vision itself. y Empowerment Employees should be provided with skills and knowledge so that they are able to act correctly. the competitive market pressure it faces. members of the organization come to appreciate that change is not only inevitable but is being undertaken to safeguard rather than threaten their future.

Objectives and outcomes For a change to be successful its original objectives should be properly thought out and consistent. Current performance or operation indicates severe problems or concerns exist Suggestions or opportunities arise that potentially offer significant benefits to the organization If one or more of the above arise. 2 The remit This should state clearly the reasons for the assessment. Change management practice comprised three interlinked elements. 1 The trigger Organizations should only investigate change for one of the following reasons:y y y The companies¶ vision/ strategy highlight the need for change or improved performance. its objective and time scale and who should be involved and consulted . The information was gathered from the customers and members of staff.The remit should stress the need to focus as much on the people aspects as the technical consideration involved. In most cases this is a multi-disciplinary team consisting of representatives from the area affected (both the manager and staff) and specialist staff (e. innovations technical). must make it clear that those who will carry out the assessment must look at all options rather than merely considering one or two alternatives. then this should trigger the organization to assess the case for change which leads to the next phase. . 3 The assessment team This is the body that assesses the need for change. There must be clarity and agreement about who has the responsibility and authority to initiate change before an assessment begins. This element encompasses four factors. finance. It may also require the involvement of senior managers 4 The assessment This comprises of the following four steps:y Clarification of the problem or opportunity by gathering information especially from those involved. Openness and rigor in development of objectives not only makes it harder to disguise political considerations.g. they also allow assumptions regarding the merits.Managing change core capability that needed to be developed and all staff to be competent. In addition.

y y This then left the ones responsible for making the final decision in a position to assess. once it has been established that it should take place and what form it should take. modify. People For the change to be successful willingness to change should be created. This helped to counter the tendency to fit solutions to problem. It is vital to have effective two way flow of information. . Recommendations and decisions were presented in a form that clearly defined the problem/ opportunity. The decision being to proceed with the proposed change. it was also very much a people issue. as well as performance targets for the new operation. it is then necessary to plan how this will be achieved and then to implement the plan. Planning the change Whether the need for change arises from an organization¶s strategy or emerges in some other ways. The following six interrelated activities were considered during planning and change process. identified the range of solutions and established the criteria for selection. These recommendations included not only the type of change but also the mechanics and timescale of making the changes and the resource implications. y y y y y y Establishment of a change management team Management structure Activity planning Commitment planning Audits and post audits Training and development Though planning change was in some ways a µtechnical¶ issue. defer or reject the assessment team¶s recommendations in the light of the vision and strategic objectives of the organization. there has to be willingness amongst those concerned to change. Feed back: The definition of the problem or opportunity and the range of possible solutions was discussed with interested or affected parties. These was tested against an agreed list of criteria covering cost and benefits in order to eliminate those solutions that were clearly inapplicable and to highlight those that appeared to offer the greatest benefit.Managing change y Investigation of alternative solutions through wide range examination to establish the range of possible solutions to the problem. particularly those from whom information was collected in the first place. Even when the change is purely of technical or structural form. then it became necessary to begin planning the implementation process.

The leadership should be able to determine the organization¶s vision and purpose. 6) How to change company management and structure to remain competitive While going through a strategic change it is important to have a leadership and management style that can help the organization remain competitive.Managing change Appropriateness of involvement strategy needs to be judged less by the type of change being considered and more by how people will react to it. it sometimes happens that initial enthusiasm for change wanes and in the face of normal day-to-day pressure to meet customer needs and progress becomes slower. Even the best run organizations. . Communication and involving were essential to gain people¶s understanding of the need for change.

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