Running Head- [Essay]

Essay- [“Understanding Change”]

[Name of Writer]

[Name of Institution]
“Understanding Change”

“Table of Contents”
“Introduction”............................................................................................................................3

“Analysis of Different Types of Business Organisation”..........................................................3

“Different Types of Organisational Change”.............................................................................5

“Change Strategies by Kotter and Schlesinger”.........................................................................6

“How to Use the Proposed Change Strategies by Kotter and Schlesinger”...............................7

“Conclusion”..............................................................................................................................8

References..................................................................................................................................9

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“Introduction”

Learning about the many roles that exist inside a company is a crucial part of being an

expert in the business. Any company that wants to successfully carry out the procedures of

business operations must consider the effect of the functional activities. The purpose of

business is defined, and the advantages and disadvantages of several business structures, such

as sole proprietorships, partnerships, and limited liability companies, are outlined. The term

"organisational environment" is commonly used to describe the external factors, both good

and bad, that affect a business (Rosokhata and Chykalova., 2020). One can find both threats

and opportunities in any given setting. Industry practises, such as business operating, may

differ from one firm to the next due to the fact that particular methods are more commonly

used in some industries than in others.

“Analysis of Different Types of Business Organisation”

"Business" refers to commercial, industrial, or manufacturing enterprises. The UK has

sole proprietorships, partnerships, LLPs, and corporations. In "sole proprietorship," one

person or organisation makes business decisions. A solo proprietor makes all income,

spending, and tax decisions. This applies to any service-based industry, including

photography, blogging, graphic design, and cosmetics. Single-ownership has pros and cons.

Sole proprietorships are the easiest to form. Permissions and licences are the only true legal

costs. Easy taxes. Single proprietorship requirements are simple because no tax returns are

needed (Georgescu, et al., 2022). Greater operational privacy, etc. Personal accountability is

unlimited. A solitary proprietor's obligations and liabilities are his or her own. Obtaining

funding is difficult. Sole proprietors struggle with fundraising. Investors shy away from

untradeable companies. Financial institutions are reluctant of financing to sole

proprietorships due to the danger of non-payment in case of business failure.

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Two or more persons form a partnership when they agree to share company losses and

profits. Red Bull, Uber, Spotify, and GoPro have partners who share responsibilities, costs,

liabilities, risks, and profits. Partnerships offer more money than sole proprietorships, a

smaller gap between old and new, and other economic benefits. It has advantages and

disadvantages. Benefits include Simple, and inexpensive (Lozano., 2018). Starting a business

as a partnership is easy and inexpensive. When starting a business with others, focus on a

partnership agreement. Financial partnership. Partnerships help combine available money.

Financing is a plus. Individual and Collective Responsibility are partnership disadvantages.

In a partnership, all owners are liable for business debts and obligations. Each partner is

responsible for the company's debts, actions, and inactions. All partners' assets are subject to

partnership duties. Partner tensions exist. All decisions should be made by partners, and

conflicts should be resolved peacefully. Dividends. Since partnership assets are held

collectively, partners must distribute gains and losses equitably (Strong, et al., 2022). One

partner's extra time, energy, or money might strain the relationship.

Shareholders and administrators operate a "Limited Company." LC has a whole new

set of rules. LC is liable for its acts because its owners and business resources don't back it.

Positives include liability limitation. No LLC member is liable for the company's obligations

or actions. Members' private assets are protected from LLC debts and legal actions .

Simplicity. An LLC's ease of use is a big plus. LLC members have more profit-sharing

freedom. Each member's time and money vary. Disadvantages include, Short lifespan:

Expires Soon. After a member leaves an LLC, the surviving members must wind down the

firm and fulfil any legal or financial responsibilities (Mansfield., 2018). The remaining

members can form a new LLC or leave. Business Accords. LLC owners must consider initial

formation and continuing management to maximise the structure's benefits. "Operation

agreement" specifies the tasks and responsibilities of an LLC's members and manager. If you

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need one, seek a lawyer. Self-employed taxation LLC members who are independent

contractors must make Medicare and Social Security payroll contributions like any other self-

employed worker. This tax applies to LLC's net income (Zhitlukhina, et al., 2018).

“Different Types of Organisational Change”

Organizational change is the action a business takes to change any of its underlying

components, such as culture, processes, products, people, technology, or infrastructure. Basic

organisational changes are described further (Klein, et al., 2022). The term "organisation-

wide change" refers to a significant shift in the organisational framework. For most

businesses, this means making some kind of size reduction, organisational reorganisation, or

joint venture. By way of illustration, reorienting from a dynamic, entrepreneurial culture to

one with a more steady, corporate ethos. It's important to remember that any kind of

organisational transformation will have an impact on the culture of the business and, in turn,

on the habits and routines of its employees and customers (Travis., 2019). These sorts of

shifts take time to implement and can cause a lot of havoc if you don't plan beforehand.

It is crucial for businesses to regularly review their core strategies. Companies need to

be aware of the world around them. Knowing cultural trends, the social climate, and the state

of the art in technology are all part of this. Mature digital organisations, according to recent

MIT research, are concentrating on incorporating digital technologies like social media,

mobile apps, data analytics, and the cloud to revolutionise their operations. Companies with a

lower level of digital maturity tend to deploy isolated digital technology to address specific

business concerns (Ernecq., 2018). In today's digitally driven society, taking calculated risks

has become the norm for tech enterprises.

When a company recruits or fires many individuals, it's called a "personnel

reorganisation." This requires changing company practices. When a company recruits

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quickly, it must integrate new employees while defining its duties. This change could cause

confusion and lost effort if not handled appropriately. Layoffs might be caused by

government regulations or financial constraints, but they harm the remaining employees.

Morale dips during changes. Consider this. Tasks must be assigned efficiently and fairly

(Doeze Jager, et al., 2022). Inefficient employees who take on more than they were paid to

perform can cause a tough transition phase.

Unplanned Changes, in the midst of data collecting and thorough planning, an

organisation may suffer unanticipated adjustments, some of which may be more substantial

than predicted (Parent and Lovelace., 2018). Unanticipated modifications like this may be

undertaken due to a shift in the organization's demographics (lack of diversity or social

equality). These are unanticipated internal changes. Economic volatility and altering

government restrictions can cause organisational transformations. Unexpected events include

natural disasters. A company's capacity to recover from a startling setback shows its strength

(Li, et al., 2021). These shifts are disruptive and costly, so companies must move quickly.

Most replies provide a rapid fix for the present issue.

“Remedial changes” in businesses often rectify widespread inadequacies or poor

results. Financial stress lowers performance. These corrective approaches aim to improve

efficiency and re-evaluate past successful but now counterproductive techniques. For

example, a company's pollution must be removed for public health and safety. A corporation

must save money or seek finance to implement corrective actions.

“Change Strategies by Kotter and Schlesinger”

Companies typically get pushback from employees while implementing changes

because of how unpopular they are. In order to deal with resistance to change, John Kotter

and Leonard Schlesinger devised a set of six strategies. It's crucial to know why people resist

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change before trying to persuade them otherwise (Kotter and Schlesinger., 1989). Two of

these causes are highlighted by John Kotter and Leonard Schlesinger. Localized prejudice,

Some workers worry more about the personal repercussions of change. They look out for

themselves rather than the company as a whole. Misunderstanding, This happens because of

communication issues and because the company provides either erroneous or insufficient

information.

“How to Use the Proposed Change Strategies by Kotter and Schlesinger”

“John Kotter and Leonard Schlesinger,” relying on scientific research, provide the Six

Change Approaches to overcoming opposition to change in organisations at first, Education

and Communication, If employees are involved in the transition process from the start, the

company's communications are more likely to be credible (Kotter and Schlesinger., 1989).

Training and other sorts of education can help facilitate effective communication. When

employees are informed of the rationale behind the transition, they are more likely to

cooperate with management.

Involvement and participation, Organizational change resistance can be mitigated by

boosting employee participation or assigning individuals to specialised tasks. Staffs will be

more committed and focused on teamwork, leading to closer cooperation across

organisational units and the successful introduction of the desired change (Paais and

Pattiruhu., 2020).

aiding in the process and providing assistance, Management's encouragement of

workers who struggle to adapt to the new circumstances can help them succeed. It aids them

in overcoming anxiety at times of change, such as when they must adjust to a new location, a

new boss, or some other sort of transition (Olafsen, et al., 2020). These worries can be

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alleviated to a significant extent by the provision of assistance or the facilitation of training

and counselling.

Negotiation, It's crucial to keep employees engaged, even when they experience

temporary setbacks, like the loss of authority or specific responsibilities, as a result of the

transformation process. Employees can be nudged in the right path by the promise of

monetary rewards. Incentives to resign early, renegotiated contracts, or a better position

elsewhere are all options for the corporation (Zhitlukhina, et al., 2018). Top-level personnel

are frequently the recipients of such bonuses.

“Conclusion”

The Essay provides a high-level overview of ideas related to business structures and

adaptability. There is a distinct "business structure" within any company. There are various

forms of these structures, one of which is sole private ownership, in which the owner and the

company are effectively the same legal entity and the owner is therefore fully liable for all of

the company's debts and obligations. Larger organisations doing a variety of things are often

organised as corporations, which are legal entities in their own right. A private limited

company is another option; it operates similarly to a corporation but subjects its shareholders

to more personal legal responsibility. How easily they can be tackled by different techniques

and what are the reasons people resist changes in an organisation are also discussed in this

essay.

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“Understanding Change”

References

Doeze Jager, S.B., Born, M.P. and van der Molen, H.T., 2022. The relationship between

organizational trust, resistance to change and adaptive and proactive employees'

agility in an unplanned and planned change context. Applied Psychology, 71(2),

pp.436-460.

Ernecq, J.M., 2018. Planned and unplanned organizational change: Consequences and

implications. In Organizational Change and Innovation (pp. 276-287). Routledge.

Georgescu, A., Peter, M.K. and Avasilcai, S., 2022. Associative and Non-associative

Business Structures: A Literature Review for the Identification of Business

Development Opportunities for SME in the Digital Age. Marketing and Smart

Technologies, pp.337-348.

Klein, N., Ramos, T.B. and Deutz, P., 2022. Factors and strategies for circularity

implementation in the public sector: An organisational change management approach

for sustainability. Corporate Social Responsibility and Environmental

Management, 29(3), pp.509-523.

Kotter, J.P. and Schlesinger, L.A., 1989. Choosing strategies for change. Readings in

strategic management, 1, pp.294-306.

Li, J.Y., Sun, R., Tao, W. and Lee, Y., 2021. Employee coping with organizational change in

the face of a pandemic: The role of transparent internal communication. Public

Relations Review, 47(1), p.101984.

Lozano, R., 2018. Proposing a definition and a framework of organisational sustainability: A

review of efforts and a survey of approaches to change. Sustainability, 10(4), p.1157.

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“Understanding Change”

Mansfield, R., 2018. Changes in information technology, organisational design and

managerial control. In The Management Implications of New Information

Technology (pp. 216-230). Routledge.

Olafsen, A.H., Nilsen, E.R., Smedsrud, S. and Kamaric, D., 2020. Sustainable development

through commitment to organizational change: The implications of organizational

culture and individual readiness for change. Journal of Workplace Learning.

Paais, M. and Pattiruhu, J.R., 2020. Effect of motivation, leadership, and organizational

culture on satisfaction and employee performance. The Journal of Asian Finance,

Economics and Business, 7(8), pp.577-588.

Parent, J.D. and Lovelace, K.J., 2018. Employee engagement, positive organizational culture

and individual adaptability. On the Horizon.

Rosokhata, A.S. and Chykalova, A., 2020. Marketing activities features for different

classification types of business structures (Doctoral dissertation, Sumy State

University).

Strong, S., Letts, L., Gillespie, A., Martin, M.L. and McNeely, H.E., 2022. Organisational

change to integrate self‐management into specialised mental health services: Creating

collaborative spaces. Journal of Evaluation in Clinical Practice.

Travis, A., 2019. The organization of neglect: Limited liability companies and housing

disinvestment. American Sociological Review, 84(1), pp.142-170.

Zhitlukhina, O.G., Babak, L.N., Rakutko, S.Y., Selezneva, E.Y., Denisevich, E.I.,

Berezhnova, E.I., Belik, E.V., Khegay, E.V., Gubareva, O.I. and Mikhalyova, O.L.,

2018. Specificity of the relationship between project management and organizational

culture. Journal of Entrepreneurship Education, 21(3), pp.1-9.

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