LONDON SCHOOL OF SCHOLARS Explain how the modern corporate have managed change in the present scenario By: ARUN MANTOOR Student Id: LSSPGB33122 Course: PGDBM leading to MBA 2009 Professor: K. RAJA Introduction: In the modern organization change process an important aspect for the survival of its business. Change is the process which is applied for the organization development, these changes are not similar in nature, some are planned and some changes keep on happening in nature.
The particular change is accepted as an exception, there is no change in ongoing aspects. Change management is a structured approach to transitioning individuals, teams, and organizations from a current state to a desired future state. Change management (or change control) is the process during which the changes of a system are implemented in a controlled manner by following a predefined framework/model with, to some extent, reasonable modifications. Change Process: Besides understanding the change process, educators also need to become more skilled in its use.
As Miles (1986) and Fullan (1991) have demonstrated, the change process consists of a series of three overlapping phases: initiation, implementation, and institutionalisation. The initiation phase is about deciding to embark on innovation, and of developing commitment towards the process. The key activities in the initiation phase are the decision to start, and a review of the organisation current state as regards the particular change. The lists of factors at this stage are: The innovation should be tied to a local agenda and high profile local need • A clear, well-structured approach to change • An active advocate or champion who understands the innovation and supports it • Active initiation to start the innovation (top-down is OK under certain conditions) • Good quality innovation. Change management is done by many independent consultants who claim to be experts in these areas. These consultants manage the changes for their clients. They manage changes or help client make the changes or take up the task themselves to make the changes that must be made.
An area of change that needs attention is selected and certain models, methods, techniques and tools are used for making these changes that are necessary for organization. Immediately after change process is being successfully implemented it is the duty of change management to check that the change which is implemented is maintained under the available financial resources so that the organization may not bankrupt with the change implemented or the change which is made is success full in fulfilling the organizational goals.
If not there is a need to change the change process, so that it says that change process is the process which is involved with time and money, if a little mistake in implementing the change or if the change which is made is not up to the mark then it is a huge loss for an organization in terms of time and money. So change process is considered as a critical issue and these decisions are made by the strategic level of management. There also some of the factors that resist the change process such as career advancement, fear of job loss, enhanced job security
In case of technological change leader should give the clear cut idea of the new technology by training the people, and informing them about the improve in quality and quantity by adopting the new technology. Recession: Many professionals and experts around the world believe that a true economic recession can only be confirmed if GDP (Gross Domestic Product) growth is negative for a period of two or more consecutive quarters. The roots of a recession and its true starting point actually rest in the several quarters of positive but slowing growth before the recession cycle really begins.
Often in a mild recession the first quarter of negative growth is followed by slight positive growth, then negative growth returns and the recession trend continues. It is actually more common than you might realize for countries around the world to experience mild economic recessions. Recession (or contraction) is a natural result of the economic cycle and will adjust for changes in consumer spending and consumption or increasing and decreasing prices of goods and labor Market:
Marketing is a set of process for creating, communicating, and delivering value to the customers. Market is an sensitive issue and can by certain factors such as political, economical, social, business, technological and some of the foreign forces. Strategic planning is required to acquire market share. The objective of organizational development is to improve the organization’s capacity to handle its internal and external functioning and relationships.
This would include such things as improved interpersonal and group processes, more effective communication, enhanced ability to cope with organizational problems of all kinds, more effective decision processes, more appropriate leadership style, improved skill in dealing with destructive conflict, and higher levels of trust and cooperation among organizational members. These objectives stem from a value system based on an optimistic view of the nature of man that man in a supportive environment is capable of achieving higher levels of development and accomplishment.
Essential to organization development and effectiveness is the scientific method inquiry, a rigorous search for causes, experimental testing of hypotheses, and review of results. Taking an example of an organization which adopted change process for the successful achieving of its organizational goals. If we take an example of the biggest retail store TESCO. It is the largest retail chain its main aim is to satisfy the customers for what they are spending.
It was started as one branch and being spread all over the England with number of branches by fulfilling the customer needs it follows an organizational strategy and implemented them successfully for achieving its goals. According to the change external business environment it has implemented a change process like online shopping for the customer convenience shopping the employees in the organization were unlike to this process, then the change management has motivated the people of the organization they have employed new staff for this change by giving them training.
They have delivered the orders directly to home by charging for the delivery this made time saving for the customers and given employment for some of the people. Not only by online shopping but it is also moving its business into the financial sectors such as personnel financing and in communication sector since Tesco retail being trust worthy and well known for the people it is being successful and the change which is implemented is also successful. The change process is not always successful for an organization it is success when it follows certain steps while implementing the change THE ROLE OF MANGEMENT:-
Management’s responsibility is to detect trends in the macro environment as well as in the micro environment so as to be able to identify changes and initiate programs. It is also important to estimate what impact a change will likely have on employee behavior patterns, work process, work process, technological requirements and motivation. Management must assess what employee reaction will be and craft a change program that will provide support as workers go through the process of accepting change.
The program me must then be implemented, disseminated throughout the organization, monitored for effectiveness, and adjusted where necessary. Organization exists within a dynamic environment that is subject to change due to the impact of various change triggers such as evolving technologies. To continue to operate effectively with in this environmental turbulence, organizations must be able to change themselves in response to internally and externally initiated change. However, change will also impact upon the individuals within the organization.
Effective change management requires as understanding of the possible effects of change upon people. And how to manage potential sources of resistance to that change. Change can be said to occur where an imbalance between the current state and the environment is. Factors that Resist Change: * Every organization will have their own restrictions on their own working capital. So by advertising and making some promotional activities always will becomes a challenge. * Understanding customers requirement at all times becomes a challenge. Organizational requirements do change with the global recession which includes employees cost cut measures. * On-time delivery of project deliverables as per project plan may not be possible all the time. * Timeliness to tasks to respond are some of the factors that some time it has resist to change. * Fear of change is contagious. People around you are afraid of change and transfer this to you. This is most frequently done by relating the worse case impacts of change. * Management emphasizes cost savings over productivity and satisfaction of employees.
The employees begin to look around and see that cost savings can only really come about in staff cuts. * In some situations people were not properly trained in their current jobs so that they have more resistance to change. In many business units if, during the interview, it is found that they have done the same or similar work for another firm, they are hired and placed in a department. CONCLUSION: In big large multiproduct, multi location hierarrchial entities, typical of one modern organizations.
The challenge in organizational and informational design is to balance the benfits and costs from the decentralized decision making- benefits and costs that are a function of an organization particular resources, constraints, and oppurtunities. Significant organizational change occurs, for example, when an organization changes its overall strategy for success, adds or removes a major section or practice, and/or wants to change the very nature by which it operates. It also occurs when an organization evolves through various life cycles, just like people must successfully evolve through life cycles.
For organizations to develop, they often must undergo significant change at various points in their development. That’s why the topic of organizational change and development has become widespread in communications about business, organizations, leadership and management Organizational change should not be conducted for the sake of change. Organizational change efforts should be geared to improve the performance of organizations and the people in those organizations. Therefore, it’s useful to have some understanding of what is meant by “performance” and the various methods to manage performance in organizations.