Question:
Describe about the Organisation Change Management?
The aspect of the change that we will discuss in this literature review is the Business Process Change/Accountability. Nowadays businesses do not have to manage change but they have to champion the change. One of the major leadership accountabilities is managing change.( (Anderson& Anderson,2001). It is still thought that managing change is important for a leader but these days the business and the rapid changes that they are going through are changing this perspective as now it is not enough to manage change.( Western,2010) As now due to the advances in technology the global marketplace is not waiting for organisation or people to adjust to change. Thus it is important to analyse organisational change and its related concepts about management of change and resistance to change. (Bradford&Burke, 2005)
Change management is an approach to ensure that the changes that are taking place are smoothly implemented and thoroughly done this ensures the lasting benefits of change. Since the 19th century with the industrial revolution the organisations are going through rapid scale of changes. As the technology is developing, huge amounts of information and products are generated that force the organisations to change accordingly.( Child, 2005) When the organisation goes through change the management needs to ensure that the people, job tasks and technology is coordinated and combined effectively according to the organisations objectives. Waldron in the year 1994 suggested that the management has to have a common approach and philosophy towards the changes that are taking place in the organisation. According to him:-
These functions can be further categorised into lists that were given by Bonoma & Slevin in the year 1978 and also Gulick and Urwick in the year 1959. They categorised it :-
In the beginning of the 90’s increased competition on a global scale and expanding markets caused an exponential amount of changes in the organisation. Peter F Drucker who is a well known management Guru has written in his book “Management in the 21st century” that businesses have to transform and revise their corporate goals and missions due to change. But to achieve any business success we need to ensure that accountability is the foundation of our organisation. Many organisations use processes and technology but forget to consider the norms of accountability.
In an article by Carolyn Aiken and Scott Keller titled “The irrational side of change management” they talk about the failures of change programs. (Aiken&Keller,2009)They point out how the success of change management in organisations can be improved when employees take accountability and they choose how to act. In the year 1996 Kotter published “leading change” a research that showed that only thirty percent of the changes succeed.( Kotter, 2008) Many practitioners and academics have agreed that “accountability” is one of the building blocks in management behavior and employee attitudes. Colin Price and Mckinsey’s Emily Lawson provided a perspective in their book “The psychology of change management” by suggesting four conditions:-
We all talk about accountability. Managers want accountability in their employees along with stakeholders who demand it.( Marshall, 1992) For performance improvement and effective change management accountability is fundamental. It is the guiding principals that how people make commitments to others in the organisation. It is about how people take ownership of the things that are done.( Thompson, 2014) If in an organisation accountability is not taking place that effective organisational change management will not take place. Unproductive behavior and wastage of time is prevented when greater accountability occurs in an organisation. Many surveys have shown that in all levels of a firm or organisation suffer if there is a lack of accountability. (Davenport,1993)
In the 1990’s when many organisations managers faced financial crisis they had to go through changes.( Mulgan,2000) These dramatic and fundamental changes to business systems, structures and processes were a result of a changing marketplace and increasing competitors. Peter Block in the book “stewardship” talks about output and productivity which can be achieved by values like:-
These values are common to the military hierarchy as in businesses. The managers want outcomes and predictable performances as they control and value consistency in day to day activities in work performance. In this traditional value system the change is managed accurately by a strict chain of command. The managers in the organisation have full control over the employees and they want everyone to be compliant to any changes that take place. This is similar to the military when soldiers react to every change that is made. They simply follow the changes and act according to these changes.
It was in the early 90’s that the focus on customer and quality emerged.( Stevenson, 1989) Many examples were created that started the era of change management and accountability. Some of these examples are :-
The focus of the organisations shifted from mass production to mass personalization and customization. These changes asked the employees to be more:-
New values were formed that created a shift from control, consistency and predictability to:-
It was then that the managers started placing more control to the employees by empowering them to make decisions that will impact customers. Employees were responsible and accountable for their work quality and output. They were responsible and took ownership for the service and product along with delivering service and producing products. (Romm, 2001)
The goal of creating a culture of accountability is to form an organisation that is creating a learning organisation. (Senge, 1990)An organisation that is learning uses new knowledge and promotes knowledge acquisition as a way to cope with change. Thus to support a accountable culture an organisation should be able to create, manage and access the knowledge to improve its processes and also to allow its members to enjoy the advantages of accountability. In all levels of the organisation it is essential that leadership exemplifies accountability. The change process has to involve individual managers and leaders that inspire change within each unit and department. Thus in this case transformational leadership principles that are based on commitment enhance employee morale, trust, cooperation and responsibility.( Williams, 2006) Accountability is maintained when the turnovers of the employees are reduced and the human capacity is increased. Resistance, fear and anxiety are often the causes of change in the organisation. Thus the management has to ensure that the human dimension have to be supported to minimize these negative feelings.
Once accountability is achieved in the organisation change management is much smoother. So let’s study about some leading models and theories about change management.
There are many change management models some of these models are:-
Lewin’s Change Management model:-was created by psychologist Kurt Lewin who suggested that most of the people operate and prefer to work within some zones of safety.( Lewin,1958) According to him there are three stages:-
This change management model is used widely all around the world these days but there is one major drawback as this model is slow as it takes time to implement. (Phillips, 1983)But due to the fact that it is easy to use many organisations prefer this model over any other model for change management.
Mckinsey 7-S Model:-this model provides a holistic approach for a company or organisation. It was created by Tom Peters, Anthony Athos, Robert Waterman, and Richard Pascale in the year 1978 that has seven factors on which it operates:-
There are four advantages of this model as it is an effective way to understand and diagnose an organisation, it is very essential in providing guidance during organisation change, it combines emotional components with the rational components, and all of its parts are integral thus it should be always addressed in a unified manner. But there are some disadvantages as well as when one of the part changes, all the other part change as well as all the factors are related to each other, differences in the model are ignored, it is a pretty complex model and many companies who have reportedly used this model have failed. (Schultz&Schultz, 2010)
Kotter’s 8 Step Change Model:-
It was created by John Kotter who is a Harvard University Professor.( Kotter, 2011) This model talks about the fact that employees accept the change only after the leaders are able to convince the employees that there was a urgent need for these changes. This model involves eight steps:-
Advantages of this model are that it is a model that is easy as it is step by step, the focus of this model is about accepting and preparing for change, and the transition process in this model is easier. There are some disadvantages as well as we cannot skip any of the steps, and the process takes a lot of time. (Kotter, 2008)
Conclusion
Every manager loves an employee that takes responsibility, owns her work and shows initiative as this shows that the employee is accountable. But accountability is intrinsic as people cannot be forced to be accountable. If a work environment is designed to be accountable the organisation will flourish and prosper. In an organisation that is responsible people will not be asked to keep quiet but would be asked to give their feedback.
References
Aiken&Keller, C &S 2009, “The Irrational Side of Change Management”, McKinsey & Company, US
Anderson, & Anderson, D& L.A 2001, Beyond Change Management: Advanced Strategies for Today’s Transformational Leaders, Jossey-Bass/Pfeiffer, San Francisco
Bradford&Burke, D.L. & W.W 2005, Reinventing Organization Development, Pfeiffer, San Francisco
Child, J 2005, ‘Organization Contemporary Principles and Practice’, Blackwell Publishing, NY
Davenport, T 1993, Process Innovation: Reengineering work through information technology, Harvard Business School Press, Boston
Kotter, J P 2008, Power and Influence, Free Press, US
Kotter, J P 2011, Corporate Culture and Performance, Free Press, US
Kotter, J P 2008, A Sense of Urgency, Harvard Business School Publishing, US
Lewin, K 1958, Group Decision and Social Change, Holt, Rinehart and Winston, New York
Marshall, P 1992, Introduction to the management process, In Managing people at work, University of Guelph Press, Guelph
Marshak, R J 2005, “Contemporary Challenges to the Philosophy and Practice of Organization Development”, Reinventing Organization Development: New Approaches to Change in Organizations, vol.1 no 1, 19–42
Mulgan, R 2000, “‘Accountability’: An Ever-Expanding Concept?”, Public Administration, vol.78, no 3: 555–573
Phillips, J R 1983, “Enhancing the effectiveness of organizational change management”, Human Resource Management, vol. 22, no 2: 183–99
Thompson, D F 2014, “Responsibility for Failures of Government: The Problem of Many Hands,” American Review of Public Administration, vol. 44, no 3: 259–273
Romm, N R.A 2001, Accountability in Social Research, Klower Academic, New York
Schultz&Schultz, D P. & S E 2010, Psychology and work today: and introduction to industrial and organizational psychology, Upper Saddle River, Prentice Hall, NY
Senge, P. M 1990, The fifth discipline: The art and practice of the learning organization, Doubleday, New York
Stevenson, W. J 1989,Introduction to management science, Irwin, Boston
Williams, R 2006, Leadership accountability in a globalizing world, Palgrave Macmillan, London
Western, S 2010, What do we mean by Organizational Development, Advisio Press, Krakow
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