Discuss about the Critically Analysis Organizational Change Management.
The process of organizational change management is an approach that is used in the transition of individuals or organizations. Such transformations have been done through various ways that are directed towards resource utilization, operational modes, allocation of budget or a process that is significant in the company. The OCM principles work as a tool towards reshaping the institution (Steiber & Alange, 2015). Regarding Perfect Component, the OCM is focused on the manner in which individuals and their staff teams in Australia, India, and New Zealand are affected by the transition. Further, the process factors in the various subject that range from social standards and behaviors to business and technological advances. About the case study, CM refers to a process of directing changes in a project where they had formally been operational.
During the past, most of the change management models and processes were made because of grief studies. Such considerations were permitted due to health matters arising from job losses amongst employees, which were attributed by emotions. Diffusion of Innovation explains that change has implications to the affected and should be understood in time and communication context. Perfect Component has not been left out in the response as it continuously reports stiff competition due to innovative change from the low-cost countries that manufacture cars. For instance, India has several of such that makes it harder to survive the change programs.
Currently, various organizations are necessitated to adhere to change to survive in their operations, Perfect Components inclusive. Such moves are very critical in ensuring that there is a positive response to the dynamic world full of both modern and new technologies that have to be adopted either internally or externally. Therefore, it is an inevitable process in the development if an organization.
Change management is particularly faced with major problems that revolve around the integration of organization’s developments, navigation of the same as well as human factors that contribute to the OCM (Vandaerhaeghen et al., 2010). Such factors will be challenging in the adaptation to the newly expanded market in Australia and sudden closure of the company in India.
Integration of Organization’s Developments: In the past, Perfect components departments did incorporate the significance of infrastructure development and ability to change the programs via technology. Such weaknesses have been exploited by competitors in India that is amounting to their failure in the region. Currently, the stakeholders and leaders are directly focusing on technical and structural aspects of such changes. Therefore, it calls for a collaboration of skills to curb the alignment that exists between individuals of various skills to do away with technicalities that might arise.
Navigation: The process of managing the changes over time is hectic and needs adaptation to the program to fit in the system. Perfect Components was unable to adapt to the increasingly changing situations in India despite the rise of other upcoming manufacturing companies in the market. However, the contrary happened in Australia where there were laid principles that were executed that were in provision from market availability to organizational conditions. Such challenge called for flexibility in structures and empowerment of employee to achieve an equilibrium between high-end management and low-end in the organization.
Human Factors: Individuals’ tendencies to oppose inertia are a major attribute to the problems of OCM. Such habits are mostly due to the fear of the unknown where they found it uncomfortable to shift but relaxed in their current situation. Also, this kind of notion can be difficult to under look, since people find it easy always to do things the way they have always been done. For instance, in India, Perfect Component has experienced decreasing fortunes through the top managers do not consider themselves as a part of the problem because they have downplayed on interpersonal relationships.
The process of expanding production at the main site in Blois to increase capacity, the decision of stopping the manufacture of some of the components and the shutdown of the Indian company is most likely to challenge management. Application of the changes demands time, energy and resource utilization from Perfect Component to realize the intended goals. As well there are secondary costs that will be incurred by the expanded company such as consultations, general expenditure, holding events, reinforcements, and recognitions. Change management is of value due to increase in value at implementation, for example, economies of scale (Kraus, Pohjola, & Koponen, 2011).
Benefit realization assurance: Considering the results achieved by the people adopting or utilizing the change, Perfect Component gives a structured approach that enables and motivates individual transition for a project by using new technologies, processes, and behaviors. However, whenever a person decides not to pick up the changes, then change won’t occur and benefits will not be achieved, which is the sole reality for the intended dismiss of the Indian company.
Likelihood of success: With a more efficient strategy the chances of attaining the company’s objectives are high, and this will impact on the budget increasing considerably especially in the Australian market. However, if a distinctive correlation exists between change management and achieving the objectives then company struggles for survival. For instance, Indian markets where technological advances have not been initiated Perfect Components is on the losing end.
People’s side factor defining return on investment (ROI): At any particular time a change impacts on how employees carry out their activities the ROI is also affected. Change management model identifies the affected as the rate of adoption, utilization capacity, and proficiency. If individuals mismanage the return in investment and people are slow to make changes. Contrarily, proper change management leads to a quicker adoption, high utilization of resources that will push the ROI even much higher that is likely to happen to the company in Blois. Such processes can be managed through the creation of succinct models for inter-organizational changes (Steiber & Alange, 2015).
Costs of implementation of changes: Aspects of ignoring change and addressing later is a costly affair, the aftermath is non-rewarding, wasteful, and even discouraging because the teams take up the costs as budgets and schedules are delayed too. Such a move has facilitated the pending closure of Indian company. On the other hand, appropriate management and technological advances by Perfect Components in Australia eliminates the additional workload of redesigning, rescheduling, re-evaluating, and revisiting, thus the task is up fronted.
Avoiding costs and minimizing risks: Improper management from India’s side puts more costs and risks at both project and organizational level that leads to delays, budget overruns, the face of active resistance and inadequate resources. Similarly, the company is also on the side of losing valued employees and morale with stress-like factors setting in from the intended closure. However, strategically adopting change and expanding production in Australia becomes an important tool for cost avoidance and risk minimization.
The advancement of new technologies has significantly motivated the new changes due to external innovations and not internal growth (Loignon, Myers, & Rogelberg, 2013). As the developments take place, those companies that adapt fast create a competitive atmosphere for the rest who are lagging behind. Such moves lead to maximum profits on the favorable side, and losses on the other depending on the cost of implementation. Moreover, these changes affect all employees and departmental, such that they must be handled properly so as not to affect staff morale negatively.
Considering organizational change as a subject in Perfect Components, it should start with a critical and systematic diagnosis of the situation now to determine the actual need and ability for change to occur (Fink et al., 2014). Such considerations should include all the companies’ specified objectives and approaches, to avoid the risk of termination. Also, the system should have creative marketing to facilitate effective communication and proper understanding among the audience to enjoy economies of scale in expanded markets. Consequently, transformational projects, integrating team and employee management training should be preceding the plan to avoid losses and reduce risks (Bodenstaff et. al., 2010). Therefore, it will call for performance metric and the necessity for change to come up with appropriate strategies to drive solutions in the companies (Fink et al., 2014).
Currently, with the high rates of globalization and technological innovations in business environments, change management in organizations is considered ideal (Picot & Baumann, 2008). Such advances must be adopted by Perfect Components to increase knowledge accountability and thrive in the markets. As the global markets get more heated up, companies are obliged to take more changes to be able to adapt to the increasing competition at work and intentionally close unproductive firms. Despite the radical change, Indian component was slow to drop their past habits in the current atmosphere that necessitated the termination. On the other hand, the skilled and valued employees from the company should be retained in the expanded markets to avoid loss and inefficiency through networking (Loukis et. at., 2015).
I recommend that Perfect Components should carry out proper models of change management with a structured approach to over challenges that are cost-ineffective. Such investigations are essential to the deeper understanding of the strategies to adopt, and possibly coming up with better alternatives to companies. Consequently, the Indian company is deemed necessary for closure. In addition, such efforts will be necessary for evaluation of success or failure patterns in the expanded production. However, success at the main company at Blois is most likely to occur if the stakeholders’ aims are quantifiable, the risks, and cost related issues should also be monitored through a multidimensional leadership perspective (Van Gils et. al., 2015). Besides having an effective training for upgrading, there should be an effected communication on the reasons for the change. The leaders should also ensure that they counter any form of resistance from the employees and monitor the implementation process.
The company’s expansion at Blois and closure process in India requires following activities that must be applied for it to take place and meet the targeted outcomes. Such steps of implementation occur in three major phases; preparation, management, and reinforcement of the change. The procedures are discussed below:
Assessing is a tool utilized by the Perfect Components management board to see how ready they are to be subjected to the intended change. Such a move will involve assessment of the organization, its employees, their history and culture, the change subject and stakeholders opinions. Particularly, this is essential in giving insight to the possible challenges to be encountered (Wernz, 2013). Further, the shift management group should evaluate their strength to enable them to perceive the process. The assumption of most managers finishing their job after passing out a directive to the employees should be avoided, because they might not hear nor understand the information. During communication, the message should be repeated to stick in the employees’ minds. For instance, creating awareness is a critical step in managing change by tabling out the reasons and risks to avoid frustrations amongst the workers and their customers. An effective plan for communication starts by keen evaluation of the audience, message, and proper timing and should cover the requirements of the workers. On the other side, every audience has the demands for the information passed due to their contribution on the implementation step.
For the duration of change, top leaders perform the sponsor roles that require conducting activities and carrying out the plans. According to the survey, aid is vital to the success of change and should not be mistaken with support both to the employees and to potential clients. Such act includes active participation from business leaders all through the modification period, forming coalition amongst leaders and direct communication with the leaders (Bhansing, Leenders, & Wijnberg, 2015). Therefore, the provision will facilitate better performances.
Because the top leader has got the highest influences on employees attitude to change they need to be guided on how to the process. However, they may pose as the hardest team to oppose the change. Therefore, personal management can be employed to help managers through the process to facilitate proper guidance and training on OCM. More so, training provides a basis for knowledge creation and future success and should be conducted at an appropriate time to ensure timely implications on change.
Resistant managers and employees are standard as they conform to the laws of motion, but can be addressed proactively unless there is persistent rebellion. Such strong oppose can be a threat to change, however, the management team should identify, understand and assist their managers in order to overcome economic challenges (Hornsby et al., 2013; Sekerka, Comer, & Godwin, 2013).
The involvement of an employee is an integral part of change management since the managers can’t do it on their own. Considering the response from an employee is ethical and necessary for the process because it enables the leaders to analyze and appropriately implement corrective actions to fully adopt the structured changes (Sekerka, Comer, & Godwin, 2013). In addition, it is vital when the expanded production concentrates in different lines.
Adoptions of the change, considerations of success, and the long termed efforts should be celebrated. Such moves are equally important Perfect Components to recognize and implement the changes, develop effective quality management framework, and capitalize on knowledge and character of employees (Yu & Zhou, 2015; Schniederjans, 2015). Meanwhile, continuous adoption should be closely checked to avoid slipping back into past modalities of work. Thus this is the last step of implementation and should be followed by an after project review aimed at evaluating the success and failures for entire program as well as identification of the changes for another case study.
Conclusion
In conclusion, organizational change management is a continuous improvement in Perfect Components companies irrespective of locations to achieve. Such considerations have led to the expansion of production and closure of the unproductive company. Moreover, the approach comprises of programs that used to reach the process. Therefore, for good leaders, the areas are applied effectively to realize success, avoid loss of essential employees, customers and teams while reducing the negated implications on productivity, as per the case of Perfect Components.
References
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