Organizational Change Management For Corporate Environment

McKinsey 7S Model for Implementing Change

Discuss about the Organizational Change Management for Corporate Environment.
 

John Kahui is an individual dealing in management with an experience of over 10 years in the field of corporate environment. He has started an organization “Ecology matters” which will protect the natural environment of New Zealand. The main function of the organization is to look after the cleanliness of the beaches, lakes, rivers and forests in New Zealand. The organization is a non profitable organization and operates mainly through the funding from different companies and individuals. The organization does not pay any income tax as it is a non profitable organization and the paid employees of the organization are General Manager, accountant and office administrator.

The organization is going through some changes because the organization is not getting enough donations from the individuals.  The donors cannot claim any tax benefit because  the organization is not registered under Charities commission. The organization has to prepare necessary documentation, rules and guidelines.

McKinsey 7S model is used by the organization to implement the changes. McKinsey 7S model is composed of 7 elements. Values are shared among the employees of the organization with the help of Shared values (Boverie et al., 2013). Shared values include the belief and attitudes of the organization. The model defines the requirement of change and better performance of the organization. Goals and vision of the organization is redefined with the help of this model.

Strategy: Strategy helps Ecology matters to use the resources optimally. The organization has limited resource (Boverie et al., 2013). Strategy will help the organization to implement the changes properly.

Structure: The organization follows a centralized structure.  The top management takes the decision and the other members carry out the orders (Brown & May, 2012). This creates confusion among the lower level employees, as they cannot take any decisions. This creates dissatisfaction among the employees.

System: The system within the organization is not clear among the employees in the organization. Recruitment procedure, pay packages and promotion of the employees in the organization is not structured (By et al., 2014). All these results in changes within the organization

Staff: Goals and objectives of the organization are not properly defined. A proper goal and objective of the organization motivates the employees and this enhances the productivity of the organization.

Skills: Skills are important for any organization or employee. Skills help an organization to remain a step ahead of its competitors and service (Cummings & Worley, 2012). Training is essential to uplift the skills and performance of the employees in the organization.

Kotter’s 8 Step Change Process

Styles: Leadership styles are important for the proper functioning of any organization. In the organization autocratic leadership style is followed. The boss takes the decision and the others execute the instructions (Boverie et al., 2013). This is not accepted by many of the employees. Instead the organization should follow a democratic leadership style where the organization takes the opinion of the employees before taking any decision. This will reduce conflicts between the employees and management. 

Figure 1: McKinsey 7S Model

(Source: Waddell et al. 2014)

Kotter’s 8 step change process is also used by Ecology Matters. The Eight steps are as follows

Establish sense of urgency: In this process the organization determines the present situation of the market and take steps accordingly. Crisis and potential of the organization is discussed by the top management (Daniela, 2013).

Powerful Coalition: Coalition is the process in which a group of people come together to address a common cause. In Ecology matters, a coalition is formed among the employees to solve the administration and remuneration structure of the organization

Create a Vision: A new vision has been established by the organization. The vision of the organization is to protect the natural resources of New Zealand (Fragouli & Ibidapo, 2015). Different strategies have been used by the organization to form the new vision.

Communication of the Vision: vision: The top management of the organization, Ecology matters has taken steps to communicate the vision to the employees of the organization. Vision is communicated to employees through meetings and circulation of notices.

Empower others to Act on Vision: Ecology matters have changed the structure and procedure within the organization to empower the vision (Giraud & Autissier, 2013). All the employees are treated equally and there is no miscommunication among the employees.

Plans and Short term Wins: The organization has divided the goals into short term objectives. This has helped the organization in achieving goals quickly.

Consolidate Improvement: The organization has planned to recruit employees who are knowledgeable and experienced in the field of social work. Proper training will also help the employees to improve their working capability (Kumar, 2013). Innovative ideas like campaigning through social media will also enhance the functioning of the organization.

Institutional Change: Institutional change is done by communicating behaviors with corporate success. This will change the thinking procedure of the organization.

Change is an important part of any organization or business. Changes help an organization to remain competitive in the competitive market. Lewin’s Change management model was introduced by psychologist Kurt Lewin in the year 1950 (Cummings & Worley, 2012). Kurt Lewin’s change management model consists of three stages. They are Unfreeze, Transition and Refreeze.

Lewin’s Change Management Model

Unfreeze: Unfreeze is the first step of this model. This step helps the employees in the organization to understand the requirement of change. In this step the existing procedures and rules are broken down to produce new ways of operation. Initial stages of these steps are very difficult. In order to make changes, the beliefs value and attitude of the persons in the organization should be changed (Larsen & Olaisen, 2013). However, the process becomes easy when poor financial result exists or customer satisfaction is low. The organization, Ecology matters suffers from poor financial condition and the employees are not properly recruited. Even the payments of the employees are also hampered. Skills of the employees in the organization should also be changed. Behavior and thoughts of the employees should be changed to meet the requirement of the organization. All these have helped the organization to go through the unfreeze steps.

Transitional stage: Transitional stage is the process in which the employees resolve the uncertainty among themselves. In this new process the employees learn the new behavior, process and thinking. Education, communication ad time is therefore important for the employees in Ecology matters (Cummings & Worley, 2012). The employees in the organization take time to cope with these changes. Once the employees cope up with this stage they move to the last step which is known as Refreeze stage.
 

Figure 3: Lewin’s Change Management Model

(Source: Created by the author) 

Advantages: Through Lewin’s Change management model employees in the organization are able to come across new strategies and theories. This will help to increase the productivity of the employees in the organization (Maes, 2014). The employees in the organization will properly communicate.

Disadvantages: In the initial stages the employees in the organization will not easily accept the changes. Changing the thinking procedure of the employees in the organization will be a challenge for the top management in the organization (O’Donnell, 2016).

Change helps an organization to remain active in this competitive market. In the organization, Ecology matters, the top management always accept changes. The top management of the organization has understood that, with change, new policies and rules can be implemented.  Moreover new methods and technologies can be implemented in the organization with such change (Cummings & Worley, 2012). New technology will uplift the performance of the employees in the organization. Internet will help the management to communicate with the employees in the organization effectively. Social media will also play an important part in creating awareness among the people about the activity of the organization.

Advantages and Disadvantages of Change Management Process

The accountant in the organization will also accept the changes in the organization. New technologies used in the field of accounts background in the organization will reduce the workload of the accountants (Robertson, 2015). Positive changes in the organization will also improve the financial condition of the organization. Additionally, a stronger economy will also help the organization to expand its growth beyond boundaries. Goals and objectives of the organization can also be met quickly with the help of change in processes.

The volunteers in the organization face a lot of problem in the organization. It has been found that in a project the volunteers were responsible to clean up the beaches of Auckland. The supervisor of the project had not properly communicated with the volunteers and a miscommunication was created between the volunteer and the coordinator (Shani et al., 2013). Contacting with the volunteer has also become tough for the local people. Therefore it can be said that the volunteers will accept the changes in the organization.

Administration in the organization may not accept the changes in the organization. Administration in the organization is already acquainted with the processes which are being followed in the organization. They are not happy with the changes in the organization. One of the main reasons is that the total working procedure in the organization will change because of the introduction of new rules and regulation (Cummings & Worley, 2012). The employees in the administrative department are older generation and they do not accept changes. The administrative people in the organization are not eager to go through the training procedures.

Employees in the organization will also not easily accept the changes because they fear of something unknown will occur due to change. The normal routines of the employees will also be affected because of the change in the organization (Cummings & Worley, 2012). Often changes in the organization are not accepted by the employees in the organization proving that decisions taken by top management are wrong.

	1-60 days	61-150 days	151-240 days	241-300 days
Need for change
New Interventions
Evaluation of result
Stabilize change

Table 1: Gantt Chart

Source: Created by the author

In this section of the assignment the researcher has given an action research plan for the organization. In the first sixty days the researcher will identify the need for change. Need for change is an essential part of the organization. Need for change is important because it will help ecology matters to thrive in ever changing world. Change management will help the organization to deliver effective results. It will also help the organization to reduce the gap between the requirement and results. Experienced employees and effective training will help the organization to better serve the environment (Stirpe et al., 2015). Latest equipment and technology will help the organization. Better application of change management will also help the organization to increase the rate of success. Better rate of success will also improve the efficiency of the employees in the organization. The employees will be motivated and this will improve the reputation of the organization.

New interventions are important to improve the working culture of Ecology matters. New equipments and technology will help the employees to communicate with each other properly and complete any job quickly. The organization is planning to launch a new app through which the employees can contact with each other and can share information quickly (Cummings & Worley, 2012). This will help the organization to perform rescue work effectively.

Evaluation of results will be done after implementation of new innovation. Evaluation will be done for a period of 60 days. On successful evaluation the changes will be permanently implemented in the organization.

Once the changes are successful it will be permanently be implemented in the organization. Every employee in the organization has to follow the changes in the organization strictly. 

References 

Boverie, P., Grassberger, R., & Law, V. (2013). Leading individual development and organizational change around learning, meaning, and nurturing environment. Advances in Developing Human Resources, 15(4), 382-400.

Brown, W., & May, D. (2012). Organizational change and development. Journal of Management Development, 31(6), 520-536.

By, R. T., Oswick, C., & Burnes, B. (2014). Looking back and looking forward: Some reflections on journal developments and trends in organizational change discourse. Journal of Change Management, 14(1), 1-7.

Cummings, T. G., & Worley, C. G. (2012). Organization development & change (9th ed.). Mason, OH;Australia;: South-Western/Cengage Learning.

Daniela, P. M. (2013). the interdependence between management, communication, organizational behavior and performance. Annals of the University of Oradea : Economic Science, 22(1), 1554-1562.

Fragouli, E., & Ibidapo, B. (2015). leading in crisis: Leading organizational change & business development.International Journal of Information, Business and Management, 7(3), 71.

Giraud, L., & Autissier, D. (2013). Uncovering the intellectual development of the journal of organizational change management. Journal of Organizational Change Management, 26(2), 229-264. 

Kumar, N. (2013). Organization development–the process of leading organizational change. Abhigyan, 31(3), 78.

Larsen, T. J., & Olaisen, J. (2013). Innovating strategically in information and knowledge management: Applications of organizational behavior theory. International Journal of Information Management, 33(5), 764. 

Leonard, H. S. (2013). The wiley-blackwell handbook of the psychology of leadership, change and organizational development (1. Aufl.;1; ed.). GB: Wiley-Blackwell.

Maes, J. (2014). The international society for organizational development and change announces our second international conference in amsterdam from july 7 to 12, 2014. Organization Development Journal, 32(2), 148.

O’Donnell, V. L. (2016). Organisational change and development towards inclusive higher education. Journal of Applied Research in Higher Education, 8(1), 101-118. 

Robertson, R. (2015). The coaching solution: How to drive talent development, organizational change, and business results. TD Magazine, 69(7), 75.

Shani, A. B., Noumair, D. A., Pasmore, W. A., & Woodman, R. (2013). Research in organizational change and development. Bradford: Emerald Group Publishing Limited.

Stirpe, L., Bonache, J., & Trullen, J. (2015). The acceptance of newly introduced HR practices: Some evidence from spain on the role of management behavior and organizational climate. International Journal of Manpower, 36(3), 334.

Waddell, D., Creed, A., Cummings, T. G., & Worley, C. G. (2014). Organisational change: Development and transformation (5th ed.). South Melbourne, Vic: Cengage Learning.