Identify and explain in detail two barriers organizations may face when trying to initiate effective change and how managers can overcome these barriers.
Organizational barriers are inevitable. Organizational barriers can be defined as the hurdles that clump the swift flow of information within the employees(O’Driscoll et al., 2016). Come of the major organizational barriers are rules and policies, hierarchical positions, organizational facilities and complex organizational structure. However, the most influential organizational hurdles so far recorded are technology and location. Technology and location can be the prime barriers towards an organization (Farrel & Pfeffer, 2014). However, implementation of change in any organization is imperative in order to keep up with the change in social trends and fluctuating demands of customer. There is no iota of doubt that implementation of change in any organization is done to improve the organizational benefits and to raise the profit margins. Apart from that it also implementation of change also focuses on the benefits of staffs and employees and the overall organizational structure. The problem lies in implementing the change in a particular company (Yang et al., 2015). It has been noticed that while implementing change in any particular organization, the management and the official faces a few restraints. These restraints can either be from existing employees or external restraints. Yet, it is necessary to analyze the barriers that may hurdle while implementing the changes within the organization and explain the reason that change is mandatory to the internal barriers, that is the workers (Szulanski, 2017).
Any organization may face a number of hurdles while it wants to incorporate change, or implement new rules and regulations in the company (Doppelt, 2017). Perhaps the most common barrier that an organization faces while incorporating change is the fear of change of the employees of the organization. In order to incorporate change it is imperative that the employees corporate and coordinates their utmost to make the implementation of change successful. Employees fear change due to the lack of knowledge regarding the current organizational state, its market positioning, its brand value and profit margins (Cameron & Green, 2015). However, change is necessary to keep an organization going and it is regardless of employee emotions and sentiments. Yet on te same time implementing changes like technological changes and location changes are feared by employees (Hayes, 2014). Employees generally do not want to relocate. Implementation of technological changes brings in with it a lot of complications which require the employees to go for a training and development program. This unease the employee from their comfort zone and that is what the employees are afraid of (Kuipers et al., 2014).
Innovation and development are the two major factors related to change management (Goetsch & Davis, 2014). In order to thrive in a competitive market it is crucial to incorporate constant changes in the organizational structure, working module and location of the organization in order to fetch better clients and avail better facilities (Lewis et al., 2016). During the implementation of technological changes within an organization, most of the employees are uncertain about the potential advantages that technological adaption may bring in the company. Making a proper use of the technological devices is yet another hurdle that a company may face. Any organization must be sure that the technology that the company wants to incorporate is comfortable to the workers (Cavusgil et al., 2014). Organizations must be aware of the all the pros and cons of implementing any technological change, since, failure may hit high on cost and employee retention. Another major risk associated with updating technology is the releasing of company capital and company funds. Either for long-term, or short-term, the implementation of technological advancement would result in a huge organizational change both internally and externally. In case if the implementation is unsuccessful, it might result in a huge loss of the company resources and capital. That at the same time would show noticeable difference on the company’s profit margins and on the market share (Suzuki, 2015).
It is therefore advisable that before incorporating any technological change in an organization the management and the officials must keenly go through the pros and cons that may incur in the process of implementing the change. In order to surmount the obstacles related to employee fear towards technological change in the company, the management may consider training and development programs so that the employees can be comfortable with the change. The management must also enlighten the employees about the increase in production using latest technology, the less labor needed and its simplicity once learnt.
The barriers related to location changes can be broadly determined under four head. These are as follows:
Structure: To fix the organizational structure it is imperative to decide the hierarchical structure. Most of the challenge in shifting of location lies here. While the existing and the experienced employees would certainly expect to be promoted, on the other hand the company may wish to look for capable hierarchical alternatives. Shifting of location also incorporates the issues of transaction cost and a complete relocation takes time for the employees to adjust. The new location that the company is shifted to would may take time to come up with the external and internal factors affecting the company. Post shift an organization is expected to employ workers from the existing place where the company seeks establishment. In this context, most of the employees will need to undergo through a process training which the company would provide. It is imperative as the place is new and not all employees can be relocated from the older branch. The company needs to give enough time even to the old relocated employees to fit in the new place.
Cultural barriers: Organizations definitely undergo cultural barriers post relocation. Cultural issues can even be a barrier without relocation as well. Companies may face the issues related to diversity management and corresponding cultural practices. Without any iota of doubt, it can be asserted that establishing a company in domestic area or overseas will face cultural issues. The locals of that particular area will certainly expect jobs. Apart from that managing cultural diversity would be an issue for the company given that the managers and the leaders too are new to the place. The working schedule and working structure too may not comply with the diversity of workforce. For instance, company hierarchy already predetermines the list of holidays. Issues crop up when the holiday list does not comprehend with the festive occasional days of the majority of cultural people of that particular area like Christmas day, Easter etc. Cultural diversity creates another hurdle, that is, communication issue. Due to cultural diversity language and communication problem occurs which is further a barrier of organizational shift or relocation. Since the languages spoken and understood by employee of different culture are not same, understanding and explanation of company rules, organizational goals ad objective can be a problem.
Political barriers: Political barriers are the most significant barriers that an organization may face while starting up or relocating its branch. Political barriers include the most important factors like the rules and regulations regarding establishing a company in that particular area. This criteria is applicable both for establishing or relocating companies overseas or in domestic areas. The issues mainly concerns the change in trade policies and trade rules. Different countries or different parts of same countries have different trade policies. Apart from that the other problems that political barriers include are the transportation issues. For example, some particular areas of a particular country may not have good political terms. That is, there may be interstate rivalry due to the rule of opponent parties in two states that a company wants to works with. Transportation of goods and services becomes a major issue in this context.
Conclusion
In the concluding portion, it can be said that change is imperative to keep the flow of any organization. The report focuses on the importance of change in an organizational structure. It is seen that how change management is dealt by managers and officials particularly with reference to two most significant changes, that are location and technology. The pros and cons of change while incorporating location and technology in parameters are explained that shows the effects and the impacts on the overall organizational structure of a company. The hierarchy of company can deal issue of location with expertise. For the technology part, no doubt it is a crucial factor. Without any iota of doubt, it can be asserted that updating and using latest technology within the workforce helps the overall organization with improved production and thus increases sales. But at the same time it does require training and development program for the employees to ensure that the technological devices are used correctly by the employees.
Reference List
Cameron, E., & Green, M. (2015). Making sense of change management: A complete guide to the models, tools and techniques of organizational change. Kogan Page Publishers.
Cavusgil, S. T., Knight, G., Riesenberger, J. R., Rammal, H. G., & Rose, E. L. (2014). International business. Pearson Australia.
Doppelt, B. (2017). Leading change toward sustainability: A change-management guide for business, government and civil society. Routledge.
Farrell, A., & Pfeffer, R. (2014). Policing human trafficking: Cultural blinders and organizational barriers. The Annals of the American Academy of Political and Social Science, 653(1), 46-64.
Goetsch, D. L., & Davis, S. B. (2014). Quality management for organizational excellence. Upper Saddle River, NJ: pearson.
Hayes, J. (2014). The theory and practice of change management. Palgrave Macmillan.
Kuipers, B. S., Higgs, M., Kickert, W., Tummers, L., Grandia, J., & Van der Voet, J. (2014). The management of change in public organizations: A literature review. Public administration, 92(1), 1-20.
Lewis, S., Passmore, J., & Cantore, S. (2016). Appreciative inquiry for change management: Using AI to facilitate organizational development. Kogan Page Publishers.
O’Driscoll, R., Bakerly, N., Caress, A., Roberts, J., Gaston, M., Newton, M., & Yorke, J. (2016). Attitudes, beliefs and organizational barriers regarding safe emergency oxygen therapy for patients with COPD: A mixed methods study.
Suzuki, M. (2015). Identifying roles of international institutions in clean energy technology innovation and diffusion in the developing countries: matching barriers with roles of the institutions. Journal of Cleaner Production, 98, 229-240.
Szulanski, G. (2017, December). INTRA-FIRM TRANSFER OF BEST PRACTICE, APPROPRIATIVE CAPABILITIES, AND ORGANIZATIONAL BARRIERS TO APPROPRIATIONS. In Academy of Management Proceedings. Academy of Management Briarcliff Manor, NY 10510.
Yang, L., Liu, C., Ferrier, J. A., & Zhang, X. (2015). Organizational barriers associated with the implementation of national essential medicines policy: a cross-sectional study of township hospitals in China. Social Science & Medicine, 145, 201-208
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