Describe about the Organizational Change Management for Achieve Sustainable Growth.
The case study focuses on the change management process that organizations have to utilize in order to achieve sustainable growth in the market. Particularly, present competitive business environment has increased the significance of proper utilization of change management process (Creasey et al., 2016). In this case study, the focus is on an electronic components supplier organization namely Rapid Supply Electronics Components Ltd (RSEC). The case study highlighted that the focus organization has acquired Electronic Bits Fast (EBF) that is also deals in electronic components dealing businesses. The case study has highlighted the RSEC initially operates its businesses through the decentralized procedure. The head office of the organization is located in Brisbane area. Furthermore, the organization has six regional business units from where all the activities has been related to operational processes has been handled. However, the acquisition of EBF has induced RSEC to made considerable amount changes in the operational procedure structure. The organization has recruited change manager in order to use the new organizational structure effectively. However, the case study has highlighted the implemented change in the operational management process has created major difficulties on the psychological perspectives of the employees. As employees are just started to adjust with the acquisition process, they change in the operational management process has increased the difficulties level in order to settle down to the organizational structure. Several types of perception have emerged on the mind of the employees regarding their roles and regulations in the organizational structure. However, the case study has also highlighted that organization has tried to provide sufficient training opportunity for the employees so that they can able to adjust with the EBF SAP system. However, customer functions, sales and logistics manager has highlighted that the change is not progressive at all. Many staff has to reallocate due to the effective fulfillment of the operational processes. As a result, it has created direct adverse impact on the absenteeism, job satisfaction and employee turnover rate. The HR manager also has not reported the entire situation related to change management process to the higher authority.
Problem identification:
From the case study, it has been assessed that RSEC is going through major changes in the operational process in a rapid rate. Firstly, RSEC acquirement strategy of EBF has been induced to implement major changes in the operational process. The organization has obviously invested huge amount in order to acquire EBF. Thus, the management of the organization is on extreme pressure to depict some value to the shareholders in order to show acquisition of EBF is a good investment. Thus, the increase amount of pressure has induced the management to change the operational structure of the organization entirely (Cameron & Green, 2015). Furthermore, it also has given the management very little opportunity to understand the perspectives of all the employees. Thus, employees have developed their own perspectives according to their anticipation regarding the kind of difficulties they will have to face in order to fulfill all the responsibilities provided by the organization (Kondalkar, 2013). Furthermore, the utilization of top-down approach has reduced the possibility for the employees to share their thoughts and perspectives regarding to the changes in the operational processes. Employees of RSEC have recently experienced worrying associated with the acquisition processes. Therefore, it will be very difficult for them to get accustomed with the new operational procedure of the organization. As per the article by Hayes (2014), implementing too much changes in the operational procedure can affect the motivation and satisfaction level of the employees. From the case study, it can be assessed that RSEC frequent change in the operational process is the major issue that not only affected the motivation and satisfaction level of the employees but also has increased the employee turnover rate in a significant manner.
As per the article by Frankland et al. (2013) understanding the perspectives of the employees is necessary in order to implement any changes in an appropriate manner. Otherwise, it can affect the overall organizational environment in a major way. Now, RSEC has tried to implement top-down approach in order to justify the acquisition of NBF. As a result, employees do not have any opportunity to share their perspectives in an appropriate way. Therefore, it is obvious that employees will feel de-motivated and dejected from their responsibilities. Furthermore, acquisition has induced all the employees to cope up with the challenges regarding the new roles and responsibilities (Miller & Proctor, 2016). As highlighted in the case study, the management has not communicated with all level of employees in an appropriate manner. Therefore, employees have not able to get clear idea about the kind of changes will have to face in order to fulfill all the roles and responsibilities in an effective manner. Due to lack of communication, employees working in the logistics, sales and customer services have unable to understand the need for making any change in the decentralized processes (Senge, 2014). As highlighted in the case study, RSEC is present all over the Australia. Therefore, it will be very difficult for the organization to manage all the functions of the operational process in an appropriate manner. The initiated centralized approach has also induced employees working in the regional offices to anticipate that they will become surplus to the organization (Burke, 2013). Therefore, it will increase the insecurity level among the employees regarding their position at the organization. Furthermore, initiated approach has induced many people from logistics, sales and customer services to relocate in some other places, which has created metal barriers for the employees in order to perform as per the capability. The relocation approach has also created difficulties for the organization to include effective personnel within the team. As a result, existing members of the sales, logistics or customer service team has been forced to take on additional responsibilities. It also has increased the pressure and stress level for the employees, which eventually resulted in high rate of absenteeism and reduce job satisfaction. Therefore, the organization has also unable to fulfill all the requirements of the operational process in an appropriate manner so that customer feel satisfied with the provided quality of products and services.
As per the article by Van der Voet (2014), organizations have to implement strategies in order to assess the effectiveness of the operational management process in an appropriate way. However, RSEC has not focuses too much on the evaluation process of the implemented strategies in the operational processes. Therefore, the business system manager or the change manager has not able to gather any idea regarding the kind of adverse impact the change in the processes is making on the mental condition of the employees (Jeston & Nelis, 2014). Thus, RSEC will have to implement proper evaluation process in order to analyze the effectiveness of the newly implemented operational processes (Rice, 2013). The case study has highlighted that RSEC focuses on the utilization of top-down leadership approach. Therefore, it provides employees very little opportunity to share their perspectives regarding the initiated change in the operational process (Mehanna, Olaleye & Licitra, 2012). Thus, RSEC will also have to focus on the effective utilization of bottom-up approach as well, as it will help to understand the perspectives of the employees in a better way. Furthermore, the case study has highlighted that the management of RSEC is only focus towards providing benefits to the shareholders in an appropriate manner. Therefore, the organization has tried to initiate different types of changes in the operational processes very quickly. For that reason, employees of the organization have very received very little opportunity to adjust with the initiated changes in an effective manner. Thus, RSEC will have to provide enough time to all the employees so that they can able to adjust with the operational structural change in an effective way (Langley et al., 2013). Moreover, the case study has also highlighted that RSEC lacks effective information flow system. Therefore, employees do not receive proper information regarding their roles and responsibilities in the newly implemented system. Thus, RSEC will also have to develop effective information flow system so that employees can able to understand their roles and responsibilities in an appropriate way (Cummings & Worley, 2014). Furthermore, RSEC will have to provide special attention to the employees working in the regional offices so that they do able to understand their importance in the organizational structure. In order to counter the relocation issue effectively, RSEC will have to provide additional benefits to the employees (Jones & Recardo, 2013). For instance, RSEC will have to relocate employees according to their convenience so that they can able to adjust with the environment in an appropriate manner. Management also has to initiate strategies so that they can able to motivate themselves in an appropriate manner.
The above discussion highlighted that RSEC is trying to change too quickly. As a result, employees are not getting enough time to adjust with the changes. Thus, management will have to focus on maintaining the stability in the organizational environment so that employees can able to focus more on their roles and responsibilities. Furthermore, RSEC will have to provide different types of training for the skill enhancement of the employees so that they do not have to face too many difficulties in adjusting with the changes in the operational structure. Leadership is another aspect that RSEC will have to utilize in an appropriate manner in order to keep the motivation and satisfaction level of the employees at the desired level. RSEC also needs to initiate different types of motivational session for the employees so that they can able to fulfill all the responsibilities of the organization in an appropriate way. HR manager also have to inform the present situation to the change manager so that management can initiate proper strategies to reduce the adverse impact on the operational processes.
As mentioned earlier, RSEC will have to provide enough time for the employees for being accustomed with the situation. RSEC also have to focus on the implementation process of the above-mentioned alternative strategies so that it can able to create desired amount of impact on the effectiveness of the operational process. Thus, RSEC will have to implement the mentioned alternative strategies in a systematic procedure so that it does not create additional stress for the employees. Furthermore, RSEC will have to evaluate the exact factors that causing major adverse impact on the dissatisfaction and turnover rate of the employees. It will help the organization to identify counter strategies in a much more efficient way.
References:
Burke, W. W. (2013). Organization change: Theory and practice. Sage Publications.
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.
Creasey, T., Jamieson, D. W., Rothwell, W. J., & Severini, G. (2016). Exploring the relationship between organization development and change management. Practicing Organization Development: Leading Transformation and Change, Fourth Edition, 330-337.
Cummings, T. G., & Worley, C. G. (2014). Organization development and change. Cengage learning.
Frankland, R., Mitchell, C. M., Ferguson, J. D., Sziklai, A. T., Verma, A. K., Popowski, J. E., & Sturgeon, D. H. (2013). U.S. Patent No. 8,484,111. Washington, DC: U.S. Patent and Trademark Office.
Hayes, J. (2014). The theory and practice of change management. Palgrave Macmillan.
Jeston, J., & Nelis, J. (2014). Business process management. Routledge.
Jones, D. J., & Recardo, R. J. (2013). Leading and Implementing Business Change Management: Making Change Stick in the Contemporary Organization: Making Change Stick in the Contemporary Organization. Routledge.
Kondalkar, V. G. (2013). Organization effectiveness and change management. PHI Learning Pvt. Ltd..
Langley, A., Smallman, C., Tsoukas, H., & Van de Ven, A. H. (2013). Process studies of change in organization and management: unveiling temporality, activity, and flow. Academy of Management Journal, 56(1), 1-13.
Mehanna, H., Olaleye, O., & Licitra, L. (2012). Oropharyngeal cancer–is it time to change management according to human papilloma virus status?.Current opinion in otolaryngology & head and neck surgery, 20(2), 120-124.
Miller, D., & Proctor, A. (2016). Enterprise Change Management: How to Prepare Your Organization for Continuous Change. Kogan Page Publishers.
Rice, A. K. (2013). Productivity and social organization: The Ahmedabad experiment: Technical innovation, work organization and management. Routledge.
Senge, P. M. (2014). The dance of change: The challenges to sustaining momentum in a learning organization. Crown Business.
Van der Voet, J. (2014). The effectiveness and specificity of change management in a public organization: Transformational leadership and a bureaucratic organizational structure. European Management Journal, 32(3), 373-382.
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