Change is a dynamic process which comes from external (environmental pressures) and internal (organizational process). Pierce, Gardner, & Dunham, (2002) stated two kind of change in organization. They are reactive change, which takes place when internal or external forces pressurize the organization for change and proactive change, which takes place when the organization itself concludes about change to be desirable.
Existing process and systems should change when there is increased growth pressure in an organization. It needs to look at its current process and work on value addition activities to address properly its increasing size. Integration and collaboration approach offer efficiency for economies of scale, to create value for shareholders and stakeholders and for the business sustainability.
“Information technology is redefining the traditional business model by changing how the work is performed, how knowledge is used and how the cost of business is calculated. Information technology is at the heart of emerging ecommerce strategies and the organization. Informational technology has made it possible to dissemination of information quickly and inexpensively throughout and among organizations which has fueled the downsizing, delayering and restructuring of firms. It helps to make strategic decision, and this helps reduce power concentration at the top management level and when the same information is distributed across all management levels, employees feel empowered and employee empowerment speed up effectiveness and organizational performance” (Cummings & Worley, 2013, page 5).
Palmer, Dunford, & Buchanan, (2017) talked about two scale of change, first order and second order of change.
First order change is incremental: In the first order change, individual initiatives are appreciated, and routine improvement are welcomed. The ideal environment of growth and development helps in the success of the company. Training should begin simultaneously when company start change because the employees are ready to perform in the future change, so it means train employee now for future performance. Incremental change occurs when you have the open doors for suggestions, start to analysis the data collected during daily operations, make effective decisions and make effective systems.
Second order change means transformational change: It includes changing drastically the way you work. It may involve change in strategy, core value of the organization, organizational structure, organizational processes, organizational boundaries etc.
Implementing Change
For any organization, unwillingness to the change is the biggest enemy for success. Embracing time relevance change is required for the success of the organization. Coordination and teamwork are required for an organization to discover and act on cost, quality and development activities. High level of commitment is required for the success of the activities. Involvement of the team members in process design, system development, sharing ideas based on daily functions and observations, suggestions about the business as every employee are the owner are key for optimizing business process and increasing productivity (Maurer, 2013).
Four Images of Managing Change
As mentioned in Palmer, Dunford, & Buchanan, (2017), there are four different images for managing change for intended and partially intended change outcomes. First image is Director, the change outcome is intended, and management approach is controlling. Second image is Navigator, change outcome is partially intended, and management approach in controlling. Third image of managing change is Coach, change outcome is intended, and management approach is shaping. Fourth image of managing change is Interpreter, change outcome is partially intended, and management outcomes is shaping.
Two approaches for implementing change
As mentioned in Palmer, Dunford, & Buchanan, (2017), there are two approaches for implementing change. The first one is organizational development approach and the other is change management approach.
Organizational development approach of Implementing Change: The different ways to manage change through organizational development approach are facilitated by coach and interpreter images of managing change. Two popular models of this approach discussed here are Kurt Lewin's three steps model and Organizational Development through Appreciative.
Kurt Lewin's three steps model: It is top-down, leadership approach: Coach images of managing change functions for implementing change through organizational development. These images of managing change focus on large diagnosis, focused, planned and incremental change. This model speaks that change implementation occurs through knowledge sharing, willingness of the employees for change and leadership style.
Organizational Development through Appreciative Inquiry: This approach is facilitated by coach images and it involves open conversation, understanding what works and what does not work, and it means leading with questions. The changes are expected to improve effectiveness of the organization (Stavros, Godwin, & Cooperrider, 2016).
Change Management Approach for Implementing Change
This approach is facilitated by director and navigator image of managing change. Change management theory regards the how of organizational transformational and it concerns is how to get to the desired situation breaking the status quo. Two different models of implementing change by change management approach are discussed below:
Pollitt and Bouckaert’s three stage model (annex-figure 21) describes that transformational change is large and is a natural process. It describes that the planned change gives desired results by coordinating the actions. Merit’s motivation for big changes are to offer greater emphasis on performance, to remove agency problems, to be flexible and to sustain organization etc. (Degnegaard, 2010).
John Kotter’s eight-step model (Annex-Figure 22) is another popular change management model which helps managers deal with the transformational change. This models also helps managers to be cautious with implementation error, such as declaring and celebrating success before it is achieved (Palmer, Dunford, & Buchanan, 2017).According to John Kotter’s eight-step model (Annex-Figure 22), change begins with the need of urgency to do so.
Key Managerial Implications for Implementing Change
Inspire people by presenting a compelling vision for the future
Keep employees informed by providing regular communications
Empower leaders and managers to lead through change
Find creative ways to involve employees in the change
Trust, empower, motivate, give credit, communicate process and gather feedback, strive for continuous improvement
Change brings uncertainty and if not managed properly, company may face employee turnover, work environment deterioration etc. Change agent should employ transformational leadership role. It is crucial to involve top, middle and lower level management. As mentioned in Galbraith, (2018), there are four key aspects to helping employees understand change, to drive commitment, and to ultimately contribute to your success.
References
Cummings, T. G., & Worley, C. G. (2013). Organization Development and Change 10th Edition. United States: Cengage Learning.
Degnegaard, R. (2010). Strategic Change Management. Change Management Challenges in Danish Police Reform. Netherland: Copenhagen Business School.
Maurer, R. (2013). The Spirit of Kaizen. Creating lasting Excellence One Step at a Time. United States: The McGraw-Hill Companies.
Pierce, J. L., Gardner, D. G., & Dunham, R. (2002). Management Organizational Change and Development. In Management and Organizational Behavior: An Integrated Perspective. Page 627-657. Cincinnati: South-Western College Publishing.
Stavros, J., Godwin, L. N., & Cooperrider, D. (2016). Appreciative Inquiry: Organization Development and the Strengths Revolution. Researchgate.net, 96-116.
Comments