Change management essay

Change management essay DEFAULT

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Unit Title: Managing Change in Organisations


Introduction

Change management can be defined as "the process of continually renewing an organization's direction, structure and capabilities to serve the ever changing needs of external and internal customers" (Moran and Brighton, 2001). Similarly, Change management is a systematic approach to dealing with change, both from the perspective of an organization and on the individual level. Furthermore, it has at least three different aspects: adapting to change, controlling change, and effecting change.

Change is inevitable; the only thing that remains constant in today's fast changing world is change itself. Modern business world is open, competition level is of cut-throat and technological along with environmental development is beyond prediction. These all leads to the changes so undoubtedly change management need to be well considered by any organisation to be marked as the successful one.

The organisation I have chosen to study for the purpose of this assignment is Marks and Spencer (M&S), one of the most iconic and widely recognized British chain stores in the UK with over 600 shops located throughout the country and 240 worldwide including over 219 franchise businesses, operating in 34 countries with over 75000 employees. Its business includes food groceries, clothing retail and home products.

In this assignment I would explore the background to change affecting my organisation M&S, develop systems for understanding and involving others in the process of change and plan to implement models for ensuring ongoing change in M&S.


1.0 Background to change in Marks and Spencer

1.1 Background to change that exists in today's economy

There could be so many factors that initiate change in the organisation like M&S. These are the catalyst issues that have made the organisation consider the need for change. This could be internal or external or both. Here are some factors listed below:

Some Internal driving Factors

Human Resource: It is the most powerful weapon for any organisation to get success but still they are not constant and keep changing, this leads the change in the organisation. In M&S, there are few cases where it has to make some structural changes due to the some executive label labour turnover.

Corporate strategy: This is also could be termed as managerial decision factor for change. Even in M&S, some big changes have taken place due to the some new or reviewed strategies passed by the executive board.

Cultural Factor: Sometimes the organisation realises there is a shift or evolution in values and business culture. M&S followed this change into some branches at the country other than Western Europe.

Labour Union: Sometimes the labour union makes demand to the management in favour of the employees and management has to compromise with the employees and this leads to some changes. M&S has also made some few minor changes in its history when demanded to make employees more motivated and loyal.


Some External driving factors

Technological Development: When a company realises its operations are inadequate in relation to the current technological environment, the changes takes place. It is for all organisations today and M&S is not the exceptional case here.

Regulatory constraints: All organisations work in certain country or part or country where it will follow the legislations adapted by the authorized regulatory body there. Like others, M&S also follows the legislations accordingly to the country where it operates.

Globalization: It may be one of the strongest forces of change. Today's organisations are wide open and since globalization is gearing up the changes through out the world M&S also has gone into so many changes in order to survive in this tough competitive business world.

Political climate: Sometimes organisations have to accept changes accordingly to how political movement has developed in that place where it has to operate. M&S has done some structural changes in some eastern European countries few years before due to this reason.


1.2 Strengths and weaknesses of Bureaucratic organisations

Bureau is French word for desk, or by extension an office that means bureaucracy represents a rule through the desk or office. German political economist and scientist, Max Weber (1864-1920) believes bureaucracy is the division of labour applied to administration. Bureaucratic organisation normally adopts a tall structure and possesses a certain degree of standardization. They are better suited for more complex or larger scale organizations. There are clearly defined hierarchies. Almost all government organisations are bureaucratic in nature.There is no organisation in the world which has no sign or presence of bureaucracy at all. At least some functional unit or some division follows bureaucracy within the so called organic organisations. Though M&S is a private organisation, it has followed bureaucracy in many functional units. M&S has followed bureaucracy due to its strength that comes with it but there are some weaknesses also stuck together with it. Some of these strength and weaknesses are mentioned below.

Strength

Accountability: This is one of the most powerful strength of bureaucratic organisations. Most of the government control organisations are bureaucratic because they have to be accountable. There are very well defined rights and responsibilities in M&S.

Effective control:
Since there are well defined hierarchy and processes to follow also were well defined, effective control mechanism can be found in M&S and it is the sign of bureaucratic organisation and also a powerful feature.

Discipline: Discipline is more evident in bureaucratic organisation in comparison to the organic organisations and since discipline is key factor to success, M&S always try to follow it in its operation.

Less confusion: There is well defined hierarchy in the bureaucratic organisations so that any process, crucial decision making processes follows the predetermined path and no confusion will be there. M&S also follows the well defined hierarchy.

Weakness

Work delay: Due to the hard rules and regulations, any process will follow the predetermined path and fulfil all formalities. This leads to the delay of work in Marks and Spencer.

Resistance towards change: These organisations are normally reluctant towards the change due to its tall and well defined structure and huge rules and regulations. Changes are taking place fast but these organisations will take long step to make any decision towards change and as a result they always remain behind. There are some few occasions where management took a bit long time to make decision in M&S about new trend and lost competitive advantages.

Monotonous work routines: Since boundaries are so well defined in these organisations, employees will not go beyond defined authority keeping them away from new things to learn and do. It makes them monotonous and unproductive.

Unsuitable for complex organisation: Today's organisations are highly complex and diversified, so the bureaucratic structure looks to be to general and inefficient to tackle the modern problems which needs quick response and reactions as well. There are so many business units in M&S which are very complex in design and bureaucracy does not fit there.


1.3 Alternative forms of organisational development

Modern organizations operate in a rapidly changing environment. Consequently, one of the most important assets for an organization to live and get sustainable competitive advantage is the ability to manage the change accordingly. Organizational development is defined as "a system-wide application of behavioural science knowledge to the planned development and reinforcement of organizational strategies, structures, and processes for improving an organization's effectiveness." (Cummings and Worley, 1997)

As in case of M&S, it has also found adapted few forms of organisational development as follows:

Learning Organisation: It is an Organisation where people at all levels, individuals and collectively, are continually increasing their capacity to produce results they really care about. Systems thinking, personnel mastery, mental models, shared vision and team learning is some key disciplines of learning organisation. M&S has followed this approach thoroughly; it always welcomes learning at any stage and any level.

Total Quality Management (TQM): TQM is a people-dependent process as it to be most beneficial, people in the organization need to work together. TQM is a set of management practices throughout the organization, geared to ensure the organization consistently meets or exceeds customer requirements. TQM places strong focus on process measurement and controls as means of continuous improvement. M&S believes in team work, it always emphasizes for new innovation, quality control and upgrade.

Kaizen: It is a Japanese word and it simply means "improvement". The strategy of Kaizen calls for never-ending efforts for improvement involving everyone in the organization - managers and workers alike.It does care small improvements as it believes in the fact that small improvements leads to the major changes. M&S strongly believes in Kaizen concept so that it has established so many feedback mechanisms just to get valuable feedbacks from its customers and M&S applies those suggestions for better performance and this process never ends in M&S.

Six Sigma: Six Sigma at many organizations simply means a measure of quality that strives for near perfection. It is a disciplined and data-driven approach originally developed by Motorola, USA in 1981. Six Sigma is a business management strategy for eliminating defects (driving towards six standard deviations between the mean and the nearest specification limit) in any process -- from manufacturing to transactional and from product to service. M&S implies measurement-based strategy that focuses on process improvement and variation reduction through the application of Six Sigma improvement projects. Many believe that Six Sigma is the best method found yet for quality control and enhancement.

Business Process Re-engineering (BPR): Business Process Reengineering is a discipline in which extensive research has been done and numerous methodologies churned out. It is an approach aiming at improvements by means of elevating efficiency and effectiveness of the business process that exist within and across organizations. The key to BPR is for organizations to look at their business processes from a "clean slate" perspective and determine how they can best construct these processes to improve how they conduct business. M&S applies it specially in designing function.


2.0 System development for understanding and involving others in the process of change

2.1 Systems development to involve appropriate stakeholders in the introduction of change in M&S

System is an integration of different parts or elements to function combine to get an outcome. It has a definite boundary. The chain of input, process and output takes place in the system. It may contain many sub-systems.

Stakeholders can be a person, group, organization or system that either are interested in or affected by organizations action. Key stakeholders in a M&S includes management board, creditors, customers, employees, government (and its agencies), owners (shareholders), suppliers, unions, and the community from which M&S draws its resources. Though all are not included in this assignment as the change that I have chosen does not include all of them.

The change I took in M&S is the change in design or layout in its different stores. M&S management decided to go after customer complain or feedback about its poor display showroom to improve good impacts at its customers or visitors. The new design makes its stores brighter and gives latest look. The stakeholders involved in the change are employee, customers and shareholders.

Following are the systems I will develop to involve them to the change:

Meeting: The various meetings will be called to inform the employees about the change in its design and its potential affect. Meetings are taken place in different branches of M&S and for the manager level employees, it will be discussed in central office to develop some strategies on redesigning to enhance its performance.

Notice board: Notice will be put in the notice board of different branches of M&S to give information about the ongoing changes of redesigning. This idea will be helpful as all of the shop or outlets do not need the change of redesigning. The employees from such shop may send potential customers towards nearby shop where such changes have been made to make good impact.

Post or email: Letters will be poster and email will be sent to the shareholders (owners) of the company mentioning the need of change, its expenses and projected business enhancement due to this change. Letters will be sent to those shareholders who have more shares in M&S or who is in distinct position of the company or had been to such post at the past time. The shareholders union will be also notified by posting letter and email as well.

Advertisement: Bill boards are made, cover pages will be developed for popular magazines and daily newspaper showing the nice pictures of the new design of M&S to let its customers know about the recent changes and to attract them to visit the stores. Some electronic advertisements also will be done to boost up its aim of redesigning.


2.2 Evaluation of the systems

In previous section, I have mention about the development of some systems to involve the appropriate stakeholders to the change I mentioned, these systems have merits and demerits as any other systems do have. My intention will be to utilise its merits at the highest possible level and to try to reduce its demerits while utilizing the mentioned change in M&S. I will describe these attributes one by one below.

i) Meeting

Merits:

* It is simple to execute for all level of employee about on going outlet change

* It is also authentic and lawful. Records are kept in the minutes and all meeting attendees sign in the minute so this can be produced as the evidence at the time and place of need. It really works in the organisation like Marks and Spencer as in case of accidental claim from any of its employee at any regard due to the change occurred

* It is a cheap mean of advertisement for this design change

Demerits:

Some may be not interested and sounds bore for the lower level employees when M&S noticed about on going design restructuring

It may not cover all employees, in the case of M&S where there are too many employees, at once and also either it cannot be executed in office hour or will hamper the business if executed in office time

ii) Notice board

Merits:

It may be the simplest media of information to notify staffs about the showroom design change being initiated by M&S

No cost to M&S for this advertisement system

It can be done anytime, regardless of time and condition and useful for the busy scheduled organisation like Marks & Spencer

Demerits:

All target groups may not be aware due to its silence nature

Employees, normally middle to lower level employee may ignore it. There are always some notices hanged in the notice board of M&S so they may ignore it unknowingly too

iii) Post or email

Merits:

It is easy and fast system of information for shareholders of M&S about the design change in its showroom

It is one of the most used and convenient modern system for information relaying

Demerits:

No one can be fully assured that the targeted person has got the email due to different computer software systems

Posted letter may be lost or may reach so late to the destination due to various regions though only little chances are there

iv) Advertisement

Merits:

Many believes this is the most used and most effective approach of information in this modern fast changing and competitive market

It can target huge mass. Electronic advertisement can cover whole planet at once so it is one of the best media for the organisations like Marks and Spencer to announce its innovative new store look

It is so quick, easy and quality source for relaying information

Demerits:

It is so expensive system; lot of money is needed to advertise electronically and to advertise at famous newspapers

It is not affordable for all organisations, though Marks and Spencer can afford it but it has to manage its fund responsibly for advertisement


3.0 Implementation of models for ongoing change

3.1 Development and adaptation of models for change in M&S

In terms of the described change, I am going to mention two best suited models to Marks and Spencer. These models are Learning Organisations and Kaizen which also have partially described above.

Learning Organisation

The Learning Organization aims to bring new ideas, debate issues and introduce innovative methods. Many organizations have recognized the commercial significance of learning organization.

"The essence of organisational learning is the organization's ability to use the amazing mental capacity of all its members to create the kind of processes that will improve its own" (Nancy Dixon, 1994)

In the last few years, Marks and Spencer have experienced a succession of changes in management and corporate structure following a massive decline in sales which started in late 1990's before when it used to be unchallenged but now organisations like Asda and Next ( in Clothing) and Tesco (in Foods) has hammered it's leading position hugely. With more than 11 million shoppers a week and about 75000 employees, had no chance to do anything but adopt organisational learning.

The company has changed their marketing mix, dropped and added products, service and customers, downsized and made large numbers of employees redundant and yet they have not found themselves at the point they used to be before, the undisputed king on its business at high street market. One of main reason found out to be poor display structure at its showroom, it needs change. These all shows the need of a scientific based strategy for change management and hence for Marks and Spencer to undertake successful change, facilitation is required to transform the company into a learning organisation, making use of knowledge creation and management.

Kaizen

The word "Kaizen" represents a popular Japanese concept of "continuous improvement" with the main underline philosophy of "Ask not what the organisation can do for you but what you can do for the organisation". A Kaizen group of 10 people or so is formed and they meet frequently within the office hour, consider even the simplest possible improvement, conclusion is directly tabulated to the upper management themselves. This helps management to improve the quality and at the other hand employees feel true involvement which is the basic motivation factor that kaizen believes upon rather than money, machine and methods.

Moreover, Kaizen always emphasizes upon higher level needs of employee like recognition, involvement and self-actualization but management should be very aware of successful implementation of kaizen and healthy work culture. Employees feel more open work culture and upward communication is also encouraged in kaizen, employees are encouraged to look at Kaizens where investments are low or negligible. Kaizen tries to eliminate the root of problem not only the symptoms. Toyota is a hard follower of Kaizen system, it would not be exaggeration if said most of the Japanese companies have been benefited with this system. Upward communication in Marks and Spencer has not been so much developed and they have to think also about little mistakes to improve their quality like mentioned change of design. Hence Kaizen will certainly help M&S on changing in design look along with business improvement yielding the sustainable competitive advantage.


3.2 Implementation of models and outcomes

Though there are so many implementation models developed by the researchers like Kurt Lewin's 3 step model, action research model, Kotter's eight step model, Luecke's seven steps model etc. I will use the first one in M&S for the change management. German-American psychologist Kurt Zadek Lewin proposed a three step theory of unfreeze, change and refreeze.

Unfreeze

This is the key step and perhaps the most important step. Unless one will not be ready to change or feel the necessity of change in look of showroom, change process will not be successful; people need to understand how the change in design will benefit them. Organisation needs to challenge existing beliefs, values, attitudes and behaviours and make everyone ready to accept the change. Using learning organisation or kaizen model, M&S easily can get information about its current unsatisfactory status linked with display weankness and its affect on sinking sales volume. Once organisation realises its uncomforted zone then it will be ready to move toward comfort or satisfactory zone.

Change

People then start to do things in the new proposed way to move from uncertain to certainty or satisfactory zone. Change does not take place overnight, it takes time and called transition period. Time and communication are two vital things for successful change, organization should keep belief in itself and should keep people believed through the transition period. Learning, gathering information, group discussion, creating kaizen, making quality circles and implementing innovative ways for make best possible look at its outlet to attract high street customers and others to M&S.

Refreeze

The outward sign of the refreeze is stable organisation, appreciated new look rising brand loyalty, gearing up business indexes and so on. Now M&S will be ready to refreeze. At this point, organisation and employee feel comfortable and confident with new setup. Though change is on going process, employee should not let face another change immediately. Success of the change should be celebrated and M&S should thank everyone involved for their efforts in transition period and helps them believe that future change will be successful.

Outcomes


There are so many outcomes M&S will find after successful implementation of stated change management. First of all it will let M&S a chance to apply the highly appreciated and scientific theory of change management. Moreover, there will be developed a sound culture of practicing these innovative ideas at the future.

In addition, some outcomes are listed below:

  • New, shiny and comfortable work environment for employee

  • Well, attractive place to visit for customers and potential visitors

  • Increase sales probability and profit maximization

  • Increased employee loyalty due to their involvement in the process of change

  • High involvement, high self-actualisation means high motivation and high productivity for organisation and employee themselves too

  • Increasing brand image or a successful organisation

  • Happy and satisfy stakeholders etc.

Conclusion

In this assignment, I have mentioned about the change management and necessity of its understanding and successful implementation. I have also touched the topic on bureaucracy along with the alternative forms of organisational development. I have found out one appropriate change in M&S for its betterment and suggested some models to entail along with the implementation model of very famous Kurt Lewin's 3 step model. M&S is struggling today and its aim is to re-capture its posture in the high street market. Hopefully this little work will be somehow helpful for anyone interested in this subject.


References

Cummings T. G. and Worley C. G. (1997). "Organization Development and Change", Sixth Edition, South-Western Publishing

Dixon, Nancy M.(1999). "The Organisational Learning Cycle - How we can learn collectively", 2nd Edition, Gower House, Hampshire

Moran and Brighton (2001). Class notes by Mr. Ali Tariq

Sharma R. R. (1997). "Change management- Concepts and applications", Tata McGraw-Hill Publishing Company Liminted, New Delhi

www.marksandspencer.com

http://hbr.org www.thisislondon.co.uk

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Change and Change management: A Business Essay

  1. Introduction

Change and change management are two common terms used in organizations today. In some instances, it has been noted that they are used interchangeably though they have different meaning. Change is movement from the current position to a future position through a transition state while change management is supporting the individuals affected by the change during the transition state and adapt to the new organizational paradigm (Burnes, 2014, 9-10). The industrial revolution which started in Britain and spread to other parts of the now developed world initiated the scientific management which saw a shift from the traditional way of business to the new approach. It was realized that the traditional management was no longer relevant in achieving the objectives that came as a result of the capitalist economy. Large companies and the governmental institutions started to shift to a better management approach that was viewed as more ideal. In the modern world, change is perceived as a continuous process and both the employers and labour force have to catch up in order to remain competitive in the market.  This synopsis is meant to establish change and how it has evolved with time, how change is managed in an organization, and the challenges that face change and change management. This will be done through review of available literature on the topic of change and managing change.

 

During the industrial revolution, it was realized that the approaches to labour that were used were not enough to steer companies to the realization of the new goals and objectives. Excessive research was carried by several people who wanted to have the optimum productive of the employees. Leading the pack were Weber, Taylor and Fayol who coined scientific management in the 19th century. Though they were writing form different environments and constraints, the idea was behind the approach and the proponents were the same. Classical approach as is commonly referred to changed the whole perception on labour and that organizations were just made of individuals. It came into being as managers realized that the methods used then were inconsistent to responding to new challenges and opportunities. However, the classical approach soon became obsolete. Critics argued that it was limited to a single dimension of the human motivation (Burnes, 2009, 15-30: 2014, 15).

The classical approach began to face opposition both at an intellectual and practical level in the 1930s. Human needs were viewed as dynamic and money was not the only thing that gave motivation to the labour force. This bore the human relationship approach which was the new paradigm that companies and individual were required to adopt. As expected, it faced opposition from the traditionalists who viewed it a radical system to the already established code of operation (Burnes, 2014, 33-40). A new approach come into being, the contingency theory, which viewed organizations as open ended system each having a unique way that works best for it. It was favoured since it came at a time when technology was increasingly finding applications and being incorporated into management. Many viewed a simple approach to understand compared to the previously developed ways. A company will have good performance if it adopts a structure than aligns their environment, technology and size (Burnes, 2014 74-80).

 

  1. What is change and change management as used in the business organizations and governmental institutions?
  2. How has the approach to change and change managed evolved since the dawn of the new thought during the industrial revolutions?
  • What are the barriers to change and what are the mandates given to the management team during the execution of the different strategies?

 

  1. Literature review

Competition and globalisation are constantly increasing in the modern world hence change management becoming increasingly important. A systematic view of change management has been proposed that provides a characterization of change management from the viewpoint of modernism. The approach to changes should be logical and executed in an orderly manner and takes it classification and relationships as alternatives to managing change. The systematic view has three approaches to change management; modernism, post modernism and structuration, which all provide a framework for the developing and an improved understanding of the problem situation which is characterized by diversity and interactions of the organizational change (Cao & McHugh, 2005, 480-488). Managing change is one of the critical parts during the implementation of the new strategies that will make the organization remain relevant in the otherwise competitive markets (Burnes, 2009, 188).

There are several reasons why organizations opt to adopting a new system or structure of doing business. Whether for corrective measures, matching up with the prevailing market trends or even for steering the company ahead, the management at one time will have to make the some decisions that alter the normal approach of doing business (Porras and Silver, 1991, 51). Both the internal and external environments significantly influence how businesses operate and the changes that they can make. Organizational politics, power and culture have significant influence on the process of change since they are key factors to the final decision and implementation process (Burnes, 2009, 250).

The magnitude of change varies which demand different action to be taken by those in authority. Change or success does not require people to do dramatic action but just ordinary things done by the ordinary people in a competent way. Managers have the ability to influence on the course of events and steer people to achieving the desired goals and objectives. In the same way, they are able to lead the subordinate staff into adopting the new set rules and guidelines that are deemed necessarily by the change. Understanding the group dynamics is very vital while dealing with change. In any society, there are the ring leader and the less subtle section that tend to follow the majority side.  Discovering these connections is very vital since the reception of the new ideology, structure or technology will be greatly influenced by these forces within the organization (March, 1981, 563-577).

To have a better approach to the change management, the change process has been characterised as either planned or emergent. The planned change approach was developed prior to the 1980’s(Porras and Silver, 1991, 52-55). According to Lewis Kurt, planned change aims at resolving conflicts by bringing together the various parties; managers, employees and change consultants. During the planned change process, self esteem and performance are significantly affected. The coping cycle was developed to show how people in an organization responded to the implementation of the planned changes. In the initial stages, there is a lot of denial which is followed by defence as people feel threatened by the new approach. The management and the organization as whole then enter the discarding stage where the traditional ways are dropped, adaptation and finally internalization of the changes. This method has been categorically being called the three steps model which include unfreezing, moving and refreezing. It relation to the five stage and effects on both performance and self esteem are shown below.

s1

Figure 1: Relation between the five stages and the three steps model (Adopted from Burnes, 2009, 340)

Emergent change approach counteracts the proposition that there are universally accepted rules for change as proposed by the planned approach method. Rather, it outlines five determinants that affect the success levels of change. Organizational structure, organizational culture, organizational learning, power politics and managerial behaviour are listed as the key factors that should be given considerations while managing change. Change is achieved when all the people actions are linked at all levels of business. Some scholars, however, have proposed some flexible and general guidelines that should be followed under this method. The proponents of this approach argue that the operating environment is changing rapidly, radically and in a very unpredictable manner.  The internal environment is thus forced to have continuous change so that it matches with the trends in the market (Burnes, 2008, 380-410).

  1. Discussion

The day’s approach and the general views are constantly changing hence the need to adopt the newer systems which lead to a better realization of the set objectives and goals. Dealing with the change is the most challenging part since people are generally resistance and comfortable with the existing methodologies. It has been noted that for people to be more accepting, the end results should be in their favour. Over the last century, there has been varying approaches that companies have used in executions of their mandates. However, it has been pointed out that there has always been a rift between the approaches used by the different parties involved. It becomes crucial that those in power have the know-how on how to deal with the system (individuals) as they undergo through the transition stage and employ the new set code of action. If this is not taken into account, rift and strife will be prominent which will further hinder the process of changes. Understanding change and change management become crucial in order to be in a position to fit in into the new system.

 

To overcome the resistance to change, one should first understand the cause (Peter & Kaeufer, 2000, 1). Several qualitative researches have been done to establish the core issues that impede the process of change. Though done by different authors the core issues that influence how the individuals involved accept or reject change were found to be almost identical (Dent & Goldberg, 1999, 28). Peter & Kaeufer (Peter & Kaeufer, 2000, 2) points out that the failure to trust when it matters limits many change initiatives. Some of the key reasons why individuals and organizations resist change include misunderstandings, emotional side effects, lack of trust, fear of failure, personality conflict, uncertainty, fear of outcome, poor training, threat to job and breaking of work group. The weight given to the above factor varies as per individual and the context of application. It is worth noting that throughout the different managerial approaches that have been in force, the factors for the resistance to change have been consistency (Dent & Goldberg, 1999, 28).

 

  • Challenging resistance to change

As much as change is expected in any system, people are not always receptive of the new organizational paradigm and in many cases tend to cling on the old methods. The term resistance to change appeared in the 1950’s as authors tried to explain the methods can be used to have a smooth transition. Several authors through research works, speeches and even films in the 1950’s proposed methods that can be used to overcome the resistance to change. They argued that whether it is an administrative, technological or structural change, they will all face some resistance since the problem was psychological at an individual level. Resistance to change is a normal phenomenon that should be expected in any organization. It can be frustrating to managers if their efforts are not implemented by the subordinate staff.  It was shown that the management need to draft some strategies which would help implement the new development and managerial approaches (Dent & Goldberg, 1999, 33-35).

The methods that were proposed to be ideal in overcoming change included education, participation by the affected parties, discussion, financial benefit, discussion, facilitation and negotiation and political support (Dent & Goldberg, 1999, 28). In this case, it is assumed the resistance to change is more of a psychological problem and to overcome it, one needs to change the mindset of the affected individuals and make them more receptive. Alternatives to this psychological approach, strategies for overcoming change are offered regardless of the intended change. Changes can results to certain negative effects such as loss of status by employees. However, these difficult situations should not be labelled as resistance to change that that perception will further impeded the process of change (Dent & Goldberg, 1999, 28).

 

  • The process of change in an organization

Changes can be termed as episodic or continuous (Quinn & Weick, 1999, 362). Episodic change describes organizational changes that are infrequent, discontinuous, and unintentional while continuous changes is used to group together the organizational changes that are cumulative, evolving and tend to be ongoing (Nutt & Backoff, 1996, 333-340, (Burnes, 2009, 460). Several management practitioners and authors had come up with different approaches to the change process and common cycle that are undertaken for both continuous and episodic change. For example, Mintzberg & Wetsley (1992, 39-59) wrote about detailed cycles of organizational change and how they affect they are affected by internal and external environment of the organization. It is agreeable that the organization should set the right framework for change to be effective. The range of situations that are faced determine to the right approach that should be followed (Burnes, 2009, 432; 2014, 307-8).

The change process can viewed as a triangle with people, objectives/outcomes and planning forming the edges. The process begins with establishing a team that will be involved in planning the change and setting the objectives and the intended outcomes. The people within the organizational are then informed of the new strategy and its implementation process. It is the responsibility f the team to monitor the progress and issue corrective measures to align the progress to the set goals (Burnes, 2009, 460-465).

The driving force behind the change of organizations has been a central and enduring quest by scholars and practitioners in the field of management. It has proved to be hard to find the sequence of events that lead to the unfolding of the events of change. Several theories such as the evolutionary and teleology (Van Den Ven & Poole, 1995, 522) have been developed in attempt to explain the cycles and motor of change. It is the responsibility of the management to steer the organization in achieving the desired change. One of the key problems that the management are facing today is the effects of globalization. The unified market has brought a new edge in sustainability, workforce diversity and business ethics (Hage, 2006, 598-622)

The management is therefore required to devise new ways of approach to and implementation of change (Burnes, 2009, 495-500). They are expected to adapt or shift managerial roles since each single decision they make as far reaching effects and profound implications on within the organization and even in the society. A clear line should be drawn between the role and responsibilities of a manager and a leader and managers meant to understand when and how to act (Burnes, 2014, 430-1).

 

  1. Conclusion

Change has been described as an inevitable process whether at a personal level or in organization. Since the onset of the industrial revolution, there have been drastic changes in business process as the management of various organizations and corporations try to remain equally competitive in the otherwise stiff market. It has seen the emergence of newer theories and management approaches which were then replaced by newer methods and strategies while in search of the ultimate solution. The systems have been known to be very opposing to changes despite the positive outcome. Individuals as well as the top management have rejected changes that they termed as not in their favour or against their beliefs. This has resulted to a new genre of management that deals with specially managing the change and the change process.

 

  1. References
  2. Burnes, B. (2009). Managing Change. Harlow: Pearson Educational Publishers.
  3. Burnes, B. (2014). Managing Change (Sixth ed.). Pearson Educational Publishers.
  4. Cao, G., & McHugh, M. (2005). A S ystemic View of Change Management and Its Conceptual Underpinnings. Systemic Practice and Action Research, 18 (5), 475-491.
  5. Dent, E., & Goldberg, S. (1999). Challenging Resistance to Change. THE JOURNAL OF APPLIED BEHAVIORAL SCIENCE, 35 (1), 25-26.
  6. Frances, W., & Henry, M. (1992). Cycles of Organizational Change. Strategic Management Journal , 13, 39-59.
  7. Hage, J. T. (2006). Organizational Innovation and Organizational Change . Annual Review of Sociology , 25, 597-622.
  8. March, J. (1981). Footnotes to Organizational Change. Administrative Science Quarterly, 26 (4), 563-577.
  9. Nutt, P., & Backoff, R. (1996). Fashioning and Sustaining Strategic Change in in Public Organizations . Public Productivty & Management Review , 19 (4), 331-337.
  10. Peter, S., & Kaeufer, K. (2000, October 04). Creating Change. Execurive Excellence , 2.
  11. Porras, J., & Silver, R. (1991). Organizational Development and Transformation. Annual Review. Psychol, 42, 51-78.
  12. Quinn, R., & Weick, K. (1999). ORGANIZATIONAL CHANGE AND DEVELOPMENT. Review Pyscho., 50, 361-386.
  13. VAn De Ven, A., & POOLE, M. S. (1995). EXPLAINING DEVELOPMENT AND CHANGE IN ORGANIZATIONS. The Academy of Management Review, 20 (3), 510-540.

 

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Change management essay on McDonalds

rodrigo | November 13, 2012

WritePass - Essay Writing - Dissertation Topics [TOC]

 

Introduction

Change management can be defined as ‘the process of continually renewing an organisation’s direction, structure, and capabilities to serve the ever changing needs to external and internal customers’ (Moran and Brightman, 2001).  As per Burnes (2004) change is a feature which is always present in the life of organisation. It exist both at operational and strategic level. The organisation is aware about where the change is required and is fully capable of planning and implementing these changes in its structure .According to Burnes 2004; Rieley and Clarkson, 2001, the organisations strategy and organisational strategies are something which goes hand in hand and cannot be separated. In the words of Graetz, 2000, ‘Against a backdrop of increasing globalisation, deregulation, the rapid pace of technological innovation, a growing knowledge of workforce, and shifting social and demographic trends, few would dispute that the primary  task of  management today  is leadership of organisational change.’

In early times the theories believed that if the organisation keeps changing management system then it can no longer run effectively nor can it make any improvement in performance (Rieley and Clarkson, 2001). It was believed that the company had to bring new management theory into routine in order to achieve efficiency and improvement in the performance. This Means that an organisation has to give ample time for a particular change to be adopted and settle down in daily routine so that it can be run in efficient manner (Luecke, 2003).However in today’s time It is believed that staff of the organisation should go through continuous change to achieve efficiency (burnes, 2004; Rieley and Clarkson, 2001)

According to Grundy, 1993 ‘change which is marked by rapid shifts in strategy, structure or culture, or in all three.’ Senior, 2002 adds to it saying that this kind of sudden change or implementation can be caused only due to malfunctioning of the internal structure or it can be caused due to external pressure.

Every organisation is looking to move forward by implanting a management system with will boost organisations strength and capability, enhancing its competitiveness. An organisation has to deal with unforeseen situations in today’s highly competitive environment and to deal with this it has to be more flexible and ready for any situational changes that it will have to make, like adoption of new technology or some latest development in theory for current market. In the fast moving economic environment there continuous changes in the type of technology, the way the product is marketed, trends etc. the organisation has to be more flexible to adopt changes in order to remain competitive in the global market. Change can be good in a way; it can make complex work very simple and helps to improve lives through new innovations.

Organisations bring change in their working structures to be more competitive and providing the best to their customers. As per Carlpio (1998) change is something to do with implementation of new innovative ways of doing things, enabling the room for improvement in the system through practice. Number of changes can be introduced in the system but the one which brings success to the organisation is considered to be the most important one of all.

A change in management system is important specially when a particular system which the running organisation is facing difficulties or has some problems with it. Changes are brought in to improve the organisations performance.  Changes are mostly brought due to forces which can be internal or external yee, 1998.  Changes can be brought at different level of an organisation (Swenson, 1997) The modification needed or which can be done maybe many or quite a few (Reigeluth, 1994).

There could be various factors for change (Bamford and Forrester, 2003). Change can be either internal or external. External include new technology which is current requirement of the industry or trend in the current economy which may have direct impact on profitability of the business.

A structured method of change was adopted in 1946 by Lewin (Bamford and Forrester, 2003) what lewin had to say was something different than the old theories, he mentioned that in order to apply any new theory or change management an organisation will have to first discard it’s old management structure or system. Management of changes pays a role in identifying objectives of the organisation and then sets goals accordingly. Its role is to implement new changes in the organisation in which it can be noticed that these changes ultimately bring innovations. The first step towards organisational change is to understand the requirements of the organisation and issues with the current management structure.

The purpose of the paper is to provide insight of change management process in the chosen company which is McDonalds and provide solution and recommendation for the same.

 

Overview of the company

McDonalds is a company with mile stones of success which was started in 1954 by Ray Kroc as a burger shop which was then turned through extensive marketing planning and campaigning making it a global brands in today’s time. It is renowned fast food brands all over the world with more than 32,000 branches in 117 countries.McDonald’s trade mark was a carefully created and was a successful hit which was a clown with a smile. The big Mac is one of the most successful products of McDonalds.

McDonalds offers a menu which is almost the same all cross the world. The menu includes burgers, hamburgers, cheese burgers and drinks include soft drinks with fries. McDonalds target customers includes kids, teens and families. It is now the most renowned brand in fast food that sells ready to eat and quickly served fast food.

In spite of being a famous brandMcDonaldsis still facing some issue and needs to change its management structure and image as the people in current time have a bit different expectations then those in previous days (McDonalds 2010)

In today’s time people have become more diet and health conscious and are now moving towards food which is healthy and has more nutritional values. Fast food has always been known as junk food with no nutritional value and the popular opinion was that fast food results into obesity by increasing fats in the body. Today’s generation is more figure conscious and are looking forward for food which is low fat and high in proteins.

McDonaldsis facing problems as it is a well established fast food brand and fast food is always related to unhealthy and fattening food, while competitors ofMcDonaldshave already made a move towards health conscious products by introducing entire new range which is healthy and non fattening. McDonalds needs to change the way it markets itself and also need to introduce a new line of products, as per expectations of new generation’s customers.

 

Scope of change

Advertising and marketing places an important role in establishing an image of the company in the eyes of the society in which it operates. The scope of change widely lies in the implementation of integrated marketing strategy. In this paper the importance is given to marketing and advertisement part as to launch new range of healthy products, the company has to implement new marketing practises.

The new marketing campaign will adopt a new health conscious process which will flow along with a trend of fitting with health related issues like obesity in young children’s and create awareness about health eating practises. The main objective of this campaign is to promote its new products which are healthy and contains low fats. This will help create positive image of McDonalds among the customers and make them aware of new products which are healthier than the earlier once.

To execute these plans the company has to plan its new strategy of advertising and marketing ideas and put a team in place to implement this strategy. The company has also introduced new smoothes and shakes along with healthy breakfast which is available before 12 in all the branches in UK. The marketing integrated campaigns main aim to reflect company mission and new attitude is been seen by the public through companies new promotion and marketing plans.

Problems in implementing change

When implementing change, conflicts will always follow. There are always conflicts on the route towards changes either before or after it has been initiated. Change in management can be the reason to bring success or failure to an organisation; however conflicts can bring problems if there are not resolved in time as they can bring obstacles in the new management structure introduced. The management has to be aware that it should be capable of not only introducing necessary changes but also be able to implement them effectively clearing all the obstacles.

The main reason to bring changes in the organisation structure especially through marketing campaign is to improve the image of the organisation and to make the company more competitive in its industry.  The company might have to face many obstacles in doing this and these obstacles can be both external and internal.

It is important to know the consent of the stakeholders of the organisation as they are very important part of the organisation. Stake holders include share holders, customers, supplier and employees. It is important for an organisation to keep all its stakeholders happy because if they are happy then it’s beneficial for the organisation.

But there will conflict due to changes as there will be resistance from the side of employees or customers themselves as often people resist changing. There may be employees or customers who would accept the change happily but the problem is with those who do not agree with new management system which is to be implemented. Most of the time they may think that the change which has been brought is nothing to do with the issue or it may worsen the situations. I it may also happen that within employees they might not trust people who are in charge of this new change.

Employees are not the only one who creates obstacles for change sometimes even the customers are not ready for change. If they do not take to change positively then this may create issue for the company to achieve its goal for the change.

Along with this another problem that McDonalds may face is finding the right staff to drive this change that will be responsible to deliver these changes in department of marketing and communication.

In addition to from employees and customer’s resistance there can be other barriers this may affect the process of change. The strategic implementation is important part of changes; complications in this can be problematic for the company. There can be many other issues which can create barriers in changes such as conflict in view of share holders or the problem in finance and lack of budget of the company another problem can be sustaining the process of change.

As per carlopio 1998 innovation is something that does not happen in a day it takes series of phases to finish the process of change. Staff involved in this change management process must undergo some kind of training and learning procedure to make them competent to sustain the series of change until it attains success. Inability to handle or lack of experience and knowledge in implementation of strategic change may not be able to achieve integrated marketing and communication strategies.

So to overcome the problem of negative response the management of the company should make the staff go through necessary training and development programmes. The training programme should be such that it should provide complete understanding of the programme to the members of the staff. It should make sure that none of the information is missed in the training programme. After the programme there should be a follow up to check if all the members have understood and have sufficient information to support change.

There can be internal conflicts between the members of the staff due to cultural issues. This bring problem in harmony of the members in the organisation, leading to conflict within the company. McDonalds must understand the cultures of its employees and should identify the problem that may be caused because of the conflicts if any (wikins and Dyer, 1998)

McDonalds should incorporate governance in the system to enhance the quality of staff and the time spent by them at the work place. Different appraisal policies can help to boost employees. Working environment can also be improved so that staff members can have a good time while working for the company which at the same time also benefits the organisation.

Strong organisation culture along with good management team is needed to solve such internal conflict issues. The second most important change is to sustain the success that had been achieved through implementation of new management process. Change is part of the society and it comes again in regular interval of time (Carlopio, 1998).

For the success of change management it is important that all the stakeholders know or are made aware that current change has been brought for the betterment of them. The management of the organisation should constantly analyse the current market trends and predict future scenarios, so that it can prepare itself for next set of change that will be required for the success of the organisation.

 

Recommendations

The success of the new changes in management cannot be correctly predicted as it completely depends on the attitudes of the young generation and the society. Changing the image from fast seller to a company who provides healthy meal is not a easy process, but with strong marketing campaigns and advertisement the message can be sent to people and there is a chance that this message will be delivered. It is imperative that the new image of McDonalds reaches all 117 countries. After this message has been promoted there is a chance of getting rid of the critic’s comments that McDonalds brands have unhealthy and fattening.

In other words innovation can be explained as a bunch or new ideas which have been successfully implemented (Kuhn, 1993). Innovation can be led by two factors which is technology based innovation and the second one is demand based innovation. However most of the innovations are charged up realisation of demand instead of technology.

Changes are mainly driven by constant research and development, performed by companies and R&D is given a lot of attention. Apart from R&D there can be other ways of bringing innovation and one of the simplest ways to keep improving working practises while in the daily routine. Combination of knowledge and extensive work experience can help to innovate a new a better way of doing things. Radical innovation always come from the R&D department of the company but innovations which are incremental can only come from through practice (Lundvall, 1992).

McDonalds will have to plan and implement its new marketing campaigns effectively with effective ways of doing it. The company has to take care that its internal staff is competent in delivering the outcome and that is minimum resistance from the internally. There is a good chance that McDonalds can change its image in food industry from junk food supplier to a health conscious meal provider.

Conclusion

As per beverage 2003, the management of the organisation has to be on toss all the time to keep the organisation up to the market expectation. They have to continuously analyse and monitor current market conditions so that that they are aware of the current standing of the company in the market. To bring innovation the management will have to keep a check on which ideas are working and which are not doing well when implemented and accordingly change the management structure. To implement a management change the leader must create a environment which is safe and will support new changes in the organisation.

A above all It can be said that a change in management is good only if that particular change has potential to improve companies competitiveness in the market and bring more success to the organisation. The organisation should keep monitoring current situations and make changes only if it is felt necessary, as change in organisation is a complex decision and has direct impact on the image of the organisation. With proper care and preparation and organisation (McDonalds) can survive the toughest competition.

 

References

Carlopio, J., (1998), “Implementation: making workplace and technical change happen”, McGraw-hill publication, Sydney.

Yee, J.A., (1998), “ Forces motivating institutional reform”, http://www.ericdigests.org/1999-1/reform.html. Accessed March 2011.

Swenson, D.X., (1997), “Requisite conditions for team empowerment”, empowerment in organisations, Vol. 5 No. 1

Reigeluth, C. M. (1994). The imperative for systemic change. In C. M. Reigeluth & R. J. Garfinkle (Eds.), Systemic change in education (pp. 3-11). Englewood Cliffs, NJ: Educational Technology Publications.

Wilkins, A., Dyer, W. Jr (1988), “Toward culturally sensitive theories of cultural change”, Academy of Management Review, Vol. 13.

Kuhn, R.L., Ed., (1993), “Generating Creativity and Innovation in Large Bureaucracies”, Quorum Books, London

Lundvall, B.A.,  (1992), “ National Systems of Innovation: Towards a Theory of

Innovation and Interactive learning”, Pinter, London.

Beverage, w. M., (2002), “slow change in fast culture”, Educause review, pp. 10-11.

Moran, J. W. and Brightman, B. K. (2001) ‘Leading organizational change’, Career Development International,

6(2), pp. 111–118.

Burnes, B. (2004) Managing Change: A Strategic Approach to Organisational Dynamics, 4th edn (Harlow:

Prentice Hall).

Rieley, J. B. and Clarkson, I. (2001) ‘The impact of change on performance’, Journal of Change Management,

2(2), pp. 160–172.

Graetz, F. (2000) ‘Strategic change leadership’, Management Decision, 38(8), pp. 550–562.

Luecke, R. (2003), “ Managing Change and Transition”,  Harvard Business School Press, Boston

Burnes, B. (2004) Managing Change: A Strategic Approach to Organisational Dynamics, 4th edn (Harlow:

Prentice Hall).

Bamford, D. R. and Forrester, P. L. (2003) ‘Managing planned and emergent change within an operations

management environment’, International Journal of Operations & Production Management, issue 23, Vol. 5

McDonalds, (2010), “about McDonalds”, http://www.aboutmcdonalds.com/mcd, viewed on 5th march 2011.

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Essay change management

Management Of Change Essay

1045 Words5 Pages

Introducing a new concept of work practice to an organization means changes have to occur in order to accommodate it. This would lead to organizational changes and may disrupt work patterns. Often, a change is necessary if an organization means to be competitive, and unless new ways and methods are developed and introduced, an organization may find itself lagging and not competitive. Benchmarking is one of those concepts that aim to improve work practices and achieve optimum results. Because change can bring negative connotations, it is important to take careful steps to effect change without major disruption to employees who would, more likely, be resistant to a new concept that may threaten their work comfort zone. So, effective…show more content…
There are many factors that have to be considered prior to implementation of change in an organization, in this case a hospital. Employees in an organization, such as a hospital, are likely to resist changes. So it is inevitable that some obstacles will appear when benchmarking is introduced. The resistance to change is often generated by the lack of understanding of the proposed change, so, providing training to people affected by the change would help reduce their resistance and make the change more acceptable. (Massey & Williams, 2006) argues that when management provides employees with guidance and training then they are more likely to be accepting of change and taking responsibility, ownership and commitment to the new working environment. When the benefits of benchmarking to employees are outlined, whereby their work will be easier and their product would be more optimal, then they are likely to recognize the need for the introduction of the proposed system. (Massey & Williams, 2006) states that the aforementioned argument would lead employees to agree that their workplace needs the change and what follows will be a discussion on how to make the process and the job easier to perform. Ensuring that employees are well informed about the nature of the proposed changes and the expectations of their organization management of them in implementing the change is

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