Term Paper on "Organizational Change and Transformation"

Term Paper 12 pages (3723 words) Sources: 15 Style: Harvard

[EXCERPT] . . . .

Change Management

In order to successfully implement change management must plan the whole change process. Change management, is a sensitive process and so help of change agents is taken by the management. A change agent, or agent of change, is someone who intentionally or indirectly causes or speeds up organizational change. Change agents sometimes determine the need for change or sometimes they act on the needs identified beforehand by the internal management. After understanding the need for change thay make a plan for proposed change while considering probable reactions for proposed change. They finally execute the plan for change.

Dynamics of Change

Different warning signs show the management that the company is heading for trouble. Business starts to under-perform, more often than not demonstrated by missing trading targets. Some times management acts quickly to address short-term problem with short-term measures. However, if targets are being missed over a period of time and the balance sheet/working capital shows signs of decline and worsening then management or board ponders over long-term solutions.

Change come in different forms and ways within the organization. Sometimes the change changes the cultures while at times it only adds certain elements. Change is brought about whenever technology is introduced in organizations. Change in technology requires changes in people's competencies as they have to become skilled at new habits and take on a whole new approach. HR department or personnel acting as change agents can collaborate with departments to explain and train employees as to what they have to do and how they can do it.

Separate companies get together to form larger ones by way of mergers & acquisitions resulting in changes of cultures or amalgamation of cultures in organizations. Another way of change is the change in the management or ownership in the organization. New directors are appointed to try to perk up the fortunes of under-performing businesses. Change in management is usually followed by a series of structural and cultural changes in the organization. Changes also come when a company lay off employees as well as when it seeks to increase its strength of employees. In both scenarios problems crop up. Inductions or expansion requires on part of change agents to get them adapted to the new environment and new business goals. Similarly in case of downsizing survivors undergo complex feelings of uncertainties and insecurities resulting in dips in productivity.

Resistance to Change

Mostly employees deny change as there is natural resistance not only accept but also adapt to change. It has been observed ipractically that few people like changes. "Change has undeniably been labeled as difficult. Dealing with change is ambiguous, even on a good day. The fact is, however, that the root cause to the difficulty is the same root cause to the ambiguity. The real issue is: People! They aren't like a nicely defined data set where we can hit a few keystrokes, stack them, run an analysis and, if it doesn't work out, delete that worksheet as if it never happened. You don't get to move them into Excel so you can manipulate them in a pivot table until they look the way you would like them to" (Larson and Carnell).

The nature of resistance by its members varies in its intensity in the sense that it could be passive, active or even aggressive. Some argue that it is the organizations systems that cause more resistance rather than the individuals. Poor organization's structure or performance appraisal or compensation system can also be considered potential sources of main problem. In fact it is the loss of status, pay, or comfort because of which individuals resist change.

Change agents attempts to create changes and face resistance. Critics also argue that sometimes change agents also become a source of resistance. They have fixed mindset and an agenda and so any behavior that is not in line with his perspective is considered resistance. Self-fulfilling prophecies and preconceived notions of change agents at times create the very resistance they are trying to overcome. So it is important for change agents to consider their own role in nurturing the very resistance they are trying to prevail over.

Resistance to change is required to be converted into readiness to change. A lot depends on the probability of success of change process. Sometimes it happens that too idealistic & unrealistic goals are set because of which employees lose the morale and their resistance increase and readiness decreases. Similarly if systems are in place and resources are also available then it is easy for change agents to convert resistance into readiness. "Creating readiness involves proactive attempts by a change agent to influence the beliefs, attitudes, intentions and behavior of change participants. This view accentuates the social aspects of change as organizational players look to one another for clues about the meaning of events and circumstances facing the organization (Armenalds et al., 1993) and leads nicely into a consideration of the final change dynamic, momentum" (Jansen, 2000).

Once the change process is started then it is necessary to keep the momentum. Sometimes it happens that problems crop up during the process of change even if the initial resistance is overcome. A change agent is supposed perform different roles in order to create, maintain, or build momentum to steer change effectively. A change leader must possess different qualities that can help the change process. Agility, leadership, good communications, understanding of human psychology and business acumen are some of the qualities that change agents must possess.

HR as Strategic Partner in Change

Strategic role of HR has been given a lot of importance in modern organizations following modern management concepts. Many changes taking place within organizational framework have enhanced the role of HR in the organization. Increasing role of information technology and fast changes taking place in the external business environment are considered important in bringing forth the strategic role of HR in change management. Previously, HR had mainly administrative function to perform but with information technology has over the years taken over the administrative function from HR. After the most administrative tasks were taken over by technology then HR function became confined to recruiting, staffing, and developing individuals using their knowledge about the organization as a business and as a strategic entity. "Even it cannot be harnessed without the fundamental role played by human and intellectual resources" (Thite).

Now HR has greater role to play in strategic decision making such as bringing about a change because of its association with human capital. Since, human capital makes and implements strategy, so understanding and developing the capabilities to make and implement strategy requires a greater participation in the strategy making task. "Corporate HR practitioners are expected to have a strong command of business practices, to understand financials, to be able to quantify the effects of their programs on the bottom line and to sell their programs to management" (Solomon 1994).

Another important aspect to consider here is that most of the time excellent strategies are formulated but such strategies fail because of failure in implementation. Change strategy implementation requires certain capabilities and sills. If such skills do not support the strategies then failure of implementation takes place. "In short, execution failures are often the result of poor human capital management. This opens the door for HR to add important value if it can deliver change strategies, plans and thinking that aid in the development and execution of business strategy" (Lawler III & Mohrman 2003).

Understanding of Cultures

Organizational culture is one of the most important factors in implementation of change strategies that managers formulate to attain competitive edge. Organizations and their strategies fail because of this intangible yet crucial factor. Organizational values and culture may hamper the implementation of strategies/techniques. Cultural factors such as, "values, beliefs, rituals, ceremonies, myths, stories, legends, sagas, language, metaphors, symbols. Heroes and heroines" (David, 1991) can make or break organizations in today's competitive environment. So, cultural evaluation becomes a feature of utmost importance. Managers must check whether they still adhere to age-old management practices or if they welcome the values that modern management supports.

Importance of Leadership

The leadership qualities can play an important part in an organization going through a change process. The tasks for the leadership here is to provide its employees overall direction in order to effectively guide them during the whole process of change. In the absence of a proper direction the change of culture may become counter productive but providing direction in any way does not mean that managers can stifle the creativity and drive of their employees rather effective leadership allows others to inculcate in themselves superior leadership qualities and understanding of the change management process so that they them self can figure out the directions and actions which are needed to be taken without actually stifling the drive to acquire new knowledge and experimentation. In the whole change process top management and change leader play their due role. Change leader is supposed to determine the source of conflicting emotions and sift them… READ MORE

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