"ASM’s International E-Journal on Ongoing Research in Management and IT"
E-ISSN-2320-0065
Research Paper on Organizational Change Management Utkarsh Arya Asst Professor IMCOST, Thane,India
Girish choure Asst Professor IMCOST, Thane,India
ABSTRACT.: The issue of managing organizational change is of key importance within management theory and practice. A number of lawsuits have shown that attempts to 'manage' organizational change frequently failed . Therefore the aim of my paper is to find why does the failure almost occur? Additionally, this paper's objective is to provide discussion and find reply to the following questions:which specific aspects of change are currently impacting most on practicing managers? How do they react to change? How are they so careless with them? And how successful are their efforts? How do the problems identified and solutions described, relate to the theory and research on organizational change? What kind of organizations is the most adapted to changes? The findings suggest that most companies’ operational strategies and structures reflect past business realities—making organizational inertia one of the most significant obstacles to change . However, it is noted that leadership and management skills, such as visioning, prioritizing, planning, and providing feedback rewarding success, are key factors in any successful change initiative. It culminates with a final paper and oral presentation's conclusions, implications and suggestions for further research. Introduction. What Are Organizational Change and organizational Change Management? Change has several meanings, but for the purposes of this paper, change—or, more precisely, organizational change—will be defined this way: Organizational change is the implementation of new procedures or technologies intended to realign an organization with the changing demands of its business environment, or to capitalize on business opportunities. In addition, organizational change management is the process of recognizing, guiding, and managing these human emotions and reactions in a way that minimizes the inevitable drop in productivity that accompanies change. Organizations have to deal with new technology, and with upgrades to existing technology. They have to cope with reorganizations, process improvement initiatives, and mergers and acquisitions. Which specific aspects of change are currently impacting most on practicing managers? How do they generally respond to change? How are they dealing with them? And how successful are their efforts? How do the problems identified and solutions described, relate to the theory and research on organizational change? Mergers, acquisitions, new technology, restructuring and downsizing are all factors that contribute to a growing climate of uncertainty. The INCON – X 2015
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manager who moves straight into why the change is best for everyone and how business is going to be conducted disregards the human nature element - the emotions that are normal and natural for anyone feeling threatened by change to fail. At every step in the process of implementing an organizational change, a good manager will ask him/herself “How might I react to these changes “? As the organization implements the changes though, the reality of the change becomes present and employees may either resist the changes or start to adjust to the changes depending on the individual. The employee who continues to resist, remains angry and is labeled as “difficult” is feeling more threatened and may need some one-to-one time with the manager to discuss the changes or at some point, may need clarification from the manager about performance expectations in light of the changes. There trigger external and internal for organizational change. Motivation Against a backdrop of rapid technological development, a growing knowledge workforce and the shifting of accepted work practices, change is becoming an ever-present feature of organizational life. However, whilst many organizations appreciate the need for change, as many as 70% of the change programs do not reach their intended outcomes. In response to the increasing importance organizational change, there is a growing body of literature looking at the concept and processes of change management and factors that contribute to its success. Drawing from a wide range of disciplines and theoretical perspectives this literature has been described as abounding in complexities and containing many contradictory and confusing theories and research findings. Any occupation in today's fast-moving environment that is looking for the pace of change to slow is likely to be sorely disappointed. In fact, businesses should embrace change. Change is important for any organization because, without change, businesses would probably lose their competitive edge and fail to meet the needs of what most hope to be a growing base of loyal customers. Purpose. Organizational change management is a framework for managing the effect of new business processes, changes in organizational structure or cultural changes within an enterprise. Simply put, organizational change management addresses the people side of change management. A systematic approach to organizational change management is beneficial when change requires people throughout an organization to learn new behaviors and skills. By formally setting expectations, employing tools to improve communication and proactively seeking ways to reduce misinformation, stakeholders are more likely to buy into a change initially and remain committed to the change throughout any discomfort associated with it.
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"ASM’s International E-Journal on Ongoing Research in Management and IT"
E-ISSN-2320-0065
However since change is the only thing which is constant in this day to the day changing environment, this topic is selected to understand why 70% percent organizations failed to achieve their desired outcomes. Literature Review. 1) Research on Organizational Change in Public Organization by Sergio Fernandez (Indiana University) and Hal G. Rainey (University of Georgia). The variety of theoretical perspectives summarized in the online version of this article presents a rather confusing picture, but it provides insights into the nature of organizational change, and in particular, the causes of change and the role of managers in the change process. Some of the theories downplay the significance of human agency as a source of change (e.g., Scott 2003). Conversely, other theories view managers purposeful action as driving change, although environmental, cognitive, and resource constraints place limits on such activity. These major theoretical perspectives illustrate researchers conflicting views about the causes of change in organizations, especially the mental ability of managers to bring about change. Despite the conflicts among theorists, however, a significant body of research indicates that managers often do make change happen in their establishments. Public sector studies also offer evidence of the vital role that public managers play in bringing about organizational change. Noting that managers can effect change tells us little, however, about whether an intended change actually occurs and about the best strategies for effecting change. Fortuitously, a stream of research exists that contains various models and frameworks, many of them loosely based on Lewin ’ s (1947) steps or phases of change. These studies identify the process of implementing change within organizations and point to factors contributing to success develop specific strategies for gaining a future end state. Some research on private organizations indicates that it is easier to convince people of the need for change when leaders craft a vision that offers the hope of relief from stress or discomfort even suggest implanting dissatisfaction with the current state of affairs in order to become members of the organization to embrace change. To convince people of the need for and desirability of change and to begin the process of “ unfreezing ” the organization, suggest employing effective written and oral communication and forms of active participation among employee. Further from this research I understand, that successful implementation of new programs depends on top management’s ability to disseminate information about the change and convince employees of the urgency of change. 2) Organizational Change Management Powers Document Information Transformation.Source-http://www.ricoh-usa.com Research on Japanese company manufacturing xerox machines and printing machines. (RICOH). Shows a new model of behavioral change management was developed called as a Prosci ADKAR Model In support of getting desired business results.
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"ASM’s International E-Journal on Ongoing Research in Management and IT"
E-ISSN-2320-0065
The Prosci ADKAR Model represents five goals of individual change that must be accomplished for a successful transformation. • Awareness of the need to shift; • Desire to participate and support the change; • Knowledge of how to change (and what the change looks like); • Ability to implement the change on a day-to-day basis; • Reinforcement to keep the change in place Awareness – Understanding Why Change is Needed Before people will accept change, they need to be aware of a compelling need for it. Senior management plays a key role in clearly and consistently communicating why transforming information management will further corporate strategic goals and why this initiative is to be supported across all Line of business. Benefits are further reinforced at the Line of business level by respected domain experts and Line of business managers. As a member of the change management team, a marketing communications specialist is wellequipped to develop an internal communication plan that helps promote awareness and lower the risk of employee alienation.Internal communication tools may include: • Official branded email announcements endorsed by top management (using companyspecific branded themes (e.g., “brand” the change--Better, Faster and Greener) • “Did you know” pamphlets • Lobby/break room posters • Branded Post-it notes Note: it is important to plan ahead and measure awareness before, during and after transformation to determine whether communication plans are forming or need tweaking. Desire to participate and support the change; Once awareness of why a change is beneficial has been planted, people need to be motivated to particulate in the change on a personal level. Everyone in a business creates and uses documents--it is intrinsic to the way people in virtually any role do their jobs. Habits are ingrained and seldom given a second thought—it takes personal effort to change them. No technology can effectively enforce a willingness to embrace new processes. The only way for real change to happen is to satisfactorily answer one important question: “What’s in it for me?”Some of the positive effects of transforming business critical document processes include making knowledge workers’ jobs easier—more effective and, arguably, more employable. But new processes and technologies frequently involve a learning curve, and this can promote insecurity about whether they will win. It is important the benefits of change need to be perceived as greater than this insecurity and the natural resistance to change. Knowledge – What do you need to know to succeed
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"ASM’s International E-Journal on Ongoing Research in Management and IT"
E-ISSN-2320-0065
Because they have participated in designing the transformation of the current state to the “desired state,” those same Line of business domain experts and managers are in the best position to help design a plan for developing and transferring skills to the rest of the constitution. These SMEs can work together with the marketing communications specialist or other resources on the change management team, to design and implement a training program. Some examples of programs for knowledge transfer may include: Formal on-site training Self-paced online training and self-help documents“Cheat sheets”Decision trees for Help Desk responses these tools must be in place before building the awareness and desire to participate. They will be part of the process to help people believe they have what they need to succeed, making the transformation seem less daunting. Ability to enforce the change on a day-to-day basis; People need time to acquire new skills and behaviors. A plan for evaluating the success of knowledge transfer, of proficiency in new processes, should set realistic expectations over a reasonable period of time. Measurement of key performance indicators (KPIs) will reveal not only the progress of an individual’s abilities but also the improvement in overall performance in meeting program objectives, staying on schedule and staying on budget. Interestingly, while new processes and technologies part of a transformation may call for new performance measures, KPIs should be retained and leveraged as much as possible--like cost per page or customer service response time. This provides a certain level of comfort and sense of continuity throughout the organization. Reinforcement to keep the change in place: Reinforcement actually does more than sustain a changed process; it creates a culture of continuous improvement. A culture of continuous improvement looks beyond the initial transformation, for further opportunities for cost savings, greater innovation, and improved customer service. There are three steps to reinforcing change: collecting and analyzing feedback; diagnosing gaps and managing resistance, implementing corrective actions and celebrating successes. The change management plan for this phase should include • The means for listening to employees and gathering feedback; • Auditing compliance with new processes, systems and roles; an independent, ISO-like audit will provide un-biased feedback to help reinforce new processes; • Analyzing the ongoing effectiveness of change management The collection and analysis of feedback on the performance of the transformation will help identify root causes and pockets of resistance to the use of new procedures and technologies—and these, in turn, inform the development of corrective action plans that enable sponsors and stakeholders to handle resistance, and extend the initial benefits.
3) Center for Understanding Organisational Change Management. INCON – X 2015
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"ASM’s International E-Journal on Ongoing Research in Management and IT"
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By- Matt Barnar & Naomi Stoll, National Centre for Social Research. Within the literature, one of the most influential positions which I came through is known as ‘planned approaches’ to change that of Lewin (1952, in Elrod II and Tippett, 2002) who argued that change involves a three stage process: firstly, unfreezing current behavior; secondly, moving to the new behavior; and, finally, refreshing the new behavior. The threestep model was assumed for many years as the dominant framework for understanding the process of organizational change (Todnem, 2005). Since its formulation, the hypothesis have been reviewed and modified, with the stakes being divided to create more specific steps. For example, Bullock and Batten (1985) developed a four stage model consisting of exploration, planning, action and integration. Despite its popularity, Lewin’s original theory has been criticized for being based on small scale samples, and more importantly the fact that it is based on the premise that organizations work under constant conditions that can be taken into consideration and planned for. As a consequence of such criticisms an alternative to planned approaches to organizational change was developed that is known as the ‘emergent approach’. An emergent approach to organizational change sees change as so rapid and unpredictable that it cannot be done from the top downwards. Rather, it is argued, change should be seen as a process of learning, where the organization responds to the internal and external environmental changes. A key point emerging from the review is that the literature is consistent in indicating that change isn’t a single, continuous process, but rather is broken down into a number of different steps. The implication of this is that managers will need to consider what strategies, in terms of communication, training, reinforcement etc., are appropriate for the different stages, rather than settling on a single approach that can be used throughout the procedure, and at the same time remain flexible and reactive to changes as they occur. This of course will require more effort and preparation time, but the reward is likely to be that change happens more smoothly and efficiently. While planning these strategies, managers need to consider the nature of the psychological contract the organization has with employees and how the changes they are introducing might alter its balance. Crucially, if the balance is altered, managers need to consider how to rebalance it if they want to avoid resistance that could undermine the process. Nevertheless, the situation is further complicated by an awareness that even where employees are not personally resistant to change, a wide range of other factors can prevent the change from taking place or being sustained, and these also need to be taken into account. 4) Organizational Change: Motivation, Communication, and Leadership Effectiveness. By : Ann Gilley, Jerry W. Gilley and Heather S. McMilla. This research indicates that numerous variables have an impact on a leader’s effectiveness. This study explores the behaviors associated with leadership effectiveness in driving change. The findings confirm previous research that identifies change effectiveness skills while isolating the specific leader behaviors deemed most valuable to implementing INCON – X 2015
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change: motivation and communication, further this research also focuses on Lewin’s three stage change model and compares with Ulrich’s seven step model and Kotter’s Eight steps Model, also this research focuses more on leadership skills and abilities for effecting change in organizations. Which further focuses on factors like Coaching,Communicating,involving others, motivating, rewarding others and promoting teamwork. 5) Organizational Change Management: A critical review Queen Margaret University College, Edinburgh, UK . From this research paper we can clearly see that change is an ever present factor that affects all systems. There is a clear consensus that the pace of change has never been greater in the current continuously evolving business environment. Therefore a successful management of change is a highly demanded skill. However the management of organizational change currently tends to be reactive, discontinuous and adhoc with a failure rate of 70 % of all change programs initiated. This may Indicate a basic lack of valid framework of how to successfully implement and manage organizational change, since what is currently available is a wide range of contradictory and confusing theories and approaches, which are mostly lacking empirical evidence and often based on unchallenged hypothesis regarding the nature of contemporary organizational change management. By providing a current review of change management theories and approaches, this research has made an attempt to highlight the need for a new and pragmatic framework for change management. In order to build such a framework it is recommended that further exploratory studies of the nature of change and how it is being made should be conducted. Such studies would arguably identify critical success factors for the management of change. This research also suggests that methods of measuring of organizational change should be designed in order to appraise the value of any new framework suggested. 6) Change Management In High Performance Organizations as a Result Of Regulatory Shocks. This research report analyses the impact of a regulatory change ('shock') on a public service organization. Dependent upon the nature of the organization, various steps are undertaken to absorb the shock. Since health care organizations are high performance entities and are a system of interrelated medical care units, they need to apply theoretical frameworks that assist in change management of large organizations. Currently there are a number of frameworks which can achieve this. In this paper, I will analyze two system change frameworks and propose a new approach based on these two frameworks. In this research we have seen two models to handle change in system which are The Star Model.
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"ASM’s International E-Journal on Ongoing Research in Management and IT"
E-ISSN-2320-0065
The Star Model is based on the premise that a system level change requires attention to six distinct areas of the organization/system. The individual vertices on the star work in tandem with each other but not all areas are equally important all the time. According to Golden and Martin (2004), there are six ideas implicit in the model and they are as follows. 1. Organizational problems are not because of lazy, dumb, unskilled people. Rather, it is the entire system that is weak and this weakness is reflected in the attitude of its employees. 2. There is no single correct way to create a system. A systems construction is based on the requirements for change, its previous configuration and the external elements which are present in the proposed systems ecosystem. 3. All points on the star are not equally important in re-designing the system. The level of importance for each area is dependent on the kind of change that is being pursued. 4. The model is dynamic in nature and changing the conditions around one area of the star could lead to changes in some other area(s). Therefore it is advisable to be cognizant of this fact before making sweeping changes based on the star. 5. Health care leaders can indirectly influence their systems by using the areas on the star. 6. There is always a cultural backlash to all changes and tackling that is an important step And the other model for change management is COGHLAN & MCAULIFFE'S MODEL FOR LARGE SYSTEM CHANGES This model is based on a five phase approach which happen in a sequence: 1. Determining the need for change. 2. Defining the desired future state. 3. Assessing the present in terms of the desired future to ascertain the alterations to be made. 4. Implementing the change and managing the transition. 5. Consolidation and sustaining the variety. Though the model calls each of the five items it investigates a phase, they can also be considered questions that are asked of the organization's management while going through change planning. Although both the models are much effective for High Performance Organizations and are very less useful for other companies. 7) Challenges Facing Change Management. INCON – X 2015
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"ASM’s International E-Journal on Ongoing Research in Management and IT"
E-ISSN-2320-0065
Mildred Golden Pryor Sonia Taneja John Humpheys Donna Anderson Lisa singleton This research paper focuses on different change management models which are still relevant for 21st century. The problems are not with their relevancy or their worth. The problems and challenges facing organizational leaders, organizational development experts and researchers relate to the speed and complexity of change required today. This article addresses selected change management models and research, their relevance in today’s global economy and the challenges facing organizational leaders and researchers in terms of their application and anticipated outcomes. We also suggest a relatively new strategic model as well as novel applications of existing change management models and theories. Various Change Management Models are, • The Action Research Model/Theory (Collier, 1945; Lewin, 1946; French, 1969; Schein, 1980); • Lewin’s Three-Step Model (Lewin,1945; Lewin,1951); • Schein’s Extension of Lewin’s Change Model (Schein, 1980); • The Lippit, Watson and Westley model of planned change which expanded Lewins ThreeStep • Model to a Five-Phase Model (Lippit, Watson, and Westley 1958); • Kotter’s Strategic Eight-Step Model (Kotter, 1996); • Mento, Jones and Dirmdofer’s Twelve-Step Model (Mento, Jones and Dirmdofer’s 2002); • Jick’s Ten-Step Model (Jick, 2003; Jick, 2001); and • Shield’s five-step model (Schield, 1999) The change management models that have been discussed in this article are still relevant and can be used as they have been in the past, with one exception – the speed at which the steps, stages, or phases of the models occur. This era is one of rapid change, sophisticated communication and technological systems and variables that make preparation for the future complex and fast-paced. In order to be able to be a winner in this type of environment, processes and relationships must be streamlined, non-value-added activities must be eliminated and people at all levels in organizations must be empowered to rapidly make decisions and held accountable for those decisions. Discussion : Starting with my analyses for the subject, In today’s ever changing world change is only constant and our turbulent environment offers new opportunities that can be seized by those who continuously develop their levels of expertise and learning methods. If we desire to be among those who directs the currents of change, we must accept learning as a lifelong process, in which our patterns of basic assumptions. m. . E paradigms play an important role. INCON – X 2015
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Such paradigms change constantly during interactions with the changes taking place in an environment, so that the contemporary paradigm of a successful post-modern society and organizations differs significantly from its predecessors. What further I analyzed about organizational changes are. 1- Changes cannot be predicted – they can only be anticipated. 2- Owing to the fact that change is inevitable, the themes related to overcoming resistance to change that were topical a decade ago, are giving way to new ones. 3- In these times of turbulent change that we live in, change has become the rule. 4- Carrying out changes is painful and risky task, which entails about all much hardwork. 5- If an organization wants to survive, it must even encourage change. 6- In times of rapid structural changes, those directing the changes will be the only one to survive. 7- One of the primary challenges of management in the 21st century is the restructuring of organizations into conductors of change- as they need to understand the opportunities inherent in change. There is a comparative analysis of various models for organizational change management with regards to situations or CHANGE organizations are facing. Furthermore, the research showed a positive relationship between organizational commitment and positive attitudes to change confirming evidence from the literature showing that organizational commitment is one of the most significant determinants of successful organisational change. The more employees identify with their organizations the higher their commitment to their constitution and the greater their willingness to accept organizational change. The present study has several practical implications for managers and organizations facing organizational change. First, it was shown that good and effective work relationships are very important in organizational change. Handling conflicts, building supportive work relationships, communicating effectively all contribute to the formulation of positive attitudes to change and, therefore, to the success of a change program. Second, organizations need to examine the extra workload which organizational change may create. Conclusion. With this I conclude in a today’s world of constant, complex change, organizational leaders who react rapidly and responsibly are successful. The organizational leaders who anticipate and invent the future are even more successful because they are the leaders in their organizations and their industries. The establishments that do not survive are those that are run by people who give way to invent the future or even adapt to change. Empirical research should be conducted to assess the extent to which organizations have developed an agile system that can continually reinvent itself. This inquiry should investigate what parts of the system are missing or inadequate aligned in order to predict how capable the organizations INCON – X 2015
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are in terms of organizational transformation. And also It is clear that the potential to increase market competitiveness and growth is within the control of an organization’s leadership. It is through the deliberate and disciplined action of management that organizations effectively implement change initiatives that cultivate success. Effective leaders engage their motivation and communication skills and translate these into explicit behaviors to influence change initiatives positively. Organizations and their leaders who fail to recognize the importance of these skills will become another statistic in the failure rates of change. References. Organisational Behaviour Textbook 13th Edition Ch-19. http://epublications.bond.edu.au http://glennschool.osu.edu www0.dmst.aueb.gr http://www.sjm06.com http://www.ricoh-usa.com http://ro.uow.edu.au http://www.bristol.ac.uk http://academia.edu http://www.performancexpress.org http://www.thinkingexponentially.com http://www.bristol.ac.uk/cubec/ ******
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