MANAGING CHANGE. Work, Society and Organizations - Assignment Example

? MANAGING CHANGE Work, Society and Organizations ………………………….. College ……………………………… ……………….. Words count: 2428 Table of Contents Table of Contents 2 Introduction 3 Managing Change 3 Manager’s roles in change management 5 Influences of motivation, culture and structure on Change Management 6 Managing resistance to change 7 Change Management in Ford 10 Conclusion 11 References 12 Introduction Business organizations are required to face the challenges of time and be able to change in order to deal with contingencies, manage diversity, promote speed, and foster innovation so as to survive and ensure competitive advantage. Managing both change and resistance to change has gained significant importance in academics of management in recent years. Change is perceived to be a perfect way of reaction to external threats in volatile environments or as a proactive measure to seize growing business opportunities (Thompson, 1993, p. 697). This piece of paper addresses the theoretical perspectives of ‘change’, ‘managing change’ and managing ‘resistance to change’. This paper gives insight in to how managing change is influenced by individual as well as team motivation and organizational culture and structure. With help of reflect on Ford’s change management process, this paper elaborates real life experience of change and managing change. Managing Change Change is a very powerful strategy, a technique and an opportunity that an organization can achieve its goals by managing it effectively. Change is an opportunity since organizations can try some new ways or methods to carry out organizational activities and management functions and achieve organizational competence. Change is an informed and participative process resulting in newer methods of carrying out business to lead the business or other types of organizations in to success (Jacobs, 1997, p.22). ‘Strategic Change’ has become an increasingly important term in management studies. Strategic change refers to a process by which the present state of strategies will be transformed to compete with counter players in the market and with differentiated functioning so as to attain greater adaptability and viability in the current business contexts. There are basically three types of changes; reengineering, restructuring and innovation (Sekhar, 2009, p. 76). According to the strategic change theory of Peters and Waterman, an organization’s ability to change is the basic key to its excellence. Excellent organizations are those that continually foster on innovation, maintain better pace to quick actions and conduct on-going experimentations (Dobson, et al, 2004, p. 122). Change management involves process, people and managerial technique and incorporates a number of managerial functions like direction, planning, coordinating, organizing and controlling (Palmer, Dunford and Akin, 2009, p. 24). Change doesn’t occur automatically, but it requires managerial action and strategic activities with resources such as people, process, technology and managerial functions as well. Change management is a careful attempt from management to bring a change in any of its functional areas such as HRM, financing, marketing, manufacturing and so on. It is an effort to change the way the business has been carried out. Change management includes a set of concepts, principles, strategies, tools and techniques that are applied to human aspects in order to implementing a change within the organization (Rothwell, Sullivan and McLean, 2005, p. 17). Change management is a multi-disciplinary action in which the management team who are responsible to execute the change are to possess certain skills, talents, supports, experiences and knowledge so as to influence others to get them involved in the change process. Paton, Paton and McCalman (2008, p. 40) emphasized that the management team being responsible to implement change is expected to possess following skills and abilities: Better communication skills that are essential within and outside the organization so as to communicate people about the change in right time and right manner, Maintaining motivation and administering tem works, Executing strategic planning and controlling functions, and Knowledge or rationale for change. Manager’s roles in change management Executing the change very effectively if the fundamental role of manager who is responsible to bring and manage change. ‘Change Management’ is a management process and therefore the manager who proposes a change to be executed has to play all the functional roles required in any other management process. He therefore plays pivotal roles in planning, organizing, directing, coordinating and controlling various organizational activities. Top level management plays significant roles in policy-making and decision making for overall change and related activities. Middle level management is more responsible for execution and interpretation of policies and ‘change’ related issues throughout the organization and for the successful operation of divisions and departments. First level or supervisory management level is directly responsible to do certain tasks that are assigned by the middle management team. They are responsible for attaining the organizational objectives (Burnes, 2004, p. 500). When it comes to managing change, top management plays vital roles in decision making, policy making and directing these policies to the middle and first level management. Middle level management’s major roles are communicating the proposed change to the first level management and get them involved in the ‘change’. First level management and other people in the organization may resist change and therefore both upper and middle level managers have to play very crucial roles in managing resistance as well. Burnes (2004, p. 501) stressed that managers with responsibility to implement change have to play three fundamental roles; interpersonal roles, information roles and decision-making roles. One of the key roles that managers are to play is directing and representing the people. In directing, communicating and representing the people, the manager while implementing the change has to play 1) as a figurehead being the formal representative of the organization, 2) as liaison, by forming connections with other organizations and 3) as a leader by maintaining relation and influences among the people in the organization (Burnes, 2004, p. 501). Managers play vital roles in obtaining and disseminating information. With relation to informational roles, managers function 1) as a monitor by seeking, receiving and storing information that can be used for the overall advantage of the company, 2) as a disseminator, by broadcasting these information to the organizations and 3) as a spokesperson by communicating information to other relevant groups and bodies (Burnes, 2004, p. 501) Managers, while implementing the change, also play significant decision-making roles. With this role, managers may be involved as 1) an entrepreneur, by looking for ways to improve the operation of the business, 2) a disturbance-handler, by managing crises and contingencies, 3) as resource allocator, by constructing budgets and allocating resources, and 4) a negotiator, by negotiating organizational activities as they have necessary information and the authority to carry out negotiation (Burnes, 2004, p. 501). Influences of motivation, culture and structure on Change Management Managing and planning for change may impact people and teams in the organization in different ways. People in the organization may respond positively or negatively. When they respond positively, they will in turn support the change and ‘managers’ can very easily execute change effectively. When people show negative response, it is their resistance to change and managers have to find useful strategies to first manage the ‘resistance’ and then to implement change effectively. Resistance to change can be managed in different ways. One way to manage it is motivating people to team work, collaboration and organizational learning activities. As and when an individual or team in the organization is motivated towards effective team works, they will tend to show positive attitude and will be supportive to the change. Motivation and orientation to work are thus strategies to manage resistance to change. Change is largely influenced by an organization’s culture and learning environment. Organizational culture is the system of shared values, actions and beliefs that are established in the organization. This influences its members to guide and shape their attitude as well as behavior that they show to work and responsibilities (Schermerhorn, Hunt and Osborn, 2005, p. 436). Organizational culture is the DNA of an organization as it patterns and figures out the values, beliefs and behavior of its members. Culture largely depends on the success of managing change. An organization that always fosters on innovation, product development, advances in technology, product differentiation, and strategic aspects of HRM etc will show positive attitude towards change. Organizational structure refers to the way that management levels and corporate governance are formed and established in the organization. The communication channeling, delegating authority and direction techniques between managements in the organizational setting also largely impact the change management. Managing resistance to change No matter whether it is in family, social, community or organizational levels, when there is thrive for a change; people will either be for it or against it. People may support or dislike the change. People’s response to change may be 1) commitment, 2) involvement, 3) support, 4) apathy, 5) passive resistance, 6) active resistance and 7) aggressive resistance (Spector, p. 9). A generally accepted assumption in change management perspectives is that all changes are resisted. People resist changes inherently because they anticipate various consequences such as loss of pay, loss of salary, loss of status and so on (Dijk and Dick, 2009, p. 144). Getting people involved and supportive to change is highly critical to the success of change management. It requires strategic planning and strategic thinking in order to explore the levels of resistances by influencing people positively. Barriers to change that cause ‘resistance’ are poor leadership, lack of management support for change, internal conflict for resources and lack of reward or recognition or motivation (Gilley, Godek and Gilley, 2009, p. 5). These factors cause resistance to change or increase the level of resistance. In order to manage resistance, it is also important to consider these factors and all these issues need to be overcome. Effective leadership, collaboration, motivating team work, employee involvement, better communication etc are some of the factors that can directly up to an extent eliminate ‘resistance’. Managing resistance to change is a systematic approach that identifies major factors that normally cause resistance in an organization and take strategic measures to help management encourage people to get them involved as well as responsible for the change. Palmer, Dunford and Akin (2009, p. 172) introduced a six-method model for managing resistance to change. According to them, resistance can be very effectively managed by 1) education and communication, 2) participation and involvement, 3) negotiation and agreement, 4) facilitation and support, 5) manipulation and cooptation, and 6) explicit and implicit coercion. Communication can eliminate wider gaps between teams. With effective communication, people will become aware of both positive and negative consequences of change and they may not misunderstand about the loss of pay or loss of salary or loss of status that are found to cause ‘resistance’. Communication is the management function of informing people about the rationale for the change. It keeps them confident about the change. With the second approach, namely participation and involvement, managers have to try all those activities wherein people can automatically be motivated to be involved. For instance, team work, collaboration, organizational learning activities such as training and development can increase people’s involvement. Negotiation and agreement are meant to provide incentives to actual resistors. With facilitation and support, managers should try to provide resources of both technical and emotional. With manipulation and cooptation, managers may try to obtain supports from individuals by giving them key roles and leadership in change process. With explicit and implicit coercion, managers may threaten people with undesirable consequences. According to Holbeche (2005, p. 70), resistance to change can be managed effectively by three managerial functions. He identified a three-steps managerial functions that can manage or avoid resistance to change. These are; Identifying the reasons why people resist the change, Recognize their fears, concerns and understanding about change and its outcomes, and Reassure people by making them aware that the firm is aiming to support them with the change being proposed It is widely known and accepted that ‘resistance to change’ is the major cause for change failure in many organizations. A firm’s success in managing change depends on its success and strategic effectiveness in its ways to manage resistance. Managing resistance requires intellectual as well as logical activities that managers can make use of depending on various situations. Change Management in Ford Ford, one of the most successful motor brands and largest auto-manufacturer in the world, designs, manufacturers and markets cars, trucks and auto parts in various brands such as Ford, Mercury, Volvo and Lincoln throughout the world. Being a Fortune 500 company, Ford has emerged to be a very successful brand to account for half of the total motor markets in North America. Ford’s product development process is an example for change in its organizational level. Ford has recognized that product development has become an increasingly important factor to survive in the contemporary marketing situations to accelerate the creation of those vehicles that customers really want by reducing costs with increased quality and improved efficiency (Ford, 2011). As part of the product development task, Ford recognized senior leaders in the product development task and also for purchasing the services of professional organizations for ensuring global responsibility for vehicle segments. Managers, while implementing change, have to take people in the organization through three stages. One is preparation, where in employees begin to hear about the change by memos, meetings, speeches and formal contacts. The second stage is acceptance in which leaders or managers help employees create and develop an understanding of the consequences of change on them. The third stage is commitment in which managers will successfully implement and institutionalize the change (Daft, 2009, p. 433). As far as Ford’s managing change for product development is concerned, the company has initially used its website and other communication portal for conveying messages of redesigning and restructuring of its products to its people. Ford used unique tolling and programmed tolling technology to benefit the company so as to eliminate the need for replacing specific retooling (Sustainability Report, 2011). In bringing this change, Ford used the three-stage process of managing change; preparation, acceptance and commitment. Conclusion Change is a challenge because it almost always accompanies resistance. Change is an opportunity because business firms must be adaptable to changing business environments. As it is an opportunity, organizations need to take strategic steps to successfully implement it by managing the resistance. This paper has illustrated theoretical aspects of change, managing change and managing resistance to change and attempted to apply the theoretical underpinning to the personal experience of change management in Ford motor company. Change management involves various managerial functions such as planning, coordination, direction, and controlling of organizational activities with a view to implement change. When proposing a change, it is very likely that it will be resisted and therefore managers are required to take strategic steps such as team work, participation, communication, collaboration etc to make people involved in the change process so as to eliminate resistance to change. This paper has highlighted various strategic steps that managers can take to manage resistance to change. References Burnes, B, 2004, Managing Change, Fourth Edition, Prentice Hall, Pearson Education, Daft, R.L 2009, Organization Theory and Design, Tenth edition, Cengage Learning. Dijk, R. V and Dick, R.V, 2009, Navigating Organizational Change: Change Leaders, Employee Resistance and Work-based Identities. Vol. 9, No. 2, Journal of Change Management, Routledge, EBSCO database. 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