Consultancy Skill and Organisational Change - Essay Example

?Consultancy Skill and Organisational Change in British Airways I. Introduction Change is an organisation is a fundamental reality. In most firms, change is described as the process of shifting to a better position. Since change is a common event in organisations, companies are expected to provide concrete plans to anticipate such occurrences. The vitally of change is evident in the adjustments made by organisations in their goals. There are several elements that contribute to this observation. External and internal changes are usually the classification maintained by organisations. Categorising change according to impact allows firms to use appropriate measures and techniques. There are important considerations specified by firms in implementing policies for change. Most of these programmes are studied and deliberated before infused in an organisation. It is imperative for companies to assess the strategy before making adjustments. This will prevent the entities involved from acting differently. The versatility of firms is also a critical aspect when dealing with change. In most instances, organisations that are open to change succeed in the industry. Moreover, the preparation of contingency strategies is also needed when dealing with changes. Firms that resist change have experienced difficulties in dealing with problems and opportunities. It is important for organisations to understand that change is both inevitable and intrusive. There will come a period in a business cycle when a company has to make radical changes. Change also affects the manner in which the general policies of organisations are made. Success in the current global setup is dependent on how firms manage change. The succeeding discussions will tackle organisational changes that have transpired in British Airways. The Company is viewed as a classic case where culture was changed because of demand both within the organisation and outside market forces. II. Organisational Change The stages of change, as derived from the study of Booth-Butterfield (1996) start with pre-contemplation. In this stage the supposed change has yet to gain the awareness of involved entities. Contemplation is a stage shows that the employees are aware of the change. But the focus of the personnel is on different concerns. Then, the employees are prepared for the implementation of changes. In addition, the employees are tasked to perform the modification and provided with maintenance programmes. Prochaska, et al (2001) devised a process that prepares involved entities to change. The cycle starts with the raising of consciousness among the employees. In addition, employees are given with proper tools to handle the change. This is more than just compliments but actual benefits in the growth of the personnel. Moreover, employees are given opportunities to let go of their emotional contentions. This is usually done when the change starts to take effect within an organisation. The employees are then subjected to further evaluation. This is more of a comparison of behaviour before and after the change. Since the problems are identified, the management needs to eliminate stressful components of change. It means that negative stimuli stalling good behaviour will be removed. The company also needs to emphasise on the commitment of the employees to change. This is like a renewed assurance to accept change. The last phase of the process involves finding the proper behaviour for expected changes. This also includes the elimination of bad behaviours that were observed. Schein (1999) created a model that describes change. This method was called cognitive definition. The first stage involved motivation to change. This process is more of a self-evaluation that employees need to determine. The stage includes acceptance that previous actions failed. The second part of the model asserts changes in needed areas. Most firms are concerned about the extensive resources which will be devoted for the activity. But the benefits of this initiative will alter the cost. It is critical for the organisation to balance the threat from negative behaviours and the desire of entities to make change. In manifesting change, it is important to identify a strong vision for the desired goals. Formal training is important in areas where employees are proven as inefficient. There has to be personal control in the process of learning. In addition, the training modules have to be focused on the group concerned. Firms have to pool quality training resources for the employees. Moreover, the leaders in the organisation have to step up. It is important that a support group is established to maintain performance. Most important, rewards have to be provided for personnel who are successful in making the change. Schein (1999) further emphasised on implementing permanent changes. This stage is considered as the maintenance phase. The end product of this process includes creation of new identity for the organisation. The behaviours established in the process will serve as strong foundation for future changes. There is a possibility that new behaviours will evolve. These are important is strengthening interpersonal relationships. Firms that successfully undergo the process can address change handily. The Formula for Change or Gleicher’s formula was coined after Richard Beckhard and Davud Gleicher. The formula was designed to evaluate the capacity of programs to implement organisational change (Beckhard, 1969). The formula also maintains that change has to happen in three reasons. First, there is evident dissatisfaction regarding the status of an organisation. It is also important to have concrete vision on the future results. Firms have to identify feasible actions to implement the vision. One important note that needs to be maintained is that the product of the three reasons is greater than resistance. When resistance is lower than the mentioned justification, then there needs to be change. It is also important to understand that the absence of any of three components will make resistance higher. For instance, dissatisfaction alone will not merit for change. The company needs to provide the value of change and the manner in which this value is achieved. There are notions stating that resistance also mean the cost of change. This definition is harder to overcome. Even when change is required, firms have to check their coffers and weigh the financial sacrifices. Strategic thinking is critical in implementing change. The vision is crucial in defining the future actions for change. Moreover, firms have to recognise the existing dissatisfaction within the organisation. This can be done by consulting the entities involved with the firms. Suggestions on how to make the shift are important inputs for the companies. There are certain mathematical processes included to accommodate change with monetary considerations. III. Organisational Learning There are several empirical evidences that point to the extensive use of learning is organisations. In a study conducted by Tucker, Nembhard, and Edmonson (2006) the process of organisational learning is better approached by creating project teams. Normally, individuals become more receptive of the changes and become more cooperative in the learning process. Also, project teams have the capacity to get over barriers that resist change. In addition, it was emphasised in the study that the knowledge transfer becomes more successful when the source is highly reputable (Klein, et al., 2001). Another research conducted by Badger, Chaston, and Sadler-Smith (2001) suggested empirically, that organisational learning provides positive effects in small firms. In particular, small firms enhance the management of knowledge that is relevant to the operations. Also, learning enables small firms to be equipped with the capacity to manifest changes, for instance, technology transfers. The study specifically underlined the need for small firms to continuously invest on promoting learning within the organisation and ensure that effective processes are being implemented. Teo, et al. (2004) conducted a study on the impact of learning in guiding employees towards successful adjustments in complex technology situations. Based on empirical evidences, the learning approach used by firms can assist the employees to adjust in complex situations. Most important, the study discussed the extent of organisational learning manifested in firms. Accordingly, the learning capacity affects the performance of companies. The development of organisation learning has created several models. Chen (2005) introduced a systemised method to promote organisational learning. Basically, the system has adapted some conventional models developed by several theorists. The system emphasises on the continuous process of gaining knowledge and incorporating the information in the operations using management tools. Moreover the system is designed to ensure that the learning initiatives are flexible enough to adjust with the uncertain changes in the environment. Finally, the system focuses on maximising the dimensions that make learning processes function with efficiency. The process in which learning organisations evolve has been linked with technological changes. According to Tahir (2004), using electronic learning can serve as investment for organisations. It is imperative to identify the role of electronic learning In the initiatives of organisations to gather, disseminate, share, and store knowledge. Since learning requires training, using electronic mechanisms appear to be logical. Aside from the effectiveness, electronic learning has been viewed to be cost-effective. Since learning covers all organisations, it is interesting to explore on the use of learning in education. Empirical evidence suggests that learning is an important contributor in the success of educational institutions. Researches and studies conducted by different entities have been critical in the success of schools. In particular, educational organisations have been pacing their process of gaining knowledge to meet their goals. Friedman (2002) suggests five approaches in the organisational learning process that closely resemble some the models discussed in the previous section. Initially, an individual recognises a discrepancy or any form of contradiction between the current situation and the standard by which the individuals assess performance. In this process, Friedman adds some supplemental specificity about the kind of concrete experience that produces learning. The next approach involves individuals engaging in a process of inquiry and data collection to make sense of the mismatch. This requires recognition of underlying circumstances relative to the situation. After performing the initial approaches, proposals and ideas are devised to create a change. The change has to be accepted by the entities that will manifest the action planned. Moreover, the individual has to ensure that the ideas have to be undertaken. This is the climatic step that will lead to the final stage of the process. The organisation recognises the learning and inserts it in the organisational process. Once an organisation is successful in inserting new learning into its organisational schemes, new capacities for learning are enhanced and become available for the organisation (Thomas, 2002). Among the global issues, globalisation is regarded as an impact maker in organisations. Le, Collins, and Egmon (2002) studied on the effect of globalisation in practising organisational learning. Based on the findings, globalisation has the capacity to distort the learning process. The study underlined the importance of analysing the current global market situations to decrease the tendency of learning distortions. IV. Leadership in Organisational Change Using the term manager became ubiquitous when ownership was extended to different individuals and institutions. Also the creation legal business firms allowed the creation of managers for planning, supervising, and controlling tasks in organisations. The current environment treats management as the scheme in administering various business levels. The sphere of management has widened with the development of relevant techniques and theories used for efficiency and effectiveness. Management is separate and distinct from leadership. Although some theorists maintain that leadership is part of the entire managerial function. Koontz and Weihrich (1998) stated that the managerial function of leading deals with the schemes of influencing the employees to work productively to achieve the goals of the organisation. On other hand, Byars (1987) consider leadership as a higher form of management. A leader has the capacity to affect the manner in which the employees act and provide opinions; whereas, managers only affect the actions and decisions of the employees. Bjerke (1999) maintains that it dangerous for the company to be led and managed by incapable individuals. Excessive leadership and management has some adverse effects. It is imperative for organisations to ensure that the leaders and managers work in moderation. Successful firms have illustrated the ideal combination of solid management and clever leadership. Managers tend to focus on process; leaders are inclined to concentrate on imaginative ideas. Leaders dream up ideas and stimulate and drive other people to work hard and create reality out of ideas. One such leader had the chance to sell a revolutionary product he had invented to a large, established company. The consultants believed that instituting management processes would be too costly, time-consuming, and difficult for the entrepreneur. Avoid the risks of a competitive battle with a world-class corporation that has an infrastructure in place and is ready to do battle rather than give up market share to a newcomer. The consultants overstated the importance of process and underestimated the effects of the driving vision of the leader on key subordinates. The company remained independent and produced enormous wealth for the entrepreneur, his associates, and investors (Zaleznik, 1989). Managerial goals are passive, deeply embedded in the structure of the organisation. In contrast to entrepreneurial or individual leadership goals that actively shapes ideas and tastes. Instead of boldly adopting technical innovation or taking risks to test new ideas, managers survey constituents' needs and build their actions on anticipated responses. Leaders avoid direct confrontation and solutions that could stir up strong feelings of support or opposition. The ideal of managers is to make decisions that fall in the range of subjects that individuals feel personally unaffected (Finn, 1987). It is essential for firms to understand that leadership and managerial tasks do overlap and provide similarities. The difference in the two concepts has to be clarified to all organisation entities. V. The Case of British Airways The privatisation of British Airways (BA) has been deemed as the catalyst or changes within the organisation. When the privatisation efforts were introduced, BA was on the brink of a financial turmoil. The Company’s long term debt has already reached GBP 1 billion and the government was unwilling to use public funds because possible public backlash. Airline deregulation has stiffened the competition domestically limiting the prospects of expanding BA markets. Shibata (1993) stressed that the mentioned occurrences where strong enough for BA to make appropriate changes. The privatisation was an important avenue for BA to overhaul the management, make critical personnel improvement, review services and even evaluate the effectiveness of BA’s mission statement. Organisational change in BA followed a three step-process (Lewin, 1951). BA initially decided to unfreeze current model of behaviour within the organisation and used such as reference in managing resistance to change. This phase has led to several changes within BA management and personnel on individual level. One of the most important programmes introduced by BA was related to workforce shrinking. From 52,300, the workforce was cut to 35,000. The downsizing significantly minimised hierarchical levels and expanded the autonomy of the employees. Fewer employees also led to process improvements and efficiency of the staff was emphasised (Shibata, 1993). As expected, the reduction in workforce was not well-received by affected employees. BA, however, managed to provide compensation packages that are above-industry. The Company also provided early retirement options which drastically shaped the management of BA. The privatisation period has allowed Colin Marshall to rise as BA’s new Chief Exeuctive Officer. The change in leadership also resulted in a cultural shift which became focused on marketing and customer service. Goodstein and Burke (1991) mentioned that BA introduced several programmes that are designed to improve the personnel’s understanding of the airline industry. The way of serving customers have improved and BA staffs were directed to manage client expectations. The next phase of the organisational change was centred on movement. The process involved the effective dissemination of decisions from the top management all the way to the rank and file. BA recognised the need to improve on communication strategies as well ensuring participation among all organisation entities. The Company initiated the step by establishing systems and structures within. Programmes such as the bonus system and the opening of Terminal 4 in Heathrow further boosted BA’s efforts. Goodstein and Burke (1991) noted that BA acquired a training firm to and integrated staff training with other development initiatives. The third step in BA’s organisational change involved refreezing. The Company introduced methods to stabilise the initiatives set in the early stages. BA also highlighted the need to evaluate milestones and establish patterns to determine behavioural shifts. One of the programmes launched by BA was an appraisal system that underlines staff training and customer service performance. BA also decided to change the Company’s image built around top notch customer service (Goodstein and Burke, 1991). VI. Impact of Change in British Airlines BA’s organisational structure has evolved and became flatter. The Chief Executive Officer directs the five business segments and the Company established eleven profit centres. This structural rotation is critical in improving communication initiatives within the organisation. BA introduced a performance-based pay that valued appraisal systems focused the delivery of customer service and adding value to the organisation. Facility and capital investments were also prioritised with BA acquiring new planes, improving ground services and integrating information technology to better cater the customer needs. BA launched a recruitment methodology centred on the overall capacity of applicants. The process involves assessment of skills, knowledge and behaviour and undergoing competency-based interviews to ensure that candidates will fit in the organisational mantra of the Company. Aside from these exercises, the BA has continually improved the hiring process by including other activities such as role playing and formulation of case studies.\ Since BA has decided to become a consumer-centric firm, the need to develop rank and file employees has been emphasised. BA created a training program for their low-level staff and introduced a holistic approach in dealing with varying customers. Middle managers were also trained especially in handling situations. The Company realised that middle managers serve as the bridge that links the top management and the rank and file. BA’s training programmes had goals to determine the Company’s dysfunction management approach and start the process of creating a new management method that would allow BA to remain competitive in the dynamic airline industry (Goodstein and Burke, 1991). Before the privatisation, BA was known to be a process driven firm. Changes in leadership and perspectives have turned the Company into a marketing based entity. BA took a bold step by orienting the workforce regarding the dynamics of the airline industry. The training touched on employees has a background of the competition, teamwork and their value catalyst for growth. Street (1994), noted that the initiatives introduced by BA has helped the Company to become one of the top players in the industry. The changes implemented by BA improved the relationship within the organisation and more importantly created a connection between BA and the customers. Indeed, the programmes and processes introduced by BA required massive funding. The investments, however, proved to be sound as inflow of customers continued to increase. Changes in the executives and the overall management style have sustained the competitiveness of BA in the industry. The development of human resources also provided the needed support to all the Company initiatives. Although some changes were objected, majority of the entities involved have recognised the importance of such modifications. The leadership was also instrumental in guiding entire organisation amidst challenging times. VII. Challenges Employee resistance has been a major obstacle in BA’s goal to revamp the organisation. Buchanan and Huczynski (2004) suggested that resistance because of the following reasons: promotion of self interest; misunderstanding and distrust; inconsistent assessments; and lack of reception to changes. The Company has introduced a management team with reduced authority and improved participation. Although executives were more involved, some perceived this as a form of micro-managing and a sign of distrust. When difficult decisions need to made, some employees feel that management will eventually act on their own. There are certain parts of the operations where management-only policy was still implemented (Goodstein and Burke, 1991). During the 1990s, several competitors in the UK have started introducing budget flights. Low cost airlines have greatly affected the market share of BA. The Company hoped that another round of changes would improve their competitiveness. BA resorted to forging alliances with other airline firms and tried to reduce cost in non-core activities. Despite BA’s explanation of the strategy being beneficial, several employees considered the change as anti-labour. A strike held by BA employees cost the Company approximately GBP 125 million and some insiders believe that the morale within BA is already beyond repair (Wilkinson, and Grugulis, 2002). VIII. Conclusion The internal and external pressures have pushed BA to make the necessary organisational changes. Debt was at all time high and the reputation of the airline firm is worse. The changed started with leadership and the new management immediately introduced a different culture. Learning through training has also become a fundamental cog of BA’s turnaround. But there are entities within the organisation that have not embraced changes. Unless the employees and the management are synchronised, then any form of change will be deemed as futile. References Badger, B., Chaston, I., and Sadler-Smith, E. (2001). 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The Managerial Mystique: Restoring Leadership in Business. New York: Harper and Row Read More