Organizational Development and Change - Essay Example

Describe the change and critique the process used in detail. What did they do correctly? Why? Incorrectly? Why What could have been done differently   Organizational change is not only a part of organization development but it also happens when forces leading the change become more influential than those opposing change. The changing business environment and increasing competition is making it important for the firms to give a great focus towards organizational change and development. A great work has been done to investigate the process of organizational change and development. In the given article, the process has been explained in detail by giving the example of a trading company operating in Germany. The change process at ABA trading company, operating in Germany have been described in three steps including change initiative, change implementation process and sustainable change process. The organization has passed through the change in strategy, organizational culture, management, and leadership and employee orientation. Before explaining the process of change, understanding why ABA Company felt the need to bring the change is important. Actually, as a strategic response to increasing competition, ABA Company decided to go international. The organization was restructured into three divisions and the administrative service was decentralized. Instead of just only restructuring, the organizational change of ABA appeared to be a complete integrated process, in which along with structural change, change in strategy, culture etc. were also introduced. Various companies think short term and ignore the link between restructuring and strategy, however, for restructuring to be successful, long-term strategy should be linked to organizational restructuring. Like various other organizations, restructuring and downsizing poses great threats for the organization because the level of trust, commitment and morale of the employees may go down. Same thing happened in this case, therefore, to reduce the negative impact of the change process; the organization felt the need to analyze the behavior and attitude of people towards this change. First it was observed that before the change process, the culture of company was paternal and supportive. The leadership was caring and highly relational psychological contracts used to exist between organization and its members. The commitment was brought by job security and lifelong employment. Bill felt the need to support the change process, instead of just informing the employees about bringing the change and for a continuous observation and evaluation of organizational members; a team of researchers was hired. The researchers of study were focusing on three research areas. First, to investigate that perception of the members of organization may vary and develop over time. Second, the aim was to investigate that for achieving change direct supervisors play a very significant role. Third, the aim was to explore that for achieving sustained strategic change, commitment, citizenship behavior and attitude play a very significant role. The best thing about this research was that a long-term development process and upward feedback process was planned. Along with the strategic change, goal agreement process and variable pay commitment were introduced and implemented. To understand the development needs of employees a survey instrument was created. The researchers not only contributed to support structural change but to develop the desirable culture. Therefore, the change process was accompanied by development sessions of survey results and feedback sessions. Moreover, through exploring potential development activities and observed employee perceptions, the attitudes of individuals and managers were focused. To observe the change process data was collected and the collection cycle spans a period of four years. During the change process, it was revealed that leadership and communication were very critical for people; therefore, management development workshops were conducted to support and implement change. The management instruments were being considered as the most effective tools therefore, three series of workshop was conducted. For focusing on first research questions of members’ perceptions, two customized survey instruments were developed. Various theoretical methodologies were used to develop questionnaires for surveys. Both quantitative and qualitative methods were used to collect data such as (qualitative tool) narrative interviews were conducted. The change process of ABA trading company was not a sudden change but it was a long term change and this gradual incorporation of change in organizational culture brought a lasting a positive effect. The initiative to change was taken by changing the framing conditions. The company adapted a holistic approach to bring the change. The aim of brining the change was formally communicated and the top management created the new mission and vision statements of the company. The aim of developing new statements was to convey the new strategic orientation of the company. Most of the companies face many problems whilst taking initiative to bring the change however, ABA Company changed the enabled conditions before taking the initiative. First, the perspective (learning becoming) regarding the company was changed. As mentioned in the article, “without his initial learning initiative perspective of change, Bill would probably have acted in line with his colleagues, just announcing the changes without initiating supporting activities.” Second, when the change was introduced positive attitude of the employees towards the change was noticed and even because of the uncertain conditions, the affective organizational commitment assists the employees to cope the changes. Third, the trust relationship between superiors and subordinates was observed in the organization. Moreover, critical self-reflection also enabled the organizational learning and change. Therefore, the company did not take sudden initiative to bring the change but after enabling the conditions to foster the relationship and affective organizational commitment, the initiative was taken. To successfully implement the changes, various supporting activities were conducted. ABA trading company organized development workshops and coaching classes for managers. The research team also played an important role because the in the workshops with local teams, the data and feedback was collected to get ideas about what steps should be taken to facilitate the change. Moreover, the employees surveys and feedback to managers were some other supporting activities organized to facilitate the change. The change implementation process has been conducted very well because for a successful organizational change, knowing the needs of people is very important and it happened in the case of ABA trading company. Throughout the change process, a great focus has been given towards understanding what the employees want. Most of the supporting activities are revolving around the interaction between the employees and their managers. Therefore, increasing interaction between the managers and the staff is really playing a very crucial role in this case. It is very interesting to note that before evaluating the sustainable change, changes were brought about in sustaining conditions. For example, struggles were made to change the role perception of managers and changes were aligned with management instruments. In this way, ABA trading company passed through the complete process of organizational change and development. The change process was very smooth and gradual therefore, the company did not find any problem in implementing the changes. The above critical analysis of change process of company clearly shows that how successfully ABA trading company has been able to bring and implement changes. Another thing, which can support my arguments, is the extent to which the change appeared to be a success. The results of the survey that was conducted after four years clearly show a positive attitude of the workforce after the change. The real changes are those which have been sustained even after four years. The improved professionalism and performance was observed. the professionalism was seen in the attitude of leaders whereas, the performance of the company was evident from the financial performance such as increasing share price of the company. Another evidence of this successful change is the orientation of organization from rational approach to learning approach. Unlike many other organizations, ABA trading company did not rely on short term results to evaluate the influence of change, rather two surveys were conducted after 2 and 4 years. The positive results of the change were seen after four years, indicating success of the change in the long-run. After four years, a positive increase was noticed in the organizational citizenship behavior and commitment of the employees. However, the level of trust was declined. The mentioned reason of the decline in trust is the increasing expectations of the employees and the development of differentiated views over time. Although, to some extent the reason of increasing expectations can be considered as a factor resulting in the decline of trust however, no action was taken to strengthen the relationship of subordinates and their supervisors. If the roles of subordinates would have been increased, they feel more motivated and encouraged. The perceptions of managers to their roles was changes however, efforts were not made to change the perceptions of the employees regarding their roles in the organization. I would say that this is that major factor that reduced the trust between the subordinates and supervisors. If it is argued that responsibilities of the employees were increased to give them authority then I would again disagree because throughout the essay, there is no information regarding the benefits given to the employees after their contribution. The best thing about the complete process of change and development was the multifaceted intervention strategy of the company and for the sustainable strategic change, all relevant areas have been taken into consideration. The comprehensive approach adapted by ABA through strategy alignment and strategy supporting activities have really played an important role in achieving the desirable change. Before the change, a rational perspective was approached however, to make the change a success, the orientation was diverted from rational to learning approach. The researchers in the article have categorized this action of the organization as a framing condition to make the change sustainable. Apart from taking responsibility and increased role, the central managers critically reflect on their behavior. For self-assessment, proper sessions were organized. Such sessions helped the managers to understand the areas where they need improvement. One important factor that plays a very significant role in reducing the organizational change resistance is the communication. Throughout the process of change, open communication was encouraged in the company such as through workshops, feedback surveys etc. Open communication has been focused upon since the initiation of the change, by redeveloping mission and vision statements. The most evident point, which clearly reflects the success of ABA trading company in achieving the change, is the sustainable change itself. In a typical business environment, a temporary change can never stay longer, whereas, the commitment of the employees to organization even after four years, actually show sustainable change. One thing which is really important is the organizational culture. The culture of ABA trading company has actually facilitated this sustainable change. If the culture would not have been supported the change, then it would not stay longer. Therefore, learning-becoming culture along with open communication, commitment and trust have made this organizational change a success. The researchers of the report have mentioned two important factors that have remained in focus of the managers including the goal agreement and the follow-up process. Even from theoretical perspective, these two factors are very significant because if during the process of change, the actual aim of bringing the change is lost, then all in vain. During the change process, the supervisors have been evaluating the goals of subordinates, to keep them motivated in achieving their targets. In this way, ABA trading company became successful in achieving the aim of incorporating change into its culture positively and without deteriorating the commitment and trust of its employees. Source Sackmann, S. A., Eggenhofer-Rchart, P. M., & Friesl, M. (2009). Sustainable Change: Long term efforts toward developing a learning organization . The Journal of Applied Behavioral Science , 521-549. . Read More