Defining Organizational Change - Essay Example

< Organizational Change/ Reflective Portfolio> by Abstract The main topic of this reflection report is the organizational change and employee resistance. This report also documents various types of organizational changes around the world and their effect on the employees. Defining Organizational Change As per many ancient philosophers such as Heraclitus of Ephesus (B.C.540-475), change is the only constant in life as well as organizations. To get or sustain success in the market, any organization has to embrace continuous change as per the requirement. However, most of the organizations face employee resistance when they try to change anything in the organization. This report tries to define the term organizational change as well as the goals behind the change. The reflection report also takes an academic approach for the defining employee resistance and analyses various reasons behind the resistance of the employees for any kind of change in any organization. This report also offers various essential theories of regarding employee resistance to any change that happens in the organization with relevant examples and offers various resolutions to overcome the employee resistance and managing organizational change in easy stages. This reflection report is about the type of organizational change in any economy around the world. The essay also discusses the reasons behind resistance of the employees to change of any kind. In addition to that, this reflective report also offers information about how to manage smooth transition during change in any organization. It is true fact that change is the only constant in anyone’s life or any organization. Change is dictated mostly by changes in external factors of any organization such as changes in technology, economic, political and social life of the modern society. It is inevitable that the organization have to change in many aspects to keep pace with the markets as well as consumers and sustain the success. The organizational change can be broadly defined as the planned process with which any organization changes its strategies, structures, technologies, operational method or culture as per the present and future requirements to continue success in any market (Phillips, 1983). These planned changes in any organization can be during a specified period of time or can continue throughout its existence in the market. One of best examples of this phenomenon is McDonalds. Founded in 1940, today McDonalds is present in 119 countries with 35,000 outlets (McDonalds, 2015). McDonalds sells various types of fast food snacks as well as desserts and ice-creams (McDonalds, 2015). One of the most successful business strategies of this company is envisaged “think global but act local” (Vignali, 2001). But, this was not always the case from the start. The company had a set menu and process regardless of place, local culture and the country but when they failed to capture new markets due to the set menu in their products, there were many organizational changes in order to get the success in the market (Sameer & Kaur 2012). One of the best examples of this is McDonalds in China. Here, the organization offers a modern environment complete with free Wi-Fi and unlimited coffee refills (Sameer & Kaur 2012).  These facilities are unique to China, as the organization strives to provide a relaxing environment to stressed young executives. As a result, the China operation has experienced 18% increase in sales (Sameer & Kaur 2012). Since then, the company has gone through many organizational changes due to changes in economic, social and technological advance in any society (Gasparro, & Jargon, 2012). Goals behind the Planned Organizational Changes The planned organizational changes can be briefly defined as various activities undertaken by the management in an effort to be purposeful and pro-active for the better results (Folger & Skarlicki 1999). The main goal behind the planned organizational change is the improvement and streamlining the process and other aspects of the company to adapt the change in business environment. These aspects also include the changes in behaviour of the employees (Folger & Skarlicki 1999). One of the best examples of this includes the customization of the food menu by MacDonald’s in sync with the local culture such as McDonalds’s Indian operation (Sameer & Kaur 2012). As beef dishes are prohibited in Indian culture, the management has replaced them in the food menu with McAlooTikki and other vegetarian flavours. As per Forbes, this change has increased the share of Indian operation to 30% of the company’s annual worldwide sales (Sameer & Kaur 2012). The other prominent example of the organizational change is when Fiat S.p.A appointed the outsider, Sergio Marchionne as CEO contrary to its tradition (Levin, 2015). It is a matter of public record that when he took charge of this automobile group, he did not have any experience in automobile products (Fcagroup, 2015). Nevertheless, this change has increased the profitability of Fiat S.p.A (Levin, 2015).   Resistance to Change As per many philosophers such as Heraclitus of Ephesus (B.C.540-475), change is the only constant in life, but it is inevitable that most of the people resist any kind of change (Harris, 2015). These changes may be about the procedures, products, technological or structural. It is also a fact that since 20th century, there have been a lot of changes and the speed of changes has increased in speed (Craiger, 2015). As per Craiger, there were many phases of technological changes in organization, but the paradigm of changes has shifted dramatically in latter half of the 20th century after introduction of Computers and the Internet (Craiger, 2015). Although, some employees welcome the changes, but it is also natural that most of the employees continue to resist and cling to old tried and tested methods. One of the best examples of this is old bureaucracy encountered by Sergio Marchionne when he took over as CEO at Fiat S.p.A in 2004 (Edmondson, 2007). As per Folger & Skarlicki 1999, the process of the organizational change is bound to generate resistance as well as scepticism and as a result, it becomes impossible or difficult for the management to implement the required organizational improvements. Here, it is important to understand that the resistance for any kind of change is not personal. Rather than that, it is the manifestation of their fears regarding the threat to their stability and security. As per Coetsee 1999, the management needs to understand the issues underlying the resistance of the employees regarding the organizational changes. Further, it needs to accept the validity of the employees fears and find resolution regarding those issues in collaboration with the employees otherwise the well-meaning, well planned and conceived changes may fail to yield any benefit in present as well as future. To understand the root of the employee resistance, it is necessary to understand the definition of resistance. Defining Resistance The researchers of this topic have tried to define resistance from the early stages. As per Alvin Zander, it can be defined as the behaviour of any person for his own protection from the results of imagined or real change in any aspect of his life (Dent & Goldberg, 1999). As per Duncan & Zaltman, the definition of resistance includes any behaviour or conduct that enables the person to keep the status quo during the pressure for changing that status quo (Dent & Goldberg, 1999). As per Folger & Skarlicki, resistance can be broadly defined as behaviour of the employees that disrupts, invert or challenges the present power relations, discourses and assumptions. Main Reasons behind Employee Resistance There are many reasons behind the employee resistance towards organizational changes. Most of these reasons behind employee resistance can be found in the account of Iacocca’s autobiography. Individual Attitudes Regarding Organizational Change The individual attitudes of the people change with their temperaments. Some people see new opportunities and learning experience with organizational changes whereas other people who love their routine feel threatened and resist the change (Quast, 2012). The experience of Iacocca when he took charge of Chrysler Company and made it profitable is the best example of this issue (Iacocca & Novak, 1986). Bad Timing As one old saying that timing is everything, the employees resist too many changes in a short time period, or if they are not implemented with the current timing, empathy or tact (Quast, 2012). One of best examples regarding resistance to the change can be found in Iacocca’s account when he took charge of Chrysler after resigning from Ford  (Iacocca & Novak, 1986). Fear of Surprise or Unknown This is usually the most common reason of employee resistance, when it is implemented without any information or warnings (Quast, 2012). When the management of the organization pushes through various changes that are perceived as negative without any warning or discussion, most of the employees are likely to resist any change. Iacocca has written about this issue in his autobiography (Iacocca & Novak, 1986). Loss of Control or Job Security This is also one of the most common fears of the employees when they resist any restructuring or change in organization (Quast, 2012). As per Iacocca, this was the main reason of resistance he faced while thinking about restructuring of Chrysler Company (Iacocca & Novak, 1986). Mistrust of Person In-Charge If the changing agent is new or inexperienced, most of the employees resist the change simply because they do not know or trust the person in-charge (Quast, 2012). This was the main obstacle faced by Lee Iacocca, when he joined Chrysler and started restructuring the company (Iacocca & Novak, 1986). The Essential Resistance Theories Dispositional Resistance As per research of Oreg 2003, there was variation in degrees about which the individuals were psychological disposed for the acceptance or resistance to the change. To measure it, Oreg constructed RTC or resistance to chance scale (Burnes, B. 2009).This scale is specifically designed for measuring various personality factors that have identified for influencing the reaction to change such as short-term focus, cognitive rigidity, routine-seeking and emotional reaction. One of the other factors that influence the outcome can be defined as the impression about the change agent (Burnes, B. 2009). Depth of Interventions As per Oreg 2003, the psychological impact of change depends on the depth of organizational change (Burnes, B. 2009). The shallow level of the change includes the change in structure of the organization. The deep level of change includes role analysis and job design. The deeper level of change includes the conflict resolution as well as examination of relationships in organization and the personality. The deepest level of change includes the career and life planning along with elementary aspects of any person’s character (Burnes, B. 2009). Cognitive Dissonance As per Leon Festinger, 1957 the human beings by nature strive for internal consistency. Any person who experiences the dissonance between two values, ideas or beliefs become psychologically uncomfortable, and try to avoid the information or situation that will increase this dissonance. The discomfort or mental stress experienced during this time is known as cognitive dissonance (Festinger, 1962). This dissonance can only be resolved with modification of belief or the action. It is only possible when any person can exercise free will and consider therapy as well as counselling for the same (Burnes, B. 2009). Psychological Contract Developed by Organizational scholar, Denise Rousseau, the concept of psychological contract implies an unwritten contract between an employer and an employee regarding information obligations, mutual perceptions as well as beliefs. This contract also sets the dynamics within the relationship as well as defines the practicality of the work (Conway, 2006). Possible Resolutions Regarding Resistance to Organizational Change As per Kanter, 2012, the best possible resolution to this issue is to understand the reasons behind the resistance and then create a business strategy around it. When making changes in any organization that are going to affect the employees, the managers need to understand following issues (Kanter, 2012), The nature of change and its effect The people and processes affected by the change as well as the nature of that effect Last, but not the least is their possible reaction to those changes After that, the management can create a comprehensive action plan for smooth transition of the process (Kanter, 2012). Managing Change The management of organization change includes various approaches that tend to situation specific, and the change agents such as managers have the capability of influencing or changing the constraints (Levin, GInger 2012). It can be further defined as the approach for smooth transition of organizations, teams and individuals to a desired situation in the future. As per Stickland, 1998 says that, the topic of managing change requires a multi-disciplinary approach such as transition, revolution, innovation, regeneration, evolution, transmutation, metamorphosis, development, transformation among the others (Burnes, B. 2009). Varieties of Changes There are various types of changes as per the organizational scholars, and they can be defined in various ways (Burnes, B. 2009). Smooth incremental changes – These changes include evolutional, systematic and slow changes in any organization. The best example of these phenomena is refining of the different processes in any organization (Burnes, 2009). Bumpy incremental changes – These changes include the time period of quiet functioning that is interrupted at regular intervals with an increase in rate of organizational change such as re-organization of any company (Burnes, B. 2009). Discontinuous change - These changes are similar to punctuated equilibrium model and are a response to break through, changes involving crisis as well as the divergent breakpoint. Top- down systematic change – this type of organizational change mainly aims at transforming the organization from top to bottom (Burnes, B. 2009). Piecemeal initiatives – When the management devises and implements the change by sections or departments that are not connected with each other it is known as piecemeal initiatives (Burnes, B. 2009). Bargaining for change – When the managers and the workers negotiate and agree about the series of changes in the organization, but they are pursued with piecemeal initiatives, it is known as bargaining for change (Burnes, B. 2009). Systematic Jointism – Systematic Jointism can be defined as a situation where the workers and managers negotiate and agree about a complete package that leads to the complete transformation of the organization (Burnes, B. 2009). Conclusion As Heraclitus of Ephesus (B.C.540-475), change is the only constant during the life. This is also completely true for any organization. As the internal as well as external factors such as personnel, products, technological, social and economic changes, the organization has to change to maintain its existing markets as well as increasing the share in new market. But one of the factors that obstruct organizational changes is the employee resistance. There are many reasons behind this resistance such as fear of unknown future, change in routine among the others. For a successful organizational change, it is necessary for the management to consider the comprehensive impact of the pending changes and manage the change accordingly. References Burnes, B. 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