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Impact of change in organizations
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Change is an integral part of any organization that needs to keep abreast of its competitors in the business. It is important since it is the process through which an organization embraces new ideas or technology for running a business and quits using old-fashioned ways that have proved not to be working. The process of change management is a very crucial one since it determines the success or failure of the change. People fear change, and it is very important that steps are taken towards making them embrace this change and be part and parcel of the change process. This essay delves into the recent structural change that General Electric Company had in its subsidiary, in India.
Change in the management of an organization automatically triggers change in how tasks are carried out in the organization. This is because different managers exhibit different leadership styles and have varied preferences as to how tasks should be done. However, for G.E India, change in management brought more than just change in how tasks are performed in the organization. The appointment of John Flannery the helm of leadership in G.E India, as the president and C.E.O, marked the beginning of a fundamental change in the company's organization structure. Until his appointment, G.E India, just like other multinational corporation subsidiaries, had a matrix organizational structure (Ganguly, 2012). In the matrix organizational structure, the local business heads would report directly to the heads at the headquarters in Fairfield, who were at the same level as the country heads. However, John Flannery brought about a new structure that had not been previously used by G.E globally. In this new organizational structure, the matrix structure was done away with, ...
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....E Electric Company.
In conclusion, change is a very crucial element of any competitive organization that seeks to improve its operations and increase profitability. Managing change is an equally important process which ought to be done with due care and moderation. Organizations should, therefore, be keen on embracing new ways that would improve their structures and incorporate better ideas in carrying out certain tasks. This is the best way to make their going concern certain.
References
Evison, Anne. "Lewin's Change Management Model." N.p., 2014. Web. 14 Feb. 2014.
Ganguly, Dibeyendu. "Matrix Evolutions: How GE Underwent a Fundamental Change in Its Organizational and Matrix Structure." The Economic times. N.p., 17 Feb. 2012. Web. 14 Feb. 2014.
Lawrence, Paul R. "How to Deal With Resistance to Change." Havard Business Review. N.p., Jan. 1969. Web. 14 Feb. 2014.
Leading Change was named the top management book of the year by Management General. There are three major sections in this book. The first section is ¡§the change of problem and its solution¡¨ ; which discusses why firms fail. The second one is ¡§the eight-stage process¡¨ that deals with methods of performing changes. Lastly, ¡§implications for the twenty-first century¡¨ is discussed as the conclusion. The eight stages of process are as followed: (1) Establishing a sense of urgency. (2) Creating the guiding coalition. (3) Developing a vision and a strategy. (4) Communicating the change of vision. (5) Empowering employees for broad-based action. (6) Generating short-term wins. (7) Consolidating gains and producing more changes. (8) Anchoring new approaches in the culture.
It is important that if you are ever running a business, you change before the change comes to you. Change can have either a positive or negative effect on a business and it is extremely important to strive to make it a positive
In today’s ever changing world people must adapt to change. If an organization wants to be successful or remain successful they must embrace change. This book helps us identify why people succeed and or fail at large scale change. A lot of companies have a problem with integrating change, The Heart of Change, outlines ways a company can integrate change. The text book Ivanceich’s Organizational Behavior and Kotter and Cohen’s The Heart of Change outlines how change can be a good thing within an organization. The Heart of Change introduces its readers to eight steps the authors feel are important in introducing a large scale organizational change. Today’s organizations have to deal with leadership change, change in the economy,
Change is never predictable, and does not follow specific steps in the models of change management. One needs to explore all models of change management, and find pieces useful to the organization allowing flexibility and not rigidly following a change model. The levels chosen are motivated by the approach to change, and the implementation of change will depend on the model used; however, basic steps are essential to both organizational and personal change.
Organizational change is a very big risk for organizations. The process of change can be very difficult for employees as well as the leaders implementing the changes. The changes are usually planned to improve the company. However, sometimes change can destroy a company when things don’t go as planned. From a change in management to a change in the company structure, or way of doing daily task, organizations must carefully execute the process of change and use change strategies that will ensure success.
Change as defined by Thompson (2010) is “a process through which people and organizations move as they gradually come to understand and become skilled and competent in the use of new ways.” Change is not a process that happens in just one day. It is something that takes time to build and strengthen amongst an organization. The people involved in the process of change need to have the same goals and have the same clear ideas; this so they can be in the same mindset and be able to work together towards success. Communication is crucial during the process of change to facilitate the work for the people involved in the organization.
Changing situations throughout the world affect all organizations in business today. Therefore, most organizations acknowledge the need to experience change and transformation in order to survive. The key challenges companies face are due to the advancements in technology, the social environment caused by globalization, the pace of competition, and the demands regarding customer expectations. It is difficult to overcome the obstacles involved with change despite all the articles, books, and publications devoted to the topic. People are naturally resistant to fundamental changes and often intimidated by the process; the old traditional patterns and methods are no longer effective.
The idea of change is the most constant factor in business today and organisational change therefore plays a crucial role in this highly dynamic environment. It is defined as a company that is going through a transformation and is in a progressive step towards improving their existing capabilities. Organisational change is important as managers need to continue to commit and deliver today but must also think of changes that lie ahead tomorrow. This is a difficult task because management systems are design, and people are rewarded for stability. These two main factors will be discussed with reasons as to why organisational change is necessary for survival, but on the other hand why it is difficult to accomplish.
The change process within any organization can prove to be difficult and very stressful, not only for the employees but also for the management team. Hayes (2014), highlights seven core activities that must take place in order for change to be effective: recognizing the need for change, diagnosing the change and formulating a future state, planning the desired change, implementing the strategies, sustaining the implemented change, managing all those involved and learning from the change. Individually, these steps are comprised of key actions and decisions that must be properly addressed in order to move on to the next step. This paper is going to examine how change managers manage the implementation of change and strategies used
After reading chapters one through four of the book Leading Change by Kotter, a better understanding of the eight steps of creating major changes in an organization has been gained by the author. Change is always happening in some shape or form. Competition drives change within organizations. Companies drive each other; they can challenge each other to compete. A good example of that is Ford and Chevy; they have been battling each other for decades on who can make the nest sports car in America. Competition is good for both the consumer and the organizations: it can lead to numerous great ideas.
The desperate call-to-arms, "Change or Die"— which can be heard echoing down the corridors of businesses everywhere — is evidence that leaders have recognised the need to change. Managers know that companies must be fast, flexible, responsive, resilient, and creative to survive. Most also know that current mind-sets, techniques, and tools are ineffective for creating such an organisation. These people are displaying the talents required to successfully negotiate change. They are aware of the limitations around or within themselves and are willing to learn the necessary skills required to succeed as change managers.
The world is constantly changing in many different ways. Whether it is technological or cultural change is present and inevitable. Organizations are not exempt from change. As a matter of fact, organizations have to change with the world and society in order to be successful. Organizations have to constantly incorporate change in order to have a competitive advantage and satisfy their customers. Organizations use change in order to learn and grow. However, change is not something that can happen in an organization overnight. It has to be thought through and planned. The General Model of Planned Change focuses on what processes are used by the organization to implement change. In the General Model of Planned Change, four steps are used in order to complete the process of change. Entering and Contracting, Diagnosing, Planning and Implementing, and Evaluating and Institutionalizing are the four steps used in order to complete the process of change in an organization. The diagnostic process is one of the most important activities in OD(Cummings, 2009, p. 30).
Organisation change is very important and every company should have resistance to change by time to time to get a better performance and motivation. According to the (Burnes, 2004) Change is becoming a present character of organisational life and it is an incremental change. In this case study of Castle home ltd we can see that it was based on emergent planned, Foremen had the knowledge of understanding of the organisation structures, strategies and its culture which will allow managers to choose the most specific approach of resistance to change (Burnes, 1996) but now it is a planned changed which describes a situation where a change agent takes purposeful actions for the change of the organisation from one state to another (Ulster Business School, 2014, p. 24). Wagner, E. (2006) Communication plays a very significant role in term of organisational change strategy which is necessary from time to time in order to having a strong desire to be more successful than competitors and it becomes more efficient so that everyone in the organisation can easily understand it. The main reason of planned change for the organisation is to maximise their effectiveness and to achieve their goals and aim for the higher performance.
Best manage change initiate from external that through technological advances, social media and economic pressures. Besides, change can be internal as some issues of management responsible such as changing consumer’s needs, human resource and employee’s’ performance. All issues can affect from a small area to the entire organisation. Change can be a time period of seeking opportunity for some or a loss and threat for others. The difference between surviving and thriving in a workplace and surrounding environment responses the management change. Change is an essential to any organisation whatever it is in form of public or private. All organisations must change to remain pertinent. Nonetheless, all changes from internal and external or large
Bear, A.B. and Brehony, K.A. 2002. Changing How Organisations Manage Change From The Inside Out in Changing The Way We Manage Change. Ronald R. Sims (ed), Westport, CT: Quorum Books.