Change Management

Change Management

The world in which business operates is changing at a rapid pace. Developments in technology, communications and competition have forced businesses to update their work practices and become globally competitive.

Pressures for change in business can arise internally, that is from staff or management observing current processes, or from external pressures like changes to government policies. There are several pressures currently affecting large organizations in Australia, they are changing markets, technological innovation, Total Quality Management, changes to the nature of industrial relations (where wages and working conditions can be negotiated with staff), flatter organisational structures, HR perspective and environmental issues. These pressures for change must be recognised by management and to effectively manage change, an organization's leaders must enact a change management process.

Effective change management is a three-step process. Psychologist Kurt Lewin identified the first step as ‘Unfreezing the present situation’. The term unfreezing refers to the way in which management must prepare for the change and overcome any resistance that they may face. Resistance to change is human nature, as people are generally reluctant to move from a current, comfortable situation, but this resistance can be overcome using a variety of methods. These methods include communication, participation, support, negotiation, manipulation and threats, ranging from the least severe (communication), to the most severe (threats). The most effective strategy to unfreezing the present situation is to minimise resistance, through the use of open communication channels and participation with employees, without resorting to severe actions.

Once resistance has been overcome and the organization is ready for the change, the next step is ‘Moving to the new state’. This step is the actual implementation of the change itself. New policies are communicated and procedures are re-evaluated. Once the change is implemented, management must work to ‘Refreeze in the new situation’.

This final step is of upmost importance because it will ensure that staff does not drift off into old habits and revert to the old procedures. Management must work to offer support to staff and monitor the new situation and ensure that the process of change was an effective one.

The issu...

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...ries to determine whether international campaigns have been effective.

Globalisation can have both positive and negative effects on the internal environment of business. External changes can include increased sales, productivity, market share and profit, but internal changes can have a much greater effect on the day-to-day running of the business and an unprepared manager is vulnerable to the negative effects of globalisation. A frequent area of change in the internal environment is the management (corporate) structure. A company expanding overseas requires more staff, and as such, more managers. It is a common occurrence for organizations to adopt a functional or divisional model with a very large horizontal structure. Divisions may be divided geographically, as departments in each country or continent.

The management style is generally changed when an organization begins to deal with foreign customers. In an effort to appear polite, managers must be aware of local cultures and traditions when working with foreign employees. It may be necessary to use a different style when dealing with employees from other countries where the participative/consultative style is not appropriate.