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Strategic planning
Strategic planning
Benefits and limitations of strategic planning
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Organizational change, particularly large-scale change, becomes part of the company’s history; therefore, it is crucial that senior leadership plan the change thoroughly. Planning may include understanding the current state of the organization, the external and internal environment, and identifying the organization’s long-term vision simultaneously. Choosing the right approach is significant in the change process as it may be true with British Airlines’ wildcat strike blunder. This blunder is now added to British Airway history where they lost 40 million pounds because of an oversight. Ideally, changes in the organization will have minimal employee impact and operational disruption; however, this is not the case with British Airways when …show more content…
According to Quiros (2014), leaders must take a holistic approach when implementing change; this includes transitioning people from the past to allow a new beginning. Quiros statement is true, specifically in British Airways’ wildcat strike. Management has failed to look at the organization holistically, rather focus on implementation because it is a great idea. Taking a step back to look at the organization may have prevented the 40 million pound loss. The organization decreased 1,300 of their employees during the course of two years, leaving a low morale in the organization. Current employees will question the future of their imminent employment termination. Absenteeism will soon follow as the employee morale goes down. Absenteeism caused the delayed flights which should have been known by senior leadership, and may have led to delayed process implementation. Finally, management’s oversight also included timing where the implementation will take place five days from management’s announcement. The busy summer season should have been a factor in their execution …show more content…
The sense-making approach of unfreezing, changing and freezing (Palmer, Dunford & Akin, 2009) was inappropriate in this scenario. Management has made a decision to reduce their workforce continuously; however, the change does not end with the layoffs, rather, it is a continuous change as they continue to reduce employees and focus on the existing employees’ morale. Middle management predominantly executes sense-making approach by as aligning the company objectives with their employees (Banker, 2012). The sense-making approach may have been the culprit of the communication breakdown between employees and British Airways CEO regarding absenteeism. The processual approach was much more fitting with continuous layoff that will allow them to pursue their next implementation. Processual approach is on-going and focused on long-term results while sense-making approach is a prescriptive change. The sense-making approach might have worked if processual approach was established first during the reduction in force, prior to introducing the swipe card implementation. Preferably, British Airways should have engaged in change management approach first to address the system change in a large scale. Organizational development approach would have assessed the entire organization and discovered that the low morale may
Also Qantas was running with an autocratic leadership style meaning autocratic managers like to make all the important decisions and closely supervise and control workers. Managers do not trust workers and simply give orders (one-way communication) that they expect to be obeyed. This approach derives from the views of Taylor as to how to motivate workers and relates to McGregor’s theory X view of workers. This approach has limitations but it can be effective in certain situations.
Southwest Airlines is one of the most successful airlines in the United States. There has never been layoffs or strikes in the history of the company, although there were several times when layoffs could have been justified, including the months following the September 11, 2001 terrorist attacks. However, Southwest's Mission statement says “Above all, Employees will be provided the same concern, respect, and caring attitude within the organization that they are expected to share externally with every Southwest Customer.” (Southwest, 1988). The Airline has always believed that their corporate culture is one of the keys to their success. The culture recognizes that employees have emotional intelligence and that their attitudes and morale are key to the teamwork and creative environment.
Elite Engineering has been unable to successfully implement change because they haven’t been able to get the employees to see the need for the change and to believe in the change. “It must be considered that there is nothing more difficult to carry out, nor more doubtful of success, nor more dangerous to handle, than to initiate a new order of things.” (Kotter & Schlesinger, 2008) Change is often met with resistance. When it comes down to it many people fear change. At Elite Engineering, the engineers were happy with the way things were being run. They enjoyed the billable work they were doing and did not want to take the time to collaborate with others, as it would take away time from their billable work. The engineers saw the billable work they were doing as a way to ensure they received their bonus at the end of the year. However, they were failing to see that the litigation business was going to begin to shrink and in order for them to remain competitive, changes needed to be made. Kotter and Schlesinger state that there are for common reasons that people resist change. The four reasons are the desire not to lose something of value, a misunderstanding of the change and its implications, a belief that the change does not make sense for the organization, and a low tolerance for change. (Kotter & Schlesinger, 2008) At Elite Engineering, I think upper management was unsuccessful at implementing change because the employees didn’t want to lose their bonuses (something of value to them), they misunderstood the change, and they didn’t feel that the change made sense for the organization.
John Kotter, an expert on organizational change, conducted thirty years of research, coming to the conclusion that because companies do not completely investigate the whole picture when it comes to change, seventy percent of businesses crash by not finishing the change through to the end. For the reason that many businesses fail because of this reason, he created an eight-step process to help businesses succeed and move forward with their change (The 8 Step Process). This paper’s objective is to explain Kotter’s change process and link it to Target Canada’s decision to open in Canada, discussing what decisions fared well and the decisions that produced failure.
The next problem is poor morale. Morale is the job satisfaction, outlook, and feelings of an employee. Right now, employees do not feel secure within the business and are rebelling against it. They do not have a positive outlook for the future of the business and feel betrayed because of all of the people getting let go. The employees right now have a poor morale due to all these factors.
Change affects more than just a program or a process within an organization, change affects employees, collecting data on employee’s readiness and willingness to accept a change will help leaders know if the organization is socially ready for change (Cole, Harris, and Bernerth, 2006). A change might be positive for an organization but if the employees who will be affect by the change are lost in the process then it could create a greater issue than not making the change. Leadership needs to communicate and inspire the employees to be positive toward the change, seeking to enhance their job satisfaction not make changes that will increase their desire to leave. This data is best collected early in the change initiative allowing leadership to properly cast the vision while addressing concerns. This requires leadership to create platforms for employees to engage in the change initiative freely (Ford, 2006). Employee attitudes can be measured through these dialogues providing leadership with necessary measureable data (Hughes, 2007).
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.
Change is always going to occur within a business, however it is crucial a business prepares and improves upon change. Qantas are a prime example of how to manage change effectively.
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,
“Without change there is no innovation, creativity, or incentive for improvement. Those who initiate change will have a better opportunity to manage the change that is inevitable.” William Pollard’s, a 20th century physicist, words show us the power of being proactive, and igniting change to strengthen a company’s productive climate (Sellers, Boone, Harper, 2011). Acme Airlines flight attendants lacked incentive to improve the quality of their work, as a result of distrustful management and overall frustration within the company. Acme took successful steps to rebuild their FA program into a more relationship oriented work environment. Through an understanding of effective leadership, we will use the
Change is the only constant in life. And therefore it should be understood as part of a continuing work in progress that calls for a much broader canvas that seeks out competing voices, and works with the resulting ambiguities, contradictions and tensions of messy reality (Graetz, F. & Smith, A., 2010). In this submission I try to show that organizational change is majorly based on the environment surrounding it much more than the desire of the members or change agents working in that organization. This view diverts from that of Lippitt, (1958) who suggests that implementing planned organizational changes successfully depends on premeditated interventions intended to modify the functioning of an organization. It also diverts from the traditional approaches to organizational change that generally follow a linear, rational model in which the focus is on controllability under the stewardship of a strong leader or ‘guiding coalition (Collis, 1998). In this discussion therefore, comparison made between the different philosophies of change and I try to show that successful change implantation largely depends on an organizations appreciation of what goes on around it rather than what they have planned as a strategic direction.
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.
Change is a fundamental element of individuals, groups and all sorts of organizations. As it is the case for individuals, groups and societies, where change is a continuous process, composed of an indefinite amount of smaller sub-changes that vary in effect and length, and is affected by all sorts of aspects and events, many of which cyclic are anticipated ones. It is also the case for organizations, where change occurs repeatedly during the life cycle of organizations. Yet change in organizations is not as anticipated nor as predictable, with unexpected internal and external variables and political forces that can further complicate the management of change (Andriopoulos, C. and P. Dawson, 2009), which is by itself, the focus of many scholars in their pursuit to shed light on and facilitate the change process (Kotter 1996; Levin 1947; et al).
The Strengths and Limitations of a Rational, Strategic Approach to Organisational Change Introduction Following the brief introduction of a model-ideal conceptualisation of Organisational Goal-Directed-Activity, and the definition within the perspective defined by this model of such terms like 'rational (organisational) action system', 'strategy', and 'organisational change', the first part of this essay presents a non-evaluative summary of a selection of distinct approaches to organisational change. Various approaches to strategy are similarly addressed in an attempt to register and explore some of the links that have been identified by a number of authors between positions on strategy reviewed and corresponding approaches to organisational change. The second part, bypassing the rather common practice of partitioning the set of organisational change approaches into largely non-overlapping rational and nonrational, strategic and nonstrategic, subsets, identifies a number of distinct Rational and/or Strategic Modes, associates them with the approaches to organisational change reviewed in the first part, and attempts an integrated appraisal of the distinctive strengths and limitations such diverse Modes confer to the approaches to change that invoke and utilise them. 1. A Model-Ideal Conceptualisation of Organisational Goal-Directed-Activity, Rationality, Strategicality, and Organisational Change When planned and goal-directed, fully rational organisational action, like any other ideal form of goal-directed-action, relies on activity generated by the decomposition of a goal-structure, a term that has been defin... ...
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