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Nowadays with the rapid development of global business advanced, more and more organization retain change to existence within the competition. For years, change has been seen as a difficult task within an organisation, but things are quite different now. Statistic shows that 70 percent of change failed within the organisation depends on certain concern consideration (Kotter, 1995 & Smith, 2002). However, whether empirical evidence could offer reliable analysis for the rate of successful change, organization change is still the key elements for a successful organization (Shannon, Michael & James, 2016).During the past decade, the theory of organisation development has expanded in a variety of definition, but the core value is the applying of social science theory and variety of personal, group and system intervention measures to centralized on the implementation of the organization of positive humanism planning process of change (Allan et al 2015).
The aim of the essay is to analyse the organization development and change of Commonwealth Bank of Australia (CBA), in order to achieve effectiveness business on improving customer satisfaction. The essay will state the reason, why CBA need to change the organization structure and desired future state. Furthermore, Lewin’s change model applying to support the organization development and change of CBA.
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CBA was originally a government bank, and carried on the privatization in the middle of 1990s, and maintain most of the bureaucracy, hierarchy and male-dominated culture (Workplace Gender Equality Agency, 2012). In addition, the organization excessively focus on business development and ignore the customer, thus, customer satisfaction greatly reduced compared with other competitors. In 2005, Ralph Norris took over CBA Chief Executive mentioned focus on customer satisfaction and clear the responsibility of the service (Trevelyan,
The speaker provides the impressive argument stating that only 54 percent of the success depends on the change initiative. It occurs because of the three common pitfalls of the change management. Aguirre (2014) considers that the change fatigue, namely, the excess of initiatives is the first aspect that limits the change. The second disadvantage appears in the case of the chief executive, who dictates the rules, but does not clarify or show how to implement them. Ultimately, it is erroneous to think that the communication is the same as the engagement. The above listed mistakes lead to the non-transformation, waste of time, people, and capital, and it diminished moral. Above all, the culture is essential to move the organization and keep it effective (Hitt et al., 2015). It might include the informal leaders, integration, environment, and coherence throughout the
The Westpac Banking Corporation are facing tough decisions and will need to find a way to right the ship. Over a five-year period beginning in the 2010-2011 reporting period, they have experienced a negative compound annual growth rate that is annualised at -1.8%.
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.
This paper will be broken down into six sections profiling each critical part of implementing and managing change in an organization. The sections included are; outline for plan creating urgency, the approach to attracting a guiding team, a critique of the organizational profile, the components of change, and how to empower 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.
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 transformation of a company requires hundreds, sometimes thousands of employees to adopt a new view of its future, a future they must regard as essential. Change management involves managing the process of achieving this future state. Change can be viewed from two vantage points, that of the people making the changes and that of the people experiencing the changes. In the top-down, or strategic viewpoint associated with management, the focus is on technical issues such as the investment required, the processes for implementing the change, how soon the change can be realized, and the outcome. In the bottom-up viewpoint of the employee, the focus is on what the change means to the ...
From information gathering and research, organizational change management is similar in a way that psychology explores people’s behaviors in the workplace by creating theories and set of principles to compliant with the o...
Change in an organization occurs when an organization identifies an area of where necessary change must be undertaken, examines it thoroughly and adapts to it. This may lead to gaps where employees may not adapt to a certain change and therefore it is important that an organization takes into considerati...
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.
Some critics argue that the above statement is not true because nowadays organization is easy to change. They build an organization with a flexible structure and system so they can easily change and beside they can also rewarded people to embrace change. However, the statement stated by Lawler, E.E and Worley, C.G is definitely true about organizational change because the way of changing organization require an examination of fit between the organization’s strategic intentions and its structure (Graetz et al. 2002 p.195). Management systems are design for achieving its goals and it is difficult when remaining goals but changing the management systems. Jay Galbraith (cited in Goodman, E. 2011, p.242), a world leader of organization and team development, also states: ‘Every organization is perfectly designed to get the results it is currently achieving’. Moreover human resources are the most im...
In addition, organizational development need to diagnosis systematically to figure out the issue the organization facing, program development and the resources that can be used such as capital, technical, human resources in the organization (Morrison 2012). This process has been planned and it requires the participation of all employees to put their efforts to improve various activities (Iliev, n.d.) by using different type of techniques such as leadership, job resign, power, and change in policies in the organization (Beckhard’s,
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).
Force of change is a positive factor that an organization must put in place in order to drive and develop the entire organization’s environment. In this process of change more of resistance factors will try to hinder the change. The organization in this case experiences a repulsive force which absolutely adheres to reserve the existing ways of handling of issues. In the process the firm faces the competitive challenges from other organization and in meanwhile diseconomies of scale. Organizational change process is the progression of a given institution, far from its present state and towards some desired prospects to propagate its performance effectiveness. The organization’s work strategy persistently changes for better. Afterwards, the members’ organization must acclimatize to organization’s forces of change in a bid to conserve its relevancy and effectiveness. Lewin’s force field theory of change serves as a convenient model in understanding the change process. The role of the organization leader is both intense and diverse. For the organization to propel in its management processes, the organization leader must adhere to his increasing responsibilities of change. The leader must be the primary catalyst to speed up the mechanism used to assure the members of positivity effect of change and the expected period of its existence.
Cummings, T. G. & Worley, C. G. (2001). Organizational development and change (7th ed.). Ohio, USA: South-Western College Publishing.