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Change management case studies
Importance of organizational change
Initiating and managing change
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Organizational Development
Organizational Development changes the character or "culture" of an organization and improves the organizations performance. Change in an organizational development program is planned and deliberate, not random. Successful change in organizations happens with a specific purpose and requires experienced leadership.
The organizational development process involves a collaborative relationship between a consultant and a client, it is important to build a relationship of trust and create a climate for change. The process moves to a stage where problems are identified and diagnosed. The diagnostic phase is to gather information to specify the exact nature of the problem requiring solution, to identify the underlying causal forces, and to provide a basis for selecting effective change strategies and techniques.
Organization Development’s Five Stages
STAGE 1 Anticipate the Need for Change
Organizations must change as the environment changes if it is to survive. Change begins when the organization finds the motivation to change. External issues can drive change like reorganization, management changes, relocation, or mergers. Internal changes that drive the need for change are expansion, growth or continuous improvement. (Allen, 2012)
STAGE 2 Develop the Practitioner- Client Relationship
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The diagnostic phase provides the stage from which the organization is able to emphasize what cultural, economic and capability shifts the organizational is able to make and how those shifts can be made and embedded for sustainable organizational performance. Diagnosis is a recurring process involving; data gathering, identification of problem areas, interpretation, and potential action
An organization might have a structure in place for change but they must also look at the finances. An organization must have appropriate finances to handle the change and must keep the organization profitable (Nielsen and Abildgaard, 2013). Both finances and the social environment within in an organization are resources that can potentially limit an organization from
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.
The coaching as image of managing is supported by Organizational Development (OD) theory. According to Beckhard (1969), the OD approach is planned, top-management committed, aimed to improve the effectiveness, long-term, action-oriented, focused on groups and teams. Each of these characteristics could be seen in interventions during the implementation of the change in British Airways.
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).
When organizational change proves necessary, all people at all levels of the organization should address change as a “how,” “what,” and “why” problem in order for the change to be sustained over time.
It is important to identify some of the problems an organization may have and go in and analyze them. There are many techniques that can be approached to help gain businesses people side of management like improving rapid response to customer service needs, low employee output, and costs. Change is not easy for some people, so making sure employees understand why change is needed helps people to become more aware and have the time to adjust or process those changes.
Adizes, I. (2004, Mar/Apr). Embrace One Problem After Another. Industrial Management, 46(2), pp. 18; pp.7.
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.
Van de Ven, A.H. and Poole, M.S. (1995) ‘Explaining development and change in organizations’ Academy of Management Review, 20/3, 510-40
Cummings, T. G. (2008). Organizational Development Diagnosis. Handbook of organization development (pp. 137-147). Los Angeles: SAGE Publications.
In this process, a mutual agreement is established between the OD practitioner and the members of the client system in how the OD consultant will work on the problems within the organization. Hence, during entering and contracting, the organization’s problems and opportunities for growth and improvement are discussed between these two parties. During this process, the limitations are set on how the consultant can execute the different phases of the OD process.
Different organizations typically face change due to many forces surrounding their mission. These forces can be from either internal or external sources. The External forces usually occur outside of the organization and it could have a global effect. According to Kreitner-Kinichi (2003) the four external forces for change are demographic characteristics, technological advancements, market changes, and social and political pressures. The internal forces for change come from inside the organization like human problems, managerial behaviors and decisions.
It is apparent that the only thing constant in business is change. Organizational change is often an overwhelming challenge for business leaders, managers and employees alike. The need for change may be the result of market shifts, economic environment, technology advancements or changing work force skill-set demands. Today Organizational change occurs for reasons that originate external to the organization (Chandler, 1996: Hannan & Freeman, 1984), as well as internal to the organization (Baker 1990: Prechel 1994). Thus, External constraints, internal constraints, resource dependency and increasingly growing competitive markets force organizations to change in order to maximize economic potential. Although organizational changes are usually a response in reaction to an event, companies and leaders should still expect to encounter issues. Organizations need to be more proactive and contingent on how to handle the problems that will inevitably come about. This will make the process of organizational change go smoothly as well as reduce resistance through proper management techniques. Resource dependency argues that both environmental and organizational constraints impact organizational change (Pfeffer & Salancik, 2003).
Cummings, T. G. & Worley, C. G. (2001). Organizational development and change (7th ed.). Ohio, USA: South-Western College Publishing.