Organisational Structure
The essay focuses on the importance of change in an organisation. Change management is one of the most important aspects that a manager of an organisation needs to undertake in order to maintain its reputation. However, the process to change management is not smooth, as there may be various obstacles (Worley and Mohrman 2014). The aim of the essay is to identify the effect of an organisational change in various aspects of an organisation. The aspects include organisational structure and organisational culture. Models related to change are analysed and the reasons behind resistance to change, the role of change agents is focused on the essay. The scope of the essay is to provide an overview of the impact of organisational change and the manner in which these changes can be used effectively. For understanding the topic, the essay takes into account the example of Honeywell.
Honeywell is an American multinational company that is engaged in the production of commercial as well as custom products. It is a public company founded in 1906 in Indiana. Currently, the headquarters of the company is located in New Jersey. In 2016, the company was ranked 73rd on the Fortune 500 list. Honeywell has a global reputation for employee strength of over 130,000 all around the world. In 1999, the company merged with AlliedSignal but did not change the name owing to its superior image in the global market. Some of the common products that the company manufactures include the home thermostat and the Garrett turbochargers. Apart from this, the company also manufactures security alarm systems, air conditioners, heaters, fans and so on. In 2016, the company earned revenue of US$39.302 billion (Honeywell.com 2017). The essay investigates the impact of change management on different aspects of the organisation.
According to Carnall (2007), the success of an organisation depends on the type of structure it follows. In this regard, theories related to organisational structure can be followed. The classical organisational theory relates organisational structure in a manner that scrutinises the work of people and identifies best people and equipment. For example, bureaucratic management involves establishing a hierarchy in the organisation. Based on this analysis, it can be said that organisational structures can be classified into different types. These types are important in terms of ensuring the success of an organisation (Foss, Woll and Moilanen 2013).
One of the most common and simplest forms of organisational structure is the line structure. Another type is the staff authority of organisational structure. It consists of two types of positions namely the line position and the staff position (Mullins and Christy 2013). This type can help in providing support to the different positions. This is mainly because a line manager cannot be able to perform all work related to an organisation like Honeywell. Hence, support from the staff managers is required. Third common type is the divisional organisational structure. This type of organisational structure has different basis based on departments that have been formed (Goetsch and Davis 2014). Every department of an organisation consists of a structural level that ultimately responds to the Chief Executive Officer.
Organisational Culture
Application organisational structure in Honeywell: Hence, it can be said that after the analysis of the three organisational structures along with theories that are involved, it can be said that traditional line organisational structure is best suited for Honeywell. This is mainly because of the fact that there remains only one reporting personnel to whom every employee submits their ideas or grievances. This creates less confusion about the authority and can help in bringing about smooth running of the organisational process (De Vries and Van der Poll 2016). Thus, it can be said that the organisational structure followed at Honeywell is tall structure
Organisational culture refers to the values and behaviours that exist in the unique environment of an organisation. It represents the collective beliefs, values and principles of the members of an organisation. In order to understand different cultures in an organisation, Hofstede’s cultural dimensions theory can be used. The theory sheds light on different aspects of cultural integration that shapes the behaviour in the business. According to Handy (1993), organisational culture demonstrates the differences in the thinking process and social actions that relate to cultural as well ethnic aspects of an organisation. The four dimensions of culture identified by Hofstede include power distance meaning that the relationship between employees and employers are professional, uncertainty avoidance meaning that people are reluctant to take risks, masculinity meaning that the organisation is more dominant. Apart from this individualism is also meaning that personal goals are valued more than individual goals. These aspects are different in every region and in every organisation. Carlos Pinho, Paula Rodrigues and Dibb (2014) observed that the four dimensions are the results of national cultures that exist in every country. Similar to Hofstede’ cultural dimensions, Daniel Danison’s theory of organisational theory also consists of four dimensions. These include mission, adaptability, involvement and consistency. However, the drawback of this model is the fact that it does not provide an in-depth analysis of effectiveness of the theory.
Application organisational culture in Honeywell: In this regard, models related to organisational culture can also be considered in order to understand the concept. Schein (2010) formulated a model of defined three levels of organisational culture. These include artefacts, values and assumed values. These levels are characterised by the traits that can be visible and assumed based on the manner in which it is defined in an organisation. The artefacts are the trait that defines the character of Honeywell that is easily viewed by the people. This includes dress code of employees, behaviour, mission and vision of an organisation. These rules determine the policies that an organisation needs to follow and the employee’s satisfaction (Babnik et al. 2014). The values of employees are an important level in cultural background of Honeywell. The values play a pivotal role in shaping employee needs. It defines the manner in which organisations perform and gain profitability. The assumed value determines characteristics that are predictable and cannot be measured. In case of Honeywell, application of this model can help in determining the cultural level that exists in the organisation.
Strategic and Operational Change
Strategic change refers to the process of managing changes that are structured as well as thoughtful in order to meet the organisational objectives. The changes are necessary for an organisational context in order to thrive and maintain a competitive advantage (Johnson, Scholes and Whittinghton 2008). This type of change is most common in an organisational context as it helps in understanding the required changes in the organisation. However, this change requires convincing the employees as the changes need to be applied in every department. According to Cameron and Green (2004), operational change refers to the smaller scopes that are provided than organisational development. It can affect either all departments or any one department, owing to the magnitude of changes that are implied. This form of change is instigated by the leader of a department or by the executives.
Application operational change in Honeywell: In case of Honeywell, the recent change that occurred in the organisation is the change among team members. The team members working in the sales department underwent changes that defined the delegation of tasks and authority. Members were asked to make decisions regarding the formation of the team and the responsibilities that are needed to be undertaken by the team. This resulted in causing concern among the team members, as the process of decision-making was a new trend introduced by Honeywell. According to Fong, Wolfgramm and Shepherd (2014), this change can help the employees in developing abilities to make decisions that can be aligned with the objectives of Honeywell. Involvement in this change can help employees to become future leaders of the organisation. However, the drivers that force the changes to take place are less compelling in Honeywell. This is because of the fact that the organisation holds a good reputation in the country. Hence, operational change can be applied in the company.
Changes in an organisation are driven by various reasons that take into account the interest and objectives of an organisation. These reasons being less productivity, structural problems, employee dissatisfaction, failure in strategic management and so on. As stated by Hayes (2014) these factors provide the main drive for changes to take place in both strategic as well as operation levels. Hence, it can be said that an organisation needs to implement these changes based on the magnitude of organisational development that needs to take place. For example, less productivity requires attention in the strategic management of an organisation. The employees need to be encouraged in order to provide proper motivation to increase productivity. Hence, it can be said that the rationale for changes required in Honeywell comprises of these similar factors.
Application organisational structure in Honeywell
Application of rational change in Honeywell: Hayes (2007) stated that changes in an organisation need to be logically based on which actions need to be taken. The rationale for changes in Honeywell is due to the fall in productivity. It has been seen that the company has witnessed an improvement in the revenue as well as merging with AlliedSignal. These prompted necessary changes that require the attention of the managers. Hence, the operational change in the sales department was made in order to maintain the increase in sales of the products. The aim is to increase the revenue by promoting changes that are required for the organisation. In this regard, models related to change can be used in order to promote changes in Honeywell.
In order to understand and maintain changes in an organisation, most managers use Kotter’s 8-step model and Lewin’s 3-step change management model. These two models are the two most common forms of change management that provide a proper method by which changes can be implemented.
Kotter’s 8-step model: According to Doppelt (2017), Kotter’s change management model encourages leaders to motivate the employees about the urgency of change. These steps include change, build, form, enlist, enable, generate, sustain and institute. The changes that are brought about in an organisation need to be made quickly in order to ensure that delay in the strategic application does not become problematic. Implementation of effective strategies can help to formulate the changes and ensure that a vision to change is executed. According to Kotter (2012), the changes that are required to be implemented need to be communicated to employees to remove any barriers that may arise during transition. Effective application of the changes can be done by setting up short-term goals. The changes need to be applied while keeping in mind the probable longevity of the change strategy.
Lewin’s 3-step model: Lewin’s 3-step model consists of simple steps towards making changes in an organisation. The steps include unfreeze, change and refreeze. According to Hodges and Gill (2015), the step identifies the fear of people that leads them to resist changes. At first stage, the changes that are to be made need to be communicated to all employees. This can help the employees to prepare for the changes that are to follow. This is important in order to reduce the resistance to change. At the second stage, the changes are implemented at a fast or slow pace. The third stage is the implementation of the changes and ensuring that the employees are successfully maintaining new procedures and hierarchies. This stage requires proper monitoring of the changes that have taken place. These two models are important to undertake and monitor the changes that are being implemented. According to Sorensen and Stanton (2013), the use of Lewin’s change management theory is most preferred by organisations owing to its less complex form of maintaining changes. In organisations that have suffered loss due to productivity issues, the use of these models has helped in gaining back profits, helpful for an organisation turn around.
Application organisational culture in Honeywell
Application of change model in Honeywell: Hence, based on the analysis, it can be said that Honeywell can implement Lewin’s change management model. This is mainly because of the fact that the model suggested by Lewin is less complex and defines changes and their implementation in a broad manner. Lewin’s change management can be effective for the operational change that has been identified for Honeywell. This is mainly because of the fact that the decision-making process of employees may build resistance from them. For example, at the initial stage, the employees may look to resist the changes based on the sudden adoption of the development in the organisation. However, by imparting proper knowledge the managers can motivate the employees and ensure that the changes are implemented successfully. Hence, the application of this model is useful for Honeywell in order to inspire the employees in taking up additional organisational responsibilities.
The responses to change in an organisation can be either positive or negative depending on the ways people perceive the changes (Cameron and Green 2004). The perception of the staff regarding changes are characterised by the fear, skills and abilities of an employee. Employees with the ability to adapt and welcome new challenges find the changes in an organisational context suitable (Närman, Johnson and Gingnell 2016). This trait is seen in employees that are technically advanced and have a proper knowledge about the ways by which recent technologies and machinery can be used. On the other hand, employees not confident about technical matters and prefer to work in a systematic manner pose resistance to changes. This is because changes in an organisation normally denote a change in the process of work by incorporating new technologies. Hence, the lack of technical knowledge and skills may cause these employees to lose the job. Hence, resistance to change is maintained by such people (Carnall 2007).
In the case of the operational change undertaken in Honeywell, it can be said that a transitional change can be used in order to implement the changes in a successful manner. The model, developed by William Bridges focuses on the transition from one phrase to another rather than changing an entire process. The transition brought about is internal and hence, it is important for the managers of Honeywell to focus on the shift of employees from one phrase to another. According to Cadden, Marshall and Cao (2013), the transitional model highlights three stages that most people undergo while maintaining changes. These include the end and lose of the existing process and letting it go. Apart from this, it also includes remaining in a neutral zone in which doubts are expressed about the transition process. The last stage includes the new beginning for the organisation (Goetsch and Davis 2014). Honeywell need to implement the transition process in the department and ensures that proper monitoring is done in order to maintain the changes in this part.
Application operational change in Honeywell
After analysing the changes, it can be said that instead of implementing a full change in the organisational process, the best method can be a transition phase. This is because people with limited knowledge and abilities do not need to fear about loss of jobs and other related security concerns (Huhtala et al. 2013). This can help in understanding the potential employees that have the capability of maintaining organisational change. During the transition change, I had managed to witness the development of some of the employees regarding following an effective sales policy. The policy adopted in Honeywell can be beneficial for improving the sales. I observed that training is provided during the transition stage so that the employees can interact and convince customers about choosing products from Honeywell. This is an important factor for the company as necessary changes need to be made in order to increase the revenue. In this regard, the role of change agents can be analysed.
According to Matos and Esposito (2014), change agents help in managing the change and implementing the changes in an organisational context. The roles of change agents involve investigating the dynamics of an organisation. These dynamics can be analysed in order to understand the main reasons behind the changes that are taking place. The change agents also need to act as advocates in order to speak for and against the changes that take place (Vora 2013). People experience risks while adapting to the changes. Change agents listen and provide encouragement to the employees in order to make them accept the change and ensure that the resistance towards the changes is reduced. This can be done by facilitating the required assistance to develop and undertake changes in the society. They need to provide advice and act as a mediator between the parties involved in favour and against changes. According to Rosemann and vom Brocke, (2015), after ensuring the successful transition of employee’s mentality, changes are managed by the change agents in order to implement it in a successful manner.
Where change is needed: Critical analysis suggests that these changes are needed in an organisation that is failing miserably in terms of finance and efficiency.
How to implement change: These changes can be incorporated by training the employees about the need for change by providing them with a benchmark.
Why change is needed: This is required in order to enhance the performance of the organisation and ensure that every activity is carried on in an efficient manner.
‘What if’ influence: However, if the changes are not incorporated in a manner then an organisation may face problems relating to restoring of employees.
My managerial role in the change management process of Honeywell was to investigate and provide advice about the ways change could be implemented and maintained in the organisation. I had to investigate the dynamics of Honeywell and find out that the fear of the employees is restricting changes in Honeywell. This is an important factor for the company as, without changes, an organisation may suffer from a competitive disadvantage in the market. I also needed to provide advice about the ways by which the changes can be implemented and the benefits that the employees may get after the implementation of the changes. As stated by Sutherland (2013) changes in a company are depended upon the improvement of the company from a bad position. However, in case of Honeywell, the changes are implemented in order to maintain and improve the competitive advantage in the market. Hence, my role as a change agent can help Honeywell to lead the market for their production.
The operational change that is implemented by Honeywell constitutes providing added responsibilities to the employees of the sales department. This can help the organisation to develop future leaders and provide a proper working atmosphere. Cummings, Bridgman and Brown (2016) stated that this is an important step in order to motivate and satisfy the employee. However, the employees of the sales department of Honeywell resist this change due to the fact that they are not confident about the ways to lead the department. The impact of the operational change within the organisation and the department was that most of the employees felt it difficult to accept the changes. Hence, the employees provided resistance to the variations that were implemented. Due to the resistance to change, Honeywell implemented transition method in order to reduce the resistance. The internal changes provided the sales department of Honeywell new leaders that were able to encourage changes within the department.
In this regard, it can be said that my role as a change agent was pivotal in providing support to the employees resisting changes. I investigated the reasons behind the resistance to change and provided advice regarding the positive impact of the changes. This role can be associated more with that of a psychiatrist as counselling sessions were provided to the employees. After this, I had to manage changes and ensure that it was implemented adequately. The experience that I gathered in the company helped me to gain a proper insight into the manner in which a change agent needs to work. This helped me gain a practical experience in addition to the theoretical experience that I already had. Hence, it can be said that my role as a change agent helped in the development of the employees in Honeywell as well as my skills as a change agent. This experience can help me in becoming a future change manager of a reputed organisation.
According to Volberda, Van Den Bosch and Mihalache (2014), leadership is important in order to manage and support structural changes. The leadership tactics need to be such that employees feel comfortable under every leader and are satisfied by the working environment. It has been analysed that leadership styles consist of various types. These include democratic leadership, authoritative leadership and lassiez faire. Democratic leadership does not allow employees to be part of the decision-making process. Authoritative leadership style welcomes the ideas of the employees whereas lassiez faire allows employees to remain creative and impose self-decision. The leadership have different styles based on the characteristics of the leaders and the type of people that need to be lead. In case of Honeywell, the company adopts authoritative leadership style, as the company believes that employee satisfaction is important in order to attain customer satisfaction. In this regard, the managers decided to make a transition in delegating decision-making authority to the employees. This was a democratic type of leadership adopted by the managers. However, Klonek, Lehmann-Willenbrock and Kauffeld (2014) countered that decision-making and leadership are different from one another and employees need to be skilful enough in order to make decisions based on the organisational goals. Hence, the knowledge that I developed are the fact that leadership needs to be done keeping in mind the skill necessary to lead people.
Based on the analysis of the leadership qualities it can be said that the leadership style used in Honeywell is effective in order to motivate and encourage the employees. The fact that the employees are given proper authority to provide a decision regarding the strategies of an organisation proves that changes in the organisation are required at a minimal rate (Booth, 2015). However, the operational change of Honeywell is required in order to maintain the reputation of the organisation. The operational change needs to be implemented keeping in mind the future of the organisation and the aim of it. Waddell et al. (2013) observed that it is necessary for every organisation to provide leniency to the employees in terms of managing them and leading them in achieving the organisational objective. In case of Honeywell, this leniency has provided the organisation with an opportunity to develop itself even further.
Conclusion
The essay sheds light on the importance of managing change in organisations. The main focus is on Honeywell, a private and public sector multinational company located in the United States. The essay highlights the impact of an organisational change in the structure as well as the culture of the organisation. Strategic and operational changes are analysed in order to identify the type of change required at Honeywell. The use of change model and the appropriate use of the model is analysed in the essay. Lewin’s change model is best suited to manage the changes at Honeywell.
The essay examined questions that dealt with the impact and type of change required at Honeywell. Analysis of these facts showed that the organisation needs to go to a transition phrase instead of a full change. The operations in the sales department of the organisation need to be changed in order to ensure that maximum. The role of a change agent is analysed with the role that the researcher had in the organisation. This provided an idea about the practical experience that needs to be undertaken in order to maintain changes in the organisation.
After analysing the topic, my opinion about change management is that organisations need to undergo changes at some point in its lifetime. This helps in removing the monotonous nature of a business and provides challenges to the employees in terms of exploring new skills and knowledge. I have also learned that change agent plays an important role in maintaining the relationship between the employees and the employers. The reason behind changes taking place in the organisation is an important analysis that needs to be done before executing the changes. Hence, I can conclude that changes in the organisational context are important for maintaining a reputation as well as satisfaction of the employees.
In this regard, recommendations can be provided to Honeywell in terms of maintaining effective changes in the organisation. Instead of operational change, the company can implement strategic changes. This can help in planning for the changes and implementing it based on proper strategies. The implementation of these changes needs to come after consultation with the employees. This is required because the organisation maintains authoritative leadership style. Hence, the recommendations provided can help Honeywell to maintain its reputation in the worldwide market.
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