Introduction to Change Management
Change management is an effective and dynamic concept that helps in improving the day to day actions and operations of the business. The organization cannot grow its business and uplift the profitability without using change management. A brief literature review on change management have been discussed in the task and along with this, the paper outlines that how change management provides ample of advantages to the employees as well as organizations. Some organizational examples such as Coles, Qantas, Coca Cola Amatil and BHP Billiton have been explained in the task to provide a brief overview about the change management. Theories of change management like McKinsey theory, ADKAR theory and Nudge theory also have been presented in the task. More detail of the paper is elaborated below.
Change management is a continuous process that helps in maximizing long term outputs and profitability. According to Anderson and Anderson (2010), change management refers to a movement from present state to a new and innovative state to gain rivalries benefits. Change management is a stressful process and it is vital and important for the organizations. Greenberg and Zhang (2010) stated that change administration refers to the acceptance of an idea, procedure, opinion, behavior and process that is innovative to a firm. Benn, Edwards and Williams (2014), analyzed that managerial change is a transformative change through a difficult adaptive system model of change that entails three stages such as tension, maximized organizing and innovative emerging configuration. Change management is necessary to cope up and compete with unexpected shifts in the organizational environment. Along with this, managerial change is a biggest concern to the way things is commonly done in the company to overcome the rivalries in the global market. Alvesson and Sveningsson (2015) noted that change management is a constant pressure on companies to accept new and innovative technologies, be competitive and revise process and strategy for their survival and growth. The main motive of the change management is to enhance and increase the collective advantages for all people who are involved in the managerial change and reduce the risk of failure to change (Farndale, Scullion and Sparrow, 2010). Managerial changes occur when an organization makes improvement and to their existence trade and business. If an organization decided to improve and enhance their methods, techniques, process and performance standards that must be measured as developmental change. Further, goal of change management is to drive company’s outputs and results by operating workers and motivating their adoption of an innovative and new way of working. Change manager or leader is accountable for entire change in the organization. As per Boonstra (2008), change management is all about motivational leadership, detailed rigorous and preparation, inclusive execution. An effective and successful change management plans and programme may be helpful to set a constant change in the company. Managerial change is a modification to worker expectations, wants, attitudes and skills, it may also be considered a deliberate orientation of new and innovative ways of acting, thinking and operating.
Importance of Change Management
Change management refers to the identify method and tool for bringing about any change in the company and further, it id explained as the procedural way and initiation of knowledge, skills, tools and resources to control and monitor the outputs of change (Doppelt, 2017). It also implies embracing and explaining corporate plans, process, technologies, procedures and configurations to manage and handle the managerial change that results from both external and internal events. Along with this, it is noted that change management is perceived as a significant and unique part of every business or trade to augment productivity and increase profits by ensuring that the company remains at par with the managerial changes in the surroundings (Jackson, Schuler and Werner, 2009). Change management process is the sequence of steps or actions that a change management project and team leader follow to apply change management to a change to drive individual transitions and ensure the projects meets its intended results and outcomes. Change management also plays an empirical role in sustainability and CSR within the organization. Developing and enhancing change management plan will allow the firm to reduce cost of the transition and resources. Change management also increases ROI and provides ample of opportunities for development and expansion (Morgeson, DeRue and Karam, 2010).
Change management is an integral part of the every business to grow and flourish the business widely. Coca Cola Amatil is a food and beverage company that offers food and beverage products to the customers across the world. The company has declared upcoming changes to its senior management team. CCA is conscious of the significance of succession and with talents and skills available both within CCA and externally as well. Along with this, the company has changed leadership strategies and policies to overcome the competitors internationally. Various changes in customer servicing capabilities also have been done by the company to attain targets and objectives. By using change management strategy, the firm has been able to capture growth and render long term value (CCAmatil, 2018). Various strategic alignments with partners also have been done by CCA to achieve progress and success. New and innovative strategies and policies were implemented by the firm to accomplish the desired objectives and goals.
On the other hand, Coles also uses change management strategy to build and improve the image and goodwill of the company. To continuously improve and enhance the process by which the company run and expand the business globally, it is needs the ability and potential to look at things differently, build new concepts and create fresh ideas. Change management may be unique and it creates new and innovative opportunities for the firm. The organization uses various methods and techniques for planning change and it also facilitates ample of change activities with others (Bouckenooghe, 2010). Various changes in leadership team have been done by the company to assist and guide the team in a hassle free manner. Along with this, the organization uses innovative and unique policies, strategies and processes to retain the workers in the organization. The firm also has changed its technology and resources to compete with rivalries in the international market.
Organizational Examples of Successful Change Management
Aside this, BHP Billiton has today announced changes in the company’s management. BHP Billiton is a global leading and growing resource company. In today’s modern world, the company is facing ample of challenges and issues (Maiden, 2013). Therefore, change management plays an imperial role in BHP Billiton for survival and growth of the business. Remuneration packages and sweeping management also have been changed by BHP Billiton to address various types of issues and to encourage the workers in today’s competitive world (BHP, 2010).
Change management also plays a fundamental role in Qantas. Qantas proposed strategic changes in various strategies and policies such as job shedding and splitting domestic and international operations. The firm also has made the changes in foreign ownership cap to beat the rivalries in the global market. It also seeks various foreign investors to conduct business actions successfully and effectively and further, Qantas makes unique strategies to reduce and eliminate the resistance to change at the workplace.
It is analyzed after the various studies that change management has mainly become a significant and vital part of each and every organization in today’s modern era. With effective and unique change management plan, the firm is able to align existing resources with the new and innovative strategies and tools. Change management also helps to reduce inefficiency and risks of the firm. The firm can easily predict the challenges and issues with the help of change management. Moreover, change management also boosts and enhances morale and loyalty of the workers. Building a change management plan will also permit the company to be more effective and efficient (Karakas, 2010).
It is analyzed that various change management models have been used by the organizations to meet the long term mission and vision. Some of the change management theories/models that used by the companies have been discussed below.
McKinsey 7 S model: This model is developed by McKinsey & Company in the 1980s to enhance and improve the change management at the workplace. The stages of McKinsey 7 S model have been detailed below.
Stages
- Strategy: It is effective and unique stage of McKinsey 7 S model to get competitive benefits. Strategy is essential to implement or initiate the future plan and change management plan.
- Structure:It is a stage that relates to the manner in which the company is divided or the framework it follows.
- Systems:System is related to those activities and actions through which tasks are performed by the employees.
- Shared values:The shared values refer to the main and significant values of the company which help to run the business widely.
- Style:The ways or manner in which the leadership and changes are accepted or initiated is called style.
- Staff:The staff refers to the laborforce or workers and their working capabilities.
- Skills:The core competencies and other skills are carried by the workers working in the company.
It is stated by Anastasia (2015) that McKinsey method helps in offering ample of methods and ways to understand the company and get a deep insight into the manner it works. This model renders directional elements to organizational change and this theory also considers that all the parts of the organization are important.
ADKAR model: This theory is related to the goals and objectives that help in achieving desired mission and vision. ADKAR model stands for awareness, desire, knowledge, ability and reinforcement. This theory can be used to provide support and help to the workers to go through the procedure of change or transitioning while the change management is taking place. Along with this, this model also helps to minimize the resistance shown by workers towards change. ADKAR model renders the capability of evaluation and identification of the causes why changes made are not properly working and why desired and effective outcomes are not being attained (Armstrong and Taylor, 2014).
Theories of Change Management
Nudge theory: Nudge is a theory that finds use in behavioral economics, science and political theory but may be implemented to change management in the companies and businesses as well. This theory is propounded by Richard H. Thaler and Cass R. Sunstein. This theory is not only helpful in expanding and understanding existing influences but also defining them to either mitigate them or change them to a large extent where positives may start to be carried. In addition, this theory also helps in eliminating traditional change methods and techniques like direct instructions and punishment enforcement. In this way, this theory is considered an effective and dynamic tool for the change management. This theory further helps in understanding opinions, feelings and knowledge of people and it also consider the reality of the circumstances and attributes of human behavior and nature. It therefore minimizes or reduces resistance from workers of a firm and is implemented in various industries (Anastasia, 2015).
Conclusion
On the above mentioned limelight event, it is concluded that change management is an integral tool to manage the resistance to change in today’s organization. Change management is handled by the top management and human resource management. The above mentioned analysis shows that how change management is becoming an important concept in every organization to uplift the profitability and reduce the challenges and concerns of the business. The role and significance of change management in today’s organizations also have been explained in the task. In today’s modern world, organizations use various change management models to accept and manage the various managerial changes. It is recommended that training and development sessions and programs shall be held by the companies to adopt the changes in the competitive market. Further, it is also noted that the organizations use innovative and dynamic strategies to motivate and inspire the workers towards the achievement of goals and objectives. They should make innovative strategies to provide rewards and incentives to the workers and in addition, managers should make good relations with employees to know and understand the reasons of resistance to change.
References
Alvesson, M. and Sveningsson, S., 2015. Changing organizational culture: Cultural change work in progress. Routledge.
Anastasia.2015. Major Approaches & models of change management [Online]. Available from https://www.cleverism.com/major-approaches-models-of-change-management/ [Accessed as on 18th August 2018].
Anderson, D. and Anderson, L.A., 2010. Beyond change management: How to achieve breakthrough results through conscious change leadership (Vol. 36). John Wiley & Sons.
Armstrong, M. and Taylor, S., 2014. Armstrong’s handbook of human resource management practice. Kogan Page Publishers.
Benn, S., Edwards, M. and Williams, T., 2014. Organizational change for corporate sustainability. Routledge.
BHP.2010. Changes in BHP Billiton management [Online]. Available from https://www.bhp.com/media-and-insights/news-releases/2010/06/changes-in-bhp-billiton-management [Accessed as on 18th August 2018].
Boonstra, J. ed., 2008. Dynamics of organizational change and learning. John Wiley & Sons.
Bouckenooghe, D., 2010. Positioning change recipients’ attitudes toward change in the organizational change literature. The Journal of Applied Behavioral Science, 46(4), pp.500-531.
CCAmatil.2018. Our strategy [Online]. Available from https://www.ccamatil.com/en/our-company/our-strategy [Accessed as on 17th August 2018].
Doppelt, B., 2017. Leading change toward sustainability: A change-management guide for business, government and civil society. Routledge.
Farndale, E., Scullion, H. and Sparrow, P., 2010. The role of the corporate HR function in global talent management. Journal of world business, 45(2), pp.161-168.
Greenberg, J. and Zhang, Z., 2010. Managing behavior in organizations. Boston, MA: Pearson.
Jackson, S.E., Schuler, R.S. and Werner, S., 2009. Managing human resources (p. 358). Mason, OH: South-Western Cengage Learning.
Karakas, F., 2010. Spirituality and performance in organizations: A literature review. Journal of business ethics, 94(1), pp.89-106.
Maiden.M.2013. Sweeping changes at BHP [Online]. Available from https://www.smh.com.au/business/sweeping-changes-at-bhp-20130418-2i232.html [ Accessed as on 18th August 2018].
Morgeson, F.P., DeRue, D.S. and Karam, E.P., 2010. Leadership in teams: A functional approach to understanding leadership structures and processes. Journal of management, 36(1), pp.5-39.
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