The phenomenon in which a
company reforms its shape, techniques, operational strategies, technology, or
organizational lifestyle to have an effect on trade within the business
enterprise and the consequences of those adjustments at the organization is
known as Organizational Change. It is non-stop or occurs for some periods of
time.
With the proper organizational
change strategies, the companies will able to evade immobility, and at the same
time, also diminishing interruption as much as they can. Preparation is
essential in the business, especially when the company is doing the efforts to
adjust to the change. However, there is no company could make any preparation
without understanding what kind of change is happening (Al-Haddad
& Kotnour, 2015).
Questions
1.
Track an organizational
change process that you have experienced or have researched. What tools were
used to manage the change? What else could have been done generate a
willingness to change?
An example of the
organizational change process is personnel change. Personnel change occurs when
a company applies for mass employing or redundancies. Every single process of
the personnel change in a company is able to cause a substantial modification
in the better or worse morale of employees and assignation.
Mass employing
or mass hiring might have better consequences meant for a company. Still, it is
not deprived of struggle and difficulty. Mass hiring defines as an indicator of
the main expansion that occurs at the time when a company is vulnerable to
cultural changes and inefficiency. With hiring new personnel, the company will
need to train and also provide continuing provision for them. Even though it is
good to welcome the arrival of new personnel, but there will be work changed in
management as well. If the company is unable to handle and manage this change
properly, then it is potential to be chaos, and worst, it could eventually
discourage other development within the company.
In the other
hand, the risk of redundancies could cause fear and worry for all the personnel
in the company. Even though specific situations require for a proper decision,
the executives or leaders of the company must anticipate the conflict within
the morale of the employees will be appeared. Nevertheless, the company needs
to keep on moving and adjusting with the change. Thus, the company has to
figure out the ways to motivate the employees to keep giving the best
performance throughout the difficult situations (Swierz, et
al., 2017)
The tool that was
used to manage the personnel change in the company is the ADKAR model. ADKAR
model basically is a framework of 5 stages that support the company to make
sure that the entire employees are involved in the change process and believe
that the change meant for the success of the company itself. The word ADKAR
stands for Awareness, Desire, Knowledge, Ability, and Reinforcement (Hornstein,
2015).
·
Awareness
All of the employees should be aware of the need for
change in the company.
·
Desire
The company needs to make sure that all the employees
have the same desire to participate and support the change in the company.
·
Knowledge
The company also needs to support the employees with
knowledge on how to participate and support the change. This could be done by
conducting some training.
·
Ability
The company has to support the employees in improving
their ability. This was usually done by evaluations and feedback.
·
Reinforcement
The company needs to be sure of reinforcing the change.
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The organizational
change could offer a perfect opportunity to influence the perceptions of
employees positively. Therefore, to generate a willingness to change from the
employees, the company could establish some short-term goals. These goals will
motivate the employees as they will realize that they are making progress
toward the change to achieve the goals. With establishing short-term goals, the
company also will able to analyze the progress and recognize the misalignment
formerly in the process.
Choose an industry facing
fundamental technology change (e.g. the recorded music industry vs. digital
technology, computer software vs. open-source, newspaper vs. the Internet,
corporate IT services vs. cloud computing...). In relation to one leading
player in the industry, discuss the problems posed by the new technology.
Technology has
transformed the method of how companies perform their business by allowing
small business to compete with bigger companies. An example from this is how
the companies that are running their business in newspapers have to face the change
of technology. We all acknowledge that nowadays, the Internet could give
wide-range of any type of news that the people need which might better than
newspapers. If the companies want to survive in the business, then they need to
adjust to this change as well.
In the other
hand, there are certain problems that these companies have to deal with regarding
the change of technology as mentioned below (Ekdale, Singer, Tully, &
Harmsen, 2015).
·
Impact on the employment
Along with the
change of technology, the companies need to implement the change within the
staff as well. In 2001 to 2009, some companies that running their business in the
newspaper have been reported to reduce their complete newsroom staff for 25%. The
reason behind this is that the companies need to hire more competent staff with
proper knowledge on the Internet, websites, online advertising, and so on.
Thus, the companies needed to reduce some of their old personnel, which they
found do not have competencies in this field.
·
Impact on the revenue
The companies
that are running their business in the newspaper field must already have their
loyal customers who were always buying their newspapers. However, since the
companies need to adjust to the change of technology, they will switch their
service by providing news on the Internet. Some of the customers might be
unaware of this transformation, and thus, they might not use the new online
service of the companies on the Internet. For this reason, the revenue of these
companies will get impacted; fewer customers means less revenue.
·
Impact on the investors
Along with the
impact on the revenue of the companies, obviously, it will impact on the
shareholders as well. It is a real fact that the investors will always analyze
the revenues of the companies to determine the profit that they will get from
their investments. Hence, if the companies are getting a problem with their
profits, then definitely they could only provide a little share of the profit
for the investors. As a result of this situation, the investors might take back
their investments and no longer giving fresh subsidies to support the business
operations of the companies.
The conclusion
from this, the companies need to do proper preparation to anticipate the
organizational changes that could happen anytime. Some of the organizational
changes even could be unpredictable such as the change of technology that
explained above. Thus, in order to survive in the business, the companies
really have to understand properly the changes and decide the strategic
management in adjusting the change within the companies as well.
References
of Industry Evolution and Strategic Change
Al-Haddad, S., & Kotnour, T. (2015). Integrating
the organizational change literature: a model for successful change. Journal
of Organizational
Change Management, 234-262.
Ekdale, B., Singer, J. B., Tully, M.,
& Harmsen, S. (2015). Making a change: Diffusion of technological,
relational, and cultural innovation in the
newsroom. Journalism & Mass
Communication Quarterly, 938-958.
Hornstein, H. A. (2015). The integration
of project management and organizational change management is now a necessity. International
Journal
of Project Management, 291-298.
Swierz, N. F., Baron, J., Vroom, B.,
Powell, M., Loughridge, R., Perreault, S., . . . Swierz III, N. F. (2017).
Method and system for implementing
workflows and managing staff and
engagements.