The History About Factor Of Organizational Change Business Essay

Organization change

Submitted by

SYED FAIYAZ HUSSAIN

SUBMITTED TO

MR

2011

TABLE OF CONTENTS

INTRODUCTUON-----------------------------------------------------------------------------02

FACTOR OF ORGANZATION CHANGE---------------------------------------------------03

ORGANIZATION CON TEXT FOR CHAN GE---------------------------------------------04

ROLE OF CULTURE WEB IN ORGANIZATION CHANGE------------------------------05

EXPLORING CHANGE -----------------------------------------------------------------------07

PORTER FIVE FORCES MODEL------------------------------------------------------------09

EFQM MODEL--------------------------------------------------------------------------------11

IMPACET OF CHANGE IN ORGANIZATION -------------------------------------------12

TRANSITION CURVE-------------------------------------------------------------------------14

EVALUATING STRATEGIC CHANGE INITIATIVES--------------------------------------17

REFLECTIVE STATMENT -------------------------------------------------------------------19

REFERENCE-----------------------------------------------------------------------------------20

INTRODUCTION

The truth about organizational change is that getting the structure and the number right is the first step, and very important but animation the structure to achieve the right actions by right motivated people is vital, for any organization, and any organization change, the central purpose is to create so thriving and developing and organic activity that the organization can provide excellent well paid employment for all its people

(ROBERT HELLER)

Change in organization is very important part every organization make its policies and apply rules and regulation, if they satisfy they carry on with these rules but if there is problem they change their policies. In this context merger and acquisition is good example of organizational change. (Barclays and Lehman brother, Cadbury and craft) these are some examples of organisational change. Change in organization is not as easy as the word change it takes too much time some time change makes collapse in organization. As mentioned above when Barclays hire Lehman brother American company they problem exist in staff motivation, work force diversity, change in culture, finance management, culture conflicts.

Before introduce any kind of change company should keep in mind the road map of change is it is applicable or not or our management are motivated in this concern our employs are happy about it and any kind of change be made it should be according to rules and regulations.

FACTOR OF ORGANIZATIONAL CHANGE

Change in organization is always made for improvement, five factors which should be keep in mind when be made a change polices and if anyone is weaker than other company should be improve that one.

1. awareness in the staff or knowledge in mind of management what kind of change they want and what are its effect on organization, what’s its effect on employee of organization because some companies says that our employee are our assets, are there are safe. Is this change is helpful in future. Low level of awareness may later translate to resistance and non-participation.

2. Desire is another part of change are the organization staff is interested in change or not, if the answer is yes it mean they are happy is no there are too much more problems in organization there is resistance and non participation.

3. Knowledge we mean new changes which are made are fruitful for the organization what are the result we take. There is more change of organization change successes if their employs adjust them self according to change.

4. We should keep in mind that we made a lot of changes in organization are our employs are able to face these change, company should arrange new programme for the staff to help them according to new machinery and technology.

5. If the company employee are not satisfy according to change the company should reinforce them to do something, make some frameworks, increase staff salaries, give them incentives (barleys and Lehman brother).

2.0 ORGANIZATION CONTEXT FOR CHANGE

Culture in organization is play a victualler rule its development, its change, we can define culture as

"Reflecting the underlying assumptions about the way work is performed: what is acceptable and not acceptable; and what behaviour and actions are encourages and discouraged."

(Atkinson)

"The collection of traditions, values, policies, beliefs, and attitudes that constitute and pervasive context for averting we do and think in a n organization"

TYPES OF ORGANIZATIONAL CULTURE

PERSON CULTURE

By person culture we mean when the employee of organization think that this kind of change is of their own benefit, its mean it increase their salary, increase their knowledge. We take the example of arresters, architects, doctors or consultants, although it is found in few organizations.

Role culture

Is like stereotyped as a bureaucracy and works by logic and rationality. Role culture rests on the strength of strong organizational pillars, the functions of specialists in, for example, finance, purchasing. Role is more important than the position power and individual.

Power Culture.

Power culture is founds is small organization, and relies on trust empathy and personal communication for its effectiveness.

CULTURE WEB

http://www.new-paradigm.co.uk/Cultural%20Web.gif

http://www.new-paradigm.co.uk/culture-complex.htm

Johnson presents a culture web to analyse the organizational culture, how its works, what kind of culture is necessary for the organization, and culture change create different kind of questions for the organization

Are the change is fruitful for company?

Are the employee are satisfied?

Is the change fulfilling stakeholder expectations?

Cultural web influence in organization in different ways

THE PARADIGM

Paradigm is the heart of organization culture, paradigm of the organization which encapsulates and reinforces the behaviours observed in other elements of the culture web

ROUTINE

It include how things in organization are happened, and how thing should appear, because i am working in Asda any change in organization is directly and indirectly effect on the organization. Actually this is the way how the organization behaves each other and towers those outside the organization.

RITUALS

Special event in the organization on which company should emphasis what is important and its also include formal organization process and informal process, how its work can it possibility to change in organization structure are successful

STORIES

Told by the member of organization which flag up the important event any personalities and typically have to be the success failure and heroes, villains, and mavericks’

SYMBOLS

By symbols we mean such as offices, cars titles type of language or terminologies which are interrelated with the success and these are present as the examples of quality and present the nature of organization. As like i am working in Asda it show the example of low price and quality product if we compare with it to other organizations like Tesco Sainsbury.

POWR STRUCTURE

Management position is an important part of organization, most powerful group of individual or groups in organization which may be based on management position and seniority but in some organization power can be lodged with other levels or functions

CONTROL SYSTEM

Measurement and reward system, motivation theory is best explanation of reward system in the organization, if company give the proper reward to their employees then they are to be motivated and do more work, but if there is inequity there is definitely be a problem, for example stewardship of funds or quality of service.

Culture play an important role in most part of organization decision, it tell the management how decisions are made, who take participating in decision making, how the reward are distributed, and check the performance of every employee, are they working best who work best promote him on higher position as a team leader. And check how the organization responds to its environment change.

2.1 EXPLORING CHANGE

When an organization want a change its means they want to extend their business, they remove threat from opportunities swot matrix is good example of this

SWOT ANANLYSIS

http://www.businessteacher.org.uk/wp-content/swot-analysis-image.png

http://tutor2u.net/business/strategy/SWOT_analysis.htm

http://www.businessteacher.org.uk/business-operations/swot-analysis/

INTERNAL FACTOR (Strength and Weakness)

The main aim of organization is to improve its internal factor, but now the question is this how the company improve its internal factor with the special aspect of change. Company use its strength to overcome to its weakness, company use its technology, use its brand image, its product quality, economy of scale, its management to overcome on week brands, sub-scale, management, low customer retention, poor assess to distribution. When the company made any kind of change he should be keep in mind that change is useful and meet its entire objective.

EXTERNAL FACTOR (Opportunities & strength)

Company have palatines of opportunities and use these opportunities to overcome on threats use customer changing tastes, technological advances , change in government politics(like in Pakistan government give subsidies to all the investors who invest in country, give them tax relaxation, incentives, cheaper light in china for international investors, same like this give loans to small industries in USA). Company use new distribution channel to compete in global m market and daily change in brand image in the mind of people

PORTER FIVE FORCES MODEL

 

New Entrants

 

Suppliers

Industry competitors and extent of rivalry

Buyers

 

Substitutes

 

Use of the Information from Five Forces Analysis:

Five forces model is to be help full for the corporate strategy of organization in different ways

Statistical Analysis

this model show how much the industry is attractive is the change is to be possible, with the help of this model we are to be in a position to analyse are we need to inter or exit in the industry and if we want to stay in industry it is good decision for company or not. When we talk about competitors of organization they have different opinion about the change because their competitive and compatibilities are different. Thus change influence the whole industry

Dynamical Analysis

if we use this model with the PASTEL analysis which reveals drivers for change in an industry. This model shows the future attractive of the industry. PESTEL analysis (political factor, economical, legal and environmental changes) can influence the five forces model and put the impact on the industry. Useful tools to determine potential changes of competitive forces are scenarios.

Analysis of Options

to stay in a market it is necessary to change in organization day by day. Change is also necessary to compete with their competitors and build a strong competitive position to lead a market. The result new strategic direction, differentiation of competitive product, differentiation in a market.

With the help of these five forces company can systematic analysis to its competitive position and market structure. Company can also use this model to different companies, and analysis which industry they should work and which they should be leave, and which market segment should be targeted

Five forces model is base on macroeconomic. It have a big relation with the market demand and supply and tell use the market position, it also tell us about economy of scale, complementary product and their subtitles, relationship with volume and cost of production and market structure how its work in case of monopoly, oligopoly and perfect and imperfect competition

EFFECT OF FIVE FORCES

With the careful analysis of this model and its effect management can take decision is this model effect on the organization what is its benefits and how its policies are fruitful for the organization. Although this model has a limited option, company own policy change the impact of competitive forces in the organization. But the main aim of this model is to reduce the power of competitive forces in the industry

With the help of following diagram we can find out some examples. No doubt they are just like general but they give specific importance to each organization. Company situation is not effect by external market environment but internal environment is also creating a problem for the company, its resources and its capabilities.

How does EFQM fit in with other models?

http://www.qualityscotland.co.uk/assets/page%20graphics/efqm-model.jpg

http://www.google.co.uk/imgres?imgurl=http://www.qualityscotland.co.uk/assets/page%2520graphics/efqm-model.jpg&imgrefurl=http://www.qualityscotland.co.uk/other-business-excellence-tools-and-standards.asp&h=311&w=650&sz=101&tbnid=m86viHJDXk8ZSM:&tbnh=66&tbnw=137&prev=/images%3Fq%3DEFQM%2BMODEL&zoom=1&q=EFQM+MODEL&usg=__224Glr4xe1JuIN7dIbC0yKcuYq8=&sa=X&ei=bIEzTf6JJoyTjAezpIjZCg&ved=0CD0Q9QEwBA

How does EFQM fit in with other models?

First of all we talk about EFQM, what is this, what are its benefits, what its advantages, how it is useful to improve the performance of the company. Actually this is a frame work which can be use to improve your organization results. We have many other model which we can use but this model is more effective than other. Company can also use ISO 9000: 2008 to analysis its position in market.

TOPIC 3

IMPACT OF CHANGE IN ORGANIZATION

RESISTANCE TO CHANGE

Change in organization is not easy way it creates a lot of trouble in organization. Some time change can cause a collapse in organization. Some are the resistance in organization change. One is employee habits when the new things or technology or new rules and regulation are to be introduced it create a problem for the organization employee, because some like change but some not like change that’s why is main reason of problem other include

Selective perception

Inconvenience or loss of freedom

Economic implication

Security in the past

Fear of unknown

Now the question is this how the organization can implement in better way in organization. Company use different kinds of techniques to implement change, bukd a guiding team , create vision communicate, empower action, product short-term, don’t let up always help to their employess to improve the organization, make change stick.

TRANSITION CURVE.

http://www.jiscinfonet.ac.uk/infokits/change-management/transition-curve

http://www.jiscinfonet.ac.uk/infokits/change-management/transition-management/transition-curve

the main duty of mangers is to help other to start new thing in a market, bring new ideas to maintain the level of service or activity. We should keep in mind some things where people are on this cure (diagram). Managers repeat this model to handle different kind of situations. 1. People show their felling and emotions according to nature and king of change this is normal and we called its emotional intelligence

2. Keep in mind you and people around you are on curve is help you to initiate appropriate actions are give a good result effectively

3. Team on a curve travel together but individual will arrive at start (beginning) at their own personal rate

4. It is better to moving slow without struck with somewhere.

If you have a plan it is better to work slowly if your plan is late and wait for your plan.

It's OK to be fast so long as you honestly acknowledge your own 'endings'.

Understanding Endings

In ending stage staff would like to deny the change and any other change in the organization and any changing event in the organization. And their denial can move them uncertain situation in future. These all kind of behaviour and change actually effect the performance of the company overall and impact on the company. Staff may be think a lose security and loss of familiarity before and other change are happened they relies that change is now different as they should be, and they go future to their sense of identity in the organization.

Follow this link for a checklist of actions to consider in the Endings zone.

Neutral Zone

Actually the neutral zone is the time gap between the current and desire stage of organization staff. Staff may be try to mould them self according to change, accept new innovation, new technology, we will take a example of ASDA when in organization use self scene other wise product code system company employee can accept the change because these king of change are helpful for the employee of the organization. Employees are always accepting that kind of change which they think that change is useful of them also. No doubt change is some time create trouble in future, may be is bad for the future that’s why company employee are afraid about the change.

Follow this link for a checklist of actions to consider in the Neutral zone.

New Beginnings

As the name shows that the new begging mean when the people are ready to change in organization and like new direction of organization. They are happy regarding change and think that change should be implementing in the organization. The main aim of change is to gain specific future goals to boost up the organization at the top.

4. EVALUATING STRATEGIC CHANGE INITIATIVES

No doubt change in organization is necessary of the organization. Change is not only in the condition when company is going toward the loss or bankrupt, loss it market share. If u want to stay in a market according to new trends and follow the benchmark in the industry you should introduce new product or services. Some time change make few weeks, some time few months, sometime years and some time decades to give you fruit.

Any how good change is result of strategic development of the company overall. Change may be in the form of merger and acquisition (Barclays and Lehman brother) staff is not motivated and no one like to work with each other that’s why company face a different kind of problems. Top management in these cases are very helpful to motivate their employee, that’s why in every organization there is a need of line of authorities. There is also need to involve your staff to make decisions it means decentralization of decision. Because if we involve low level of employee in our decision they are happy to done their job.

There should be full and genuine participation of all the staff as soon as possible before the introduction of new technology because if the top management is not taking decision on time there is a possibility of loss in organization may be other organization has a same idea and they introduce before us. There is a need of team management and need of co-operative spirit between the staff and the unions and made a change in this way that the every employee are motivate and happy regarding the change

If the organization pre- planning for a new technology they there is a need of careful consideration to managing personnel. To introduction of technology in a new ways there is necessary to give incentive to your staff for the motivation purpose it is a necessary thing for the company to introduce package for their employee because their employee are their assets.

TOP MANAGEMENT DUTIES REGADING CHANGE

As we discuss above that top management is a pillar of the organization because no organization work without the authorities of change. It is the duty of top management to build a cooperate culture so that all employee are motivated and happy to work. They should set their own example in the industry. Give a change to everyone to work in changing environment and build a sense of responsibility and build cooperate culture in organization. Made policies balance change and continuity. The right way to introduce change in and outside the organization

REFLECTIVE STATMENT

First of all I am thankful to my teacher whose greet attention and guideline I complete this assignment. And regarding this assignment I do a lot of research work. In my assignment I not mention any kind of organization because I am not work any organization but I put some reference of case studies and articles which best of my knowledge. Before this we just know only the word of change but not now how rich is this word. After this we are able to analyse the change in organization, its effect on organization employee behaviour regarding organization how the change is fruitful for the organization, what is the participation of company employee regarding to motivate their employee. We are able to check the morale of employee there outcome give us a result. In mine assignment i use different kind of models theories regarding motivation of employee and transition curve model, EFQM model, five forces model and see how these models are helpful for the organization over all. I also analyse the culture of organization how its worked can change in culture is fruitful, how the culture be developed? How the culture helpful in the organization? over all. I also discuss the opportunities and threats and how the company use its opportunities to overcome their theatres, and strength and weakness of the organization.