Types Of Organisational Change

Types Of Organisational Change My bank is a medium type bank. A new change was introduced during the years 1990 and 2003. The changes introduced to the bank are as followers. The first one was bottom-up-approach and the second was top-down-approach. Senior executives of the bank convinced that it was the right time to bring the change for the benefaction of the bank. Therefore, they introduced quality improvement program, which could reduce cost, by using the existing staff to improve quality and customer service. They brought consultants from abroad. Top level believed that the middle level could enlighten the bottom level employees. However, both the approaches for implementing change failed. Some employees could not accept the new change; the workload was increased and when the new ideas were introduced to the middle management level, there was no response. The senior management had failed its intensions to mobilize middle management commitment and local staff enthusiasm. Force field analysis provides an initial view of change problems that need to be tackled, by identifying forces for and against change based on an understanding of the context of change including the existing culture (Johnson et al. 2008). The distinctive feature of force-field analysis is that it involves organizing the categories in to two board types; those relating to force or pressure for change and those relating to forces or pressures supporting the status quo and resisting change. Lewin (1951) argue that, level of behaviour in any situation as the result of a force field comprising a balance of the forces pushing for change and the forces resisting change. Force Field Diagram Driver Force Restraining Force Quality Improvement Work -Load Cost Reduction Top Level Management External Environment Staffs Technology Training Consultants Recommendation Present Scenario (Hazyes, 2010:129) cccPKNBKMV There are different key drivers can found in the My bank case study. However, technology is the best key driver in the My bank case. All other key drivers related to the technology. Anderson and Tushman (YEAR) point out that technological change is cyclical. Each technology cycle begins with a technological discontinuity. Cost reduction, quality improvement, external environments connected to the technology. If technology will not change other drivers cannot Change in fast way. Different kinds of restrain factors present in the case study. The top-level management like chef executives were the main reason for the failure of the change. Other staffs did not get any support from the top level. After the change, staffs opinion was slightly rejected by the managements. This is the main reason of the failure of the change. According to Nadler (1995), four types of organisational change are there. An Organisations response change is proactive or reactive way. Tuning and adaptation can involve minor or major changes, they are types of change that occur within the same period, and they are bounded by the existing paradigm. Reorientation and re-creation, on the other hand, are types of change that, to use Gersicks analogy, target the playing field and the rules of the game rather than the way a particular game is played. They involve transforming the organisation and bending or breaking the frame to do things differently or to do different things Tuning is change that occurs when there is no immediate requirement to change. Mybank organisational change is related to this part. Mybank became convinced of the benefits of a quality improvement programme for reducing cost. This approach to change tends to be initiated internally in order to make minor adjustments to maintain alignment between the internal elements of the organisation and between the organisations strategy and external environment. Adaptation is an incremental and adaptive response to a pressing external demand for change. Reorientation involves a redefinition of the enterprise. It is initiated in anticipation of future opportunities or problems. Re-creation is a reactive change involves transforming the organisation through the fast and simultaneous change of all its basic elements. Type of Organisational Change Incremental Transformational Proactive Reactive (Nadler et al. 1995:24). Reorientation Tuning Re-creation Adaptation Answer2: Organisational Change involves complex process. Managing this kind of procedure is entirely difficult because they are dynamic. That means complex processes are changing. In these dynamic situations, it is difficult to predict the consequences of its actions. Managing a set of complex activities, each of which is crucial for the overall success of change. These complex tasks needs to be completed effectively in order to change, involves achieve a successful come. Managing change involves four complex tasks. The four tasks are as follows. They are appreciating change, mobilising support, executing change and building change capability. Leadership Appreciating Mobilising Change Support L Building Change Executing change Capability CHANGE MANAGEMENT MODEL Appreciating Change Appreciating Change can give an idea about understanding the forces of stability and change in the organisation. This requires inquiry into routines and mental models that sustain the status quo. An organisation can be changed mainly in two ways. Those are unplanned change and planned change. The Unplanned change, which typically involves changes due to new ideas, conflict between individuals, departments or teams and political and power struggles inside the organisation. Nadler (1987) argues that political behaviour tend to be more intense in times of change because individuals and groups perceive the possibility of upsetting the exiting balance power. Planned change, the change has to be planned. Mybank case study involved the planned change. The appreciation phases aims to make aware of the (a) need for change, (b) consequences of changing and not changing and (c) options that have for undertaking change in the organisation. In the case study, the organisation recognised the neces sary of the appreciating change and understood if this change will happen in the organisation, can achieve cost reduction in house; using exiting staffs to improve the quality and customer service and bank can avoid the inefficient works. The senior executives of Mybank appreciated the change and convinced the benefits of a quality improvement program. Mobilising Support Participation, involvement, and ownership are the crucial for the effective change. The organisational change is both cultural and political involves change in mindsets. This involves influencing, inducing, negotiating, persuading and winning over people to the idea of change. The effective communication strategies are crucial to change management. Getting consent and mobilising support is not an easy process. It requires persistence and patience. Strategic plan have a very important role in mobilising support. Organisational change is a political process. Pettigrew (1972) argue that some may engage in political action for ideological reasons, especially when they are fear that a change may be inconsistent with their values. According to Jick (1993), there are three categories of people who play a role in any change process. They are change strategists, change implements, and change recipients. Change strategists are the people who decide that the organisation needs change and set a direction for the change support. Mybank case managing director and senior executives are the strategists. They are in the top of the position. But strategists cant implements the change. Change implements are the people who are implementing the change by creating new structures, rules, procedures in all process. These people are the middle people of the management team. Mangers, outside consultants and accounting firm are change implementers in the Mybank Cooperation. Change recipients are the third category and people whose jobs change as a result of changes launched in the organisation. These people are usually lower level in an organisation. However, the main success in their hands. These people can make or break the effo rt. These people at the front line directly dealing with clients and customers. The main success depends upon the consent of the people in the organisation. Mybank employees, general staffs, are the change recipients. In 2003, the senior management had failed in its intentions to mobilize middle management commitment and local staffs enthusiasm. The middle management fully activated, but management follow some autocratic style and management fail to adopt the strategy. Executing Change Executing change involves creating and putting in place new structures, processes or procedures. Execution is, perhaps, the most critical aspect of change. Obviously, if an organisation has not managed the previous two tasks well, its change plan or programme will never take off. However, even if an organisation has carefully thought through its change issues and options and has gathered enough support for change, it can still fail at this critical stage. Three critical tasks for change leaders to ensure focus and energy during execution: (a) creating cross-functional linkages in the organisation; (b) aligning policies, procedures and removing structural impediments to performance and change; and (c) creating new routines for continuous improvements and innovations. According to Nilkant (Year), a successful change effort requires: (a) adequate appreciation planning, (b) sufficient support by employees, (c) competent execution by managers, and (d) Change managers with appropriate skill sets and capabilities. Mybank staffs accepted their new changes. However, it was not successful in the bank in both 1990 and 2003. In 2003, they bring a new department and try to join the other department together. The Regional Lending managers activities were not accepted by other departmental mangers. This created a big problem in the organisation. Most of the staffs did not express any interest to new executing change. This is because they were not understood the new system. Who are interested this new changes, did not get any support from their higher level. Building Change Capability A well-known model of change management views organisations as going through long periods of stability punctuated by short bursts of discontinuous change. According to Nilikant (2006), mangers or organisations can build capability in four ways. Those are firstly, individuals and groups build capability. Secondly, individuals and groups build capability when they successfully execute challenging projects. Thirdly, building capability involves paying simultaneous attention to both action and reflection. Fourth, leaders and organisations can help individuals and groups build capability by providing a context that aids action and reflection. Self-efficacy is energy and focus for the capability building. In managing change, self-efficacy is a major determinant for success. Employees with higher levels of self- efficacy can overcome obstacles and challenges that are inevitable part of any change. Efficacy is demonstrated when individuals feel secure in avoiding pseudo solutions. Mybank fai led in their both approach. The main reasons are not cooperation between the staffs and management. Who are motivated in these approaches, did not get support from their top level. Staffs got more workload in their work and staffs were lost the interest to extra works. In this way bank cannot maintain capability. Change Agent A change agent is the individual or group that helps effect strategic change in the organisation. For example, the creator of a strategy may, or may not, be the change agent. He or she may need to rely on others to take lead in effecting changes to strategy (Johnson ET .al 2008). Middle managers and consultants are the change agents in the Mybank case, because they are working together with top level and bottom level people within the organisation. Transition Phases Mod Internalization, Reaction And Learning Denial Shock Depression Consolidation Testing Letting go Acceptance of Reality Time .Answer 3: People going through change experience a variety of emotional and cognitive states. Transitions typically progress through a cycle of reasonably predictable phases .this applies to all kinds of transitions: voluntary and imposed, desirable and undesirable. Often people have little warning of changes and they experience the initial phase of a transition as a shock. Feelings of anxiety and panic can determine their ability to take in the new information, think constructively and plan. Mybank employees faced the same problem when they heard about the new change. Denial phase characterized by a retreat from the reality of change. Depression is the reality of the change becomes apparent and the individual acknowledges things cannot continue. Letting go phase involves accepting reality for what it is. It implies a clear letting go of the past. Testing is more active, creative, experimental involvement in the new situation starts to take place. Consolidation stage progress in progresses in parallel with testing but to begin with there is often more testing and rejecting than testing and consolidating. Internalization, reflection, and learning transition is complete when the changed behaviour is normal and unthinking and is the new natural order of things(Hayes, 2010:216). When a new change program implemented in the Mybank, all the staffs passed in these stages. Some of the staffs were getting struggled and other staffs overcome all the problems. The primary leadership task in change management as creating a positive behavioural context that facilitates inquiry, appreciation, and change. Change management model identifies four core tasks. First, mangers need to be cognitive tuners to appreciate change. Second, mangers need to be people catalysers to mobilise support. Third, managers need to be system architects to execute change. Fourth, managers need to be efficacy builders to build change capability. Leadership Cognitive Tuner The main core task of appreciating change requires a manger to tune into both external business environment and the internal organisational setting. The important thing of the change agent is to understand the external environment and assess the organisational capabilities to address the external changes. The change agent should expose different way. The change agent should seek knowledge in all level and awareness of own metal models and assumptions important. The change agent should recognise the assumptions, if it is necessary or not (Reference). Finally listen other people who are disagreeing with the change agent and do not feel defensive or threatened when others challenge the ideas and thinking. My bank case, cognitive tuning was not effective. The management did not listen to the bottom-level staffs opinions; as a result, employees lost their interest in the new changes. The middle level mangers fail to express their feelings into the top-level management. The way of communic ation was not sufficient between departmental mangers and change agents. People Catalyser Organisational change has an element of loss inherent in the process, and it is a loss that is often deeply felt by employees. The Kubler-Ross grief model addresses the emotional issues associated with change. The four emotional stages experienced throughout the change process may be expressed by employees in behaviours that are obstacles to the process of change. By understanding the emotions employees often encounter during change. It will be better prepared to facilitate the change process (Reference). Kubler- Ross grief stages is applicable in the Mybank case. The staffs were faced the situation in the organisation. But the final stage of the Kubler- Ross was fail in the case, commitment from the employees not good. Between the departments problems created. Kubler -Ross Grief Model Stage 1: Denial People encountering a change initiative might be saying to them, I cant believe this is happening to us. Unresolved fears about the change initiative need to be addressed during this phase. Stage 2: Resistance During this phase, people could attempt to slow down or derail the change initiative, it must be able to spot resistance when it occurs and formulate sound strategies for overcoming it. Stage 3: Exploration If people are not able to stop the changes from occurring, they begin to role of the group are specifically defined in this stage. It is important that unresolved issues that continue to surface be addressed. If trust has been created among the group, then peer influenced can be used to encourage behavioural change. Stage 4: commitment Mutual commitment is established , obstacles have been removed .and the focus is on successful implementation of the changes The change management need to catalyse people by building support, manufacturing consent and facilitating cognitive shifts in organisational members. The change agents need to be communicators, persuaders and negotiators. The change agent prepares himself before engaging the people. For influencing the people the agent can utilise all the media and forums. In decision-making time, change agent role is important. There is no chance to run away from the situations. The change should get trust and respect from others, in this way they can develop the credibility. In the case study, at a particular level, the consultants engaged the people and they fail to utilise the forums and media in the organisation. The middle levels mangers did not get the much trust and respect from the staffs. Systems Architect The change agents need to create the systems, process and routines to execute the change plan or agenda. This involves setting explicit goals, establishing cross-functional teams and monitoring progress (Nilikant). In this stage, the change agent role is very important. In the organisation, he/she should clarify individual roles and contribution. The person who selected is SMART or not. Moreover, other team leaders selection responsibility will come under the change agent. Co-ordination between other staffs will come under the change mangers control. Change mangers need to identify the organisational past practices, procedures, and polices and it should eliminate them properly. Mybank change fails in these areas. The selection of the other team leaders performance was not good. They were not SMART. If they are SMART, the change will be successful. Under the control of the middle managers, conducted meetings but fail to share the new ideas and solve current problems after the change. Efficacy Builder The mangers need to make organisational members have faith in their ability to learn, overcome obstacles and engage in change. Jim Collins argues that the effective leaders do not motivate people. They help people motivate themselves. A significant aspect of building change capability is to build a repository of organisational knowledge that captures insights from peoples tacit experiences. Building change capability is closely related to the core task of appreciating change. Store and share the knowledge is very important for a change manager. Renewal must become as important as cash flow or profit maximisation. Organisational members are aware that change mangers are observing what they say and what they do, and they may be making judgements about them and their future role. Mybank case change management selected some people for the leadership positions. However, that staffs were not successes in a particular level. Some of the departments in Mybank were not given any preference to the change mangers. This is one of the reasons to fail change implication in Mybank and plan of joining of the two departments was not success. This was due to the inefficient leadership and responsibility by the change mangers. The change ag Answe4: Recommendation Conclusion