Organizational ChangeIntroductionAustralian Government included additional finance assistance in their budget to help companies that will employ people with disability or long term unemployment acquire new jobs. This was indicated in Budget from 2011 to 2012 on May 10th this year (Kelly 2011, p. 293). This is a good development for both employers and people who are disabled or have been jobless for a substantially long period of time. The new development however contains a policy that will require many companies to change their task processes so as to benefit.
The Australian government will assist employers by including wage financial support of $3, 000 to help employers create employment opportunities for a minimum of fifteen hours per week for the disabled and people in need of employment (Kelly 2011, p. 293). The government will fund such programs based on outcomes rather than block funding. Many companies that hire disable people receive block funds which will change the entire organization process. Employers who are willing to employ people with disability, indigenous non-English speaking Aborigines, the homeless, youths and other disadvantage groups in Australia will not only receive financial backing in 2012 but also a motivation fee of $2, 000 per every person employed under Support Wage System (Kelly 2011, p.
293). This motivation fee is only given to eligible employers who have employed a disadvantaged person for at least twenty six weeks. THESIS STATEMENT: This report will discuss the nature and need for change, the strategies for change, challenges faced by managers and also strategies to manage the change process effectively. ObservationsNature and Need for Organizational ChangeWork in Recovery was merged with a medium Labour Hire organization to form a single organization that will incorporate Australian government’s policy of hiring disadvantaged groups.
Previously, Work in Recovery was an organization that first started as a small organization that employs a few disabled people within Churchill Victoria. It then expanded into three branches namely; Moe, Traralgon and Morewell. This organization operates on a block fund base where resources are given to the company despite of employees’ efforts. The organization has been in the market for ten years during which local communities have gained trust in the processes provided.
Labour Hire organization in Melbourne has not been in the market for such a long time but it is one of the few successful companies that focus on outcomes. The merger between the two companies into one has enabled Mark (CEO) to incorporate new ideas so as to receive adequate outcome based funding. Without successful outcomes, the company will lose government funding and it will be forced to fold. The merger company will also have to change its operation and organization culture to help a wider range of disadvantaged people in Australia.
Disabled people who want to work are only part of the disadvantaged group but there are homeless people, disoriented youths, people in work rehabilitation, Indigenous people, non-English speaking people and people from very poor families who need employment to stay out of trouble. Companies that have been employing disabled people will now need new strategies to maintain their financial stability by employing all disadvantaged people and also incorporating new changes in the company. Employees will be the first people to resist change because of their organization culture and also due to uninformed benefits of change.