The paper "Change Management in the Modern Organization" is a great example of a literature review on management. The increase in globalization in the 21st century has significantly escalated the number of companies in the markets. As the companies cross borders, people’ s lives are being shaped by emerging technologies, improving the global economy, growth of technical know-how, and cultural and political changes (Năstase, Giuclea & Bold 2012, p. 5). In a wake of such changes, organizations have become innovative to gain competitive advantage. This is a manifestation that within just a short period, the ability to transform has turned out to be the core competency for every organization all over the globe.
Change management has become very critical in running modern organizations, and companies that are unable to adapt to changes are likely to survive irrespective of their industry or sector (McKinsey & Company 2008, p. 2). Therefore, this essay focuses on change management in the modern organization. Broadly under this topic, the essay will define and explain change management, major challenges of managing change in organizations, current theories on change management, effects of change management on organizational effectiveness.
Also, the essay will analyze how the current change management theories can be applied to support organizations and recent examples from the media which supports change management. According to Kotter (2011), management change is defined as a strategy of transitioning staff, organizations, and teams to a needed future state. In involves the collection of processes employed to make sure that change is executed in a logical, orderly, and controlled way which to transformation in the way things are done (Rogers, Meehan & Tanner 2006).
The emphasis is on the broader effects of change, especially on employees as teams or individual’ s progress from the present state to a new one. It is never that simple and moves from simple task change to a major transformation for an organization to get to its potential. Definition, theories, and processes of change management are drawn from numerous topical areas including behavioral science, psychology, system thinking, and engineering (Frantz 2004, p. 156). This is because change does not take place in isolation, is driven by people, and affects the organization and society. In the event that change happens, people experience transition in their jobs, group formation, organizational innovation, reorganization.
For instance, in recent years after the global economic crisis of 2008, Qantas Airlines has posted dismal financial performance leading to a drop in market share (Mules 2013). The management cites low demands for air travel, the high cost of fuel, the wage bill, and the generally high cost of operations as the cause of poor performance. Mules (2013) contend that in 2011, the company proposes structural organization change which is projected to transform the Qantas in the near future.
In these changes, some employees would be affected. In the first year, 1000 people are going to lose their jobs due to layoffs. Part of the reasons is that the company will abandon unprofitable routes. In total, the company will lay-off up to 5000 employees (Mules 2013). It will affect individual employees, but it has to be carried to cut operation costs. Even though it’ s the managers at the top level that steer change, but the success of the change cannot depend on them alone.
Graetz & Smith (2010, p. 136) claim that the fast pace of change that has taken place in the 21st century makes it needful for leaders to distribute some influence through all levels of the organization.
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