Importance of Change Management - Example

Change Management Report Introduction Change is a fundamental aspect in every business organization as it introduces a new culture and breaks monotony (Kotter, 1996, pp 33). Thus, every manager should be able to acquire this skill. Change management is the act of the company introducing new systems or changes in the work place. These changes should be acceptable and the employees should be able to embrace these changes. People are diverse and it is only normal that the employees respond differently to the different changes installed at work. The leader should be able to appear very competent while implementing the changes. Change is a process and the leaders should be able to manage change effectively in an organization. The leaders should be able to make sure that the employees adjust appropriately to the change being implemented. If the change being introduced to the company is beneficial, then the managers should make sure everybody embraces it. Importance of Change Management Change management in an organization is very important as implementing change in a company is not an easy task (Kotter, 1996, pp 36). The employees embrace whatever culture they find at the workplace and relating to a new one will be very difficult for them. Change is an important aspect in the organization and the employees should make sure to implement it at some point. Change might bring out other talents in the employees forcing them to perform better at different posts. This will also lead to internal competition, which is rather healthy for the company. Change will not only be beneficial to the company but to the employees as well. This is a point that the employees should be well aware of because it will make them adjust to change much faster. Change creates a fresh start for the employees and the company in general. This is when the plan had been outlined carefully and the results are sure to be positive. Customers are always looking forward to new developments and when a company initiates change, and then it is bound to attract more customers (Kotter, 1996, pp 36). The process of change could give the workers and the company an opportunity to solve some of the problems that were being experienced in the company. Telstra Company decided to initiate change after experiencing few losses in the company. The main reason for coming up with the change implementation process was to attract more customers instead of losing them to other services. The change was to restructure the senior management group so that each individual occupied a different position. The idea was initiated by the chief executive, David Thodey. Although the idea seemed like a good plan and approach to their problems, it did not apply well to the employees. A good change strategy that seemed rather positive turned out to be the opposite when resented of the employees. Change Management Strategies Change management is not an easy task as people will react differently to the change being implemented (Higgs 2009, pp, 166). Hence, the leaders should approach the situation with careful deliberation keeping in mind that people are different. This knowledge will help them understand the employees better and help them adjust to the changes slowly but effectively. Since change is a process there are different phases that the leaders will have to undergo. These phases include; preparing for change as it will create an aura of open mindedness for the employees as well as the leaders, managing change and implementing the changes. According to Armenakis & Harris (2009, pp 128) Preparing for change is very important as one will be giving the employees a glimpse of the future changes. Some of the office traditions may be had to let go as the employees had grown attached to them and were rather comfortable. The idea of adapting to new traditions may seem like a threat to some of the employees and preparing for change gives them reassurance. Approaching change as a positive activity will help the employees view it the same way (Armenakis & Harris, 2009, pp 131). This can be done by always talking about the benefits one is likely to gain from change in the company. If the employees think in terms of benefits and what they are likely o gain, they might feel the need to adjust to change. However, when the manager or leader keeps referring to the benefits the company will enjoy instead of the workers as well, then it might just pass the wrong message (Van Djik & Van Dick, 2009, pp 146). This will further cause the employees to resist the idea of change in the company. Looking at change as leaving the old traditions for new ones that will have extra benefits for everyone will help the employees adjust much faster. In this case the chief executive Mr. Thodey, would have approached the situation rather differently. The change presented to the employees was abrupt and the employees were not given a chance to present their views. The chief executive would have introduced the idea of change at an earlier stage. This would have given the employees a chance to deliberate what was going to change in the future. Presenting the idea would have been a positive approach and practicing change would have been even better. This would have been done by introducing temporary exchange of responsibilities. Giving the employees the experience of working at a different position temporarily will help them adjust much faster (Van Djik & Van Dick, 2009, pp 160). The employees would be able to discover the areas they have difficulty with and work towards improving the situation. The Telstra case was a matter of the employees adapting to the new positions they were being assigned. Giving them a chance to experience the change forehand would have been a good opportunity for them to present their views and worries. Considering the views presented by the workers is usually very important as they will feel important and considered in the company (Van Djik & Van Dick, 2009, pp 161). The employer would have the chance to confront all the issues at an early stage. This will give the leader or manager an opportunity to make several adjustments that will make the employees more comfortable. Attending to the employees woes will give them reassurance and they will be able to look at change with a positive attitude. The main change in the Telstra Company was to restructure the senior management group therefore; this means that the senior group was the one to be most affected. However, the chief executive did not consider whether the reaction from the employees would affect other departments. The need to change was abrupt and the idea was not passed to the employees to consult with them first since everyone had a different opinion to the idea. Since the change was compulsory, some of the employees opted to resign an when the others experienced difficulty in the positions assigned to them, they also opted to quit. This affected more than the senior management group because some of the employees performed poorly at their new posts. The employees who resigned presented a new problem for the company as they had to look for other people to replace them (Bokeno, 2003, pp 607). This did not only waste their time but their money too. Business Process Reengineering (BPR) Managing change is the hard task because it will mean confronting all the doubts and fear in the organization (Van Djik & Van Dick, 2009, pp 162). Most of the employees are bound to resist change due to doubts or fear thus the work of the leader is to provide them with assurance. The employees of Telstra need assurance that their job will be secure despite the new arrangements. Telstra Company is set on restructuring the senior management for the benefit of the Company. The employees feel that if they are given different responsibilities, they might fail to perform as well as they did in their current positions. The management theory being applied here is the Business Process Re engineering (BPR). This theory focuses on how things will be carried out in the organization, in order to implement change. The Company did not focus on the attitude of the employees towards change but rather on improving the company’s status. The leaders of the company were placing the needs of the company as an institution first before the needs of the employees. In turn the employees did not embrace the new changes set in place by the company. The introduction to change was abrupt and compulsory thus leaving the employees with no choice but to accept change or quit. According to research done by Graetz & Smith (2009, pp 9), not taking into account the views of the employees led to some consequences. Some of the employees resigned while others simply just quit their jobs. The company lost the managing director of media as a result of the changes implemented. The same action was later repeated by another employee David Moffat, the managing director of Telstra's consumer group. This is not the reaction expected by the leaders of Telstra as it posed as a minor setback. Searching for replacements is not an easy task and it is time consuming as well. Theory of Total Quality Management (TQM) Looking at the theory of Total Quality Management (TQM), it aims at perfection in production or rendering of services (Higgs 2009, pp 165). The theory aims at implementing change to solve some of the problems that were being experienced in a company. The changes initiate perfection eliminating any form of errors that led to losses. The Telstra Company had been experiencing losses due to low turnout of customers. The customers were no longer enjoying the services being provided by the company and opted to use other services. The chief executive felt the problem would be solved by restructuring the senior management group. This way the services provided to the customers would change and the business would pick up. The theory seems to apply well only that the opinion of the employees is not considered, this can therefore, lead to the change strategy failing. According to Higgs (2009, pp 170), the employees' attitude should always be considered because it will determine whether the change plan will be successful or not. Not only does the theory not focus on the attitude of the workers but it also fails to look at the company as a whole institution but rather selected parts. Holonomic Process The Holonomic process is another change management model that is usually applied in most situations (Higgs 2009, pp 173). It involves a sequence of processes that guides an organization into understanding the company is organized. This understanding will help the leaders make more informed decisions when it comes to implementing change management. In relation with the Telstra Company, this would have helped the chief executive make better decisions. If he had the understanding of every single individual and how they operate at their current positions, then he would have assigned them posts that they relate to. This would have helped the employees adjust much faster to the changes implemented in the company. Challenges That the Managers Might Face The most common ad obvious challenge that the managers are likely to face while implementing change is resistance. As mentioned earlier everybody is different, hence the attitude towards change is also likely to be different (Higgs 2009, pp 175). While others might embrace the change immediately, others may seem to be rather resistant. The resistance may seem just like simple rebellion but the problem may be traced back to ear. The employees might fear that the change will threaten th position they hold in the company. Therefore, their immediate reaction will be to resist the change being implemented. This problem can be solved by understanding the employees and their fears. This can be achieved by having better communication lines in the company. Communicating to the employees about the change ideas that are likely to take place in the company is an important step (Hiatt & Creasy, 2003, pp 44 ). This will give the employees an opportunity evaluate the situation and present their own views. Proving to the employees that their opinions matter is equally important as it will provide them with a sense of reassurance. This will also give the manager an image of the problems likely to occur if the change is implemented. Constant talking about change with a positive attitude will create a good example for the employees and instead of them worrying about adjusting to the changes; they will begin to look forward to the new plan. According to Higgs (2009, pp 174), culture is one of the main factors that unite the employees and adopting a new culture may seem very difficult for them. Thus, if the culture existing in the office had positive results then the manager should try to instill very minimal changes (Higgs, 2009, pp 174). However, if the culture existing does not bear good results for the company, then the manager should introduce one that the employees will easily relate to. The new change should be better than what already exists and have promising results. The benefits brought about by the change should not only reflect on the company but on the workers as well. Managing change is not an easy task as one will be forced to deal with constant complaints. The employees need reassurance as they are usually filed with fear and doubts and convincing people of the prospects of a brighter future is quite difficult (Kissler, 1991, pp 75). The manager is supposed to provide good reasons as to why the change will be beneficial to both the company and the employees as well. Going by interpretations by Higgs (2009, pp 178), the best way for a manager to deal with these problems is to make use of the benefits in a company. He should let the changes in the company affect the benefits of the employees positively. If the employees look at the change scheme as a way of making life easier for them at work then they might have a different attitude towards the situation. The idea of them being recognized for their efforts in implementing the change will make them consider the idea. Although implementing change will be a hard task at first, eventually, the employees will adapt to the new changes. The progress brought about by the changes will be very important as it will act as motivation for the employees. Conclusion In general, change management is an important aspect in the business world but the implementation of change is a process. Patience is virtue that should be exercised by the managers at all times during this process. As much as the idea of change is bound to be promising, there are a lot of problems that can occur. Change management requires skill and experience for it to be executed properly (Fenwick, 2003, pp 630). If this is not exercised then the change can end up causing more problems other than solving the ones that already existed. The employees may present a resistant front to the change at first but with good strategies, they may eventually open up to the idea. The Company Telstra came up with a good idea of changing the senior management group. Although the change seemed refreshing and positive, it ended up failing because the execution was poor. Some of the employees ended up resigning and quitting their positions in the company presenting the company with bigger problems than before. This was a case of poor communication and execution. Therefore, as much as change management has many advantages in the company, it should be executed properly by someone with skill and experience. Bibliographies Armenakis, A. & Harris, S. , 2009. Reflections: our journey in organisational change research and practice. Journal of Change Management 9(2), pp. 127- 142. Bokeno, M. , 2003. Introduction: appraisals of organizational learning as emancipatory change. Journal of Organizational Change Management. 16(6), pp. 606- 618. Fenwick, J. , 2003. Emancipatory potential of action learning:a critical analysis. Journal of Organisational Change Management. 16(6), pp. 619- 632. Graetz, F. & Smith, A. , 2009. Duality theory and organizing forms in change management. Journal of Change Management. 9(1), pp. 9- 25. Hiatt, J. & Creasy, T. , 2003. Change management: the people side of change. Colorado: Prosci Research. Higgs, M. , 2009. The good, the bad and the ugly: leadership and narcissism. Journal of Business Management. 9(2), pp. 165- 178. Kissler, G. , 1991. The change riders: managing the power of change. Britain: Routledge. Kotter, J. , 1996. Leading Change. Boston: Harvard Business School. Reading, MA: Addison Wesley Van Dijk, R. & Van Dick, R. , 2009. Navigating organizational change: change leaders, employee resistance and work-based identities. Journal of Change Management. 9(2), pp. 143- 163.  Read More