Change Management of Robbins & Coulter - Term Paper Example

Contents 1.Managing Change and Innovation 1 Introduction 1 References 9 1. Managing Change and Innovation Introduction Paton & ‎McCalman (2008) define change management as a structured approach that enables organizations to transition organizations, teams and individuals what they are to a desired future state. According to Robbins & Coulter (2005), organizational change refers to any alterations in the people, technology or structures within an organization. Discussion of Change Management There exist internal and external forces that bring about the need for organizations to change. Robbins & Coulter (2005) identify the following external forces to change; market-place conditions, technological advancements, economic conditions, and government laws and regulations. The internal forces for change include employee attitudes and behavior as well as compensation and benefit requirements, organizational strategy and new equipment. Robbins & Coulter (2005) identify two viewpoints to the change process in organizations. These are; ‘the calm waters’ and ‘the white water rapids’ metaphors. The ‘white water’ metaphor works on the premise that the operating environments are characterized by uncertainties and dynamisms. The ‘calm waters’ metaphor on the other hand is premised on believe that the operating environment is stable and predictable and utilizes Lewin's three-step model of unfreezing the status quo, change to a new state and finally refreezing to the new state in order to manage the change process. According to Hiatt & Creasey (2003), people resist change due to several factors like uncertainty, fear of personal loss of status, money, authority, friendships, and the belief that the organization’s best interest will not be served by change. Changing people is a modification of their attitudes, expectations, perceptions, and behavior attitudes, perceptions and expectations of groups or individuals. Conclusion Paton & McCalman (2008) identify some benefits that accrue to organizational managers on successfully managing the change process. These include; improved organizational performance; enhanced employee satisfaction, morale, and engagement; and improvement in overall service quality to customers and other stakeholders. Media Example of External Forces behind the Need for Change in Organizations Serandos (2014) reports in BDLive that consolidation of South African telecom companies is what will provide them with a lifeline in the highly competitive telecoms sector that has been characterized by sustained price wars that have exerted undue pressure in the sector thereby compromising service quality. Cut-throat competition in the sector has resulted in continued drop in prices for services offered meaning that industry players have been forced to make lower margins for their services, which threatens to push them out of operations. In such conditions, innovation and change seem to be the only options for companies that want to survive. Serandos (2014) highlights those innovative products such as PBX (Private Box Exchange) as well as cloud-based solutions will replace premises-based telephone systems. Consolidation of businesses as one form of change in an organization is rapidly becoming the most attractive strategic plan for telecom companies that need to remain in business. He notes that Vodacom is in the process of acquiring Neotel for R7bn, so as to boost its fortunes in SA. 2. Managing in a Global Environment Introduction Parker (2005) defines globalization as the process through which people, companies and governments from different countries engage themselves in trade and investments with the aide of information technology. According to Evans, Pucik & Bjorkman (2010), globalization has caused management challenges such as how culture, politics, environment as well as employee well-being issues are managed by organizations involved in global trade. The following factors drive globalization of businesses; new business policies such as reduced trade barriers and adoption of free-market economic systems; bilateral trade agreements between governments; proliferation of the internet, email, mobile phones, media and communication networks that have increased the spread and speed of information sharing and communication; the collapse of communism in Eastern Europe as well as the emergency of China as a major economic powerhouse also presents a number of business opportunities for global businesses. Global Management Perspectives Perlmutter (2001) identifies ethnocentric, polycentric and geocentric global management perspectives. Millsap (2012) explains that ethnocentric management orientation is where management believes that its home country is superior to other countries, and thus what has worked at home must work abroad. They may thus ignore valuable opinions of foreign employees and managers leading to vital failures. A polycentric management orientation is premised on the believe that each country is unique foreign establishments should have more control since the managers there have an understanding of what is best for the organization in that particular company as a result of their cultural connection. In a geocentric management orientation, the managers believe that the globe is a potential marketplace and hence there is a conscious effort to come up with develops strategies that are capable of working in each type of market. It seeks to find a compromise between universal standards and permissible local variations, notes Perlmutter (2001). Barlett et al (2008) states that the three perspectives allow managers to more accurately develop their organization’s strategic plans. The Cultural Dimension in Managing in a Global Environment Hofstede & Bond (1998) identified five dimensions of culture that influence how various organizations manage their global businesses. These include; power distance, individualism vs. collectivism, masculinity vs. femininity, uncertainty avoidance and long-term vs. short-term orientation. According to these dimensions, cultural differences exist in different countries and those organizations that understand this fact effectively manage their operations across different cultural settings. Conclusion MNC that establish their operations in foreign locations must strive to protect their global brands as well as present a clear and consistent image capable of appealing to both customers and potential employees. The fact that foreign operations have tended to require the localization of the management function brings about the challenge of maintaining consistency between the headquarters and its subsidiaries. Managers in these foreign establishments are required to tailor their management functions in a manner that effectively addresses the specific requirements of that market, while ensuring that there is consistency with their headquarters. Media Example of Managing in a Global Environment According to Voyles (2014)’s article on CKGSB Knowledge, the modern global business environment has led to the creation of micro-multinational companies. Micro-multinational companies have come into existence due to the existence of advantages brought about by better access to globalized marketplaces and customers and reduced costs of communication. These advantages include lower greater choice of markets other than the local markets, staffing costs, greater access to expertise and talent. He asserts that the ease of communication is due to the instance of technological advancements has resulted in development of tools such as Linked in for discovery of talent, Dropbox and Google for sharing of files, transactions online by Paypal, and sales by Amazon and ebay, which have made business across borders simpler for both the large and small enterprises. Differences in communication styles due to cultural differences can make global business success difficult. 3. Human Resource Management Introduction Sims (2007), states that an effective HRM team provides an organization with the capacity to meet business needs by effective management of the employee which the organization's most critical resource. The HRM team is tasked with the planning, development and administration of policies and programs designed to effectively utilize an organization’s human resources. HRM is concerned with the welfare of employees at their workplace and how they relate with the organization. Discussion of Human Resource Management Sims (2007) explains that human resource management involves five key functional areas. These are: recruitment and selection; development and training; performance evaluation; remuneration; and labor relations. The recruitment and selection function entails the advertisement of current job openings, screening all applicants for a particular position, carry out interviews and coordinate the hiring process. The training and development function entails providing employees with the tools, skills and knowledge that enables them to effectively carry out their responsibilities and duties. Organizations provide training through on-the-job training, manuals and workbooks, job rotation, classroom lectures, coaching and mentoring, experiential exercises. The performance appraisal and remuneration functions assist with the monitoring of employee performance so as to ensure acceptable levels are maintained as well as providing a basis for pay, disciplinary action and promotion. According to Friedman (2013), there should be continual monitoring external factors that impact on the human resources management and adjust their strategy accordingly in conformance to existing circumstances. These include government regulations and laws, economic conditions, advancements in technology and workforce demographics. According to Ireland, et al (2007), HRM practices are significant in influencing organizational performance. A competitive compensation system ensures that an organization is able to attain a competitive advantage over its competitors in that it ensures that the best talent in the market is attracted and retained by an organization. Employee training and development enables employees to gain new skills and competences. Performance appraisals help to provide feedback to both the organization and employees and acts as a source of motivation to employees who exhibit exemplary performance in the organization. According to Ruskin (n. d), effective management of labor relations with all stakeholders ensures that good public relations are developed and sustained enabling the organization to achieve its objectives. Media Example of External Influences on HRM Lewis (2014) in an article in CIPD, a leading HRM website in the UK, reports that most business leaders in the UK have reported that their HRM functions are unprepared for global transformation. This is a classic example of how HRM function has failed to identify and address influential factors of the HRM function. Lewis (2014) states that, megatrends such as technological advancements, workforce demographic changes and urbanization have created unfathomed challenges to organizations. He highlights that rising labor costs as a result of increased employee compensation in high growth markets mean that the UK faces workforce shortages as traditional sources of labor such as China and India begin to retain their local talent. References Bartlett, C. A., Ghoshal, S. and Beamish, P. (2008). Transnational Management: Text, Cases and Readings in Cross Border Management. 5th ed. Burr Ridge, IL: McGraw-Hill/Irwin. Evans, P., Pucik, V. and Bjorkman, I. (2010). The Global Challenge: International Human Resource Management. McGraw Hill Publishers. Friedman, E., (2013). 4 External Factors that Affect Human Resource Management, Blogging4jobs. [online]. Available at< http://www.blogging4jobs.com/hr/4-external factors-that-affect-human-resource-management/> accessed May 22, 2014. Hiatt, J. and ‎Creasey, T. J. (2013). Change Management: The People Side of Change, Prosci Publishers. Ireland, R. D., Liu, Y., Combs, J. and Ketchen, D. (2007). The Value of Human Resource Management for Organizational Performance. Business Horizons, [online] available at http://www.hbr.org/product/the-value-of-human-resource-management-for organization/BH255-PDF-ENG . Accessed May 22, 2014. Lewis, G. (2014). HR ‘Unprepared’ for Global Transformation, Say Business Leaders. CIPD. [online] available at < http://www.cipd.co.uk/pm/peoplemanagement/b/weblog/archive/2014/05/20/hr unprepared-for-global-transformation-say-business-leaders.aspx> accessed May 22, 2014. Millsap, D., (2012). Choosing a Management Orientation for a Global Company. [online]. Available at http://www.danielmillsap.com/research/choice-of-management-orientation for-a-global-company.html , accessed May 22, 2014. Parker, B., (2005). Introduction to Globalization and Business: Relationships and Responsibilities. Sage Publishers. Paton, R. A. and McCalman, J. (2008). Change Management: A Guide to Effective Implementation. Sage Publications. Perlmutter, H., (2011). The Tortuous Evolution of the Multinational Corporation. Columbia Journal of World Business, 69(4), pp. 9-18. Robbins, S. P. and Coulter, M. (2005). Management, 8th Ed, Prentice Hall Inc. Ruskin, J. (n. d). Importance of Human Resource Management. Human Resource Excellence. [online] available at http://www.humanresourceexcellence.com/importance-of-human resource-management/ accessed May 22, 2014. Serandos, G., (2014). Consolidation Will be Lifeline for SA Telecoms Companies. Business Day Live. [online]. Available at < http://www.bdlive.co.za/opinion/2014/05/22/consolidation will-be-lifeline-for-sa-telecoms-companies> accessed May 22, 2014. Sims, R. R., (2007). Human Resource Management: Contemporary Issues, Challenges, and Opportunities. Information Age Publishing. Voyles, B. (2014). The Age of Micro-Multinational Companies. CKGSB Knowledge. [Online]. Available at http://www.knowledge.ckgsb.edu.cn/tag/micro-multinational/ Accessed May 22, 2014 Read More