Organizational Change and Development - Example

Introduction Change has always been ironically referred to as the constant feature of work, and while there can be little doubt that the effect of the psychological contract has been clear in particular jobs, this is not only due to change itself, but rather to the way in which that change is managed. Whether it is the political reality, change is always likely to send reverberations through organizations. It affects employees in a number of ways, both through the change process and its outcome. Findings have illustrated the positive effect of workers’ well-being when they are given some measure of control over their work environment during a period uncertainty, and similarly, change need not be negative where careful management of the process is exercised. Managing change, creativity and innovation is central to the repositioning of organizations in the provision in the uptake of new technologies and new techniques, to business developments in the provision of new products and services, and to the formulation and implementation of strategies to secure competitive advantage. Through processes of change companies have rewritten patterns of competition in emerging and existing markets, they have become rule makers, they have developed new ways of operating and competing, they have downsized, re-invented and grown, in search of ways to maintain, regain or sustain their competitive position. Business continuity requires change, and knowledge on how to successfully manage change remains a central resource, but success also rests on making the right changes, on choosing the right ideas and implementing innovation that will make a difference. This creative element is critical in turning right ideas into innovations that can extend the competitive position of an organization within existing markets and create new markets. Thus a key currency in this business world of rapid change is the creative idea that can be translated into new products and services and into new ways of working with the emergence and development of new forms and types of business organization. This is precisely what we are going to discuss in this case. The nature and need for organizational change The challenge of change in organizations has been a central point of dialogue in organization science from its very beginning. Yet, the need to address the issue of change has become more and more apparent in an age of “permanent whitewater” in which information, technology, markets, and people are emerging and advancing at breakneck speed. The challenge of change has significant implications for the field of organization development itself. While by its early definitions, organization development represented a process of planned change, the shift to an environment of constant change calls for new models by which change is addressed in organizations (Pasmore, Woodman & Shani 2010). In the case of this case study, Work in recovery organizations have their own reasons and need for change. They are reviewing their situation for on-going viability. In the last ten years, Work in Recovery was awarded the recurrent block funding for them to support the underprivileged into employment. The organization has expanded and even added more three branches on the region. The organization has few sub-cultures differences in their various branches, never the less, the organization is much unified and everybody works in a highly collegial environment, with no previous industrial issues, no unified staff, no previous history of organizational unrest of financial instability. All the staff members of Work in Recovery and the chairman of the executive committee admire their CEO, Samantha Rogers. However, the organization has some pending changes in its daily operations. There is need for change among other reasons which include; they are only specialized in disability, and their current policy discussions shift has been geared towards a ‘one stop shops’ – which mean that they intend to extend their services to the entire range of participants, such as the non-speaking background, the indigenous, work rehabilitation, the homeless, disability, the youth and the other disadvantaged groups. The other need for change which is also pending is the change from recurrent block funding to outcome the based funding. This will result in the organization being paid only for the outcomes they achieve. Since this is a concern, it amounts to the organizations strength which translates to the personal effort and amount of time which each support worker puts in each client. Each and every individual has got different needs. The change in funding will mean that the organization will be required to place more clients, and gain viable employment sustainability at the same time. So this will result into the organization being paid when the client gets employed for a period of six to 26 weeks. Depending on the amount they normally receive, it will not be practical for more support workers to be hired, and so they are force to make use of their existing workforce. Therefore this calls for the need for change in this organization, and their CEO Samantha Rogers seems to be so determined to find an alternative to support her clients in the same way and still maintains financial viability. This led to the meeting of the work in Recovery CEO and the CEO of another successful Labour Hire Organization in Melbourne, Mark Rogers. They discussed the change needed in the disability employment sector, and the CEO of Labour Hire Organization Mark Rogers offered her a solution.... the amalgamation of the two organizations. Mark Rogers was also interested in the two organization’s merger. His need for change included; He wanted his organization to be outcome driven. He also wanted to tap and diversify in to the general government funded employment services The decision for the two organizations to merge was arrived at in the general committee with a unanimous vote by all the members who attended that meeting. The two managers’s believed the change will bring with it many advantages and values for the resulting new company. The corporate values were also about leadership. They expected themselves as the managers to instigate change and encourage employees to ‘live the values’. Indeed for Mark Rogers, so much of the change depends on the individual members of management and their managing style. The results of change will improve the productivity of the organization, and the values and culture change programs will be evident in the organization. The change programs will be centered on corporate values, and there will be emphasis on the importance of positive behaviors and attitudes, mutual trust and respect, individual control and accountability (Mills 2003). With all this programs that have come about as a result of the culture change efforts, the bottom line is to make the resulting company after the change, a better company, a more effective, organization, and a better place to work (Hickman 2010). The change strategy proposals – that could be reasonably considered by the organization Planned intervention strategies that are designed to bring long-term process and structural changes are not likely to be successful, unless they are system oriented programs focusing on overall organizational changes, instead of improvements focusing on specific departmental or functional changes. In addition, the success of these change programs depends on the total support and commitment of top management, as well as organization members at lower levels. A system approach examines the adequacy of organizational resources, management commitment to meet organization objectives, and fulfill member needs. Organizations are viewed in terms of open systems, which are comprised of structural components. Process intervention strategies are also designed to initiate attitude and behavioral changes among organizational employees (Sisaye 2001). Process changes involve new behavior patterns that foster interpersonal and inter-group interaction, and create improved formal and informal communication linkages within work groups and among individuals’ at all organizational levels. The new organizational change strategies were finally proposed by the former Labor Hire Organization CEO Mark Rogers, and a now anew CEO of the resulting new organization after the merger of the two organization. Samantha was designated to manage the operational side of support. Mark Rogers will work with the board in ensuring that the organization remained financially viable. Among the reasonable strategy proposals that could be considered for the new organization comprises of: Structural change strategies Behavioral change strategies Cultural and paradigm shifts Structural change strategies The structural change consists of changes in organizations divisions/departments, job design and organization of work process and performance evaluation. Technological innovations such as reengineering have made significant structural processes, among others, in inventory and product scheduling management, delivery techniques and product design and quality managements. Reengineering work will result in the downsizing and restructuring of the new organization (Rothwell et al 2009). The management needs to follow an intelligent resizing that does not aim on job elimination, employee termination and replacement programs, but focusing on organization design issues that address “how should work processes best be configured”. With the advent of new information technology, the implications of resizing and work process configures are substantial for accounting and internal control, particularly with those functions dealing with the management of current assets and liabilities that are respective and routine. Thus, the information technology revolution has brought a paradigm shift in the way in which the internal control functions are viewed. Behavioral change strategies This strategy involves the adoption of new attitudes and values by individuals and groups. Attitudinal changes are learned over time and are brought by cultural training programs. These educational programs involve workforce training, teaching of new cultural work behavior such as team and cooperative work, and employment of workers to make changes (Palmer, Dunford & Akin 2008). Top management provides leadership, vision, support and commitment to innovation programs, and inspiration. The management will ensure that the agents or the facilitators are in the right place to implement change programs. There should be an open line of communications by all the members of the new organization to solicit ether support and commitment for planned programs. Organization members form functional teams that span and cut-across traditional boundaries to gather information, define and develop benchmarks and implement change programs. Cultural and Paradigm Shifts This is the third aspect of process change and innovation that requires cultural and paradigm shifts. The real cultural and paradigm departures from the old way to a new radical thinking started with the publication of reengineering and process innovation. According to Sisaye (2001), cultural and paradigm shifts involve fundamental changes of thinking about organization values, work, and infusion of new cultural behaviors to change existing and outdated assumptions. A paradigm shift occurs when there is a major departure from the existing accepted state of theoretical thinking, analysis and modes of operations. Similarly, in internal control and accounting, a paradigm shift requires cultural changes to the ways in which the organization will control systems to evaluate performance and profitability. The new paradigm shift involve a radical departure from ‘top-down, remote control management-by-the-numbers’ performance evaluation system (Palmer, Dunford & Akin 2008). The goal is for the management to use organizations to build human competencies; corporative team work relationships, bottom-up empowerment, and make great people through the creation and design of jobs that fulfill the essential needs of individuals. These changes have significant implications on the traditional management tools, principal agents and power relationships of organizations. Challenges faced by managers while initiating change The effective management of change depends on the level of management skill in the factors mentioned below; Managing organizational politics Managing transitions effectively Dealing with organizational cultures. Managers should first look at the long-term of sustaining and renewing organizational change. They should examine the challenges of first initiating, second sustaining and third redesigning and rethinking change (Attwood 2003). Some of the key challenges of initiating change are the balancing forces that arise when any group of people starts to do things differently. Some of the challenges include; ‘We don’t have time for this stuff attitude!’ People working on change initiatives will need extra time outside of the day-to-day to devote to changes efforts, otherwise there will be push back. ‘We have no help attitude!’ there will be new skills and mindsets to develop. People will need coaching and support to develop new capabilities. ‘They are not walking the talk!’ people look for reinforcement of the new values or new behaviors from management. If this is not in place, there will be resistance to progress. ‘This stuff is not relevant!’ Unless people are convinced of the need for effort to be invested, it will not happen. The fear among the employees. This challenge concerns the discomfort felt by individuals when they feel exposed or fearful about changes. They may feel that their job positions are threatened by lay-offs. The strategies of how the managers should effectively manage the change process Develop Enabling Structures Enabling structures are the activities and programs that underpin successful implementation and area critical part of the overall plan. Such structures include pilot programs, training, and reward systems (Palmer, Dunford & Akin 2008). Pilot programs give people opportunities to grapple with implementation and its problems on a smaller, more manageable scale. Pilots are test beds in which implementers can experiment with and de-bug change initiatives before rolling them out more broadly. These programs can be valuable providing ground since it is almost always easier and less risky to change a single department than an entire company. Celebrate Milestones The initiatives of change can be long and frustrating, but the spirits and the energy of the people can be kept up if the millstones are identified. The celebrating series of short-term wins can: Neutralize skepticism about the change effort. Help retain the support of senior management Boost morale Keep up the momentum, and Provide evidence that peoples sacrifices and hard work are paid off Communicate relentlessly Communication is an effective tool for motivating employees, for overcoming resistance to an initiative, for preparing people for the merits and demerits of change, and for giving employees a personal stake in the process. Effective communication can set the stone for a change program and is critical to implementation from the very start. Conclusions Organizations are social entities that include a defined number of members and, which, by coordinating their efforts, strive towards the realization of common objectives in a given context. This term applies to all kinds of social systems, regardless of their objectives: enterprises, churches, government institutions, universities and charities, which are all alike from a certain point of view, since they are all organizations (Palmer, Dunford & Akin 2008). Organizations do change, they become different, in order to adapt to new developments in the environment and the two Labour Hire Organizations which managed to merge in this case study are no different. In this change management, the managers and executives, who in this case are mark Rogers, Samantha Rogers and the board chairman decided to use the OD practitioners as agents and resources, plan, direct, and steer change. Changes should be made with the participation of the members in order to secure buy-in and support for changes (Attwood 2003). The changes were the most part, meant to advance the competitive and economic well-being of the organization and its stakeholders. And so if all of the above recommendation strategies are duly followed by the management of the new Labor Hire Organization in their quest for change, the change process will then be a success. References Pasmore, WA, Woodman, RW, & Shani, AB 2010 Research in Organizational change and Development, Volume 18, 1st edition, Emerald Group Publishing Limited, UK. Hickman, GR. 2010 Leading change in Multiple Contexts: Concepts and Practices in Organizational, Community, Political, Social, and Global Change Settings, SAGE Publications Inc. California, USA. Mills, JM. 2003 Making sense of organizational change, Routledge, New fetter lane, London. Sisaye, S. 2001 Organizational change and development in management control systems: Process innovation for internal auditing and management accounting, Elsevier Science Ltd, The Boulevard-Langford, UK. Luecke, R. 2003 Managing Change and Transition, Harvard Business Scholl Publishing Corporation, USA. Langer, J, Alfirevic, N & Pavic, J 2005 Organizational change in transitional societies, Ashgate Publishing Limited, Hampshire, England. Rothwell, WJ. Et al 2009 practicing Organization Development: A Guide for Leading Change, John Wiley & Sons, Inc. USA. Attwood, M 2003 Leading Change: a guide to whole system working, The Policy Press, UK. Palmer, I, Dunford, R. & Akin, G 2008 Managing Organizational Change: A Multiple Perspective Approach, McGraw-Hill Irwin, New York, UK. Read More