A Study On Change Management Commerce Essay

A Study On Change Management Commerce EssayAccepting transfigure is considered the biggest paranoia in todays world. Organizations both air and non-business confront a challenging world. around of the challenges that argon faced by managers today include competition from otherwise firms, globalization, and technological changes besides others. Let us consider a small example that can set the stage for discussing the effects of change. Daily life in a modern society is ilk a routine, where we wake up in the mornings, have breakfast, go for puzzle out, have lunch, come back from consummation, eat dinner and then sleep again. It has become a scheduled life, or so to say, we con build to structure in our lives. This structure provides us the necessary security. simply, if we were to live in a world full phase of the moon of concern and unexpected mechanisms, it may leave us feeling uneasy and apprehensive. If this is the condition of individuals, a large-scale change in an org anization can surely transmute its people into anxiety, exasp durationtion, frustration, depression or even fatal incidents. To curb this, organizations practice what is to be referred to as Change Management.Change Management is a process whereby, the individual, squad or the organization develops a planned approach towards any sort of an alteration. The objective is to capitalize the benefits for the people and lessen the risk of failure of implementation. Change anxiety entails thoughtful planning and sensitive implementation, and most eventfully, consultation with the people who argon going to be involved in the process. This task studies how organizations have evolved to accept change. But let us first look at the drivers that affect organizational change Inadequate financial Performance the 2008 economic slowdown can be well quoted as an example for this. Companies failing to reach their financial benchmarks, have to undergo change. Competitive organizations can cannibal ize their market sh be, provided they enter with cheaper advertize or superior technology. Failure to maintain the market sh atomic number 18 can force companies to rethink their opportunity cost and also the deployment of resources. Changes in Strategic objectives many companies elusion their focus from universe intersection-driven to being customer-driven or even process-driven. To enable this, restructuring and re-orientation of processes, people atomic number 18 required of in the organization. New Technology companies that neglect the new trends in the market are set to suffer a setback, and, consequently, should adapt to the changes in technology. Mergers and Acquisitions when companies merge and consolidate their operations, people and the culture, re-engineering takes place. The streamlining of the operations, infrastructure and the structure of the two organizations into one centralised theme is a huge part of the change centering process. These, could be defined as the drivers of change that evolve businesses and markets.Organizations, today, have learnt to adapt to change. In this era of globalization, fast-moving lives and business-centered organizations, people and the processes have accepted the transformation. For instance, a lot of investment banks had to undergo transformation during the economic slowdown. Citigroup Inc. restructured its banks and other affiliates during the recessionary period, to acclimatize with the new environment. And it did happen. The management has to vouch that a smooth shift occurs, and for this it adopts a number of organizational theories as a basis for effective change management. Some of them are listed in the adjacent few paragraphs. The central challenge of changing peoples behavior and making them susceptible to change remains to be a huge challenge. John Kotter and Dan Cohen, discuss in their book The Heart of Change real life stories of how people change their organizations discuss highly-succes sful organizations embark large-scale change. They say it moves through eight stagesWhat people do and what is to be done for them, requires overbearing thinking and planning on the part of the management. It is necessary to build upon a sense of urgency in the people by inspiring them with the need that has arisen to undergo change. This could be done with relevant people in the organization first and then go onto include others. These could be referred to as the Change Agents. These agents can then create a team with the credibility, reputation and formal authority that can inspire change leadership. The visions, strategies and goals of the employees and the organization could be uplifted in this process but communication of these is of consummation all important(predicate). The right communication can get the change process on an easy raceway. Every path has some definite barriers to action, and it is imperative to remove these as they would prove harmful. Empowering the peo ple to act on their vision could lead to easy transition. Change cannot be brought about(predicate) in a jiffy. It requires a lot of patience and observation on part of the organization, and therefore, small waves of change can lead to a bigger, better marine of possibilities. When the change management process is nearly done, the new culture should remain stagnant until, the next change process comes around. This eight-step process of change would process to skid organizational change smoothly into organizational processes and functions and would bring about a new culture. The next theory of change is Kurt Lewins Three-Step Change theory. This theory is considered to be systematic and planned in its approach. It talks about three move namelyThe first step says to unfreeze or to change the existing behavior. This is necessary to whelm the strains of individual impedance. Some activities that can assist in this step are motivating the employees, building trust and recognition and letting the employees participate in think sessions and other group activities. The second step talks about taking the level of the employees to a new target level. In this stage, the employees are encouraged to work together, look at the changes from a new perspective, and support the change agents and the leaders in the process of change. The purpose of refreezing is to stabilize the new equilibrium and ensuring that the changes use are followed by the employees. on that point are many other theories that can catapult an organization into accepting change, namely, 7-S Framework by Mckinsey, Cultural Dimensions by Hofstede, Managerial power system by Blake-Mouton, Causal Model of Organizational Performance and Change by Burke-Litwin, besides others. Organizations, today, understand the relevance of inclusion of its employees in the process of change management, and, therefore by implication of unhomogeneous models and theories, involve their people with full intention of t heir benefit. The Cognitive theory states the importance of understanding the thought processes of human beings, and this theory help in the exploitation of the theories and the models used by organizations for engaging their employees in the change management process.The next task studies the strengths and weaknesses of a Bureaucratic Organization.Task (b)Max weber gave the concept of bureaucracy at the turn of the 20th century. For him, the ideal bureaucracy was defined by the terms efficiency, impersonality and rationality. The employees are subject to published codes of rules i.e. the ones that are gettable in writing. The structure of the organization is a continuous hierarchy where every level has authority on the level below it. Job holders have no rights to a particular position. Responsibilities are delineated within each level, which has its own sphere of competence. Technical competence is the basis for appointment to an office. The strengths and the weaknesses of the bureaucratic organization are described as belowStrengths Increased control and monitoring of the upper level management More control over the employees with set rules and regulations Reporting relationships are lead and well-defined Centralized system, where all the decisions are monitoredWeaknesses Lack of innovation due to the set procedures and processes Employees are not motivated because of lesser employee participation and interest group Communication has to go through many levels, which gets distorted Encourages politics in the organizationThese are the strengths and the weaknesses of the bureaucratic organization.The organization chosen is BMW or Bayerische Motoren Werke which is headquartered in Munich, Germany and came into being in 1917. It has become one of the ten largest car manufacturers in the world. Long-term thinking and cornerstone thinking has been the reasons for their success. The prime objectives of their corporate strategy include mental strain for ecolo gical and social sustainability, taking full responsibility for their products, and giving commitment towards their resources. It is for these objectives, that BMW has been the sector leader since the last five geezerhood, according to the Dow Jones Sustainability Indices. BMW holds the privilege of having some of the topper brands in the world, to be their creations. These are the BMW series, MINI and the Rolls Royce. These automobiles represent the finest and the most luxurious segment of the cars in the world. Along with the automotive concerns BMW is also employed with other run such as Motorcycles BMW is also engaged with the development, production and the marketing of motorcycles. These motorcycles are set in standard with technology, environmental protection and outstanding customer pre-sales and after-sales services. Financial Services an extensive product portfolio is offered by BMW that supplies expert information and advice for situations and questions in relation w ith the finance sector. As stated in their Annual Report 2009, BMW is clear with their mission for 2020 where they are the worlds leading provider of premium products and services for individual mobility. More driving pleasure and less of emissions the BMW group is implementing on this principle, unlike the other automobile manufacturers by working on Efficient Dynamics technology. In 2007, BMW adopted the Number wholeness strategy that focused on long-term pry growth and profitability. The four pillars of this strategy are Future, Growth, Customers and Profitability. This strategy revolutionized the BMW group and put them on the path to success.BMW has about 24 production and assembly plants in 13 countries. The sales distribution network of BMW stands strong at 41 company-owned subsidiaries and more than 3,000 dealerships. The next task discusses and compares the ways of organizational development and aligns it with BMW.Task (c)Organization development consists of the activit ies that intervene in the interactions of the people and the systems, i.e. in the work culture and in the organizational design in order to increase the efficiency employ a variety of applied behavioral sciences. Richard Beckhard in what is Organizational Development?, mentions that it is an effort (1) planned, (2) organization-wide, and (3) managed from the top, to (4) increase organization effectiveness and health through (5) planned preventives in the organizations processes, using behavioral-science knowledge.The intervention techniques focus on four categories- the Interpersonal, team or group, intergroup and then the overall organizational intervention. Each intervention revolves around these four categories. Some of the important organization development interventions include Survey Feedback is a part of intervening in the total organizational system. This methodology believes in taking feedback from the managers in the form of a survey conducted. The data is collected, t he results are analyzed and then the means are developed to correct the situation. Process Consultation a behavioral effort, this intervention aims at the teams or the intergroup activities, where through interaction, the problem is resolved. Coaching and counseling are the means of influencing change. Goal setting the goals of every division in the organization is set. This aligns with the overall organizational objectives. This is an inter-group activity. Managerial Grid it consists of group and individual activities with a view to developing the managerial style, interpersonal competence and group effectiveness. Management by Objectives this barb developed by Peter Drucker, where the managers at different levels and their subordinates work together to establish and then achieve their goals. Re-engineering a radical redesigning of the people, processes and customer satisfaction that would contain drastic changes in the performance.These are some of the ways in which organi zational development is encouraged in the organization. The automotive industry undergoes structural changes in an indefinite economic climate. Manufacturers face a new set of challenges to their business models, designs and ultimately, their cost structures. Automotive companies have to ensure that their designs are fuel-efficient, light-weight, are cheap to produce and are desirable. In this era of globalization, where the consumer has become a think-tank and is conscious of its status and upbringing in the society, BMW as an organization has always believed in identifying demands, reflecting on the challenges and investing in the future. The group understands that success and sustainability belong together. The Sustainability Board at BMW continuously evaluates progress and determines the suitable strategic directions. Every employee at BMW is called upon to help implement the goal of sustainability and responsibility.Of the ways of organizational development that have been disc ussed above, the intervention of Re-engineering would suit the framework of BMW. This organizational development intervention would seek to radically transform all the processes and gain quantum leaps in the processes. This model would look at the overall onward motion at BMW and would even make amendments in the separate divisions.The level of changes that can be implemented in BMW would include Structural changes change at the level of the structure of the organization. Inclusion of new members in the committee. BMW continuously evaluates its board members and members of the supervisory board. Also, mergers and acquisitions could bring about a hefty change in the organization. Technical changes hybrid and fuel-efficient cars are the demands of the environment and the industry today. BMW faces the challenge of promoting social and ecological aspects as resource-friendly and effective alternatives on the provider markets. This is the ecological change that BMW needs to apply in i ts operations. One of the objectives of BMW is reduce the resource consumption and emissions by another 30% as compared to the 2006 level. BMW is already workout these options by way of applying the Efficient Dynamics Technology. Changes in the Human Resources people are the most important element in any organization. BMW ensures that its employees are cheery and that they meet the targets of their Strategy Number ONE, as discussed sooner. In fact, for any organization, organizational development for its employees is of utmost importance. And that is why, BMW holds its members as the strongest pillar in its Strategy Number ONE. With the help of the Balanced Scorecard method, BMW ensures that its members achieve their targets which are also in view with achieving the company-wide objectives. The human resources department attracts mainly the high performers with the highest competencies. Also, cross-functional training, ideal job description are some of the ways in which the empl oyees are encouraged to challenge the changing environments. One of the powerful programmes of BMW is called Drive for the young professionals with only up to three years of experience.The next part deals with the development of systems for understanding and involving others in the process of change. get down IITask (a)In todays fast paced business environment, companies need to have fictile and planned business operations to facilitate radical change. Change to company processes requires dedicated planning, and its become imperative to align resources and employees to the companys objectives and goals. Adopting long term-change, strategic planning in the business units, building performance metrics, management-encouraged ideas, employee training and development are some of the critical success factors that would help infuse change in the organization. Of these, the most important is the Stakeholder Analysis. This summary helps in creating and documenting those policies that would be in the interest of the stakeholders. This analysis would help in aggrandizing the process of change management of the organization.Stakeholder Analysis is a process of multitude and analyzing qualitative data in relation to those to whom the interests of the organization are worthwhile. This data is taken into account while deciding upon a particular policy or a program to be implemented. Stakeholders are the persons or organization with vested interest in the policy being promoted. These stakeholders can be the international donors, national/political figures, public agencies, labor, civil society and the users/consumers. on that point are eight major steps that are involved in this processKammi Schmeer provides these eight steps in Stakeholder Analysis Guidelines, and regards this information to be useful for other analyses as well. This system would help in developing and in introducing change in the organization. When this analysis would be conducted before the policy is i mplemented then, the policy makers and the managers can act to prevent any potential misunderstanding or opposition. This would enable the program to pull ahead most likely. BMW already exercises good stakeholder engagement policies in their organization. It believes in the principle of Listen, understand and act. In 2009, BMW hosted its first Stakeholder Roundtable where experts from various environmental, societal and organizational concerns were present. They discussed the issues relating to product strategies and lessen the resource consumption across the value chain. BMW regularly holds stakeholder surveys, employee surveys and commits to sustainability initiatives.Task (b)After developing the system for engaging the stakeholders in the implementation of change, the organization is quiet down most likely to receive resistance. In the light of transitions, it is almost natural for stakeholders to resist change. The most affected in the changing circumstances are the employees. valet have a desire for perpetual stability, especially in their jobs and roles. And hence, the urge to resist is dominant. Many processes recognize and tend to overcome resistance in an organization. Some of them are Individual Interviews these would help in determining the exact thought processes that are prevailing in the minds of the stakeholders Commitment Plan- all the stakeholders and the members of the organization should be act to the change plan. And this would majorly succeed, if the top-level management inspire leadership and help create a conducive environment to change Communication of decisions as soon as the decisions are taken, they should be intimated to the stakeholders. The same should be done with care and honor for the stakeholders, respecting the past traditions and describing the advantages of a changed future. Input every stakeholder that is going to be affected by the change plan should be given a chance to express the views, but in a defined and comp osed manner. A systematic plan should be developed. Rewards successful implementation and cooperation should be credited with compensatory rewards. Evaluation after the necessary changes have been implemented, the organization should evaluate the strategic changes on continual basis. This evaluation is of utmost importance to the stakeholders, as then the effects of the new policy or programme would be known to the policy makers. This would help in making amendments and improvising further.PART IIIThis part deals with the plan that would be required to implement ongoing change in the organization.Task (a)Every organization needs to gain warlike advantage in todays world. Taking a holistic approach towards the process can assure the company to adopt the right mindset from the first go. There are various models for implementation of change management in an organization. Some of the models that would aid in proper change management especially in BMW are described as below. 1. ADKAR Change Model by ProsciThis a goal oriented change model that allows the management teams to focus their activities on the business results. This acronym is characterized by the words Awareness, Desire, Knowledge, capability and Reinforcement. There should be Awareness for the need for change a Desire to participate and support the change Knowledge of how to change Ability to change on a day-to-day basis and Reinforcement to keep the change in place. This model can be used to Diagnose the resistance of employees to change Help the employees in accepting the transition Create a successful action plan for personal and professional management Develop a change management planThis model helps in identifying why the changes are not working and what could be done to implement the changes.2. The 4-D process of Appreciative inquiryThis model by David Cooperrider talks about the change interventions that can take process via the 4-D way Discovery mobilizing a whole system enquiry inspirat ion envisioning the impact Design co-constructing the future with the stakeholders Delivery Sustaining the ChangeOrganizations, says this theory, are centers of human relations and thrive only when there is an appreciative eye. Kurt Lewins Three-Stage model has been discussed before is a powerful tool in bring about the necessary changes in an organization. BMW, as an organization has learnt to adapt flexibly to any new situation. There are some recommendations that need to be applied by BMW in its organization to foster easy change acceptance by the employees. These are temporary Flexibility in this module, the employees should be able to take advantage of flexible work time models. They can work part-time or even full time. In motion- geographically and professionally not only geographical expansion, BMW should ensure that it does not exceed the head count of its employees. It is necessary to have skilled labor in order to survive new technologies and new markets Staff-orien ted leadership the staff should be meant to lead the way into the organization. Active Participation BMW should encourage innovation and improvement culture by giving its staff numerous opportunities to have a share in the companys future. They should have the right to give in suggestions and ideas. Co-evaluate staff surveys should be held regularly at BMW to evaluate the effects of change in the organization Total Quality Management the quality at BMW should be enhanced and kept up(p) at all levels. Care should be taken to avoid any mistakes. BMW is a technology-driven organization, and therefore, should apply the above given recommendations. If these are implemented practically, then it would be easier for the stakeholders to accept the new policies which would be based on successful past data.Task (b)In order to ensure that a correct change management plan has been implemented, a plan needs to be developed. This plan is divided into three phases that has been developed by ag es of research by ProsciPhase 1 dressing for changePhase 2- Managing the changePhase 3 Reinforcing the ChangePhase 1 Phase 2Phase 3There are various possible outcomes that an organization would experience after successful implementation of the plan. These are Greater organizational effectiveness Improved work quality and morale intensify cooperation and collaboration in work Better customer service Increased ROI Reduced time to implement changeThis plan can be implemented in BMW by operating not only horizontally but even in the vertical structure. Every division of BMW should exercise this plan and work upon it in making the recommended changes.This effective plan would be able to result in fruitful changes in BMW, and help them in achieving their Strategy Number ONE with ease.Reference ListBooks1. Handy, Charles, (1990), The Age of Unreason, Harvard Business School Press, United States of the States2. Kotter, John Cohen, Dan, (2002), The Heart of Change, Harvard Business Schoo l Press, United States of America3. Weber, Max , (1947), The Theory of Social and Economic Organization, Collier Macmillan Publishers, LondonPDF files1. Schmeer, Kammi, Stakeholder Analysis Guidelines. http//new.paho.org/hss/documents/policytoolkitforstrengtheninghealthsectorreformpartii-EN.pdf2. Beckhard, Richard, What is Organizational Development?.http//media.wiley.com/product_data/excerpt/64/07879842/0787984264.pdf3. Prosci Change Management Series http//www.prosci.com/prosci_change_series.pdf 4. BMW Annual Report 2009http//www.bmwgroup.com/annualreport2009/_downloads/BMW_Group_2009.pdf5. BMW Sustainability Value Report 2009http//www.bmwgroup.com/e/0_0_www_bmwgroup_com/verantwortung/publikationen/sustainable_value_report_2008/_pdf/SVR_2008_engl_Gesamtversion.pdf