Being change resistant is human nature, however, management plays a significant role in changing the attitude and behaviour of people making them realise the importance of change and how it helps in the future (Hultman, 2003).
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Remodeling and development of management within an organization is referred to as change management. Change management is usually done by using new resource methods and ways in which the business in ran to reshape it (Hultman, 2003).
Though the realities of change management are understood by the managers, yet sometimes they fail to realise what it takes to bring change. Two assumptions considered by the managers when thinking about change are financial and change in employee behaviour. Financial change refers to quality circles, corporate culture and value and mission statement. However, change in employee behaviour refers to the change that occurs (Aguirre et al., 2013)
As the famous quote says “The sun is new everyday”. Change has been happening since the existence of the world. At present, the societies are changing rapidly and thus neither a company nor an individual can survive without adapting to change (Sagie et al., 2000).
Introduction of new tariffs and charges by the government result in bringing change in the organisation regarding the ratio of employees who work fulltime by the management. Political factors are regarded as one of the most influential aspect of our society (Kuang et al., 2001)
Socio cultural factor
The social cultural aspects may affect the target market; hence, it is important for the organization to ensure that the strategy changes are in line with the preferences of customers and cultural sensitivities (Kuang et al., 2001).
Change in economic factors, such as, when government imposes cap on the production output or the tax rate increases, lead to the company changing their strategies. In these cases, the company brings change in their management to tackle market changes (Kuang, et al., 2001)
Technological factors are another reason for an organisation to incorporate change in management or their structure. Lack of technological knowledge and expertise makes the management to change strategies. Revolution of the IT industry in the last few years have forced the companies to make changes in their management to cope up with the rapidly changing technology (Kuang, et al., 2001)
The change in formal structure of an organisation and management is generally proposed or recommended by the management at top level of hierarchy. Leaders consider change as growth opportunity for both; the organisation and themselves. Change is seen positively by the leaders and thus, they try to make employees understand its importance in being successful. For leaders, change is a challenge that they try to deal with in an utmost professional way (Caldwell, 2003).
A more pessimistic view about change explains that it is considered favourable for people by the top leaders and management because it gives them a chance to grow and succeed in their career goals (Caldwell, 2003).
One of Unites states’ biggest discounted retail store, Target, was never developed with the intention of being a discounted store. It was in 1950 when the management thought about catering to the masses. As soon as the management identifies the urgency of this upgrade, change was implemented and the store was changed to low cost retail shop. In addition to this, they also sustain the change (Briciu, 2013)
The company, Kodak, established itself in 1888 with film based photography as their core business. The business faced downtrend when in 2010 its stock prices dropped to 78 cents. Its major strategy to glue people with film making was to give away cameras. Kodak’s market share was affected badly when the first instant photography camera was made in 1948. Though, the company tried to cope up with it but failed. Steve Sasson, an engineer in Kodak invented digital camera, for the first time in 1975. The management of the company thought that. Though the idea was cute, it shouldn’t be told to anyone (New York Times, 2008). Therefore, the company failed due to their inability to predict the revolution that digital cameras would bring (N T Moulding, 2016).
Source: Suman (2014)
An effective model for change was introduced by Kotter, to help the leaders in bring change successfully in the organisation without any uncertainty. Designed specifically to help leaders in bring change, the model outlines eight steps that should be followed by the leaders of the organisation to successfully implement change (Mento et al., 2002).
Though his model has been quite successful, it does have some limitations as well. Firstly, unfair pressure, which means that the model pressurizes the leaders unfairly and does not focus on the employee’s performance. Secondly, for the managers to be fully knowledgeable about implications of change is impossible. Lastly, the model lacks in organising individuals at different levels (Mento et al., 2002).
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In contrast to Kotter, Lewin’s change model has been very effective. The model outlines three steps to implement change and recommends ways to sustain it. Lewin argues, that change can only happen to people when they are flexible enough to accept change (Mike, 2014). He further states that generally people fear change and thus it is very important for the leader to make them understand why change is needed and how will it benefit them personally and the organization. Once the first step to communicate the need to change is completed, the second step is transforming the change. Lastly, change is implemented. It is significant for the organizations, that once the change is implemented, measures are taken to sustain it before it obsoletes (Schein, 2000).
Sometimes, change looks attractive and achievable on paper, but as basic human feelings are not considered in the process of change, this can result in negative consequences. All the employees should participate fully to implement change effectively and this is not possible. Another drawback is that agreement between all group members is not possible (Schein, 2000).
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