management final print
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Success at Organizational Change
Why Is Critical for Managers and Leaders to be Successful at
Organizational Change?
Submitted To:
Madam Shama Sadaqat
Submitted By
Hafiz M. Sabir Roll No. (205)
Junaid Mughal Roll No. (253)
Haris Ali Roll No. (269)
Uzair Mazhar Roll No. (210)
Haris Rasheed Roll No. (223)
M.Shoeb Roll No. (242)
Hailey College of Commerce,
University of the Punjab, Lahore
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Abstract This study is all about the organizational change and its management. It denotes the importance
for managers and leaders to be successful. We are studying the various changes occurring in the
organizations and how to handle it in a smooth manner. This is a descriptive study; descriptive
theoretical frame work is developed for this study and finally suggests the solution for managers
to tackle the changes for their success.
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Introduction
Analyses of organizational change written since the review by Porras & Silvers (1991)
suggest that an important emerging contrast in change research is the distinction between change
that is episodic, discontinuous, and intermittent and change that is continuous, evolving, and
incremental. This contrast is sufficiently pervasive in recent work and sufficiently central in the
conceptualization of change that we use it as the framework that organizes this review.
The contrast between episodic and continuous change reflects differences in the
perspective of the observer. From a distance (the macro level of analysis), when observers
examine the flow of events that constitute organizing, they see what looks like repetitive action,
routine, and inertia dotted with occasional episodes of revolutionary change. But a view from
closer in (the micro level of analysis) suggests ongoing adaptation and adjustment. Although
these adjustments may be small, they also tend to be frequent and continuous across units, which
mean they are capable of altering structure and strategy. Some observers (e.g. Orlikowski 1996)
treat these ongoing adjustments as the essence of organizational change. Others (e.g. Nadler et al
1995) describe these ongoing adjustments as mere incremental variations on the same theme and
lump them together into an epoch of convergence during which interdependencies deepen.
Convergence is interrupted sporadically by epochs of divergence described by words like
revolution, deep change, and transformation.
We pursue this contrast, first by a brief overview of change as a genre of analysis and
then by a more detailed comparison of episodic and continuous change using a framework
proposed by Dunphy (1996).
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Literature review
Kediaa and Mukherji (1999) discussed on the effects and requirements of the
globalization and managers role in this era of globalization. He discussed that this is sure that the
globalization is taking place. And there requirements of managers are also changing to compete
in the business world. Gives the types of managers mindset that the managers have the different
mind sets like domestically oriented, the explore, controller, and newly developed is globally
oriented. The researcher also discussed that the manager should integrate the three things as;
global business, country pressures and worldwide function. And emphasis manager to develop
the global mind set. This can be created by the development of global organization containing
the characteristics of specialization, interdependency, and coordination. And business outlook
should move from the autonomous body to the effective global network.
Bartlett and Ghoshal (2003) Writers have beautifully described the types of managers
working in the organization and discussed the skills and qualities which they have. And also
describes the qualities that the managers should possess. During his research they find that the
international organizations require three types of manager¶s business managers, country
managers and functional managers. And also requires the set of managers which can control and
coordinate the work of all the managers in the organization. They discussed the different
characteristics they these all managers should possess. The business managers are those which
should have the qualities of strategist, architect and coordinator. And country manager should be
feeler, builder, and contributor. And also discussed the functional manger containing the traits of
scanner, cross-pollinator and champion. All that makes the organization as global organization.
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Masood and Benson (2005) discussed the globalization and it effects and gives the
module consists of 6 points as a guide line. During the study the researcher says that the
organization can meet with the problem of the organization by the people of the organization
only. In case the organization don not mold its organizational that will cause for the failure and
disaster of that organization. and the researched gives the gives the six points module by which
the organization can meet with the problems of the globalization these are organizational
readiness, stakeholders analysis, readiness preparation, communication plan, training plan and
human resources.
There paper presents the findings of an empirical study into two organizations¶
experiences with the adoption and use of CASE tools over time. Using a grounded theory
research approach, the study characterizes the organizations¶ experiences in terms of processes
of incremental or radical organizational change. These findings are used to develop a theoretical
framework for conceptualizing the organizational issues around the adoption and use of these
tools--issues that have been largely missing from contemporary discussions of CASE tools.
The paper thus has important implications for research and practice. Specifically, the framework
and findings suggest that in order to account for the experiences and outcomes associated with
CASE tools, researchers should consider the social context of systems development, the
intentions and actions of key players, and the implementation process followed by the
organization. Similarly, the paper suggests that practitioners will be better able to manage their
organizations¶ experiences with CASE Tools, if they understand that such implementations
involve a process of organizational change over time, and not merely the installation of a new
technology
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Trimpey (2004) conducted a study to examine change implementations and opportunities
for information and technology managers to manipulate organizational culture as a component of
the change process. Four cultural traits presented by Denison and Mishra (1995) such as;
involvement, consistency, adaptability and mission were associated with four change concepts
including IT change, implementation, strategic change management, impact of change and
organizational learning. He further analyzed the selected literature from 1980 to 2004) to
generate a situation for use by managers when planning and implementing technological
changes.
This paper examines the use of a groupware technology--Lotus Development
Corporation's Notes--in the context of customer support to understand how the technology was
used to enable organizational changes over time. Building on its successful implementation of
the technology two years ago, the customer support department underwent a number of
organizational changes that altered the nature and distribution of work, forms of collaboration,
utilization and dissemination of knowledge, and coordination with internal and external units.
These changes were enacted through a series of intended as well as opportunistic modifications
to both the technology and the organization. The effectiveness of this change process suggests a
strategy of implementing and using groupware technology that focuses first on enacting some
initial planned organizational changes, and then builds on these to enact emergent changes in
response to the opportunities and conditions occasioned by the planned changes. Because
groupware technologies are largely open-ended and adaptable, this process of evolving
organizationally with the technology over time may be a particularly useful way of implementing
organizational change around groupware.
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Chew, Cheng and Lazarevic (2004) planned a research to investigated restaurant
industry¶s managers¶ role when commencing and implementing organizational change in order
to reduce probable employees¶ confrontation to change. The findings bear previous theoretical
approaches to effective change management. The key elements to support change were effective
communication, employees¶ attitude and perception of managers¶ undertaken actions.
Weick and Quinn (1999) argue that current analyses of organizational change advocate a
growing apprehension with the tempo of change, such as the characteristic rate, pulse, or mold of
work. Disguised descriptions of organizing, analytic frameworks, ideal organizations,
intervention theories, and roles for change agents are the basic differences between episodic and
continuous change. Episodic change follows the sequence unfreeze-transition-refreeze, whereas
continuous change pursues the series freeze-rebalance-unfreeze. Conceptualization of lethargy is
seen to be the reason to view change as episodic or continuous.
Simi (1998) states that transformational leadership symbolizes the basic quality for
successful management of transformational organizational changes. The success in
understanding transformational organizational changes means that the key people in an
organization such as leader or managers expand sets of suitable skills and attributes that are
attributes to supposed transformational leaders.
Izzo & Withers (2000) found that companies reporting high commitment levels attain
considerably better results including 29% higher revenue; they are also 50% more likely to have
above-average customer loyalty and are 44% more likely to turn above average profits.
Fernandez and Rainey (2006) studied that the implementation of planned change
generally requires that leaders verify the need for change and persuade other members of the
organization and important external stakeholders that it is necessary. Managerial leaders must
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develop a course of action or strategy for implementing change. Convincing the members of an
organization of the need for change is obviously not enough to bring about actual change. The
new idea or vision must be transformed into a course of action or strategy with goals and a plan
for achieving it.
Managerial leaders must build internal support for change and reduce resistance to it
through widespread participation in the change process and other means. An individual or group
within the organization should champion the cause for change. Top management support and
commitment to change play an especially crucial role in success. Some studies of organizational
change stress the importance of having a single change agent or idea champion lead the
transformation. Successful change usually requires sufficient resources to support the process.
Managers and employees must effectively institutionalize and embed changes. To make change
continuing, members of the organization must incorporate the new policies or innovations into
their daily routines.
Orlikowski (1992) measured in offices of large organizations to comprehend the changes
in work practices and social interaction facilitated by the technology. The results reveal that a
number of organizational elements such as mental models and structural properties significantly
influence how groupware technology is implemented and used. Specifically, the findings suggest
that in the absence of mental models that appreciate the collaborative nature of groupware, such
technologies will be interpreted in terms of more familiar personal and stand-alone technologies
such as spreadsheets. Recognizing the significant influence of these organizational elements
appears critical to both researchers and practitioners of groupware technologies.
Ogbonna and Wilkinson (2003) studied on the shop floor workers¶ responses to culture
change initiatives ± revealed significant changes in shop floor workers¶ behavior (giving
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customers more attention, displaying deference), but this was more to do with behavioral
fulfillment under situation of observation and threat of authorize than with any transformation of
the values of workers (workers did not express love of either the customer or the company). At
the time we did not seriously study managerial responses to the new culture change initiatives;
although on the surface it did appear that managers were enthusiastic in their implementation of
the policies that were associated with the culture change program.
But a fuller understanding of managers is important. Not only do managers have to µact
the part¶; they are expected to convince others, their subordinates, to act the part too. They are
key agents in any process of change. Hence in this study our target was to focus on managers.
Weick and Quinn (1999) analyse that organizational change suggest a growing concern
with the tempo of change, understood as the characteristic rate, measure, or pattern of work or
activity. Periodic change is contrasted with continuous change on the basis of indirect images of
organizing, analytic frameworks, ideal organizations, intervention theories, and roles for change
agents. Episodic change follows the sequence unfreeze-transition-refreeze, whereas continuous
change follows the sequence freeze-rebalance-unfreeze. Conceptualizations of inactivity are seen
to motivate the choice to view change as periodic or continuous.
³This review selectively examines the theoretical and empirical organizational change
literature over the past nine years (1990±early 1998). Four research themes or issues common to
all change efforts are discussed: (a) content issues, which largely focus on the substance of
contemporary organizational changes; (b) contextual issues, which principally focus on forces or
conditions existing in an organization¶s external and internal environments; (c) process issues,
which address actions undertaken during the enactment of an intended change, and (d) criterion
issues, which deal with outcomes commonly assessed in organizational change efforts. Research
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dealing with monitoring affective and behavioral reactions to change is also reviewed. In closing,
general observations and suggestions for future research are offered and it is concluded that the
organizational change literature continues to be responsive to the dynamics of contemporary
workplace demands.´
Types and impacts of changes
Organizational Changes
Organizational changes are not a common event happens in the world of business and
technology. The changes of the environment and the society may affect the organization and the
organizational changes happen. Organizational changes may happen a lot of time because the
organization should adopt into fast changing environment. The most factors of organizational
changes is the most famous term nowadays which "technology". As the time passes by,
technology changes or upgraded into a better one. Therefore, as the technology changes, moat
organizations should adopt the changes for some reasons, such as a good competition and better
technology.
Organizational change is the term used to describe the transformation process that a
company goes through in response to a strategic reorientation, restructure, change in
management, merger or acquisition or the development of new goals and objectives for the
company. The realignment of resources and the redeployment of capital can bring many
challenges during the transformation process and organizational change management seeks to
address this by adopting best practice standards to assist with the integration of new company
vision.
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Organizational change is not just change for the sake of change itself. The major
precursor for organizational change is some form of exogenous force such as an external event.
Cuts in a company¶s funding, the streamline of operations due to a merger are common examples
of the magnitude of an event that creates organizational change and development. Companies
that are nearing the end of the product life cycle make organizational changes in response to
exiting a market or reorienting resources to new or existing business operations.
Significant organizational change occurs, for example, when an organization changes its
overall strategy for success, adds or removes a major section or practice, and/or wants to change
the very nature by which it operates. It also occurs when an organization evolves through various
life cycles, just like people must successfully evolve through life cycles. For organizations to
develop, they often must undergo significant change at various points in their development.
That's why the topic of organizational change and development has become widespread in
communications about business, organizations, leadership and management.
Leaders and managers continually make efforts to accomplish successful and significant
change -- it's inherent in their jobs. Some are very good at this effort (probably more than we
realize), while others continually struggle and fail. That's often the difference between people
who thrive in their roles and those that get shuttled around from job to job, ultimately settling
into a role where they're frustrated and ineffective. There are many schools with educational
programs about organizations, business, leadership and management. Unfortunately, there still
are not enough schools with programs about how to analyze organizations, identify critically
important priorities to address (such as systemic problems or exciting visions for change) and
then undertake successful and significant change to address those priorities. This Library topic
aims to improve that situation.
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Typically, the phrase ³organizational change´ is about a significant change in the
organization, such as reorganization or adding a major new product or service. This is in contrast
to smaller changes, such as adopting a new computer procedure. Organizational change can seem
like such a vague phenomena that it is helpful if you can think of change in terms of various
dimensions as described below:
i. Organization-wide Versus Subsystem Change
Examples of organization-wide change might be a major restructuring, collaboration or
³right-sizing.´ Usually, organizations must undertake organization-wide change to evolve to a
different level in their life cycle, for example, going from a highly reactive, entrepreneurial
organization to one that has a more stable and planned development. Experts assert that
successful organizational change requires a change in culture ± cultural change is another
example of organization-wide change.
Examples of a change in a subsystem might include addition or removal of a product or
service, reorganization of a certain department, or implementation of a new process to deliver
products or services.
ii. Transformational Versus Incremental Change
An example of transformational (or radical, fundamental) change might be changing an
organization¶s structure and culture from the traditional top-down, hierarchical structure to a
large amount of self-directing teams. Another example might be Business Process Re-
engineering, which tries to take apart (at least on paper, at first) the major parts and processes of
the organization and then put them back together in a more optimal fashion. Transformational
change is sometimes referred to as quantum change.
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Examples of incremental change might include continuous improvement as a quality
management process or implementation of new computer system to increase efficiencies. Many
times, organizations experience incremental change and its leaders do not recognize the change
as such.
iii. Remedial Versus Developmental Change
Change can be intended to remedy current situations, for example, to improve the poor
performance of a product or the entire organization, reduce burnout in the workplace, and help
the organization to become much more proactive and less reactive, or address large budget
deficits. Remedial projects often seem more focused and urgent because they are addressing a
current, major problem. It is often easier to determine the success of these projects because the
problem is solved or not.
Change can also be developmental ± to make a successful situation even more successful,
for example, expand the amount of customers served, or duplicate successful products or
services.
Developmental projects can seem more general and vague than remedial, depending on how
specific goals are and how important it is for members of the organization to achieve those goals.
Some people might have different perceptions of what is a remedial change versus a
developmental Change.
iv. Unplanned Versus Planned Change
Unplanned change usually occurs because of a major, sudden surprise to the organization,
which causes its members to respond in a highly reactive and disorganized fashion. Unplanned
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change might occur when the Chief Executive Officer suddenly leaves the organization,
significant public relations problems occur, poor product performance quickly results in loss of
customers, or other disruptive situations arise.
Planned change occurs when leaders in the organization recognize the need for a major
change and proactively organize a plan to accomplish the change. Planned change occurs with
successful implementation of a Strategic Plan, plan for reorganization, or other implementation
of a change of this magnitude.
For millions of years we have been evolving and will continue to do so. Change is
difficult. Human Beings resist change; however, the process has been set in motion long ago and
we will continue to co-create our own experience. Kuhn states that "awareness is prerequisite to
all acceptable changes of theory´. It all begins in the mind of the person. What we perceive,
whether normal or met normal, conscious or unconscious, is subject to the limitations and
distortions produced by our inherited and socially conditional nature. However, we are not
restricted by this for we can change. We are moving at an accelerated rate of speed and our state
of consciousness is transforming and transcending. Many are awakening as our conscious
awareness expands.
Spectrum of IT
IT can promote various degrees of organizational change ranging from incremental to far-
reaching. Three kinds of structural organizational change that are enabled by IT
i) Automation, ii) Rationalization, and iii) Reengineering. Each carries different rewards
and risks. The most common form of IT-enabled organizational change or the first phase of IT
adoption is automation. This has allowed employees to automate a number of time-consuming
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and error-prone activities and gain benefits in cycle-time, productivity, and accuracy. For
example, a main contractor makes use of standalone software to keep track all Request For
Information (RFI) in a project.
A deeper form of organization change or the second phase of IT adoption is
rationalization of procedures. Automation frequently reveals bottlenecks in production and
makes the existing arrangement of procedures and structures painfully cumbersome.
Rationalization of procedures involves the streamlining of standard operating procedures, which
eliminates obvious bottlenecks, so that operating procedures become more efficient. Roughly
speaking, it is a process of fine tuning the first step. For example, the main contractor
implements an intranet and standardizes the data in RFI across all projects in the enterprise.
A more powerful type of organizational change or the third phase of IT adoption is
business process reengineering, in which business processes are analyzed, simplified, and
redesigned. Reengineering involves radically rethinking the flow of work and the construction
business processes with the intention to radically reducing the costs of businesses. Using IT,
organizations can rethink and streamline their business processes to improve speed, service, and
quality. Business process reengineering reorganizes workflows, combining steps to cut waste and
eliminating repetitive, paper-intensive tasks. It is much more ambitious than rationalization of
procedures because it requires a new vision of how the process is to be organized. For example,
the main contractor sets up an extranet to online collaborate with the architect for the RFI
process.
Not many construction industry players have moved beyond the first phase of
automation. However, there are some companies have committed to a continuing investment in
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technological advancement and organizational change. By changing how they are organized and
do business, they have achieved far greater benefits than available through automation alone.
Companies like this have succeeded in staying ahead of their competitors not merely by
automating but by changing their organization as well. Their strategic advantage has been their
preparedness and ability to continually innovative, and to manage the change necessary to gain
substantial business benefits.
Automation
Consolidation and technological advances have made radio automation affordable and
necessary for modern broadcast facilities. In response to the industry, automation systems are
becoming better described as digital-asset management systems. Simple cart replacement isn't
the goal anymore. Stations expect digital playback systems to help manage media inventories,
automatically record and insert live feeds and voice tracks, work seamlessly with satellite
formats and operate as a live assistant for shows. The need for interaction, control and insertion
from a distance has become extremely important, as have WAN-based media sharing and the
ability to manage multiple stations from a central site.
Most manufacturers have addressed these needs, and now these systems offer much more
than radio automation. Many systems available are designed to take advantage of interaction
with Rich Media associated with radio and audio content. This capability has direct applications
as stations exploit their Internet presence. Automation systems can send ³now playing´ data to
Web pages, and some companies offer solutions that allow listeners to hear radio on specially
designed audio players with a station logo and sponsor ad space, as well as methods for Internet
listeners to click and find out more about the music or spot being played or even begin a
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purchase process. This type of interactivity is still in the early stages but expect this information
and extra features to be a part of future digital radio iterations.
Perhaps the decision has been made for the engineer, as a member of a larger company. If
this is the case, this information may be able to give you an idea of how the system works and
how its features can be used in the station. Use this information as a beginning, following up the
research by contacting the manufacturer or the broadcast equipment dealer for more information
Rationalization
Traditional tax planning initiatives and the resulting impacts to the corporate entity
structure are under fire. Increased scrutiny from taxing authorities and corporate auditors has set
the bar for tax planning at a whole new level. To improve tax performance and meet a more
stringent set of regulations and other requirements, a new approach to structural planning is
needed - one that "rationalizes" an entity structure by examining all possible structural moves
and measuring the resulting tax and operational benefits. Fortunately, recent advancements in
corporate tax management software enable large organizations to optimize complex legal entity
structures - enabling them not only to effectively manage tax liability, but also to lower
operational costs, improve productivity, and reduce risk.
In today's demanding business climate, prudent tax management is critical to preserving a
company's reputation and maintaining shareholder confidence. Given this reality, tax
departments will continue to be expected to manage the delicate balance between risk and reward
- to function as a viable profit center while ensuring that senior management has the information
needed to make informed decisions in an ever-changing environment.
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Unfortunately, traditional modeling tools such as spreadsheets fall well short of today's
requirements to conduct a decision-making process that is rapid, error-free, and auditable. In
fact, the typical reliance on spreadsheets- which have been proven to be error prone, labor
intensive, and limited in scope - often results in the overpayment of taxes, a perilous level of risk,
and the underutilization of high-value employees. Limited in both depth and breadth of
capabilities, spreadsheets are simply not able to perform all the necessary calculations and
deliver reliable information in increasingly tight timeframes. Armed only with spreadsheets, tax
professionals will never be able to fully optimize the legal entity structure and reap the
associated benefits.
The upside is that the next generation of tax automation is available now and can help tax
professionals meet today's rigorous requirements for speed, quality, and transparency. With
today's latest technology, tax professionals are able to overcome the typical entity-restructuring
challenges and provide consistently sound ideas and recommendations for optimizing even the
most complex legal entity structures, and therefore drive value to the bottom line by managing
tax liability, lowering costs, improving productivity, and reducing risk.
Reengineering
Lower costs Evidence from a number of US projects suggests that reengineering an
existing system costs significantly less than new system development. Ulrich, for example
reports on a reengineering project that cost $12
million, compared to estimated redevelopment
costs of $50 million.
Lower risks. Reengineering is based on incremental improvement of systems, rather than
radical system replacement. The risk of losing critical business knowledge, which may be
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embedded in a legacy system, or of producing a system that does not meet its users¶ real needs, is
drastically reduced.
Better use of existing staff. Existing staff expertise can be maintained, and extended
accommodate new skills during reengineering. The incremental nature of reengineering means
that existing staff skills can evolve as the system evolves. The approach carries less risk and
expense which is associated with hiring new staff.
Revelation of business rules. As a system is reengineered, business rules that are
embedded in the system are rediscovered. This is particularly true where the rules govern
exceptional situations.
Incremental development. Reengineering can be carried out in stages, as budget and
resources are available. The operational organization always has a working system, and end
users are able to gradually adapt to the reengineered as it is delivered in increments
Conclusion
We have studied various types of organizational changes and their impacts upon the
organizations. Every change has its prose and cones along with it but it depends upon the
managers that how to utilize each of them and up to what extent, so that risk can be minimized
and rewards can be achieved at optimal level. Our focus is upon the key changes like automation,
rationalization and reengineering. These have a great influence on the health of organizations but
over all these are best tool for minimizing the risk and obtaining the maximum rewards if they
are used properly
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