organisational change management

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Student number 610033217 1 The concept of change is one that has been around for many centuries. It was introduced around 500 BCE by Greek philosopher Heraclitus, who famously declared that the only thing constant is change. Due to its complex nature, change has ever since been a main interest of experts in management studies. This essay will begin by exploring the concept of organisational change management (OCM). It will then look into the planned approach of change management, its unintended consequences, and finally, consider alternatives to effectively manage change within a corporate environment. Change, as defined by Van de Van and Poole (1995), is an empirical observation of difference in form, quality or state over time in an organisational entity. The current society is dominated by rapid high technological advancements, significant changes in legislation, unpredictable economic conditions, and rampant social developments. It may be observed that these external influences share one theme, wherein they can occur at any point in time and at variable degrees. This means that these factors affect the market and economy as a whole. This then increases competition between organisations where business entities feel more susceptible and vulnerable. In order to prevent these events from negatively disrupting operational activities, managers of organisations devise changes in structure, processes and culture to make themselves more adaptable (Hayes, 2002). As Marsteller (1992) observes, uncertainty is what led to longterm future planning. Aside from unforeseen cicumstances, managers may also make decisions which becomes the internal triggers of change. This comprises but is not limited to redesigning of jobs, change of location, installation of new systems, and merging with other organisations. Despite the source of change, the underlying force for an organisation’s desire to manage change is to move from its present state to its desired future state effectively, efficiently, and sustainably. An organisation that practices a certain degree of control may enable it to predict trends of changes more accurately, which in turn puts managers in a stronger position to make informed decisions to mould their future direction and performance (Rees and French, 2013). Adjusting to change however is complicated, where according to a McKinsey & Company survey in 2008 only 30% of change programmes were successful (Keller and Aiken, 2010). One concept that has been the centre of research is the planned approach to change management, which was pioneered by Kurt Lewin and has been prevalent within the corporate environment for 50 years (Burnes, 2004). One may support the good intentions of

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A discussion on the planned approach of organisational change management and its alternatives, continuity and creativity.

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  • Student number 610033217

    1

    The concept of change is one that has been around for many centuries. It was introduced

    around 500 BCE by Greek philosopher Heraclitus, who famously declared that the only thing

    constant is change. Due to its complex nature, change has ever since been a main interest of

    experts in management studies. This essay will begin by exploring the concept of

    organisational change management (OCM). It will then look into the planned approach of

    change management, its unintended consequences, and finally, consider alternatives to

    effectively manage change within a corporate environment.

    Change, as defined by Van de Van and Poole (1995), is an empirical observation of difference

    in form, quality or state over time in an organisational entity. The current society is

    dominated by rapid high technological advancements, significant changes in legislation,

    unpredictable economic conditions, and rampant social developments. It may be observed

    that these external influences share one theme, wherein they can occur at any point in time

    and at variable degrees. This means that these factors affect the market and economy as a

    whole. This then increases competition between organisations where business entities feel

    more susceptible and vulnerable. In order to prevent these events from negatively

    disrupting operational activities, managers of organisations devise changes in structure,

    processes and culture to make themselves more adaptable (Hayes, 2002). As Marsteller

    (1992) observes, uncertainty is what led to long-term future planning.

    Aside from unforeseen cicumstances, managers may also make decisions which becomes the

    internal triggers of change. This comprises but is not limited to redesigning of jobs, change

    of location, installation of new systems, and merging with other organisations. Despite the

    source of change, the underlying force for an organisations desire to manage change is to

    move from its present state to its desired future state effectively, efficiently, and sustainably.

    An organisation that practices a certain degree of control may enable it to predict trends of

    changes more accurately, which in turn puts managers in a stronger position to make

    informed decisions to mould their future direction and performance (Rees and French,

    2013). Adjusting to change however is complicated, where according to a McKinsey &

    Company survey in 2008 only 30% of change programmes were successful (Keller and

    Aiken, 2010).

    One concept that has been the centre of research is the planned approach to change

    management, which was pioneered by Kurt Lewin and has been prevalent within the

    corporate environment for 50 years (Burnes, 2004). One may support the good intentions of

  • Student number 610033217

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    the planned approach, where it aims to safeguard an organisation from unanticipated

    circumstances. Specifically, this includes looking at past experiences and breaking these into

    reducible action plans, for organisations to be ready to respond to signs of potential change.

    According to Sturdy and Grey (2003), it is this assumption of controllability which

    emphasises the belief that change can and should be managed. However upon putting this

    into practice, many experts have claimed that this intentional approach leads to detrimental,

    unintended consequences due to its linear and rational characteristics. This will be further

    explored using Lewins 3-Step Model, a systematic model showing interrelated processes for

    change.

    This model follows the course of unfreezing, moving, refreezing (Robbins, 2013).

    Specifically, managers identify the need for change, and then employees form the will to

    abandon old habits in order to adopt the new behaviour required of them. This newfound

    state is then maintained by positive reinforcements of organisational policies and practices

    (Burnes, 1996). Based on this model, one may already note the mechanistic view this poses

    on organisations. It assumes that employees are able to simply adopt new routines without

    considering associated elements, such as their opinions and well-being. It also shows a more

    management directive approach to change, and less employee developmental or proactive

    role. In addition, the main problem with this traditional view of change is that it over-

    simplifies a complex process by listing logical steps on how to manage subjective and

    intangible features. This step-by-step characteristic of planned change management leads to

    a misconception that makes change seem more feasible to tackle. This notion of thinking has

    however constituted the dominant view of OCM, which presides that there is one best

    practice to managing change. It immediately assumes that it is applicable to every business

    unit and employee in the organisation. In practice, this may not be the case as individuals

    have their own sets of beliefs, values and practices. This unitarism view on organisations has

    become one of the problematic features of OCM (Sturdy and Grey, 2003). From a personal

    standpoint, one may argue that the increasing negative reputation of change is not due to the

    concept itself. The need to adapt and manage change may be done with positive intentions,

    however it is the process of implementing change which makes it a sensitive topic.

    The planned approach to change management suggests a top-down method, where

    managers seem to be pressured to constantly review the organisations work practices. In

    order for managers to successfully convince employees to share and work towards the

    common goal, a manager needs to establish credibility. A lack of credibility occurs when

    employees view management as lacking trustworthiness and competence (Kim et al, 2009).

  • Student number 610033217

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    As a result, employees develop an attitude of cynicism wherein they are pessimistic about

    the success of change efforts. As previously observed by Dawson (2003), employee cynicism

    increases as workers feel that management looks at three-letter acronyms such as JIT, BPR

    or TQM as the ultimate solution for all corporate ills. In addition, there are those who

    question the use and practicality of change programmes. This is because in the first place,

    cynical employees will be less emotionally attached to their organisations, as their

    discontent leads them to believe that they will not be around for the long haul (Kim et al,

    2009).

    Another critical repercussion of planned change is employee resistance. Resistance against

    change programmes spring from reasons such as the fear of taking risks, wherein employees

    feel that there is information asymmetry between them and senior managers. Carnall (1999)

    categorises this incapacity to tolerate ambiguity as an emotional block to change. On a

    similar note, due to humanistic instincts of self-preservation, employees may act on self-

    interest. As Kotter and Schlesinger (2008) explain, even changes that appear to be positive

    and rational, employees may perceive this to cost them more losses than garner them

    substantial gains. Other resistance to change includes reluctance to lose control, and

    hesitation to give up old habits (Oreg, 2003).

    Most managers try to reach out to employees through lengthy motivational speeches to

    avoid resistance, as employee demonstration of resistance can greatly affect job

    performance, the working environment, and perhaps threaten the authority of senior

    management. However, it may be argued that resistance is not necessarily a protest or

    negative reaction towards change programmes. When employees voice their concerns

    regarding certain aspects of the change initiatives, it could be viewed as them getting

    involved and participating in enacting change. Managers should therefore devise certain

    communication aids that will promote employee participation.

    Resistance may be viewed as a superficial reaction to change management, as experts

    identify that it involves a much deeper issue, the culture of an organisation. As Weick and

    Sutcliffe (2011) argue, researchers still differ on whether culture should be seen as

    something an organisation is such as its beliefs, attitudes and values, or as something an

    organisation has, referring to its practices and controls. One may pinpoint how this

    definition of culture has a positive relation with the traditional view of OCM, where culture

    becomes something that can be managed or controlled. However the former definition gives

  • Student number 610033217

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    culture a root metaphor, which sees organisations as manifestations of human

    consciousness (Smircich, 1983). Until today, there are innumerable conflicting definitions of

    change. Nevertheless, the main discussion regarding organisational culture is the issue that

    managers seem to utilise this concept to implement change, which according to Harris and

    Ogbonna (2002), may lead to unintended ramifications. One of these is the ritualisation of

    culture change. Since change is a long process, some managers choose to implement this

    piecemeal so as not to add more pressure to employees. This may however result to

    employees developing change fatigue where their perceived significance towards the

    change programme slowly diminishes. A more damaging one identified is known as the

    hijacked process where change initiatives might open the opportunity for others to satisfy

    their own purposes. This means that non-specialist change agents may veer away from the

    original plan and create an easier path for themselves, or even open the programme up for

    sabotage from employees who may feel that they have been done injustice to.

    Finally, after the enactment of change initiatives, one needs to evaluate its results because

    despite it seeming successful, the intended long-term goal may not have been realised. For

    instance, Harris and Ogbonna (2002) found that most change initiators aim to influence

    employees values and beliefs, but an in-depth look shows that employees merely practice

    behavioural compliance. This may pose as a future threat, since superficial conformity is

    short-term thus there will be a tendency for employees to revert back to familiar habits. This

    usually happens when the change adopter becomes a passive recipient of corrective

    solutions.

    Drawing out from a collective reading and personal analysis of culture, one may argue and

    define the parameters between organisational culture, organisational environment, and

    social culture. For instance, an employee who leaves the work premises will use an

    ingrained social culture to interact with others or to go about doing their non-work related

    activities. To a certain extent, it may be argued that organisational culture based on this

    reasoning is therefore dependent on the atmosphere that an organisation creates. This

    viewpoint is backed by Ogbonnas (2007) claim that minor adjustments can be made by

    altering the climate of the organisation, while retaining the deep fabric of culture to be

    without apparent change. One of the benefits of distinguishing organisational culture in this

    manner is that it avoids the positivist notion that culture is directly linked to financial

    performance. This allows managers to therefore direct their attention on the symbolisms of

    culture evident within the workplace, instead of trying to manage different individuals to

    adopt a common culture as a single entity.

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    Due to the aforementioned consequences of change, various alternatives have been explored

    by experts in order to achieve an effective and sustainable management of change. Change

    may come in varying magnitudes either significantly or discreetly. It may also be

    anticipatory or reactive to external events. However, as Sturdy and Grey (2003) argues, no

    one seems to consider that stability or continuity is possible, or perhaps even desirable. This

    therefore leads to our first alternative to the planned approach of change management.

    Continuity, as adopted by Kolb (2003), is defined as the connectedness over time among

    organisational efforts and a sense of ongoingness that links the past to the present, and the

    present to future hopes and ideals. One may argue that to a certain extent, the structure of

    an organisation is a significant factor in reinforcing continuity. For instance, a large public

    organisation will be at a disadvantage as they constantly go through new leadership which

    usually comes with different managing styles. On the other hand, a family-owned

    organisation will be able to pass down its practices. For instance, Ferrero once said that

    behind its trademark and turnover, is a story of a brilliant Piedmontese family that ensures

    the companys structure is founded on solid family values (Ferrero, 2009).

    One may argue that Ferrero is an exceptional example of a family-owned company that

    broke through business conventions of international success. Ferrero did not respond to

    societys rapidly changing external events by competing for the highly qualified produce of

    the labour market, or adopting the trending strategic model. Instead, it develops its core

    assets in-house (Ferrero, 2009). One advantage of this approach to change is that it shows

    how an organisation realises the value of its people, who served as the backbone in shaping

    Ferreros current standing. As Kolb (2003) confirms, continuity is not possible without

    appreciation of the past, as neglecting this may cost a company the established goodwill,

    wisdom and support of long serving employees. This is because employees work on the

    ground and have first-hand experience, therefore they may be able to give an insightful

    perspective on how certain changes can be tackled. For instance, they can aid in

    distinguishing between a radical change or something that a company has gone through in

    the past. Allowing employees to be involved, counters the problem of change fatigue with

    the planned approach, wherein managers are now viewed as colleagues instead of change

    masters.

    One unintended by-product of continuity however is the view that the organisation has sunk

    into a state of stagnation. Taylor (2011) argues that this should not be the case, as stability

  • Student number 610033217

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    enables progress through its search for new meanings and understandings. Continuity

    therefore is about realising forces that bring stability in a changing environment, which

    allows an organisation to propel ahead effectively and efficiently. That being the case,

    change initiators need to understand that although change and continuity represent

    competing principles, they also complement each other in the sense that one begets the

    other and vice-versa (Graetz and Smith, 2010). One may note that there is still much to be

    learned about continuity, as there is not enough information regarding its application and

    success results to conclude this as a recommended replacement to the planned approach to

    change.

    Another alternative to planned change that is currently gaining popularity among managers

    is the concept of creativity. Creativity, as defined by Zhou and Shalley (2009) is both an

    outcome and a process, wherein the conceptualisation and development of novel ideas or

    procedures occur. Sharing similar principles with continuity, creativity also allows for the

    involvement and participation of employees in implementing change initiatives. According

    to Elsbach and Hargadon (2006), one way of improving employees output is to use work

    design to make tasks more interesting, challenging and motivating. One organisation that

    has understood and applied this concept successfully is Google. Google is known to have a

    fun and innovative work environment in order to bring out the most creative ideas from

    employees. As Amabile et al (1996) notes, research shows that employees produce quality

    work when they perceive themselves to have the freedom to choose the method in

    accomplishing the tasks that they are given.

    One may agree with Starko (2013) that creativity in the workplace results to a number of

    benefits. Creativity enables employees to look at situations from different perspectives,

    either through brainstorming with colleagues or simply by using creative thinking

    techniques. This results to flexibility in decision-making and independence in judgment.

    When employees are able to hone their skills, cynicism will eventually subside as they feel

    valued by the management. In turn, these employees will become a long-term asset for the

    company. Most importantly, Starko (2013) highlights that creativity aids in coping well with

    novelty. This means that employees will be able to visualise different scenarios and consider

    the more suitable approach in escaping entrenchment. Similarly in the long run, when

    presented with new reasons for change, highly creative employees will then be able to sort

    through and find order in chaos. This also means that instead of showing signs of

    demotivation and change fatigue, employees may instead take the initiative to use creative

    thinking techniques in tackling the situation at hand. As a result, managers will be impressed

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    by the perseverance, drive and commitment from employees. Despite the attractive

    advantages of using the creative approach, there may be dangers of employees abusing this

    opportunity. For instance, Elsback and Hargadon (2006) discuss the folly of free time,

    wherein this may inadvertently cause employees to use work time for personal purposes.

    This may therefore deter the employee from focusing on the change programme goal.

    Another inadvertency of creativity is the erosion of traditional, established values and

    practices. This may occur due to the limitless and endless possible ideas that creative

    thinking techniques may generate, which may lead to over-reliance of such models.

    As this essay has thoroughly considered, organisations may still benefit from the good

    intentions of a planned approach. Unfortunately, despite the numerous studies that have

    been conducted, there still seems to be difficulties in implementing certain change

    initiatives. To a certain extent, managers can only predict and prepare for the future to

    lessen the impact of the unforeseeable circumstances. Therefore, in order to attack the

    dynamism of change, organisations need to react accordingly. This means that instead of

    using the traditional stagnant approach as the first choice to tackling change, managers may

    consider the notion that not everything new is always good; and old, bad. The 21st century is

    dominated by increasing concerns on good working conditions, ethical practices and the

    like. Managers may therefore counter the unintended repercussions by using alternatives

    such as continuity and creativity techniques. One may argue that there is however a

    literature gap regarding the effectiveness of these concepts, as they are still trying to prove

    useful for application in the corporate environment. Regardless of the approach used, it is

    important to keep in mind the main goal of OCM, which is to allow an organisation to

    manage its core assets, employees and resources, effectively and efficiently to reach its

    future goal sustainably.