Change Management Methods of an Organisation

Question: Discuss about the case study Change Management for Methods of an Organisation. Answer: Introduction As opined by Hayes (2014), Change Management is the approach to transitioning the process and methods of an organisation to gain more profit in future. The change in the use of business process, budget allocation, resources and modes of operations of a company is required to achieve the goals and objectives (Cameron and Green 2015). In this study, the various theories of change management will be discussed to analyze the relevance of those theories in the recent time of working environment. The theories of Lewin, Prosci Adkar, Kotter and Balanced Scorecard will be discussed in this study comparing with the management procedures of the organizations ING and QUANTAS. The study will examine the processes of these theories whether the ideas are relevant in present day working setting or not. Impact of Various Change Models in Todays Working Environment There are various Change models developed by different scholars that can be implemented in the organizations to gain the organizational change for the betterment of the company. The globalization and constant innovation of technology is forcing the organizations to implement changes in their organizational structure and business processes. Therefore, the four theories of change management are explained in the following to analyze the application in present time. Lewin Theory Kurt Lewin has presented the Three Phase Model of change management in 1940 but it is still relevant in the 21st century too. The concept of Lewins three-phase model theory is focusing on the procedure of the change implementation in an organisation. The model is consists of three steps such as, Unfreeze, Transition and Freeze. According to Bartunek and Woodman (2015), the organizations need to implement the change management policies to improve the company image or to tackle the increasing competition. It is an example of a straightforward change management system. According to the model the three steps has to be followed by an organisation to attain the change in the working environment. The three steps are, Unfreeze The first step of this model is concentrating on the external and internal forces that are continuously restraining the change to be implemented. If the company members are not agreed with the management that the change is required then the company will not be able to implement the change. Therefore, as per the model the company management have to determine the needs to change in the business procedure. Then they have to convince the employees to understand the need of changing the business policies with reducing the provocative events. It was seen in the ING bank to implement the change in their bank. Most of the staff and management was not following the rules and regulations of the company after informing them for numerous times about the merging policies of their with the PostBank, then the management have to understand the need for bringing change in the organizational system to resist this situation (Hornstein 2015). Transition The transition is the step where the change is actually implemented in the organisation. According to Lewins theory, when the organizations unfreeze the other provocations within the company and can about implementing the changes, then transition can be possible. By using this step, QUANTAS should communicate with the employees to know the interest of and feedback of them about it. After understanding these, the management can take the action plan for bringing the change in the organization. This is only can be possible with empowering action by involving the people in the process. Freeze As opined by Frankland et al. (2013), the change can be implemented only when the management will reach the last step of this Three Phase Model. The third step is referring to the real action is taken place to bring the change actually. This can be activated with introducing new systems of rewarding the employees and by celebrating the success of the company. These activities will motivate the employees to work with more dedication. This will help the management to reinforce the new rules and regulations for the benefit of the ING and QUANTAS. Figure 1: Lewins Change Management Model (Source: Worley and Mohrman 2014) Prosci ADKAR Theory According to the Change Management Model of Prosci, every organizational change can be executed by changing individuals perspective towards change. It is mainly used to understand the queries how, why and when to implement the changes. As opined by Shah (2014), it is the truth that the when people think about changing something, they expect others to accept the changes first. However, if they change individuals thinking regarding implementing the change then the change will be introduced in a fast manner. The theory is based on the five basic steps that have to abide by every individual to accept the change management. According to Prosci, these five steps are called as the building blocks of successful change in an organisation. These five steps are Awareness, Desire, Knowledge, Ability and Reinforcement (Parker et al. 2013). As per his theory, if the people in an organisation can follow these five steps for their individual change, then the organisation should be able to implement the change in their company. The five steps are Awareness Awareness refers to the process of understanding the need for the change in the organisation. If every employee in the organization feels the need for implementing the changes in the company to develop the condition of the business, then the management is forced to think about introducing new things there. As stated by the Adkar in his Change Management Model, individual awareness is very essential for the employees to take the initiative to implement the change in the ING and QUANTAS. The management has implemented the changes in the bank at the time of merging with the Postbank. Desire The second step of the model is the desire to support the change for the organizational betterment. Although the management of an organization tries to implement new ideas in their company, still the company should not acquire the changes if not every employee of that company is interested in it. The organizations like ING and QUANTAS use this element to introduce the changes in the internal rules and regulations. Knowledge The third step of this model is referring the knowledge about the change that can be implemented in any organisation. Knowledge refers to the skills and behavior that is required to bring the change in the company to increase the overall profit of the organization. Ability According to Booth (2015), ability is the skill that is very essential to understand the capacity of the employees within an organization. If the employees are not able to understand the changes then they cannot able to implement these in their work life. Reinforcement Change cannot be successful if it is only implemented in an ING and QUANTAS to betterment of any organisation. However, the change has to be reinforced to sustain the change there. Figure 1: Prosci ADKAR Change Management Model (Source: Shepherd et al. 2014) Kotter Theory Another scholar Kotter has presented the change management theory that is relevant still in the working environment. Therefore, the organizations are still using this model as their way to implementing the change and it is working in a good way to introduce change in their organisation. As opined by Hornstein (2015), the change management model of Kotter is referring to the eight steps to get success. Every business needs to implement the new innovative technologies for improvement and aims to remain in the top in business in the market. Therefore, this model is very relevant even nowadays to bring change in an ING and QUANTAS (Shepherd et al. 2014). Kotters change management model consists of eight steps that are needed to lead the change in an organisation where the company should implement a change with the help of executing these steps (Burke 2013). It helps the organisation to identify the elements of changes that is required to bring success for the company. The steps are Create sense of urgency The first step of this model refers the creation of the people in an organisation to create the sense of urgency for implementing the changes. According to Kotters model, if the whole unit of an organisation is not interested to accept the changes, then the company successfully implements the changes for betterment. Build Guiding Coalition The people have to convince the related people before implementing the change in an organisation. This process can help the organizations to identify the leader in the ING and QUANTAS who can set a change coalition to identify the change in the company. Create a Vision for Change Every company should set a value and goal for the organisation to create the change strategy for attain the high profitability. If the company cannot give any clear vision to their employees then they cannot able to explain the idea to their employees. However, setting a vision will help them to make people understand about the change vision. Communicates the Vision The fourth step of this model is referring to communicating the vision with the employees to make them understand about the requirement of change management in the organisation. Communication is very important to attain the vision through implementing change. Enable Action by Removing Barriers The organizations that want to implement the changes then will face various problem regarding implementing it. Therefore, the companies have to reduce the obstacles first to bring the changes. Create Short-term Wins Change management is a continuous process to implement a new idea within an organization. Therefore, this step is helping the management to set small targets and then work on that to get achievement. It will make the company employees interested to accept the change. Build on the Change Sometimes the organizational heads make an early decision to celebrate the changes in their business, but they failed to understand the ultimate effect of the change. Therefore, the company should not hurry to conclude anything. Anchor the Changes in corporate Culture The Company should utilize the change procedure as their continuous process to enforce the system in their organization. Therefore, the model is suggesting that the organizations can use the changes in their day-to-day corporate culture. The Kotters model has implemented by ING to change their organizational vision and objectives. This has enabled them to implement the changes in the business strategies. Likewise, the organization QUANTAS also has used the model. Figure 1: Kotters Change Management Model (Source: Mishra 2013) Balanced Scorecard (Kaplan and Nortons) This is a strategic planning and management system to measure the performance of an organisation presented by Kaplan and Nortons. The name of the theory is as the Balanced Scorecard. According to Gibbons and Kaplan (2015), this system has four perspectives with which the organization management can check the performance. All the perspectives are measuring the objectives, targets and initiatives of the company to reach the vision with implementing the change. The four perspectives are Financial Approach The financial approach of this model is successfully encouraging the look towards the shareholders. It helps the he organizational heads to understand that in what process they will appear before the shareholders. It is measured by the cash flow, operating income etc. Internal Business Process These perspectives enables to identify and measures the internal business procedures that will be implemented through the change management. This will help the management team to analyze the perfect business processes to satisfy the shareholders as well as the customers. Cycle time, yield, unit cost etc can be changed. Learning and Growth This approach helps to achieve the vision of an organization. It can be achieved through implementing new generation of products, to develop market competition and life cycle of products. Customer - This helps to measure the customers aspects toward the organizational changes are mainly measured by this perspective. This helps the organization to understand the customer. This was not applicable in the organizations ING and QUANTAS. Figure 1: Balance Scorecard Change Management Model (Source: Gibbons, R. and Kaplan 2015) The discussions of the various change management models are explained in contrast with the companies ING and QUANTAS. The ING bank has implemented the Lewins theory to bring the change in the company at the time of merging with the PostBank. They have also utilized the Prosci ADKAR model to implement the changes in the individual employee. In addition, the Quantas has used the Kotters change management model to include the changes in the organization for betterment. Conclusion The study has explained the four theories of Change Management to analyse their importance in the present time. The change is the only constant thing in the business platform and this is required to develop any organisations business processes. Therefore, the study has discussed the processes of four change management systems that are very relevant in present day business situations too. It has found that in the organization like ING and QUANTAS, the change management models have been used to bring change in the organisation and the companies had reached a good position in the business market. Reference List Bartunek, J.M. and Woodman, R.W., 2015. Beyond Lewin: toward a temporal approximation of organization development and change. Black, S., Washington, M. and Rasheed, H., 2014. Business Model Innovation and the Balanced Scorecard. 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Is change management obsolete?.Organizational Dynamics,43(3), pp.214-224. Create sense of urgency