weLEAD Online Magazine
leadingtoday.org
Copyright
2004 ã weLEAD, Inc.
Organizational Change: Managing
Transition – Part 1
By Evan Bahe
Organizational
change must become a way of life for companies to be successful in today’s
world. Stephen Robbins (2003) states,
“If an organization is to survive, it must respond to changes in its
environment” (n.p.).
Since change can be very stressful for most employees, it is imperative
that managers learn the techniques required to manage all types of
organizational changes, how to overcome resistance to change, and the benefits
of having workplace change policies. In
this article, I will define organizational change and will explain the forces
for change, how to manage planned change, and how to overcome resistance to
change. I will also describe ways to
manage the transition and the benefits of establishing a Continuous Process
Improvement Program.
I will start
by defining organizational change.
McNamara (1999) defines organizational change by saying:
Typically, the concept of
organizational change is in regard to organization-wide change, as opposed to
smaller changes, such as adding a new person or modifying a program. Examples of organization-wide change might
include a change in mission, restructuring operations, new technologies,
mergers, major collaborations, “rightsizing”, and new programs, such as Total
Quality Management and re-engineering (n.p.).
There are forces, in the business world today, that require
organizations to make changes to their strategies and processes in order to
remain competitive and profitable.
According to Stephen Robbins (2003), there are specific forces that
stimulate change: nature of the workforce, technology, competition, social
trends, and world politics (p. 556).
The first force for change, nature of the workforce, impacts every area
of an organization. Increased cultural diversity is one area that affects the
nature of the workforce. Widening
markets and globalization create work teams that are made up of people with
differing cultures, backgrounds, languages, manners and thought processes. Recognizing and developing these differences
will benefit the company by increasing innovation and effectiveness (Morello, 2002).
Diversity can also “improve decision making by providing different
perspectives on problems” (Robbins, 2003, p. 16).
Second, employers expect their employees to have a variety of skills and
a certain level of education. Increasingly,
decision making is pushed down to front-line supervisors, requiring them to
have many of the same organizational and company specific skills as
managers. The continuous advancements in
technology also require most employees to have entry-level technical
skills. Many organizations have
established certain computer skills as a baseline for employment and they
expect their personnel to acquire other advanced information and
telecommunications skills as time goes by.
These technological skills are often tied to productivity and
efficiency, so employers tend to make proficiency in them a priority (
The third factor that pertains to the nature of the workforce is our
aging population. According to the U.S.
Department of Labor’s Bureau of Labor Statistics (2004), the median age of the
labor force has risen from 34.8 in 1978 to 38.7 in 1998 and is expected to rise
to 40.7 by 2008. Diane Morello (2002) writes, in her article “Ten Converging
Forces Will Change Your Workforce”, that “enterprises must design their
websites for waning eyesight, pay more attention to building design and
ergonomics, add elder care to benefits packages, anticipate higher medical
claims and provide work flexibility” (n.p.). The aging of our workforce also pushes back
retirement in many cases, so as younger employees pursue other career
opportunities, the older workers hang on and become the backbone of the
organization.
All of these factors, in one way or another,
make up the nature of the workforce and have profound effects on how a company
operates and makes changes. Technology
is another force for change that organizations have identified as a major
driver in their quest for success.
Robbins (2003) explains that technology “refers to how an organization
transfers its inputs into outputs” (p. 442).
In some cases, technology crept up on the civilized world and in other
cases it seems as though changes happened over night. In the early days of modern technology, it
took anywhere from 30 to 60+ years for a new type of technology to spread
throughout the nation. For example, the
telephone was invented in 1876 and took 35 years to spread; the automobile was
invented in 1886 and took 55 years to spread; and the airplane was invented in
1903 and took 64 years to spread. In
comparison, more modern inventions, such as the personal computer, cell phone,
and World Wide Web, only took 16, 13, and 7 years respectively to spread
(Knowledge Context, 2004).
Technologies in the workplace have gone from being useful tools to being
a necessity for getting the job done on time.
Most organizations have become completely automated in all areas of the
company, to include production, distribution, and customer service. Many employees cannot even make an intelligent
decision without consulting some sort of electronic device (Dator,
1993). Pervasive connectivity is the term used to describe all of today’s
gadgets employees have at their disposal to communicate with each other and
their customers. Some of these devices
include: beepers, cell phones, handhelds [two-way radios], DSL lines, cable
lines, laptops, Internet, wireless, wearable computers, and land-line phones (Morello, 2002).
Dessler (2004) defines technological change as “changing
the way the company creates and markets its products or services” (p.
196). Many new technologies can be
anticipated based on improvements to old technologies, but there may be new
areas being developed that will take an organization in a whole new
direction. Either way, companies must
seek to improve their processes using technology to its fullest, which means
employees will have to adapt to any changes and learn how to use new types of
equipment as they are introduced in the workplace (
The next force for change is competition. Brian Gorin (2002)
explains that “mergers and acquisitions, expanding global markets,
restructuring, competition, and globalization forces executives to find new and
better ways to manage change and stay dynamic” (n.p.). All of these factors create more competition
and will require organizations to change their competitive strategy. Identifying the need to change is only the
first step; becoming a master at implementing and successfully making the
changes is what is important.
Globalization created a business environment where an organization’s
competition can be right next door or on the other side of the world. The rise of the Internet is a driving force
behind the interconnectivity of economies, allowing for increased opportunities
and competition (WebFinance, Inc., 2004). In an effort to identify innovative offerings
and product improvements, organizations must continuously monitor their
competitors’ marketing strategies and product lines. The more rapidly a company responds to their
competitors’ strategies, the sooner they can develop and market their own
improved products to the consumer. To
accomplish this, Robbins (2003) says “they will require an equally flexible and
responsive workforce that can adapt to rapidly and even radically changing
conditions” (p. 557). This is the only
way an organization can maintain its competitive advantage.
Another
force for change, known as social trends, comes into play when an organization
makes changes to take advantage of society’s diverse range of views. There are numerous factors that must be
considered when an organization evaluates social trends. First, the region that the business is in
must be considered, before making any changes, to identify any cultural
challenges that may prevent certain actions.
Another social trend affecting businesses today is the increased amount
of Baby Boomer retirements. These
employees, born after World War II, are reaching retirement age at an
increasing rate and as they retire, they are taking a large amount of knowledge
assets and experience with them. The
third social trend that has taken society, as a whole, by storm is the use of
all the technological gadgets mentioned earlier. The increased capability of consumers to
communicate with their friends, family, or co-workers, from any location in the
world, has a profound impact on word-of-mouth marketing. Consumers can literally call anyone they know
from the store to let them know about a sale or new product. Organizations must address social trends
regularly to ensure their processes meet their target market’s needs (Egan
& Orser, n.d.).
The final
force for change, identified by Robbins (2003), is world politics. This can affect how organizations operate in
a couple of ways. First, the stability
of certain parts of the world, such as the oil rich nations of
Once an organization has identified the forces for
change that will affect their business environment, they must determine how
they will best manage any planned changes.
The BPR Online Learning Center defines change management as, “the
effective management of a business change such that executive leaders,
managers, and front-line employees work in concert to successfully implement
the needed process, technology or organizational changes” (Prosci,
2004, n.p.).
The
·
to minimize the impact on productivity;
·
to avoid unnecessary turnover or loss of valued employees;
·
to eliminate any adverse impact on your customers; and
·
to achieve the desired business
outcomes as soon as possible.
To begin managing a change process,
managers need to understand that changes are viewed from two different
perspectives. One view is from
management’s standpoint, or organizational change management, which focuses on
“broad change management practices and skills that will help the organization
understand, accept and support the needed business change” (Prosci,
2004, n.p.). The
other perspective is from the employees’ view and is called individual change
management. Since the employees are
typically tasked with implementing any organizational changes, the focus of
individual change management is on the tools and techniques needed to help them
with the change process.
Changes are
continuously being made in an organization and since leaders can’t possibly
know everything that is going on internally, much less externally, with the
business, they must develop a trusting and open relationship with their
employees and customers. Tuning in to
the environment is the only way managers can determine if changes are being
successfully made and if they are goal oriented (Kanter,
1999). The reason for any changes should
be apparent; they must be planned and intentional.
The
successful implementation of change requires a well-planned strategy that
utilizes the company’s key players and follows the organization’s culture. Making changes is not an easy process and
spending a large portion of the company’s budget on new technology/software,
redesigning processes, and providing training does not guarantee successful
change. What will contribute to a
greater change success rate is “careful planning, detailed design, and thorough
implementation” (DeWitt, 2004, n.p.).
Innovation
is a very important part of the change process.
One way to stimulate innovation is by empowering employees to develop
ideas and new concepts that will help the organization transition through
changes. Gemmy Allen (2002) defines
empowerment as “the delegation of authority to an individual or team and
includes autonomy, trust and encouragement to make the decisions necessary to
accomplish the job” (n.p.). Trust is a key factor in the empowerment
process. Not only does the supervisor
have to trust that the employees will fulfill their responsibilities, but the
employees must find the supervisor to be credible and trustworthy. According to Allen (2002), research has found
that employees who believe that their supervisor is highly credible are more
positive about their work and are more loyal to the company).
Another way to
stimulate innovation and develop ideas is through the establishment of work
teams. The members of the team should be
committed to the planned change and know that what they are doing is an
opportunity and not a punishment. Each
individual must see the importance of what they are doing and know that their
inputs will help reach the desired result (Marken,
2000). Diversity is a key factor when
building a work team to deal with any type of change. According to Myra Shiplett
(2003), “Diversity leads to positive creative tension, which increases
intellectual curiosity, supports creative thinking and sets the stage for
innovative solutions to organizational challenges, allowing the organization to
achieve more effective results” (n.p.).
References:
Allen, G. (2002). Teambuilding.
Supervision.
Retrieved
http://ollie.dcccd.edu/mgmt1374/book_contents/4directing/teambldg/teambldg.htm.
Bridges, W. & Mitchell, S. (2000). Leading
transition: a new model for change. Retrieved
Caldwell, R. L. (2004). Driving
forces: Instructor’s viewpoint. Retrieved
http://ag.arizona.edu/futures/rlc/mydrivingforces.html.
Clark, D. (2000, January 30). Big dog's continuous process improvement page. Retrieved
July
Dator,
J. (1993). American state courts, five tsunamis, & four
alternative futures. Retrieved
Dessler, G. (2004).
Principles and practices for tomorrow’s leaders. Management. (3rd ed.).
DeWitt, R. (2004, April 30). Managing
change is managing people. Retrieved
from http://www.cioupdate.com/insights/article.php/11049_3348041_2.
Egan, A. H. and Orser, B. (n.d.). Managing
the tidal wave of change. Retrieved
from http://www.strengthinpartners.org/tidal_wave_of_change.htm#top.
Gorin, B. (2002, September
1). Are you a switch hitter? Retrieved
http://www.internetworld.com/magazine.php?inc=090102/09.01.02change.html.
Holmes, T. A. (2004). Process
improvement. Retrieved
http://www.doctorholmes.net/continuous_process_improvement.htm.
Jones, J., Aguirre, D., and Calderone, M. (2004). 10 principles of
change management.
Retrieved
Kanter, R. M. (1999). The enduring skills of change leaders. Retrieved
from http://www.pfdf.org/leaderbooks/l2l/summer99/kanter.html.
Knowledge Context. (2004). How does
technology change? Retrieved
http://www.knowledgecontext.com/organization/marketing/book/How%20does%20Technology%20Change.htm.
Lewis, E. A. Consulting. (2002)
Benefits of CIP. Retrieved
http://www.ealewisconsulting.com/CIP.htm.
Marken, G. A. (2000). Collaboration ... Personal power, not
position power. Retrieved July
29, 2004, from http://www.managerwise.com/cgi-bin/frames.cgi?page=kbank//
McNamara, C. (1999). Basic context
for organizational change. Retrieved
from http://www.mapnp.org/library/mgmnt/orgchnge.htm#anchor493930.
Morello, D. T. (2002,
March 1). Ten converging forces will change your workforce. Retrieved
forces030102/tenforces030102.html.
Prosci. (2004). An overview of change management. The BPR Online Learning
Center. Retrieved
Riches, A. (n.d.). The four emotional
stages of change. Retrieved
http://www.anneriches.com.au/article-ct3.html.
Robbins, S. P. (2003). Organizational behavior (10th ed.).
Hall.
Shiplett, M. H. (2003,
November). The power of diversity and inclusion.
Retrieved July 25,
2004, from http://www.diversityatwork.com/Monster-Nov2003.pdf.
Silverman, L. L. (2001). Key
considerations in organizational change. Retrieved January 16,
2004, from http://www.partnersforprogress.com/Articles/KeyConsiderationsOrg.pdf.
Trent, W. T. (n.d.). The changing nature of work and its implications. Retrieved
July 24,
2004, from http://www.igpa.uiuc.edu/publications/critIssues/work.pdf.
labor force. Retrieved
WebFinance, Inc. (2004). Globalization. Retrieved
words.com /2182/globalization.html.
Yahooligans!
Reference: World Factbook. (2000).
from http://yahooligans.yahoo.com/reference/factbook/ch/popula.html.
Comments
to: editor@leadingtoday.org
BACK TO weLEAD HOME PAGE
About
the author:
Evan Bahe (evbahe40@msn.com) is a retired USAF Senior
Master Sergeant who currently works for a government contractor. Bahe is an
equipment evaluator for the Air Force’s Basic Expeditionary Airfield Resources
(BEAR) community and his main responsibility is to verify bare base assets meet
all required specifications prior to procurement. He also helps during the transition process of
eliminating obsolete equipment and gaining acceptance of the new modernized
assets.