In this report you will see the factors that are currently affecting the organisation, identifying the key factors and potential impact. There will be six factors for both external and external factors, a SWOT analysis is attached as an appendix. There will be three ways in which the organisation will be impacted by these changes and will show examples of models. It will also explain and compare three different approaches within the organisation for change and show any conclusion regarding the key impacts and approach to change management that the organisation would recommend for the company.
In today’s society change is constant within organisations so they can keep up to date. Change can either be planned or unplanned and can affect every individual that works for the organisation. If there are big changes then this could cause redundancies, re –structure of teams but if there are only small changes then this will still affect all employees but this may only change how they do their jobs and make require them to have more training or change of policies. Below are 6 factors both internal and external that have a potential impact on the organisation.
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Communication – Communication is an essential factor in the change process. Organisations want the employees to be on side with all the changes and for this to happen they will need communication and updates. Lack of communication will leave employees feeling not part of the change and this could change the office culture. This is why keeping employees up to date and communicating by any forms team meetings, email, internet updates etc. leave staff less frustrated and more involved.
Organisation structure – When making changes to the organisation structure this will have some influences on how employees work. Changes to the internal structure such as changing the management will have a big impact on the staff and the employee productivity.
Employees – If employees are not feeling motivated and don’t feel their managers are showing them the support or encouragement then this will have a negative approach. So the company keeps within the culture that is promoted it is essential that all employees attitudes and values within the work place are kept at a high and this involves regular communication and making sure that any concerns are met or in the process of being dealt with. Employees are the main part of the internal environment and for the company to produce the level of work they require then employees need to feel valued and rewarded so they will carry on producing their work to a high standard that the company requires.
Technology – Technology is changing rapidly and can change how an organisation operates and keeps up to date. All organisations now relay on technologies and equipment to be successful within the current changes of the economy. When introducing new technology into the work place this could impact employees as this could reduce their jobs and therefore reduce the workforce. New technology could reduce costs by losing head count but it will also leave employees feel as they are fighting for their jobs. When employees are on board and have adjusted to this the company will again continue to meet the high standards that they require.
Customers – Apart from employees customers are one of the most important people that we deal with. Customers use the company products and services but are not part of the company. The organisation has to deal with being competitive due to keeping customers and providing them with the best service. If the customer is happy with what you are providing and with the price then they should stay loyal and this will also help with the customer service that is provided. It is essential that the customers are kept happy as they will buy into and trust the brand and this will be the different in having loyal customers and customers who will go elsewhere.
Economy – The economy is not something the organisation can predict or control but understanding could help you spot the threats and opportunities. The market fluctuations are based upon politics, terror attacks, wars and currency devaluation. If the economy was bad for the company to survive it would need to understand that people wouldn’t have that extra money to go out shopping so they would to look at the budgets and see for any savings and keep costs down and when the grows again the company would still have a customer base and maybe look at any new projects so it can keep growing.
Three ways in which the organisation might impact change
Change has a major impact on everyone in the organisation and this could all depend on how staff approaches this it could either have a positive approach or a negative approach, this could all come down to how this is being commutated. It is a known fact that employees feel threatened when change comes into place and struggle to adapt and there is always the fear that people may lose their jobs.
Communication – Communication has to be the key factor to the change process as this will help managers and employees help to understand why the changes are happening and why they should be supporting this. If the company has poor communication or lack of communication then employees will not adapt to the change and could leave them feeling frustrated with no trust in the organisation. Positive communication and making sure that everyone receives the same communication, whether it be through the managers or internet etc. this will leave employees feeling happy and positive towards the future.
Employees – Employees need to see the change as a positive way forward and not negative thing. For the company it is essential that we communicate why this change is happening and how it will make it better company to work for. Employees can also have an effect of the company brand by providing a negative reputation in regards to the company. Once the company has received bad feedback or impacted their reputation this could take a while for this to become positive.
Technology – Technology has a massive impact to change as it is needed to keep the company up to date. Whereas technology can sometimes replace employees it is also gives employees the opportunity to train up on the new systems and have a look at their skill sets.
There are models which have been put together to help with the change in organisations and below is two in which the organisation use:
Lewin’s Three Stage
The Lewin Three Stages is a three stage planned change model. Kurt Lewis’s believed that the three stage mode of chance was known as the ice cube theory unfreezing ice cube, change the shape, refreeze ice cube.
Stage 1 – This is the unfreeze stage and this is where explaining why the company needs to make the changes and to make sure everyone involved knows about the change and this is where the company will deal with the doubts and concerns
Stage 2 – The change of shape stage. This is the stage where everyone starts to realise it’s going to be different and where the company will need to keep communicating how the change is going to benefit the company and people involved. This will help the employees support the change and give people the time to adjust to the change.
Stage 3 – The refreeze stage. This is when change is set to come into place. So this continues to become part of the company culture it is essential that all training has been given so everything can stay on track and for managers to make sure that employees are using the change going forward.
Using this model the company can prepare for what’s coming, look at what needs doing and make sure all employees don’t go into change without having all the information and confidence.
The ADKAR model was developed by Jeff Hiatt in 2003. This model ensures that change in process occurs efficiently. This model looks and focuses more on the people element in change and how to cope and plan for the change process.
A – Awareness – Employees need to be fully aware of what change is going to happen and why. This will allow employees to feel more motivated towards this and feel more involved
D – Desire – If the employees are more involved than the change will run more smoothly rather than forcing the change upon them.
K – Knowledge – When the change happens this will bring along new skills and routine for employees.
A – Ability – When employees develop their knowledge for change and everything overall with the company.
R – Reinforcement – When employees buy into the rewards for the change methods. It is also up to the managers that they do not fall back into the old habits.
Three different approaches in managing change
Employees – Everyone processes and reacts differently when it comes to change and not everyone sees this as a good thing. Employees need to be treated with respect and in some cases may be need to discuss this on a one to one basis so they have a clear understanding as to why the company are doing this. Some employees feel the change may not be a good thing and choose to leave the organisation and may have an impact in productivity. HR has an important role to support all employees and ensure that they are able to voice their concerns. Every employee need to feel they have clear communication and who to connect in any occasion.
Communication – Communication is key factor for any change within in organisation for both the employee and company. All information that is communicated to all staff needs to be clear and if they feel they don’t understand this then have the contact details so they feel they can talk to their managers or HR in regards to this. Everyone needs to feel that they are being listened to and understand the process whether they are keeping their role, starting a new role or even being made redundant.
Customers – Customers need to be kept up to date with any changes as this could affect your relationship with them and how your businesses continue for the future. If you are not clear and don’t keep them up to date then they may not want to continue working together. When customers work together for a while then relationships could build and this helps with cost of services and any rewards that may be given for working together.
The conclusion to this report is that change in always going to happen but it how the company go about change. As you have read it cannot be stressed enough how important it is to have clear communication between all employers and customers. Following or even understanding different models can make you aware of how you are not just affecting someone’s work life you are also affecting their home life so the company always need to make sure that employees are fine and understand this. HR needs to be involved in the processes so they are there to contribute with any changes in organisations structures, implementing of any new systems that come into place and any redundancies that may take place. HR should also be there to help and motivate staff and provide support for any learning and development needed so they can progress thought out the company. Everyone reacts differently and if any redundancies are made then it is important that this is done with empathy and the company help and support employees looking new jobs.
Human Resource Practice 7th Edition