Managing change

Change is good – You go first

Change is a constant feature in social & organisational life structure and is an inescapable part of modern day life, Mullins (2013). Organisations work and interact in an external environment and are subject to continual change through market forces and constantly make strategic decisions of how to respond to change.
In today’s fast-paced and modern world, organisations face continuous pressure to change and adapt in order to meet their business objectives and sustain competitive advantage, HSE, (2014). According to Mullins (2013) change can be a driving force of success and increased performance when managed effectively. For organisations who manage the change process effectively, change is welcomed and used positively to increase efficiency & profitability of the organisation.

(Figure 1: Lewin’s simple three-step change model, adapted from Mullins (2010))

Collectivism
Change need not be perceived as threating as it has obvious benefits to the employees and organisation as a whole. Management has the power to influence attitudes and perception of their employee in order to encourage and induce them to accept change.
Set vision and communicate clearly – Management can change and influence attitudes and perceptions of employees by creating clear and uplifting business goals & strategies that employees buy into. According to Kotter (1996) about 75 percent of the workforce need to be aligned with change in order for it to be successful. Kotter (1996) stressed that attitudes and perception can be influenced if clear goals are set and communicated in an engaging way to the stakeholders involved.
Empower action and produce short-term wins – It is important to ensure all barriers to change are removed and all the necessary tools required to facilitate change are available to the stakeholders involved, Mullins (2013). This is critical in the change process in order for the individuals involved to achieve change and vision of the organisation. The provision of short-term wins helps provide credibility to the cause and boosts motivation of the stakeholders involved in the change process.
Rewards – Providing short term reward can help incentivise and motivate stakeholders to buy into the cause and vision of the company.

Individualism
Economic implication – Changes that may affect or hamper rewards, pay or working conditions of employees in the workplace is likely to be resisted, even though these changes maybe for the good of the organisation. For example having to move office to a new location, working longer hours or reduction in bonus is likely to be resisted. People tend to have a set pattern or method of working and any proposed change to these factors is likely to be met with resistance.
Fear – Fear of the unknown could potentially cause fear and anxiety among employees thereby causing them to resist change brought on by management. Change introduced in the workplace could bring about a high degree of uncertainty and fear thereby resulting in employees resisting changes in the workplace. For example introduction of a new IT software may cause fear and anxiety as people may prefer the familiar method of working.
Habit – Man is a creature of habit and intrinsically individualistic, it is in our very nature to resist change, Brodeur (2000). People find comfort in familiar patterns and methods of working as it helps as a guide in making decisions, Mullins (2013). Proposed changes to old habit and well established way of working may be resisted by employees if perceived to hamper their methods of working.
Role of Managers in Change Process
The successful management and implementation of change should be a top-down approach with managers taking the lead on creating and sustaining a healthy climate for the change process to occur, Mullins, (2013). Successful implementation of change requires a transformational leadership approach in order to gain commitment to change from employees.
Transformational leadership is based on clarification of goals and objectives of the organisation and appeals to the self-interest of the employees, Mullins (2013). It is built on mutual dependence and recognises rewarding employees for achievement of goals and objectives, Mullins (2013). This style of leadership is important when implementing change in an organisation as it helps encourage a high level of motivation and appeals to the core ideals of employees. This creates a feeling of loyalty and justice which employees buy into thereby reducing resistance to change.
Resistance to change is not without its benefits as consultation and engagement process with employees can foster renewed trust and loyalty. Cost saving could also result from resistance to change as employees might come up with alternative business decisions that may not require change thereby saving cost.

http://www.youtube.com/watch?v=hcz1aZ60k7w
Change in ASDA
An example of leadership playing a major role in change is the leadership of Norman Archie; he was recruited to Asda in 1991. Norman Archie was successful in bringing down the GMB union membership to 13% from a high of 82% in a span of 8 years. He brought new energy within the workforce as the market share rose considerably after his appointment. His strategy was transparency; he set things right beginning with the middle level management. The fear of job uncertainty was removed and he encouraged the other employees to take part in the decision making giving them more confidence and security.
In conclusion I believe organisations need to change and adapt to changing market forces in order to survive and can sufficiently influence stakeholders to buy into the vision of the company if communicated effectively.

Reference
Brodeur, C. (2000) Learning to Be Human [ONLINE] http://members.tripod.com/zenol/humanism.html
HSE.gov.uk (2014) Human Factors: Organisational Change [online] http://www.hse.gov.uk/humanfactors/topics/orgchange.htm
Jenkins, L. (2009).Change Management: Organizational Change Causes Uncertainty.[on-line]
http://businessmanagement.suite101.com/article.cfm/change_management Accessed 18 October 2009
Mullins, L. J. (2010) Management and organisational behaviour. London: Prentice Hall
Kotter, J. (1996) Leading Change, Harvard Business School Press