Organisational[CS1] change involves introducing new means of operation within an organisation or department. This change is achieved through changing the operational methods, strategies, technologies, structure, or its corporate culture. The change can be a continuous process extending over long periods while it can also occur for a specified short period. Organisation change can be a radical process that alters the way an organization operates while on the other hand, it may be in a series of gradual increments whereby it slowly changes the way things undergo execution. Either way, irrespective of the type, change entails of getting rid of old habits and adopting and adjusting to new ones. In my department of work pensions, the difference is switching to records digitization since the current way leads to the production of numerous documents that almost fill the little available registry space that in turn, leads to a lot of hassle while retrieving a needed record. The change will digitize [CS2] the records of the work pensions department making every file to be available in softcopy whereby it will be uploaded onto the document management system. For any future reference, any record will be retrievable with only the click of a button[CS3] .
Task 1
Factors that contribute to the need for a change
An internal factor is something that you have control over within a business. We can create a SWOT analysis (Strengths, weaknesses, opportunities and threats) to look at this in detail as all those factors are things we can control.
I have created a SWOT on my work within DWP showing which internal factors need the most change;
Strengths
-Good organisation in regards to meetings and good documentation system of sickness.
Weaknesses
- Poor record management – time consuming and creates security risks.
Opportunities
-Development programmes available and many free online courses to choose from.
Threats
-Poor facilities such as insufficient heating and lifts breaking down.
[CS4]
From the analysis of the department of work and pensions using the SWOT tool, you can quickly note that the department needs a radical change in its record management. The external factors that have contributed to the need for the change include technology. The change has partly been a result of the rapid developments in technology where we choose to move with advances in technology and not remain in the past. Technology should be embraced as it leads to more opportunities and making work easier along its way. Another external factor is the legal environment where the government is continuing to be stricter to with its laws hence the need to have the excellent management of records so that they can easily be accessible any time in future and while in the right format. Security has been a continuous threat in the department, and the current security measures within the paper-based system have not met our safety needs. Nevertheless, with the records digitisation, the records will be in secured environments such as databases, encryption, and servers where only the authorized users can access them[CS5] .
An external factor is something that we have little control over.
PESTEL – used to identify strengths and weaknesses
Political: Within the DWP, it is important to remain unbiased and not share our views on politics.
Economical: We are funded by the government so any economical change could mean that we are affected.
Social: Social things such as a strikes can impact our work. If strikes meant a claimiant was unable to attend the job centre, we would make appropriate plans so this did not affect their claim.
Technological: DWP faces very slow running technology which causes delay for employees and claimants.
Legal: If there is a change in the law then we must ensure we always adapt and follow this.
Environmental: Things such as climate change might affect a resource we use[CS6] .
The internal factors include poor performance in the records sector where a lot of time is wasted searching for documents from the file cabinets. Now, this will be a thing of the past were through the digital document system, records will be located in just a few seconds through the built-in options. The department of work and pensions also has the goal of improved customer service whereby records digitisation has proved to be one of the ways we can improve our customer service. Here, the system of digital document management will help our users to access any needed files faster and with high specificity, hence improving the customer service. Another factor is increased costs, and with the records digitisation, there will be substantial cost savings. This is due to less cost on paper, printing, photocopying and filing. Additionally, records digitisation will reduce the work-power cost incurred on files arrangement, transportation and so on.
Force Field Analysis
Force Field Analysis helps you to think about the pressures for and against a decision or a change. Force Field Analysis was created by Kurt Lewin in the 1940s. It is used in business, for making and communicating go/no-go
5 step format
Step 1 is to describe the plan, this may be to look at a particular problem such as IT issues.
Step 2 is to decide what you would like the final outcome to look like.
Step 3 is to identify the forces
Step 4 is to determine the importance of change for each force.
Step 5 is to analyse and apply and to decide whether or not to move forward with the decision or change.
The 4 areas of change are strategic change (follows the direction that the organisation is going in), structural change (a change to the structure of a company), process-orientated (change to the process of a task that is cascaded through a department) and people centred change ( a change that revolves round the people at the centre[CS7] ).
So now we have looked at the main large areas of change, we can now look at specific types of change[CS8] .
Types of Organisational Changes
Organisational-wide change is a large-scale transformation that usually affects the overall structure of an organisation. The change typically comprises resizing, restructuring or collaboration, processes that tend to change the nature of an organisation. Regardless of the type of change, the organizational culture is affected which ultimately affects the behavior patterns of the employees.
Transformational change is vital for organisations to assess its underlying strategies continuously. An organisation must be in touch with the environment around it which includes cultural trends, social climate as well as technological advancements. The move towards records digitization is a transformational change whereby the department is seeking to solve the problem of record management with digital technology.
Personnel change is where an organization undergoes through dismissing a large number of staff or hiring a large number of staff. Personnel change calls for a shift in the organization processes and culture.
Unplanned change- In the course of dealing with endless planned strategies, a company can go through several unanticipated changes, some of which may be more drastic than those scheduled. Such changes may be introduced in a manner that is not planned in response to a change in the company’s demographic composition, that is, lack of social equality or diversity. Uncontrollable factors such as changes in government regulations and economic uncertainties, frequently make organisations to make unplanned changes.
Remedial change- these are changes that an organisation is compelled to make due to poor performance or a general sense of insufficiency. As a result, a company takes corrective actions with the aim of improving its performance or reviewing particular strategies that seem to be pulling back the company.
Organisation[CS9] Change Benefits
There are various benefits arising from the digitization of the work and pension department. To[CS10] start with, it will allow multi-access of a record as opposed to the current paper-based system whereby one person only accesses a document at a particular time. Through the implementation of digitization, multiple people will have the ability to view a single file in different locations through the use of the internet unlike before where one person would use a document and pass it to the others. Another benefit includes records back up that will add on to the security of the documents. The current paper-based system is risky where the most of the files only exist in hard copy. In case of any disaster such as fire or flooding, it the records cannot be recovered leading to massive losses or damage of the records. Digitisation allows cloud backup which will store the records safely since they will always be there. Even without the cloud backup, records recovery will be faster and easier compared to paper documents.
Another benefit is the easy retrieval of documents that will in turn save time. The manual system used in the department does not provide an opportunity for you to view a single document simultaneously but provides that each person views the document separately and will have to spend quality time searching through the files to locate the required information. Same time is used while undoing the process to return the record in the appropriate data. Nevertheless, with the digitised records file indexing will be used to retrieve files instantly with high specificity. There will also be easier movement when the department needs to re-locate and easy sharing of documents between several locations such other departments. Documents will easily be scanned and stored electronically getting rid of costs involved in saving paper copies. The documents will also be accessible from anywhere especially from the cloud[CS11] .
Benefits of cloud storage include accessibility as stored files can be accessed from anywhere via Internet connection, disaster Recovery as you can back up files, Cost Savings as businesses and organisations can often reduce annual operating costs by using cloud storage; this is because it does not require internal power to store information remotely.
Negatives to cloud storage include bandwidth as if an organisation goes over their limit, the additional charges could be significant. Also, if you have no internet connection, you may not be able to access your files. Security is a massive concern with the department I work for and with the cloud there are concerns with the safety of the private data as there’s the possibility of data being hacked and leaked out to other organisations or the public which would be detrimental to my department as we store very private information and if it was to be shared this could result in legal action.
There are many benefits to planning a change. By considering pros and cons, we have a wider more detailed picture of what the change may involve and whether it is worth implementing. It can also increase productivity as planning change lets you plan the resources you need and what will be available to you around the time of the change. It can avoid obstacles getting in the way as you can plan what challenges you may face and how you are going to get around them thus having more of a chance of the change being successful and without problems. You can plan what resources are needed for such as technological equipment. Planning all these things also ensures customer service is kept to the maximum as for example, if a new change means the building may need to be closed one day then communicating this to customers as early as possible shows the best customer service. You should also plan in order to make sure you are complying with laws and all relative people/organisations are informed of major adjustments/changes.
Planning the change increases the chances of managing it better. As observed, change naturally invokes resistance from employees due to the uncertainty that comes with it. Planning is a way of recognising barriers such as employee resistance that will be a hindrance, and create inefficiency in the change process. The workers may feel threatened of losing their jobs, or being unable to work with the new system. When planning for the change to cloud storage, the employees in my department will be trained and taken over what the entire process entails. The process entails ‘removing obstacles’ as described in the John Kottler’s change model. Resistance of change occurs because people do not fully understand the details or the essence of change. When such information is presented by the leaders to the subordinates, then the change initiative becomes a shared process. Furthermore, proper change management entails ensuring there is enough resources to undertake the change initiative to the end. Changing to a cloud storage system requires financial resources required to purchase equipment and pay for the work. Beginning the change process without having a clear picture of how to finance it to its conclusion could potentially paralyse the operations of the firm, and expose it to significant risks.
When the change has been planned, the company is able to maximize the efficiency of its resources. The change to cloud storage system requires new information technology infrastructure which involves an extra budget for my department. However, proper planning reduces the resource requirements since some equipment which may already be there, and could be used with the new system can be identified, instead of purchasing all requirements for the cloud storage system. Likewise, the department has skilled and competent staff who can be trained or retrained in order to get acquainted with the new system. Therefore, proper planning for change has tangible benefits to my department and the organisation as a whole.
The stress levels among the concerned stakeholders are reduced when the change is well planned. Employees are significantly affected by the change, and thus taking them through the process, briefing them of its significance and retraining them could substantially put them at ease. Furthermore, other stakeholders such as the clients who are ultimately affected by the decisions of the organisation, needs assurance that their interests are preserved. For instance, the system may experience3 a significant downtime during the transitionary phase of the change, and the clients may be unable to access some services from the organisation. The clients should be offered assurance through notifying them of the proposed changes, and the significance of such changes in adding value to them.
The process of planning for change also leads to the discovery of new opportunities for development and increased skills. A change brings about new thinking and new ways of doing things. Through planning, more business opportunities, or cost savings for the company may be identified. The current employees are also prompted to enhance their professional skills in order to be more proficient with the new system. Overall, the company benefits from this process from such opportunities and refined human resource skills.
Importance of Planned Change
Task 2[CS12]
Any type of change is not an easy task and hence the need to take into account the existing theories and processes that help in managing change. These processes and theories allow the change process to be successful without having to relapse to the old ways along the way. While there are numerous change management models, I have researched the following:
John Kotter’s 8 step change process[CS13]
There are many theories about how to handle change such as John Kotter’s theory that he introduced through his book published in 1995.[1] He was a professor at Harvard Business School and worked closely with change and the success factors behind it. He developed the 8 steps through which the change process can be effectively managed.
The 8 steps are labelled and grouped into 3 sections.
Step 1 is ‘Create Urgency’.
Creating a sense of urgency for change helps the whole company feel motivated and positive towards it. The step may be fulfilled through showing your company where they are lacking and being honest about how they can improve and what benefits they will gain when the change is implemented. Procrastinating delays and hinders successful implementation of change, and may lead to a company losing a valuable opportunity. The leader should ideally create the sense of urgency among the subordinates and discourage them from getting too complacent at the expense of change.
Step 2 is to ‘Form a coalition’.
For the change to be successful, the relevant stakeholders need to jointly own the process. The employees need to feel that the change is needed. A change leader plays a pivotal role bringing everyone together in implementing change successfully. Such a leader needs to be influential to convince everyone to rally behind such a change.
Effective change leaders are found throughout an organization – they don't necessarily follow the traditional company hierarchy. To lead change, you need to bring together a coalition, or team, of influential people whose power comes from a variety of sources, including job title, status, expertise, and political importance. Therefore, there exists more authority systems within organisations other than the formal hierarchical authorities; which should be harnessed. Such authorities emanate from social interactions and relationships among employees. The formal leadership should work hand in hand with the informal ‘leadership’ to ensure that everyone gets involved in the change initiative. The coalition goes a long way in creating a unity of purpose for all stakeholders of change.
Step 3 is to ‘Create a vision for change’.
Creating a vision for change helps people understand why change is needed. Collecting all the ideas and thoughts around the initial change and summarising it in to a vision gives people something to focus on, and a clear idea of what the change is and the thought behind it. For people to embrace change, they need to see a picture of what it is all about. Employees need to feel that the intended change is necessary and doable. Creating this image in their minds encourages them to rally behind the change leader. For instance, the idea to change into a cloud storage system would seem to be an abstract idea to employees. Thus, the leader has to explain the reasoning behind the idea in rational and justifiable manner – which is the vision.
Step 4 is to ‘Communicate the vision’.
Communicating your vision well and sending a positive message out will ensure it is received in a positive light. It may be hard to do when other messages are being communicated frequently also but strong delivery will grab people’s attention and embed it in to their thoughts especially if you speak about it often so it is constantly on everyone’s minds. The vision must be compelling and well-articulated by the change leader as a way of motivating employees to embrace and participate in the process. A clear articulation of the vision also eliminates any inaccurate information with regard to the change that may be existing. When the vision is communicated, the resistance is also softened.
Step 5 is to ‘Remove Obstacles’.
You will face obstacles during the implementation of your change and it is vital to tackle these correctly, quickly and successfully. People may rise against the change and voicing this in different ways ranging from subtle murmurs to outspoken outrage. The correct way to avoid this would be having change leaders in place in the start to ensure everyone is on board and receives the correct message. If people are still responding negatively then communicating with them and asking them why they feel negative about the change is the correct next step so you can reassure them of their worries.
Step 6 is to ‘Create short-term wins’.
Creating short term wins will encourage motivation as the feeling of success is powerful and creates a sense of pride. In the early stages of a change, the feeling of success is great as it gives a positive outlook for the future change. Smaller targets mean short term wins will be achieved. The employees should also be taken gradually over the new system to give them ample time to adjust.
Step 7 is to ‘Build on the change’.
Building on the change until it is the best it can be is important. This comes from constant feedback from the change in place so it can keep being developed. For example, if you put in place a new system this would be a success but aiming for 100% positive feedback on the systems shows there is no areas for improvement and the change was successful. The continuous improvement initiatives process helps to ensure the company keeps up with the dynamic nature of business needs.
Step 8 is to ‘Anchor the change[CS14] ’.
To make the change stick and continue working, it should become part of the core of your organization. Change should be seen in every aspect of the organisation and everyone should remain supportive of the change to ensure it remains a positive experience.
Figure 1: John Kotter’s 8 step change model
Kubler-Ross change curve was created by Elizabeth Kubler-Ross and it helps in understanding people’s reactions to change.[2]
1 – Shock. People can feel unsure, threatened and even afraid of the change being unsuccessful. Change creates uncertainty among employees since they are unable to perceive how the situation will turn out with the change in place. Change challenges complacency and therefore people resist it as a way of safeguarding their interests. The fear of non-performance or job loss after the change invokes the shock reaction.
2 – False hope/denial.
The stage entails a level of acceptance of change and a rise in the level of hope. The level of self-esteem also goes up at this point whereby the people think that they have understood the change. People begin to gain confidence and become optimistic about the change at this point in time.
3 – Frustration/Anger.
At this point in time, people have fully understood the change and begin experiencing the consequences. The negative realities caused by the change begin to sink and people begin to feel short-changed or cheated. The level of frustration begins to rise, as the level of self-esteem declines. The feelings have a negative effect on performance for the employees.
4 – Resignation/letting go.
The stage involves a deeper understanding of the change whereby the people begin to get impatient with the change process. The stage entails the lowest level of self-esteem and performance. Some employees at this stage may be optimistic and look forward to the change in the hope of more opportunities.
5 – Experiment.
Experimentation entails the actual testing of the change by the employees. Naturally, the staff tend to be greatly energised when trying out the new change as they discover new knowledge. During the stage, the level of understanding is still low, but there is a significant level of excitement that motivates them to try out the change anyway.
6 – New models/acceptance.
During the stage, the new change model is up and running and employees are learning to live with it. However, there is still a level of uncertainty and confusion due to the still low unfamiliarity with the new model. There is also a level of anxiety of the new model becoming permanent, and a fear of messing up with the new model among the employees.
7 – New behaviours/commitment[CS15] .
At this point in time, people have accepted the new change and become accustomed to it. People look into the future with optimism that the change will be for the better. However, some employees may still be detached to the new system and still hold negative feelings such as apathy, remoteness, towards it.[3]
Richard Beckhard and Rubin Harris’ ‘change equation’
The model developed 1987, states change will be successful only if the following equation is true:[4]
D x V + F > R.
D – dissatisfaction – when people get frustrated with the existing systems and processes, dissatisfaction occurs. Dissatisfaction with the current system or processes prompts the employees to embrace change.
V – vision – the leader needs to look for ways to create a clear perception in the employees’ mind of the purpose and importance of the change.
F – first steps – the initial efforts and initiatives to implement the change are important in setting the pace and creating the direction which the employees should follow.
R – resistance to change – when the leader is able to carefully manage D,V,F, the resistance will get defeated.
The Tannenbaum and Schmidt continuum[CS16]
This theory helps us look at how we can overcome change resistance. Tannenbaum and Schmidt devised their continuum that illustrates a range of potential leadership and management styles.
The Tannenbaum and Schmidt Continuum recognises that the chosen leadership style depends on a variety of factors, including the leader's personality.
Four main styles of leadership:
TELLS
Leader identifies problems, makes decision and announces then expects implementation
SELLS
Leader still makes decision, but attempts to overcome resistance through discussion " persuasion
CONSULTS
Leader identifies problem and presents it to the group. Listens to advice and suggestions before making a decision
JOINS
Leader defines the problem and passes on the solving and decision-making to the group (which manager is part of)
Lewin’s Model of Change Management
This model of change management assumes that most employees have the desire to operate and have a preference for comfort zones. As a result, the Lewin’s Change Management Model has three phases of change: Unfreeze, Transition, and Refreeze. Unfreeze stage is where people make a constant effort of resisting change. The model suggests the implementation of unfreezing through motivation to overcome the resistance to a substantial level. Transition stage comes in after the change has been initiated. At this stage, sufficient reassurance and leadership is vital for the transition to take place successfully. Refreeze is the final stage which comes in after change acceptance and successful implementation. Here, the organisation stabilises again and the people refreeze as they carry out their activities under the change.
Skills needed to guide people through organisation change
Many skills will be very vital in the change process, and these include teamwork, communication, providing feedback and performance management. Communication marks an essential aspect in the department as it will ensure that all participants within the company are aware of the progress made and new policies introduced. The information will significantly enhance feedback and promote adjustments to the areas that raise adverse reactions among the members. Working as a team forms a significant component of the change process where various managers will offer their input based on the skills possessed and the experience gained in the course of service delivery. The whole time will have an opportunity to provide their thoughts and views making the task easy and ensure that there is collective responsibility among the members which reduces disagreements and offers solutions to the conflicts that may arise.
Providing feedback is essential as it builds trust between the manager and the employees in the department and acts as an indication that the information provided was assessed and that action was taken. Feedback needs to be delivered through some ways that include the use of sending emails and also calling for meetings among the staff members to communicate the intended course of action. Performance management provides strong grounds for achieving successful change within the organisation. Employee performance has to be enhanced through motivation and appraisal programs which will reduce the incidents of industrial action, go slow and turn-over during the change process[CS17] .
Reasons for Resisting Change
Introduction of change within the organisation receives resistance among the employees within the company. Additionally, some members of the management team will have the feeling that the change process could have some adverse effects on the positions that they hold within the organisation. There are various reasons that such reactions will arise within the organization. Loss of status or location within the organisation leads to resistance where the multiple heads fear that a member of staff will take their positions in the course of the promotion. Additionally, there are those that will fear to lose their jobs due to poor performance. Mistrust can arise where the employees have the feeling that the change process does not entail various rewards concerning promotion or change in their salaries. Some feel that they have served the organisation long enough to deserve promotions and salary rises. They may also think that the manager has personal interests while introducing the change and will tend to cause arguments. Fear of the change outcomes leads to resistance in that there is no certainty on the possible results from the implementation of the change. Some of the employees will feel that they are not aware of the possible outcomes of the change process. This could arise from members that do not fully understand the change process.
Peer pressure could arise in the organisation where and take place affecting the change process. Employees could come up with a plan aimed at rejecting the whole process where any steps in the process will undergo rejection. They will remain in their work groups and will embark on protecting them at all times. The group effects have very negative impacts on the process and will hinder the outcomes. Organisational politics are crucial and could be a cause for resistance. The employees could view it as a political strategy that is going to affect them and their progress. The power that some people have within the organization will be lost in the change process and hence will poke holes in the change process and ensure that it is destined to fail. Approach for implementing the change could have a negative impact on the employees regardless of the change being favorable to the organisation. Introducing the change through dictatorship leads to resistance. Additionally, the introduction of a change at a time when the organization does not have resources to finance it causes resistance.
Kubler-Ross is one of the theorists that sought to understand the feelings that arise as a result of introducing change in the organization. Various reactions arise among the employees such as shock, denial, anger, resignation, anger, acceptance and commitment. The people will be shocked due to the uncertainty of the outcomes of the change. The denial follows where the members will have various feelings on the change process but have some acceptance of the change being part of their daily operations. Anger sets in when the employees realise that the change process is part of the company and it is there to stay and that there are no possibilities for the change to be removed or avoided altogether. Resignation can also arise with the change process though there are limitations as to whether an employee will be able to leave their job. Experimentation of the change takes place, and this is an indication that the employees have accepted the difference and are ready to test whether there will be positive outcomes from the changes introduced. Acceptance will involve anxiety and uncertainty of the results from the change. Commitment then becomes the norm for all employees where they accept the move as part of their daily program. They will dedicate all their time and resources to ensure that the program has been successful[CS18] .
Task 3
Role of Organisational Culture in Change Management
Organisational culture is the values and behaviors that contribute to the unique social and psychological environment of a business/organisation.
Jerry Johnson and Kevin Scholes created the ‘Culture Webb’ in 1992 which shows the cultural areas and practices you can apply in your organisation’s strategy.
1.3: You have briefly explained some benefits of organisational change. However, this explanation needs to refer to the benefits of ‘planning’ organisational change. You will need to resubmit criteria 1.3.
2.1: You have provided information of the processes for managing change with reference to 2 relevant theories. However, you have not given a sufficient explanation, you have merely highlighted some points in relation to Kotter’s theory
