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Any substantial organizational change event, and the following transition period (such as
restructuring, mergers or acquisitions), that is not well managed can produce a steep decline in
employee morale, productivity, and commitment.
Organizations undergo change for their betterment. Either they change to adapt themselves to the
varying external conditions or they change to overhaul their internal processes and systems. The
success of the organization lies in effectively managing the change. Organizational Change
Management OCM is an approach towards managing change using the...
Organizational change is an ongoing process in order to bring the organizational systems and
processes in line with the factors prevailing in the external and internal environment of the
organization. The forces of organizational change include internal and external forces.
Organization Development OD refers to the framework consisting of planned-change...
No business can be stagnant and expect to survive. An ongoing transformation process is the norm, and when business
does not evolve with the environment, failure results. Hospital business activity is influenced by a variety of internal and
external forces. Factors may include changes in reimbursement, a shortage or excess of labor, changes in the political
landscape, the economy, and others. Managers must be cognizant of the environment in which they function in order to
anticipate andrecognize the need for change and for facilities to remain viable entities.
The culture and history of the organization can influence responses to factors interpreted as threatening within the facility.
The internal climate that exists within a facility can determine the ability of the staff to accept change in a positive
manner. Poor morale, lack of trust, and a feeling of disengagement with the organization are internal factors that
influence the organization's ability to reform and succeed. If staff reductions are the immediate response to internal
threats without a clear plan of action, staff may not trust the organization to appropriately handle future events.
Downsizing, whether through eliminated positions, department outsourcing, or layoffs, is an unfortunate trend in health
care and often leads to more detrimental effects than it prevents. A secretive senior management also may lead to
distrust on the part of employees as opposed to an open communication model in which staff are kept apprised of events
that may impact their future.
A thorough and ongoing assessment of external and internal factors exerting an influence on the organization is expected
of senior leadership to define a proactive plan of action in anticipation of strategic threats. By developing and
implementing a plan of action in advance of anticipated negative events, corrective measures may be initiated. Whether it
is the development of a strategic plan or a process improvement study, forward-thinking organizations are defining an
action plan to respond to their environment in a positive manner, which is designed to accomplish their goals. Strategic
planning follows a well-known process of setting goals and defining implementation plans based on previous activities, a
next step, so to speak. In contrast, reengineering is radical redesign implying a major upheaval within the facility. By
carefully defining a strategic approach to workplace reengineering, reorganization, and redesign and incorporating the
influences of external and internal factors, the process may be better managed, leading to a more positive outcome on
the facility and employees.
What forces are driving change in the industry?The forces that are driving change in the industry are
In today's' economy, change is all-pervasive in organizations. It happens continuously and often at an alarming and
rapid speed. Because change has become such an everyday part of organizational dynamics, it is becoming
increasingly important to manage as any resistance to change by an organizations employees can actually cripple
the organization. Resistance is, though, an inevitable response to any major change. People will by their nature
rush to defend the status quo if they feel their security or status is threatened (Kotter J.P. 1996). If management
does not understand, accept and make an effort to work with resistance, it can undermine even the most well
intentioned and well conceived change effort (Coetsee L. 1999). Any attempt by management to change without
creating and maintaining a climate that minimizes resistance and encourages acceptance and support will be
rendered fruitless. The purpose of this paper is to assist in minimizing or alleviating the prevalence of resistance
that is being experienced at DCDM due to the structural and cultural changes that are currently taking place. The
change process is centered on a significant de-layering and decentralization of the organization. The paper cont
Organizational behavior can be defined as, "the study of human behavior in organizations. It is a multidisciplinary
field devoted to understanding individual and group behavior, interpersonal processes, and organizational
dynamics" (Shermerhorn et. al, 2005). In other words, organizational behavior is the study and application of
knowledge about how people, individuals, and groups act within a company. Within the modern business world,
there are many forces that can affect the behaviors of an organization. These forces create the necessity for
change and adaptation in behaviors in order for an organization to take advantage of or work around these forces.
Organizations have both internal and external forces that impact the behaviors exhibited by the company, group, or
division as a whole. These forces can have both a positive and negative impact on the organizations behaviors, as
they usually precipitate some types of organization wide change or reaction. Changes in the economy,
globalization, restructuring, customer demand, company missions, fiscal policies, technology, and increases in
customer demand are some of these forces. Following are examples of th
Let's take a look at the elements of "changing times." This is the challenging environment in which you
are asked to continually modify your attitude and convert your abilities to new kinds of jobs and new
ways of working.
These five fundamental events have created the new business dynamic:
1. Globalization
In the United States, Europe, and Asia, there have been major increases in foreign investment over the
past two decades. In the late 1980s, multinationals greatly stepped up their efforts to buy or build
manufacturing and sales facilities in foreign target markets. By 2000, foreign firms, excluding banks,
employed 6.4 million U.S. workers, with a payroll of some $330 billion, according to the Commerce
Department.
The easy movement of money and people across borders, the creation of multinational alliances and
strategies, the revolution in information technology, and the convergence of foreign cultures and markets
have combined to turn the world into one huge shopping mall. But globalization isn't a one-way street.
Overseas goods, services, ideas, and personnel are pouring into America just as quickly as they are being
shipped out. Even small businesses now compete with and have access to products, labor, and new
marketing techniques from all over the world. The same holds true for workforces. Employee pools, once
thought of as geographically static, now migrate across international borders as easily as cars or computer
chips. Companies can locate--or relocate--to where the tax laws are most advantageous and where skilled,
cost-effective labor is most readily available. Workloads can be spread over several time zones to cut
production costs and facilitate delivery schedules. According to Forbes.com, analysts predict that by
2015, more than 3 million white-collar jobs in the United States will be outsourced to other countries.
Advances in technology drive change throughout organizations, enabling them to improve their business
processes by replacing routine activities with information systems and robotics. Instant electronic
transmission makes it possible to move data entry jobs to any location on the globe.
3. Customer Power
Consumers around the globe are becoming relentless in their demands for quality, service, customization,
convenience, speed, and competitive pricing. And with global competition and the new technologies
providing customers greater choice about when, how, and where they will receive goods and services,
they have, in effect, become the determining factor in the success or failure of most organizations.
The shift from industrial to knowledge-based organizations has occurred with extraordinary swiftness in
this country, and its impact on our thinking about work and the workplace has been as profound as that
experienced in the 19th century when America shifted from being an agricultural nation to an industrial
one. In fact, the challenges of the knowledge economy are affecting every aspect of the workplace. Only a
generation ago, trained technical workers were a relative rarity in this country. Now they constitute nearly
a quarter of the total American workforce.
The most highly skilled, the so-called gold collar workers, are engaged in steadily more specialized
activities, while the tasks demanding less rigorous training (technical and legal research, lab analysis,
computer programming, and the like) are being handed over to a growing body of "paraprofessional"
support workers whose roles in today's service/information world equate roughly to those carried out by
skilled mechanics and quality control engineers in the Industrial Age. Specialized subcontractors in a
variety of technical fields are also proliferating as large professional organizations like hospitals,
consulting companies, law firms, multinational publishers, and media conglomerates find that detailed
work once done in-house can be done faster, more cost-effectively, and often better by independent
specialists.
In the "old deal" employer-employee compact, workers were guaranteed job security in a safe, stable
organization. Factory giants protected their workers by offering fair compensation and lifetime security.
In the "new deal," workers can no longer expect lifetime employment, nor can they expect stability.
Change has become "business as usual." Employers, on the other hand, must deal with a far more mobile
workforce that has multiple loyalties and a different set of values than the previous generation. The
brainworkers of today consider job-hopping a normal route to professional growth and personal
fulfillment.
Related Results
Today it is more effective to think of loyalty in terms of flexible "temporary systems"--much like a sports
team or a movie company. Temporary systems by their very nature are relatively short-term liaisons
between people constructed around a common purpose. These fast-paced new systems require a new,
enlightened form of loyalty based on shared values and goals, and mutual caring and respect.
These five forces are the defining events of the post-Industrial age, and together they have turned a once
predictable landscape into a place where constant instability is the only "certainty." People who succeed
in changing times have learned to turn instability to their advantage. They also know that change can be a
linear progression or (more often) a discontinuous leap, and they are prepared for both!
Recessions and market turmoil present the best opportunity to drive organizational change, whether it's a
reorganization, turnaround, restructuring, whatever. Here's a five step process for effective organizational
change; it'll work for any company in any situation
Today's organizations are facing both external and internal forces that make change inevitable Change
can be threatening to individuals and organizations. It challenges the usually comfortable status quo and
often raises the possibility of job loss or at least change in job quality and status
Every organization must change not only to survive, but also to retain its relevance in a world of intense
competition, constant scientific progress, and rapid communication.
A number of factors, in the modern business scenario, have necessitated organizational change. They
include globalization, rapidly changing technology, and increasing Government regulations. An
organization has to fully internalize and institutionalize the change in order to achieve organizational
success. An effective leadership facilitates change management
A central theme of this paper is that successful organizational change requires that executives accept the
full responsibilities of strategic leadership, has the ability to anticipate, envision, maintain flexibility,
think strategically, and work with others to initiate changes that will create a viable future for the
organization.
An organization is, quite simply, any group of individuals who come together to try to achieve mutual
goals by means of a division of labor. This is done by means of setting goals that will further the
organization's growth and viability within the existing social and economic milieu as well as developing
agreements among the people comprising the organization as to who will do what and when and under
whose supervision and guidance.
When contemplating changing anything about these arrangements, it is well to be advised to start at the
beginning of why and how this existing arrangement came to be and why it exists at the current time.
After all, what has come to be accepted and observed as the standard operating procedures of an
organization came about for good reasons and have been effective at achieving beneficial results for a
period of time (perhaps a very long period of time). Altering an accepted, comfortable and heretofore
useful way of doing things is challenging. The initial challenge that presents itself is fully comprehending
and appreciating the foundational narrative of the organization and the collective experiences that
members have shared since its inception. In other words, what of its past makes the organization tick
today?
After coming to a thorough understanding of what makes the current organization tick, there are five
steps that need to be taken sequentially in order to effect effective change.
1. The first step to take in initiating change within any type of organization is to create acute awareness of
how things are now and how this state of affairs falls short of accomplishing stated goals and objectives.
This can be done by disseminating occasional "state of the organization" reports as well as holding brief,
but frequent, "progress report" meetings within each department and/or subgroup.
2. The second step is to nurture understanding that something must be done to change the current
situation. Solicitation of input from coworkers regarding what can be done to change things follows
logically from the understanding that something should be done. "Input equals buy-in" and those who
contribute their ideas on how their organization should change have a strong investment in making that
change happen.
3. Next, although people may provide suggestions as to how to change, unless there is a sense of urgency
to do so, change will be perceived merely as a concept rather than a process that needs to be started
immediately. Once change is understood as needing to be accomplished, a positive perception of what it
will look like, both in terms of the transition process and the "finished product," needs to be fostered and
fed by constant communication about the shared vision of the future and the specific ways everyone will
individually benefit in that new reality.
4. On the way to making the changed environment and operating procedures "stick" and stay feasible
throughout the organization, there needs to be a well-thought-out program to ensure the actual adoption of
the changes in the way things are done. Rewarding those who perform in the new ways and telling the
stories of how their results better meet the current needs and accomplish the goals of the organization will
go a long way to moving all members toward behaving in the "new and better" way.
5. Once adopted as "the way things are done around here" change can be seen as having been
institutionalized within the organization and established as the new standard for performance and
measurement of success, recognition and reward. Continue to solicit feedback on the new ways and
request still other ways members can improve their respective job tasks to achieve even greater levels of
efficiency. The idea is to leverage the experience and ideas of those who do the job to improve the job on
a continuous basis. Institutionalizing new and improved ways of doing things in an organization is an
ongoing process. In other words, managing organizational change means to continually insist on change
for the better.
Knowing the roots of the organization, where and when it arose and how it's progressed over time, and
then engaging in the five steps to initiating and managing organizational change, you will successfully
guide your organization through its transition from where it is now to where it needs to be for greater
effectiveness and better results.
Ken Wallace, M. Div., CSL has been in the organizational development field since 1973. He is a
seasoned consultant, speaker and executive coach with extensive business experience in multiple
industries who provides practical organizational direction and support for business leaders. A professional
member of the National Speakers Association since 1989, he is also a member of the International
Federation for Professional Speaking and holds the Certified Seminar Leader (CSL) professional
designation awarded by the American Seminar Leaders Association.
Ken is one of only eight certified Business Systems and Process Coaches worldwide for General Motors.
His topics include ethics, leadership, change, communication & his unique Optimal Process Design®
program.
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the premise that an organization must often fundamentally transform its business practices and
organizational culture to fully align with and realize the value of product and process innovations.
The methods and practices that are set forth give readers the tools to create the essential
organizational transformations needed to meet the challenges of a complex, rapidly evolving global
economy.