Challenges of Organizational Change

Planning and managing change, both cultural and technological, is one of the most challenging elements of
a manager's job.

Obviously, the more a manager can plan in anticipation of a change, the better she serves her subordinates
and the organization. Diagnosing the causes of change and structuring a program to promote a smooth
transition to the new process, structure, and so on, is critical to a manager's success.

Managers need to be aware that organizations change in a number of dimensions that often relate to one
another. These dimensions include

Extent of planning: Although experts differ about how much change can be planned, managers still need
to take steps to set up conditions that permit and even encourage change to occur.

Degree of change: Changes may be incremental (relatively small, involving fine-tuning processes and
behaviors within just one system or level of the organization) orquatum (significant change altering how a
company operates).

Degree of learning: This dimension relates to the degree to which organizational members are actively
involved in learning how to plan and implement change while helping solve an existing problem.

Target of change: Organizational change programs can vary with respect to the hierarchical level or
functional area of which the change is targeted. Some changes are designed to influence top management
and assist them in becoming stronger leaders. Other change programs may involve basic learning, such as
customer services techniques for lower level employees.

Organization's structure: Is it very stiff and bureaucratic? Is there a need for emphasis on policies,
procedures, and rules? Some organizations are very stiff and bureaucratic and may need to “loosen up.”
Other organizations may suffer from lack of organization structure. They may need to emphasize policies,
procedures, and rules.

Every organization that undergoes a change in the business landscape, a structural or process change or
experiences the introduction of a new technology faces organizational change challenges. The
establishment of a new mandate for core company goals and objectives necessitates a realignment or
business processes and personnel. Restructuring is rarely a seamless transition.

Change in an organization is managed by an individual or a group of individuals. A proper planning and

execution process is necessary for effective change. This requires careful planning, evaluation and
implementation to bring about the desired change. There are various elements to be considered by
management and authorized personnel responsible for the change. They are as follows:

Vision- This is the power to perceive and articulate change beyond the surface level. Having the vision to
anticipate and see the future direction of the business landscape is required to forge new goals and
strategies.

Sense of purpose and direction- The business should have clear objectives that match the vision. This
forms the guide lines that department heads integrate into their department strategies. The department
strategies integrate independently to form the whole.

Knowledge- Knowledge is the skills and experience to create organizational strategies and to implement
them accordingly. Creating necessary process improvement and benchmarking progress is part of this.

Rewards and recognition- Companies must reward individuals who excel and overcome organizational
change challenges. This will encourage all those who are a part of the organization to reinforce their sense
of team spirit and work harder to achieve individual and company goals.
There are also several steps to be followed systematically for change to occur. These are:

1. Discussing and reaching agreement for the ongoing support of the company's direction and initiatives.
This is strategic alignment amongst senior management.
2. Linking strategic initiatives to tactful execution through planning and on going communication. Open
communication helps with iterative refinement.
3. Connecting and aligning performance management, training processes and incentive compensation in
order to yield optimal results.
4. Emphasizing hiring, rewarding, developing and retaining the top talent as a key driver of sustained
business growth.

Before implementing change initiatives, it is important for companies to understand the 'end effects' of
process changes on the workers. This helps companies to better formulate change policy to avoid many of
the potential pitfalls and organizational change challenges that can present. Understanding the cognitive
change process is part of managing an effective change management framework.

This question is not about the changes in India even at the Global stage…story continues…