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MBA INTERNATIONAL BUSINESS ? 90

CURRENT ISSUES AND CHALLENGES IN
CHANGE MANAGEMENT

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HARIS JOSE THOMAS
Student ID: 9161036

Supervisor: Prof. Dr. MALTE MARTENSEN
Date of submission: 14?01?2018

TABLE OF CONTENTS

1.
2.

3.
4.
5.

Introduction……………………………………………………………………………………………………..1

Theoretical foundations …………………………………………………………………………………….1
2.1. Basic concepts…………………………………………………………………………………………..1

2.1.1.  Definitions A……………………………………………………………………………………..1

2.1.2.  Definitions B……………………………………………………………………………………..2

2.2. Literature Review………………………………………………………………………………………3

Methods…………………………………………………………………………………………………………..3

Results…………………………………………………………………………………………………………….3

Discussion and outlook……………………………………………………………………………………..4

5.1.  Theoretical implications……………………………………………………………………………..4

5.2.  Managerial implications……………………………………………………………………………..4

5.3.  Limitations and future research …………………………………………………………………..4

6.References……………………………………………………………………………………………………………5

1. INTRODUCTION

Organizational Change management is an independent entity that deals with changes and
modifications in an organization while change management suggests changes to departments,
teams, groups and other areas which require care and attention. Change management is
associated with various tools, varieties of techniques and activities that aim to bring forth
changes in an organization, for a desired business outcome. Change management convey
different meaning to different people. It could alter employee’s job responsibility, position or
even his job role in the company. People’s perspectives give different meaning to the process
of change management. For some it’s a mere change but when we understand its depths we
can realize it’s not a small change. Change management is a field of study which deserves
much more attention than it receives now days. May it be an acquisition, may it be a merger
or a takeover change management and change manager is responsible for all the changes and
he is concerned with protecting the interest of the employees. Change management could also
boost the financial situation of a company. Change management is initiated with a view to
maximise the return on the investment and the financial situation of a company.

2. THEORITICAL FOUNDATIONS

Change management can also affect a company’s performance in both positive and negative
ways. The changes can sometime motivate the employees while sometime it may discourage
the employees. Change management has to be done in a careful manner that the company and
its goals are un-affected by the process. Change managers are the ones who are entrusted with
the process of change management; they need to compare the good and bad effects of the
proposed change before adopting it. The decision to implement the changes in an
organization determines the future of an organization. It alters the ways in which work is
done in an organization. It affects the usage of the resources and can reduce the wastage of
resources to boost the productivity up to an extent.

2.1 BASIC CONCEPTS
2.1.1. DEFENITION A

According to beer, reinstate & sector, 1990 “ORGANIZATIONAL CHANGE IS A
PROCESS BY WHICH A LARGE COMPANY OR ORGANIZATION CHANGES
ITSWORKING METHODS OR AIMS. REASONS FOR DESIRES TO RE-ORIENT
MIGHT INCLUDE THE NEED TO DEVELOP AND DEAL WITH NEW SITUATIONS

1

OR MARKETS”. Organizational change is an inevitable thing in today’s world due to the
accelerated rate of merger, takeovers, and acquisitions. It is not a simple entity or factor to be
left of no importance. The major factor driving the organizational change is the increased
competition in the daily world. Firms are diversifying themselves to survive in the future.
Ex: Amazon-started just as selling books and DVDs’ and later they began to diversify and
expanded their area of work to cloud, artificial intelligence and even to space engineering.

2.1.2. DEFENITIONS B

Organizational changes could be defined as the measures, actions, counter steps adopted by
an organization to survive in long term or to realign itself with the dynamic business
environment. Organizations must deal with the constantly changing atmosphere around it and
try to move in terms in with it. If it fails to move accordingly it may be doomed to fail, so it is
very important that organization must according to the changing environment. In our daily
life we are coming across various factors such as new technology, new machinery etc.
sometimes it’s necessary to cut the cost, sometimes firms needs to replace humans with
machinery. The success of change management also depends on the level of education
provided to the ground level employees and their understandings. Only with the co-operation
of all employees, can be such a change initiated. Communication play’s such an important
role in the change management. According to the statistics report the major resistance to the
change management is faced from the employees when there happens an effective
communication it would be easier for the organization to apply change management

2.2. LITERATURE REVIEW

‘Research studies in organizational change’ in India suggests that now a days the terms such
as organizational change and organizational change are taken out of context and used
frequently. (Singh & bhandarker, 1990, 2002: bhandarker2003) defines organizational change
as a substitute for organizational revival. (Jimmieson et al., 2004) also explains
organizational change as a change in the organizational climate as a response to change in
organizational environment. According to (Powell & DiMaggio, 1983) organizational change
is explained as a response to the changes and pressure in the outer environment or it could be
identified as a self changing process adopted by the organization to survive and stay alive in
the future period. Change management models are ways of representing how an organization
could be changed according to its surroundings.

2

According to Clarke 1994,”he also explains change management as a way for survival and
growth of the organization. In a theory suggested by beckhard, which is widely used as
beckhard’s change plan the process for changes are explained well

Beckhard’s change plan

Fixing the goals and anticipating the future organizational challenges

Having an Understanding and knowledge about the current situations

Explaining the change process and the requirements to make it practical

Developing new methods and tactics which are essential for managing the change

process

3. METHODS

In my journey to discuss current issues and challenges in change management I have made
use of secondary data. Various research papers and old reports were studied to get an insight
in to the daily problems and challenges in change management. Though I was not able to get
any first hand information about the topic I got access to good secondary data sources which
were trustworthy and of good quality. I made use of various web sources to get an insight
about the topic. Also made use of descriptive research to analyze and examine the facts and
the results

4. RESULTS

The major change management theories I came across were

Lewin’s change management model

Beckhard & Harris change management model
Implication of which helped to achieve

Cost cutting

Instant results

Efficient and progressive change.

In Levin’s model we can see a transition process which takes three major steps
unfreezing, changing & refreezing. While at the other hand bridges transition model

3

has four steps starting from internal organizational examination to having a follow up
of the transition process

5. DISCUSSION & OUTLOOK

The problems faced against change management were

Initial opposition-whenever there is a change it takes some time to get used to it
and at the first stage its common to face some opposition from workers

Lack of education & communication-there needs to be a proper education and
communication to each and every member. If it is not done without proper
education, it could become a failure

Failure to convince the low level employees-all upcoming changes somehow
impact the low level employees directly or indirectly, so make them aware of it

Sudden changes-sudden changes or the changes that quickly initiated are prone to

more errors and mistakes.

Lack of understanding in the top management- Sometimes change management

fails because the top management fails to reach an agreement over the strategies

and plans to be followed

Lack of planning and short term vision-change management is an activity that

requires lot of care & attention. The activities and the progress have to be
reviewed time to time in order to ensure the effectiveness and efficiency.

5.1. THEORITICAL IMPLICATIONS

The importance of change management is not slowing down. It’s getting accelerated due to
the competitive economy and the globalization processes .In theory change management is a
complex process and quiet hard to accept. According to the qualitative data also change
management can add a lot to the progress of an organization. In theory change management is
a kind of complex process with a lot of steps and factors to be considered, but in practical
situations, if done accordingly it can bring in a lot of success.

5.2. MANAGERIAL IMPLICATIONS

From the managerial point of view Change management contributes a lot to the success of an
organization and making it diverse in order to survive in the long run. Effective

4

communication in all levels of management and proper education to all the ground level
employees can make this process much easier and fewer complexes by adopting change
management the majority of the firms got successful results. When done with proper
preparations and pre-research change management can yield good results. Poor managerial
skills and in-efficient management systems could be still a barrier in the course to change. If
the goals and objectives are precisely defined half the problem is finished.

5.3 LIMITATIONS AND FUTURE RESEARCH

The major difficulty was with the collection of data for this assignment I could only find
secondary data sources. Next limitation was time; there was not enough time to cover all the
aspects of the topic.

6. REFERENCES

1) EFFECTIVE ORGANIZATIONAL CHANGE MANAGEMENT (M. Radovic? – Markovic?
Institute of Economic Sciences Belgrade, Serbia)

2) Change management ( Jeffrey J. Gianforte, – research paper)

3)Sustainability and organizational change management(Stewart R. Clegg and Joao Amaro
de Matos)

4)https://www.researchgate.net/publication/46525251_CURRENT_ISSUES_ON_CHANGE
_MANAGEMENT_IN_PUBLIC_ORGANIZATIONS

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