“Change in an organization”;
BSc Business Studies
Leadership and change
Submission date: 9th December 2016
Change in an organization
Introduction
As societies continue to evolve and changing demand creates the need for new products and services, businesses often are forced to make changes to stay competitive. The businesses that continue to survive and even thrive are usually the ones that most readily adapt to change. A variety of factors can cause a business to reevaluate its methods of operation. This assignment will focus on a case study of an organization, which has chosen to adapt itself to change due to the need to improve its processes.
Lemchester City Council (case study)
Lemchester city council has been facing increasing pressure on funding. As a result the council have recognized the need for significant efficiency savings, and have decided to carry out major reviews of the service it provides.
The review includes major changes to job descriptions, work patterns, reduction in pay and redundancies. The council has chosen to undertake the review without informing or consulting with their employees who are to be affected as a result of the review. The council has chosen to make a discontinuous change, which is typically a more dramatic and demanding change Holbeche (2006). Burke (2008) labels this as a Revolutionary change also sometimes known as ‘radical’ change.
Due to the council implementing its change without proper planning and not considering the possibility of employee reaction. The department’s employees are totally opposed to the plans, and have immediately called a ballot of strike being passed to the trade union. However this issue could have been prevented if the council had used a professional planned change model such as Lewin’s Force Field Analysis & three step model (1951) or Kotter’s 8 Step Change Model (1995).
Lewin’s Force Field Analysis & Three Step Model
Kurt Lewins force field analysis model of organization change process identifies that there are always driving forces that drive organisations towards a new state and restraining forces that act to maintain the status quo. Restraining forces create resistance to change that can block a change initiative. When driving and restraining forces are roughly equal, stability occurs because they are acting in opposite directions. Successful change occurs when either the driving forces are strengthened or outweigh the restraining forces.
Lewins force field analysis identifies a three phase change. The model includes an unfreezing stage, change and finally refreeze stage. Lewin argues using the three stage is vital for any organization to successfully adapt to change. Below is an illustration of Lewins force field model.
Unfreeze
The first phase of change entails the organization to first accept that change is necessary. This involves a breakdown of the existing framework before building a new way of operating.in order for the organization to successfully unfreeze. It must develop a compelling message explaining why the existing way of doing things is cannot continue. For example the message within the organization can point towards declining figures, external threats, financial results, worrying customer feedback surveys. This will show change is necessary and will help the organization to understand the reasons for change.
Lewin(1951) explains that to prepare a organization successfully, it must start from its core, unfreezing the current state of affairs, including attitudes, beliefs, values and behaviours. This part of the stage is the most difficult and stressful. The organization may evoke strong reactions in some people. This is necessary as Lewins explains because it effectively creates a controlled crisis, the lasting results are that it builds a strong motivation to seek a new equilibrium. The motivation is the necessary participation tool for the any organization to start accepting change. By getting the message out, gaining support of others and managing concerns, will help the organization to accept the reason for change.
Change
The change stage is when the people in the organization begin to resolve their uncertainty and start to attain new ways on doing things. They begin to believe and act in a way, which starts to support the direction of the change. However this transition does not happen overnight, people may take time to embrace changes within the organization and actively participate in the change. The organization can take certain steps in reducing this time line from the unfreezing to a change state. Methods such as effective communication are key to the success for the changes to occur. Throughout the transition period people need to feel they are highly connected to the organization in order to understand the need for change. Furthermore using change management techniques such as encouraging involvement, listening and addressing concerns, dispelling rumours and empowering action will all help in the acceptance of the change.
Refreeze
Once the people have accepted the change within the organization and the new ways of working. Lewin states this is the point where the organisation is ready to refreeze.in the refreeze stage the organisation must help the people internalize or institutionalize the changes. Making sure the changes are being adapted and being used all of the time. Incorporating the change on a daily basis within the organization is key in to keeping the change everlasting. Once a stable environment is achieved the employees will feel more confident and comfortable with the new style of workings. The refreezing stage is very important, as change can be constant within organisations. Without the refreezing stage employees can be trapped in transition where they are confused on how things should be done, resulting in most tasks not getting done to full capacity.
Without a new frozen state it is difficult to adopt the next change effectively. If the most recent change has not sunk in within the organization. How can a new recent change convince the people that it is the right decision?. The motivation, which is required for the change to be implemented, will not be there. It is important to celebrate the success of the change. This ensures confidence and closure to the people, and gives them a sense of gratitude for enduring any difficulty occurred whilst transitioning into the change. This further endorses them to believe that future change will be successful.
The 8-Step Change Model – John Kotter
To understand what constitutes effective change management – the act of moving from steady state to a new vision John Kotter in his book ‘Leading Change’ defines a process comprising 8 stages, the 8-Step Change Model. To successfully implement change, managers must:
Establish a sense of urgency
If a change is to be implemented, it needs to be carried out as quickly as possible to avoid a loss of motivation.
Create a guiding coalition
To allow change to happen it must be successfully implemented by more than one person. Just one person cannot successfully achieve it. It should be initiated from the top of the organisation and driven down taking the people with it. This can happen when key stakeholders, people of influence who are often referred to as Change Champions are fully committed to the change. They are in a position to encourage and guide implementation of the change.
Developing a vision and strategy
It is necessary for every organisation to develop a strategy to explain how the vision will be delivered. The project lead change manager has the responsibility of ensuring the vision is properly stated. Effective managers tend to involve key stakeholders in the expansion of the vision and strategy.
Communicating the change vision
Once the vision has been created the need for communication is vital. Communicating frequently and powerfully will ensure that the vision is embedded in the organisation. Using the vision daily to communicate in meetings and as a problem solver will allow employees to remember it and respond to it.
Empowering employees for broad based action
Organisation needs to Put in place a structure for change and frequently check for barriers. By successfully removing obstacles can people in the organisation be empowered to execute the vision allowing the change to move forward. A number of ways to achieve this is by hiring change leaders to deliver the message and rewarding people for making the change happen. It may well be the case of removing barriers such as employees. Moreover, enabling staff to come up with solutions is a very positive way of reducing potential resistance to the change.
Generating short-term wins
For an organisation to be successful in implementing change must adopt the characteristics of maintaining momentum. This is achieved by strategies of delivering earlier success. Creating short term targets which are achievable not just long term goals will allow little room for failure. Each win will encourage the entire staff
Consolidating gains and producing more change
Kotter emphasizes that many projects fail due to declaring victory to soon. Real changes need to run deep. Early wins are the beginning to what needs to be achieved to reach the long term change. The organisations need to keep looking for improvements to build their success and identify what needs improving.
Anchoring new approaches in the culture
To complete a solid foundation for change, change must be part of the core in the organisation. The values behind the vision must show in the day to day work in the organisation. Ensuring change is recognised in every aspect of the organisation will allow for stability and success.
Conclusion
Organisational Change can be classed according to the pace, scope and scale of the change. Organisational change can come about in a planned and or emergent manner.
Change interventions will often fail if the situation is not fully understood. It is important to consider the forces for and the forces restraining change. The Lemchester City Council case study failed to acknowledge the restraining forces apposing the driving forces as illustrated in Lewins (1951) force field and three step analysis theory. The council failed to inform its employees of any changes before making a decision to go ahead with the change. This was very important as the change had direct influence on the employees, such as their wages work patterns job descriptions, reduction in pay and redundancies. Not announcing any reason or justification for the change according to Lewin can block a change from happening.
Successful change occurs when either the driving forces are strengthened or outweigh the restraining forces. The council reached its decision without consolidating with its employees. They failed to allow change to be initiated from the top of the organisation and driven down not allowing the people to go with the change. Kotter explains this well in his create a climate change theory (see diagram page 6) which includes phase one, two and three of his eight step model.
For any organisation to be successful in adopting change it must create a climate for change, enable the whole organisation to engage in the change and finally implementing and sustaining the change. Kotter (1995).