Why Change

In: Business and Management

Submitted By studyking
Words 2222
Pages 9
Why do organisations need change?

Table of contents

Introduction Why do organisations need change Environmental pressures for change The promotion of innovative change Innovation and change case examples Recommendations Conclusions Annex 1 - Defining the Four Antecedent Processors

3 4 6 10 11 14 16 17

2

Introduction
This report sets out to explain why organisations need change. Faced with dynamic economies and increased competition, more and more companies are struggling to establish dominance, gain market share, and in some cases, ensure their survival. Management must understand that the key to competitive success is to change the way the organisation functions. To assist in the need to change proposition theoretical frameworks and tools will used with supporting case examples to better illustrate why organisations need change.

3

Why do organisations need change?
Organisations need change for a wide range of reasons. Organisations are never perfect and should be constantly changing to make themselves into significantly better companies (Porter 2005 ; Thompson et al. 2010). For example working practices may need updating to gain efficiencies, staff skills may need improving, customer service response times could be shortened, customers demanding a product or service you do not currently provide, new technology may produce improvements in efficiency, costs could be reduced, innovative new products may be possible to increase revenues and profit. This is by no means an exhaustive list these areas and many others should be reviewed on a regular basis to identify opportunities for change and innovation. A starting point in this process is to analyse the organisations current situation. Management literature (Thompson et al. 2010) suggests a good place to start to assess the need for change is the SWOT analysis framework (Figure 1). Analysing the organisations…...

Similar Documents

Discuss How and Why China’s Relations with the World Economy Change After 1993?

...Discuss how and why China’s relations with the world economy change after 1993? The economic reforms of China, called “open doors policy” starting in 1978 with Deng Xiaoping –the leader of the Communist Party of China (CPC) - marked the beginning of a new era where China initiated to open its economy to the world. (Nolan, 2005) In 1992, during his Southern tour, Deng Xiaoping introduced the term of “Socialist Market economy” to describe Chinese economy and in 1993 the term was added to the Constitution, which means that socialism was still the basis of the economical system but that the State also protected the market economy from now on and therefore was ready to go international. This essay will discuss to which extent 1993 was the changing year for China’s international economic relations. Naughton (2007) refers to the 1990s reform in China as a “reform with losers” meaning that at this point, Chinese economy was moving towards a transformation to capitalism. They started to strengthen the institutions of market economy and began to privatize the State sector. The State-owned Enterprises (SOE) reform - specifically the “grasping the big, letting go of the small” strategy - was aimed to improve the efficiency and corporate governance of the State companies by keeping the key resources (such as infrastructure construction, telecommunications, financial services, energy and raw materials) (GENG, X., YANG, X. and JANUS, A. 2009) and the big companies and let go......

Words: 1169 - Pages: 5

Small Change: Why the Revolution Will Not Be Tweeted

...Small Change: Why the Revolution Will Not Be Tweeted The term “social media” refers to the wide range of Internet-based and mobile services that allow users to participate in online exchanges, contribute user-created content, or join online communities (Dewing). It has become common today to use applications such as Twitter, Facebook, and YouTube to express and share your thoughts, opinions, and common interest. In Small Change: Why the Revolution Will Not Be Tweeted, writer Malcolm Gladwell touches upon the issues of social media’s role in activism vs. the traditional way of becoming a true activist Many of us today use these social networks for its beneficial approach to attract users and acquaintances to support their cause or activism. In today’s social era, Facebook, Twitter, YouTube, and so on constantly surround us. For most individuals, these social applications have become our daily way of communication. These application are so internally imbedded within our lives we tend to believe that what goes through these social media are true and that we technically are involved and active on these events, causes, and activism. Utilizing the sources from Gladwell’s Small Change: Why the Revolution Will Not Be Tweeted allows the reader to be more persuaded to believing that social outlets do not help change a cause or revolution. Gladwell uses the events at Greensboro to confirm his belief of how a protest can manifest itself without the usage of social media. For......

Words: 1251 - Pages: 6

Why Do Organization Change?

...Why Do Organizations Change? Organizational change is the movement of an organization from one state of affairs to another. A change in the environment often requires change within the organization operating within that environment. Change in almost any aspect of a company’s operation can be met with resistance, and different cultures can have different reactions to both the change and the means to promote the change. To better facilitate necessary changes, several steps can be taken that have been proved to lower the anxiety of employees and ease the transformation process. Often, the simple act of including employees in the change process can drastically reduce opposition to new methods. In some organizations, this level of inclusion is not possible, and instead organizations can recruit a small number of opinion leaders to promote the benefits of coming changes. Organizational change can take many forms. It may involve a change in a company’s structure, strategy, policies, procedures, technology, or culture. The change may be planned years in advance or may be forced on an organization because of a shift in the environment. Organizational change can be radical and swiftly alter the way an organization operates, or it may be incremental and slow. In any case, regardless of the type, change involves letting go of the old ways in which work is done and adjusting to new ways. Therefore, fundamentally, it is a process that involves effective people management. Managers......

Words: 391 - Pages: 2

Why Organizations Change

...Why Organizations Change James De Gagne MTG/380 November 22, 2011 Tammy Walker Why Organizations Change Organizations change for different reasons, external pressures, the change in the economy, new product line, global influence, or internal pressure, a new business strategy, a change in the vision, or mission statement, reorganization, or acquisitions. When an organization changes the people within the company must also transition. Transition means a person has to let go, say goodbye, and live outside his or her comfort zone. To illustrate an organizational change I choose Budget Panels and their employees as an example. Budget panels went through a series of eras. The final era was the acquirement in 1986 by Hon Industries. This acquisition brought many transformations in the company, for the employees as well as new pricing, products, and services. This paper will follow Budget Panels transitions; describe the change transition curve, and the influence of global and internal environments. First, a small summary of how Budget Panels was originated and the organizations transition into the final era. Budget Panels was created by entrepreneur Gary White. Gary started Budget Panels in the garage of his home in the early 1980s. The company produced office partitions. The organization quickly grew and evolved from an entrepreneurial business to a professional management structure in a new location in Kent, Washington. The company also changed their name from Budget......

Words: 1075 - Pages: 5

Reason Why People Resist Change

...Top Ten Reasons People Resist Change: 1. THE RISK OF CHANGE IS SEEN AS GREATER THAN THE RISK OF STANDING STILL Making a change requires a kind of leap of faith: you decide to move in the direction of the unknown on the promise that something will be better for you. But you have no proof. Taking that leap of faith is risky, and people will only take active steps toward the unknown if they genuinely believe – and perhaps more importantly, feel – that the risks of standing still are greater than those of moving forward in a new direction. Making a change is all about managing risk. If you are making the case for change, be sure to set out in stark, truthful terms why you believe the risk situation favors change. Use numbers whenever you can, because we in the West pay attention to numbers. At the very least, they get our attention, and then when the rational mind is engaged, the emotional mind (which is typically most decisive) can begin to grapple with the prospect of change. But if you only sell your idea of change based on idealistic, unseen promises of reward, you won’t be nearly as effective in moving people to action. The power of the human fight-or-flight response can be activated to fight for change, but that begins with the perception of risk. 2. PEOPLE FEEL CONNECTED TO OTHER PEOPLE WHO ARE IDENTIFIED WITH THE OLD WAY We are a social species. We become and like to remains connected to those we know, those who have taught us, those with whom we are familiar – even......

Words: 2304 - Pages: 10

Leading a Change: Why Transformation Efforts Fail?

...Summery of Leading a Change: Why Transformation efforts fail? Change Management is an important topic that improves leaders ability to achieve success in transforming their organizations toward a set of goal and objectives. It is highly important to understand that change is a process not an event. This mean that time and effort are main factors to achieve a change that meets or exceed the planed goals/objectives. There are certain risks associates with organizational changes need to be mitigated or avoided to ensure smooth transformation of the organization. Achieving a complete successful change is linked with proper understanding of each stage needs and drawbacks. It has been proven that accelerating the process and skipping stages is a vital default that leads to change failure. Also, management with lack of change process stages may risk the organization by committing critical mistakes that leads to loss of momentum, reversal of hard-won gain and devastation of the transformation efforts. Organization with understanding of Change transformation stages and proper management of these stages can reach the complete transformation easily and effectively. The main stages are described below: 1. Establish a sense of urgency: At this stage, seek potential crises and ensure that majority of management agrees that status quo is more dangerous than the unknown. In the same time, easily collect supporter and do not exaggerate in your actions. 2. Form a......

Words: 416 - Pages: 2

What Is the Information on Fannie and Freddie, and Why Is the Change Important to the Housing Market

...What is the information on Fannie and Freddie, and why is the change important to the housing market First of all, to fully understand the importance of the two companies and their aid, you must thank them how to help the millions of people to become the owner. Fannie Mae and Freddie Mac do not lend money directly to individuals. Rather, they are meant to establish a regular flow of funds banks actual payment of housing loans. Buy lenders from mortgage lenders - commercial banks, savings institutions and credit unions - which in turn allows these institutions to make additional home loans. Fannie mae was established in 1938 during the administration of President franklin d. Roosevelt when millions of families can't afford to buy a home. Freddie MAC in 32 years later. In 2007, the two companies announced the total loss of less than $5.2 billion, according to a report to congress. Before that, they didn't released since 1982, the total losses. In order to prevent crushing blow the real estate market, the federal government rescued company. Fannie mae and Freddie MAC, the financial problem does not pose a risk, if you do not intend to sell your home quickly or you don't want to refinance. That's because you don't have to worry about mortgage rates. And does not affect your current mortgage, so you should continue to pay agreement. My concern is that we really do not know what the market will Fannie Mae and Freddie Mac did not do. We know that...

Words: 336 - Pages: 2

Leading Change: Why Transformation Efforts Fail

...NORTHWESTERN UNIVERSITY | Leading Change: Why Transformation Efforts Fail | by John Kotter | | Calvin Beecher | 11/17/2013 | John P. Kotter’s frequently cited article, “Leading Change,” Kotter argues that many companies, when attempting to reorganize themselves and make fundamental changes to their business, make eight errors: not establishing a great enough sense of urgency, not creating a powerful enough guiding coalition, lacking a vision, under-communicating the vision by a factor of ten, not removing obstacles to the new vision, not systematically planning for and creating short-term wins, declaring victory too soon, and not anchoring changes in the corporation’s culture. In contrast, organizations that successfully transform themselves perform the following steps in the right order: establishing a sense of urgency, forming a powerful guiding coalition, creating a vision, communicating the vision, empowering others to act on the vision, planning for and creating short-term wins, consolidating improvements and producing still more change, and institutionalizing new approaches. Accomplishment of Objectives Kotter sets out to illustrate eight ways a company can fail to reengineer itself and eight steps a company can take to successfully transform to meet market needs. At this, he succeeds. More importantly, his arguments are reasonable and persuasive. Rather than simply give us yet another list of things to do to succeed, Kotter tells us how we will fail if...

Words: 864 - Pages: 4

Small Change: Why the Revolution Will Not Be Tweeted

...Synthesis essay: why the revolution will not be tweeted Technology is being used all across the globe in everyday life. With the development of technology, the development of social media became very popular. In “Small Change: Why the Revolution will not be Tweeted”, Malcolm Gladwell stresses that “real” revolutions do not depend on social media to be resolved or started; however, small revolutions can depend on social media or networking. Although Dennis Baron is sending the same message in “Reforming Egypt in 140 Characters?” there is one point that Baron makes that differs from that of Gladwell’s; Baron actually believes that a game changing revolution can occur with the use of social media. Gladwell believes that in order for a revolution to be successful, it does not have to rely on social media networks. In the beginning of his writing, he discusses the sit-ins that occurred in the 1960s. After acknowledging how fast the word spread about the sit-ins, Gladwell mentions that it happened without the help of “e-mail, texting, Facebook, or Tweeting” (314). Social media was probably not thought of in the 1960s. One of the biggest revolutions, the Civil Rights Movement, was accomplished without the need of social media. Also, it is easier to get participation on a social networking site rather that participation for something that is confronting a disgraced practice. Gladwell claims that it is easier for a person to donate blood rather than to protest for a......

Words: 1114 - Pages: 5

How Much Did Castles Change in the Middle Ages and Why

...castles had lots of strengths: They were a show of power against the English and really difficult to attack because of their thick stone walls and height. They also gave better living conditions. They did still have weaknesses though: They were expensive, took a long time to build, they could not be moved and they could still be attacked by enemies by: • Setting really hot fires under the corners (weak points) until they collapsed. • Using battering rams. • Starving out the Normans by not letting food in. • Tunneling and mining under the castle walls. • Using archers and catapults to fire arrows and rocks over the castle walls. • The corners were blind spots – an attacker could hide behind corners. These problems led to a change of design towards the end of the 12th Century once Edward I became king. Under his reign the design of round stone castles and keeps began. The round castle keep meant that there was nowhere the enemy could not be seen and took away the weaknesses of having corners. Concentric Castles (1239 – 1400) Concentric castles were a castle within a castle idea and were built to be as difficult to attack as possible. Castles were very important as there were still lots of wars in England with many people fighting for power. The design of these castles came from ideas of the Crusaders who had travelled to the Holy Lands seeing buildings there. These castles were far bigger than before. There would be a central enclosure of stone walls......

Words: 1596 - Pages: 7

Small Change: Why the Revolution Will Not Be Tweeted

...Sherif Gaballa English 12 Concurrent After reading both “Small Change: Why the Revolution will Not Be Tweeted” by Malcolm Gladwell and “Reforming Egypt in 140 Characters?” by Dennis Baron one may realize that they allude each other in a not so obvious form.  The articles share ideas and build of similar points, by reading one article one may take consideration of points that they would have been ignorant to in the past (before reading the first article).   Starting by critically reading the article “Reforming Egypt in 140 Characters?” by Dennis Baron after reading the title and the first sentence one can instantly identify that the revolution was not tweeted, a coincidence I think not.  The first sentence states, “Western observers have been celebrating the role of Twitter, Facebook, smartphones, and the internet in general in facilitating the overthrow of President Hosni Mubarak in Egypt last week.”  Western observers stand for Americans who in no way participated in the revolution.  Another point that the author states about how the revolution is not do to Twitter, Facebook and other social media is when he states, “In Cairo’s Tahrir Square continued to grow during the five days that the Mubarak government shut down the internet; that only nineteen percent of Tunisians have online access; that while the Iran protests may have been tweeted round the world, there were few Twitter users actually in-country”  The quote shows that even with no internet the protest......

Words: 844 - Pages: 4

Why Does the Climate Change Present Potential Problems for the African Continent?

...Africans live by subsistence farming and often have access only to marginal land. There is almost no agricultural management and as a result the soils are nutrient deprived at the best of times. Climate change in Africa has significantly disrupted weather patterns with dry spells now lasting longer and rains tending to be more intense. The increased aridity destabilises the soils such that they are easily washed or blown away. This has led to large areas of desertification and the abandonment of land. Disrupted precipitation patterns has led to a very significant increase in the number of flooding events. In the 1950’s there were 21 major floods in Africa, in the 2000’s there were 302. These floods are getting progressively larger and in recent years there have been a number of flood events that have each affected more than a million people. The floods destroy crops and contaminate ground water leading to both famine and drought. In some parts of Africa fighting is being fuelled by the effects of climate change. The Darfur conflict began over tribal rivalries but today it is more about gaining control of the remaining agricultural land as the surrounding area becomes desert. The bacteria that cause diseases thrive in warmer and damp conditions. Climate change leads to both increased temperatures and increased precipitation, thus providing perfect breeding grounds. Many disease vectors are temperature dependent and as the isotherms spread, so too are the......

Words: 570 - Pages: 3

Why Organizations Change

...Why Organizations Change Your Name MGT/380 Date Professor Why Organizations Change This paper will provide recommendations to the executives at Verizon regarding potential changes that the organization should consider making in the near future. Verizon will be reorganizing the company providing new pricing for its products and services. This paper will describe the stages of the change transition curve and what Verizon might experience. This paper will also discuss the influence of the global and internal environments and why this change is needed. Change transition Change is never easy for people, it becomes difficult in an organization when there is a different people involved that need to get guidance from a management team. In a management model there are four stages identified, which explain what most people go through when change occurs. The first stage normally is, denial ("Stages Of A Change Curve", 2015), people will react with a bit of shock by ignoring it, talking or thinking about the change is avoided. People will instead try to stick to familiar feelings, anything that they are still currently using in the organization. The second stage of change transition is resistance ("Stages Of A Change Curve", 2015). Some times in organizations employees can have feelings of anxiety or anger which can then reduce productivity when they realize that the change is actually happening. However, the management team’s role, is to listen to the team......

Words: 1205 - Pages: 5

One Significant Change That Has Occurred in the World Between 1900 and 2005. Explain the Impact This Change Has Made on Our Lives and Why It Is an Important Change.

...strata. They consider not only the nature, volume, and direction of migrant movements motivated primarily by opportunities for economic advancement—including the massive movement of rural agriculturalists to rapidly growing urban areas—but also the often-neglected displacements of populations that resulted from the wars, revolutions, and natural and man-made disasters of the twentieth century. Howard Spodek’s essay charts the development of the urban areas that have been the destination for the great majority of both international and domestic immigrants in the modern era, and that in 2005 became the place of residence for the majority of the world’s human population for the first time in history. He gives considerable attention to changes in city planning, patterns of urban growth, and important differences between industrialized Europe and North America and the developing world, as well as the contrasts in urban design and living conditions between different sorts of political regimes— communist, capitalist, colonial, and fascist. Particularly revealing are Spodek’s discussions of the influence of prominent urban planners and architects— including Le Corbusier and the Chicago School—urban preservation and the city as the locus of global cultural development, and the ways in which slums and shanty towns have morphed into long-term homes and viable communities for perhaps a majority of urban dwellers worldwide in the last half of the twentieth century. Broadly......

Words: 163893 - Pages: 656

Why People Resist Change

...Why people resist change 1. Fear. By far the biggest reason for resistance to change, fear creates paralysis. According to Jeff Hajek, People get worried that the new way won’t work, that they will not do well following the modified process, or that it will mean having to change to another job within the company. Worst of all, they fear layoffs. 2. Misunderstanding about the need for change/when the reason for the change is unclear — According to Torben Rick if staff do not understand the need for change you can expect resistance. Especially from those who strongly believe the current way of doing things works well…and has done for many years! 3. Comfort . When people have it good, they are reluctant to give that up. According to Jeff Hajek this is most common when an improvement effort in one area requires additional work in another area. For example, let’s assume area ‘A’ can save 10 minutes by moving 5 minutes of work to area ‘B’. The employees in area ‘B’ are likely to be less than thrilled by the change, especially if things were humming along smoothly for them. 4. Personal preference. According to Jeff Hajek some people have a personal style that makes it hard for them to accept change. This is basically the ‘other’ category of resistance. Some people just like things the way they are. 5. Change in the status quo —According to Torben Rick resistance can also stem from perceptions of the change that people hold. For example, people who feel they’ll be worse off at...

Words: 429 - Pages: 2