Assignment 1 (Organizational Change
Assignment 1 (Organizational Change
Assignment 1 (Organizational Change
0 INTRODUCTION
Organizational change is a situation in which the structure, technology and people in
an organization change shape. The concept of change in an organization encompasses small
changes to the entire organization. In short, organizational change is the process of
transformation in an organization. In this context, the process refers to the basis of
organizational overhaul of an organization (Burke, W., 2002).
Because change always happens and will always happen, the leader of the
organization in addition must have sensitivity to the changes that occur outside the
organization he leads and be able to calculate and accommodate the impact of the changes
that occur, it is absolutely necessary to have skills and courage to make changes within the
organization for the sake of improving the organizational ability to achieve the goals that
have been set.
According to Lanning, H. (2001), there are three types of forces that cause changes in
the organization, namely external forces, internal forces and managerial forces as a catalyst
for change. External forces often create the need for an organization to change from a variety
of sources. External forces referred to here include consumer markets, ever-evolving
technologies, labor markets, economic and legal market changes as well as the country's
constitution.
Internal power refers to the factors of organizational change such as the modification
of organizational strategies, technology and equipment used for the production and attitudes
of employees. The process of change requires a catalyst. In the organization the role of the
catalyst is carried out by the manager. In addition, the character can also be played by expert
workers and consultants hired from outside. However, the manager is an important character
in the catalyst of change. This is because, he is the person who makes the decisions and
determinants of all activities in the organization.
Change is a process of transformation from existing thoughts, methods or approaches
to new thought patterns, methods and approaches. For an organization, it is associated with
the implementation of new systems or procedures in the work with the aim of improving the
smoothness of work compared to previous work systems. In general, change will not
necessarily be accepted by all parties although rationally every change will improve
weaknesses.
2.0 ORGANIZATIONAL DEVELOPMENT
Training and development have a strategic position and it directly contributes to the
business goals and objectives of the organization. In an ever-changing and fast-paced
corporate world, training and development is a much-needed function. Training and
development is one of the bottom line in most companies' priority lists. To meet the current
and future challenges of business, training and development are considered learning
activities, ranging from employee training to their tasks.
In addition, knowledge sharing to enhance the horizons of business and customer
service. When it is organized, it is often the persistence of the human resources department.
Training enables employees to acquire new skills, hone existing skills, perform better,
increase productivity and become better leaders. However, for many businesses, the cost of
training and development is quite expensive.
Another reason why many employers reduce training opportunities for their
employees is because attending training sessions can delay project completion because
employees need to take the time to attend training programs. Despite the lack of potential,
training and development can provide employees and the company a comprehensive benefit
that makes time and money spent on investments worthwhile.
French, W. L. & Bell, C. H. (1999) states that Organizational Development (OD) is a
top-down support management, a long-term effort to improve the process of organizational
reform and problem solving, especially through more effective diagnosis and collaboration as
well as greater emphasis on formal group collaboration, temporary group and intergroup
culture with the help of a consultant - facilitator as well as the application of theory and
technology to applied behavioral science, including behavioral research.
It is an effort and program that involves individuals from all levels and levels of the
organization. It is implemented by one or a group of people known as change agents. The
transformer agent is the catalyst for change in an organization. He is an expert in this field
that is, to improve the operating system of an organization. He may be one of the employees
in the organization but usually he is hired to implement the OD program.
According to Cummings, T. G. & Worley, C. G. (2005) the characteristics of
Organizational Development (OD) are as follows:
(a) Systematic
OD needs to be systematic to be effective. The author thinks that if the changes that
will be implemented are explained in more detail to all members of society, maybe we will be
more open and aware of the advantages and disadvantages of the changes implemented.
(b) Long term
But as a responsible government, we must realize that these changes and
implementations are for the good of the country and the future of future generations.
(d) Effectiveness
In OD, an effective organization is an organization that learns from experience and
adapts to change. It is seen as a need for development and improvement in more effective
ways such as turnover and profit. (Weick, K. E. & Quinn, R. E., 1999).
3.0 ORGANIZATIONAL CHANGE
3.1 Organizational Change Factors
Environment
There is a saying "If we make friends with perfume sellers, we will also smell
fragrant". Therefore, studies also show that, to be an entrepreneur is not an inherited
thing but it is something that can be formed through several factors and one of them is
the environment.
For example, one of the factors so many women traders in the state of
Kelantan compared to other states is because of the culture and situation since long
ago women in the state are diligent in business. Indirectly, this situation shows that
the environment has a great influence in implementing change.
Environmental conditions have the power to force or reject changes that will
be implemented. The same is true in an organization. The culture that exists in the
organization must encourage and support the change that is to be implemented.
If the environment is positive with change, it is very likely that the change we
want to implement will be successful. However, if the organizational environment is
negative for change, it is quite difficult for employees to participate in change that
will eventually slow down or most likely cause change to fail.
Communication
Effective communication is essential to secure purchasing and reduce the
impact of organizational change on employees. Leaders must communicate with
employees to ensure they understand why change is taking place and are in the
process of implementing change. When employees are given the opportunity to voice
their concerns and provide feedback on change, they are more likely to accept and
participate in the change management process, ensuring change occurs in a productive
and successful manner.
Organisational structure
There is no denying that organizational structure also plays an important role
in the process of change. Successful organizations in implementing change usually
adapt their organizational structure to adapt to the needs of the mission (St-Pierre and
Glavas, 1998). A clear structure and no duplication of tasks will make it easier for
employees to refer to the nearest boss if they experience any problems in
implementing changes. Successful organizations usually maintain a simple but
appropriate organizational structure with a sufficient number of employees and avoid
excess employees in each division.
However, control elements need to exist in the adapted organizational
structure. Lack of control mechanisms in the process of change will most likely
contribute to failure in the changes to be implemented. The influence of political
power in the existing structure also needs to be considered before changes are
implemented. The best change agents are through those who have power in the old
structure.
Recruitment Orientation
Training is very important for new employees. Training is also important in
situations where employees are introduced to new systems and are expected to adapt
to new system changes. This can be done by someone in the company and should
serve as a platform to get new employees to speed up the work process in the
company and curb any skill gap.
Performance improvement
Employees who receive training are better able to perform their duties.
Training provides a clear understanding of their responsibilities to their jobs. If
weaknesses can be addressed, employee performance will improve. Training and
development can also increase your strength and help you acquire new skills.
Companies also need to examine training and development needs to target relevant
individuals. Competent employees can help your company hold a strong position as a
leader and competitor in the industry.
Increased productivity
In a rapidly evolving landscape, productivity depends not only on employees,
but also on the technology they use. Training and development streamline the process
of ensuring that employees are always sensitive and knowledgeable in the latest
technology, use better technology and remove outdated technology. This helps to
complete the work efficiently and in the most productive way. Increased efficiency in
processing will ensure the success of the project and in turn will increase the turnover
of the company and potential market share.
Employee Self-Satisfaction
The company’s investment in training programs shows companies value
employees. Training creates a harmonious work environment. Employees who have
undergone less training need supervision and guidance. Training can improve the
skills needed by employees and enable them to handle tasks without supervision. This
also allows supervisors and management to focus on more urgent matters. Employees
who feel valued and challenged through training opportunities may feel more satisfied
with their job.
Change management
Effective change management is essential to streamline the process of change
and reduce negative impact on employees. When organizational change is properly
managed, employees see the benefits of the proposed change and accept the change.
Employees benefit from properly managed change in a variety of ways. For example,
technology updates can offer employees the opportunity to learn new skills. New
technologies can also increase job satisfaction by reducing workload.
3.3 Cause of Why It’s Difficult for an Organization to Change
Fear
There is comfort available on the stand. It is natural that employees facing
drastic organizational change wonder how those changes will affect them on an
individual level. Mismanagement of organizations can cause fear among ranks,
affecting job satisfaction, performance and productivity. Employees can lose
confidence, fear of losing job stability. They may also fear that change will increase
their workload or they will not be able to learn how to use new technology.
Organizations must combat these concerns and reduce the impact on employees.
Culture
The term “organizational culture” is commonly used to refer to the nature or
personality of an organization. A company may have a positive organizational culture,
characterized by open communication and trust in organizational leadership, or it may
have a negative culture in which employees do not trust their leaders. The impact of
organizational change on employees often depends on organizational culture. In
addition, a negative organizational culture has the ability to prevent change, making
the necessary transitions more difficult for employees to bear.
Organizations and cultures coexist and are interrelated. If you look at a
successful organization also has a positive culture and work culture is what drives the
work performance of an organization. Among the examples that can be seen is Apple
Inc. which emphasizes the culture of innovation has proven to produce innovative
products and have a place in the hearts of consumers. Similarly, Toyota's work culture
which emphasizes quality and continuous improvement of work processes has
produced products comparable to western products while increasing the company's
revenue.
Banis and Nawas (2003) emphasize that change and culture must go hand in
hand in ensuring the success of an organization's change. Their study of the
Schlumberger company proves that companies that focus on organizational and
cultural change are sometimes quite successful.
Culture cannot change in the blink of an eye as it takes years to create the
desired culture. Euan Baird through "Forum 2005" has stressed that cultural change
takes at least seven to eight years to feel. But the key is that managers deal with
cultural change and not separately.
Inefficient Leadership
Many leaders are trying to bring about change in their respective
organizations. Yet not many are truly successful in managing change that ultimately
brings a positive impact to the organization. The need or need for change alone cannot
promise a change in the organization to be successful.
Leadership is one of the most important elements in driving change in the
organization. This element is also what determines whether a change that will be
implemented is successful or not.
To lead a change in an organization, employees need more than just
instructions to implement change. The instructions must be clear and reflect the
benefits to the organization and employees especially if changes are implemented.
This is because it is quite difficult for staff to make changes if they themselves are not
clear on the direction of change they want to implement.
Fear of uncertainty
Panic and fear of something uncertain can also be the reason why an
organization does not want to change and is their reason to reject the desired change.
The uncertainty of things to come makes them more dependent on the ordinary things
they do. It is easier to anticipate and not in the gray area which makes them difficult
to plan or feel difficult to plan tasks.
Guidance from management is essential, not uncertain. Always be aware of
employees who may be in a dilemma.
Loss of power
A sense of loss of power and control in a job also causes them to refuse to
accept change in the organization. Directing them to change their daily routine the
way they work causes discomfort and confusion. They will only understand and will
adhere to change if they feel they are still able to control a task.
Employees who like to fight have already decided not to change and feel it is
difficult to learn new things that will cause setbacks in the progress and adaptation of
the organization to change. In fact, they even betrayed their own progress.
Less / No reward
Some people need reward encouragement as motivation to boost a task.
Without compensation, usually employees will be lazy or careless in ensuring change
according to plan. Rewards can be given in the form of allowances, promotions,
salaries, or anything else as long as it does not harm the organization and does not
have to involve too high a cost. Employees' knowledge of the rewards that will be
received will keep them excited and most likely they will also encourage other
colleagues to drive together towards those changes.
In order for change to be accepted and understood by all parties, then we need
to carry out each step correctly. These steps include:
Socialization
The first step in initiating change is socializing to all stakeholders who
implement it and those who will be affected by the change. We need to explain the
basics of change, including the reasons why we need to change.
Understanding
Through socialization, everyone is expected to have a common understanding
of the importance of change made by the organization. Transformers must understand
the reasons why the change was made, and what the benefits and effects of the change
are for them personally and for the company.
Commitment
After gaining socialization and understanding, all members of the organization
are asked to have a commitment for change to be realized.
Implementation
Implementation is the most important point so that change can run in
accordance with the organizational plan. Change only occurs when an agreed
commitment is realized.
Communication
Implementation can run with effective and intense communication to ensure
the course of change.
Evaluation
Follow-up in the form of evaluation / audit is done as a precautionary measure
so that changes occur as expected, and if necessary corrective action.
4.0 CONCLUSION
In making changes, of course, there is no guarantee that the changes made will
achieve one hundred percent success. However, there are some tips that can be used to ensure
success in leading change in the organization. McNamara, C. (2011) states that in ensuring
that change is successful, the three main criteria that need to be emphasized are relate, repeat
and maintain (relate, repeat and reframe).
In conclusion, such changes are necessary and sometimes must be done in ensuring
the survival of the organization. However, what can be thought of before the changes are
implemented is why and what changes do we want to make? Is it a small but continuous
change or a radical change that will reshape almost the entire organization?
Any form of change made must be adapted to the needs of cooperatives and
organizations. The more important thing is the existence of leadership, work processes and
clear guidelines to lead all components involved towards the dream goal.
All levels in the organization whether upper or lower need to be involved in the
process of change. Supervisors need to act as agents who convince employees to make
changes.
REFERENCES
Appelbaum, St-Pierre & Glavas (1998). Strategic organizational change: The role of
leadership, learning, motivation and productivity. Management Decision 36 (5), 289–301.
Deutschman (2007). Change or die: the three keys to change at work and life New York:
Harper Collins.
Ryan, W. et al. (2008). Top down organizational change in Australian Government Agency.
International Journal of Public Sector Management. 21 (1).