Relevance_of_Change_to_Large_Scale_Oraganisations

Stephane Mathieu 12D Business Management Criterion 1 Relevance of Change to Large Scale Organisations To be competitive and ahead of the competition, Large Scale Organisations need to constantly change, to improve Revenue and Improve profit. Explanation and Illustration of the dynamic sources of change. Sources of Change Internal Environment: The Need for Innovation: To be competitive in business, Large Scale organisations are expected to develop and apply new ideas. The ideas are needed to help innovate operations, product range and design and so on. Staff Participation for organisational performance: Organisations are improving and introducing organisational structures which encourage greater staff involvement and commitment to corporate objectives. Rapid Growth: As an organisation grows and changes, the prior traditions and and practices and corporate culture becomes like an old shirt which it has out grown, it is restrictive and it is time to be replaced. Growth is a source of change in the internal environment. Operating Environments: Competitive Markets: The reason of change is to respond to markets constantly changing. The competitive position of a business in the market depends on: =Customers and their choices on range, price and quality. =The Competition from the other businesses =The sourcing of inputs and funds The Trend to Outsourcing: The strategy of cutting permanent staff to a very lean core and relying on outsourcing, is currently the business trend. Organisational Outsourcing Diagram 5.1 The Macro Environment Technological Factors: Information and Communications Technology is constantly evolving, where new developments are constantly attained. The technology is used by businesses where they see the productivity gains. Society's Attitudes: Broad Social changes such as the concern for environmental health and a seemingly renewed emphasis on ethics have put pressure on large organisations to conform to society's expectations. Employee Relations Framework: Changes to the legal political conditions surrounding employee relations have brought the action to the organisation level. Changes in negotation processes and there are new wage trade offs. Driving and Restraining forces the restrain Change: Restraining forces are forces that can hold back change. These can be external elements, but they are mainly in the organisationals internal environment. Restraining forces include: =organisational inertia: a corporate culture in the organisation that does not allow change. =organisational insecurity: A culture or groups in the organisation that has a fear of the uncertainty of change. =Management procrastination:delayed decision making =The financial costs of resourcing change: -new equipment -redundancy payments -re-engineering operations -retraining employees -recruiting new staff -re-engineering waste systems The opposite of restraining forces are driving forces: =An Organisational Change that expects and welcomes change =A workforce that is willing to trust a change process and its leadership =Positive and Capable Management =Financial Reserves to resource a change Process Criterion 2 An Eight Step model by John Kotter. This model encourages the idea of constant change, unlike Kurt Lewins three step model where change is frozen or 'static', which is undesirable by many organisations. 1. Create the urgency. This can arise from a threat to potential opportunities that will make the business more competitive in the markets. 2. Form a powerful Coalition. This coalition is formed to ensure that the change happens, this team works to manage the change process. 3.Create a vision. This vision should motivate the organisation and provides the ultimate goal of the change process. 4. Communicate Vision. Staff must share this vision and must show some understanding of how this vision will be achieved. 5. Remove Obstacles. Organisational structures and rountines that obstruct change must be removed. 6. Create short term wins. All involved should be recognised and rewarded to encourage pride in the progress. 7.Build on the Change. Structures and practices that are now out of place and block further change needs to be removed. 8. Anchor the change in corporate Culture. The management needs to reinforce among staff an understanding of the link between the changes made and the future success of the organisation. Communication: If employees fully understand the change they will support it. Participation: Commitment to the change made can be gained by involving the staff in the change process. Support: Staff in the organisation must be helped through the process of change. Negotiation: Deals can be attained between management and employees to obtain support for the change process. Manipulation: This is a high risk tactic to influence the views of the employee towards the change by seletively using facts. Threat This strategy is us to direct threats towards those who oppose the change.