In the business environment, change is inevitable. The goals and the objectives of an organization keep on being altered from time to time by the changes in the business environment. With accordance to the goals of an organization, changes are done so as to enhance the immunity of the business to harsh environments.
However, it is always the responsibility of the managers and executive officials of the organization to bring about the change rather not for the employees. Organizational changes are implemented so as to help the organization in the realization of its goals and objectives. In most cases, an organization feels the need for change when business environment demands that there be a change in the activities of the organization.
Managing organizational changes is an important task to an organization and it is with this reason that it is entrusted to the personnel at the executive level of an organization. More also, in most cases organizational changes have a direct impact to the net income of an organization. This is because changes alter with the division of labor which is reflected by the performance of each department thus it being a delicate change it has to be approved by the top most executive officials in order for it to be implemented.
Managing organizational change is an involving task regardless of either the nature of change or the size of an organization. This activity requires professionalism whereby the persons entrusted to bring about organizational change are required to have a good knowledge of the business world with regard to the business activities. Organizational changes are brought about by the existence of a mishap in the business activities, the need to improve an existing activity, or else a need to introduce a new activity in the business activities (Stackman,2003).
This paper explores managing organizational change in the business world and the process which has to be followed by the leaders in order to assimilate full change in the business environment. The process of organizational change can either start by studying an existing problem or studying a possible solution to an existing problem as well. The process starts by studying an existing problem whereby the running activities of a business get disrupted by the emergence of a new problem. It also starts by studying a possible solution whereby anew activity is going to be introduced to the activities of an organization so as to either eradicate an old problem or to improve the activities of a business.
Also, the implementation of a change requires to be handled wisely depending on the implications that the change will bring to the business environment once it is implemented. This is mainly where the change will directly affect the welfare of humans thus awareness creation is done s the first step to the implementation of a change. The conclusion of the analyses has stresses on the importance of the organizational changes and the importance of skillful personnel being entrusted the delicate task in an organization.
For the past eighteen months, my employer has been faced by challenges which call for organizational change. These challenges have been as a result of the current financial crisis as well as the industrial relations and infrastructure. Some of the challenges include, high turnover, use of outdated technological infrastructure such as the software, and industrial relations whereby bunches of employees are resigning once new changes are to be implemented by the executive team. In order to curb the situation, the executive officials will have to carry out study on the problems and recommend essential tools which should be applied in order to arrive at the solution.
First problem is the high turnover. This is a situation whereby an organization has low wage rate as compared to others of the same industry. It is a serious problem to an organization especially at a time when there is a financial crisis in the market. High turnover leads to the los of skillful employees to the competitors leaving behind novice employees in the production line. This eventually leads to the production of low quality products which hardly do well the competitive market thus net income of the organization goes down leading to the loss making.
However, the executive team which is studying the situation needs to understand the current situation turnover of the organization at this time. This will involve analyzing the current recruitment routine, retirement and the population of the active employees. This will help in arriving at the best solution of the wage rate with accordance to the current financial position of the organization and the number of employees. To lower the turnover, the executive team may recommend that the organization reduces the number of recruits to the number which it will be abler to sustain at the optimal wage rates of the industry.
The executive team may also recommend that the organization implements the change towards the lowering of the turnover by carrying out retrenchment or performance contracts. Either of the decision is not welcome to the employees who are not used to the formula but it will depends on the financial capability of an organization to lower the turnover while retaining the highest possible number of the employees. However, due to the negative impacts of the change to the employees at outset, the executive may also recommend the need for the involvement of employees in the decision making in order to avoid future conflicts of industrial relations.
In the second problem of the application of outdated software in the activities of the organizations, the management is seemed to be resistant to the changes in the business environments. Outdated software implies that there the organization has low rate of production. In contrast, the rival competitors apply up to date software which are faster in functioning and cost effective since only a few laborers are hired. More also, these software produce products and services which are of lower quality than those of the rival competitors. Therefore the reluctant to change leads to low net income because of stiff product competition in the market.
The executive officials in analyzing this problem, they need to recommend possible solutions which are as well cost effective. This is because the main objective of business organizations is to reduce expenses as it increases the profit. Implementation of a technological change is always expensive but it has long-term advantages in-terms of the cut costs that an organization will experience over the time. However, the recommended change will be on installing up to date software which will require low labor force and carry out production within a short period of time.
The change will not also be welcome to many employees since it will act as a tool of cutting of their number. Therefore it is advisable for employees to be alerted about the effects of the oncoming change in order to avoid the future industrial conflicts within the organization. Some employees will also have to be recruited on how to carryout the activities by applying the modern technology. These employees will also require to be notified long before the software is implemented. Employees are the key tool to the changes and their involvement is a good point of concern and has many advantages.
The last problem indicates a great intensity of poor relationship that exists between executive and the employees. The trial, by the executive, of implementing changes without the consent of the employees is an offence with accordance to the international rules of industrial relationships. The executive team should recommend various methods which should be applied by the management in order to improve industrial relationships that exist between the employees and the executive.
In conclusion, changes are essential tools of management in the business world. However, they need to be handled carefully by the management since their implementation affects the overall performance of the organization. Moreover, employees have to be handled seriously by their employers since they are the main tools of implementation and their involvement into the development of changes lead to positive implementation of changes hence positive evaluation results of the changes so implemented.