1. IntroductionIn the present dynamic business world, when changes are not handled properly strains the ability of entrepreneurs to improve the business of creating and maintaining competitive advantage. Several organizations tend to adapt and change continuously to remain competitive and effective. Latest statistics says that one out of three efforts towards organizational change is successful by the leaders. Implementation of a successful change program is full of challenges and the change management process remains highly difficult. change is considered an opportunity to strengthen the business by aligning operations with strategy, take new risks and advance careers.
Change is not implemented in a single moment, and likewise the role of business leaders in managing change should not be reduced to a single event. The manager’s role in change must be active and visible in all phases of the change process. Theoretical models of change management are the main aspects in implementing rapid change. The objective of this essay is to discuss the challenges in the change management, which has become one of the most important issues for HR managers in today’s world. The organization of the essay will start with a discussion of the two change models and their challenges related to change management. Finally, the essay will provide recommendations and suggestions that can be helpful for management of change in the present business world.
Table 1.1.: Research questions (own illustration)Research QuestionsPerspective1How does organizational culture affect change management?Organizational2How is organizational structure a determinant in change management process?Organizational3How does leadership affect change managementIndividual4How do resources have effects on change managementIndividual2. Theoretical FoundationsChange management is a basic skill that most leaders and managers should be competent and ready to accept. Moreover, managerial interest in the topic has been stimulated by the comments of Peter Drucker as to whether one can manage change at all or merely lead or facilitate its occurrence within an organization.
Typically, the objective is to maximize the collective efforts of all people involved in the change and minimize the risk of failure of implementing the change. Change is not implemented in a single moment, and the role of leaders managing change should not be reduced to an event. The manager’s role in change must be active in all phases of the change process.
There are four types of change that an organization goes through with the possibility of overlap among each phase. Operational changes can affect the way in which the business operations are conducted. Strategic changes occur when the direction or the strategy in which the business performed is affected. Cultural changes affect the organizational rules such as the way the business is conducted. Political changes occur primarily due to changes that happen on top levels in the organization, those working on the bottom level often notice the change at the top.
Current issues and challenges in change management page 22.1. Basic Concepts2.1.1.
DEFINITION AStrategic management is a dynamic process of aligning strategies, performance and business results. Effective combination of people, leadership, technology and processes along with strategy and successful delivery makes a change successful. To survive and grow the organization must define and grow internal competencies, develop and maintain some rules and theories to create the future. The organization must grow along with the changes or fall without adapting. The concept of strategic fit – how well the organization should be measured to meet the requirements of the strategic change.
This context has both external dimensions (political, socio-economic, technological, cultural and competitive) and internal dynamics (organizational structure, skills resources, systems and culture). Strategy gradually became how well an organization could anticipate and react to change in its operating environment.2.1.
2. DEFINITION BStrategic change is defined as “changes in the content of a firm’s strategy as defined by its scope, resource deployments, competitive advantages, and synergy” Hofer and Schendel 1978. In simple form strategic change is a way of changing the objectives and vision of the company to obtain greater success. It does not depend on the greatness of the strategy or how useful the change may be for the organization, if you cannot make them understand to the people it’s worthless. A strategic change must be good consideration about context compatibility between the change and organization. It is obvious that changing something that people used to do it for a long time is not easy.2.2.
Literature Review2.2.1. Kurt Lewin’s Three Step Planned Change ModelKurt Lewin proposed a three-stage theory of change commonly referred to as Unfreeze, Change (or Transition), Freeze (or Refreeze). The first step being the unfreezing step include determining what needs to change, create the need for change and getting ready to change. Lewin was aware that change is a step by step process.
This second stage is where we make the changes that are needed. This stage is often the difficult as people are not aware whether the change is going to be a success or a failure. The final of the three crucial steps is the re-freezing step. Re-freezing suggests this stage is about implementing stability after the changes have been done. Time plays a major role in implementing a change. This rigidity of strategic change doesCurrent issues and challenges in change management page 3not fit with modern thinking of being continuous and it is a chaotic process in which great flexibility is demanded. Lewin`s model is a logic model that shows the chain of transformations that an organization must go through in a situation at a desired period.2.
2.2. Kotter eight step ModelKotter (1998) developed a model which should be used at the strategic level of an organization to change its vision and subsequently transform the organization. Each phase lasts a certain amount of time and mistakes at any phase can impact the success of the change.• Step 1: determine the urgency of change• Step 2: form a strong nucleus, leading change• Step 3: create a new vision• Step 4: notify all new vision• Step 5: empower others to act on the vision• Step 6: create a short-term win• Step 7: maintain state of emergency• Step 8: anchoring changes in corporate culture (strengthen change)Finally, to make any change stick, it should become part of the core of the organization.
If you lose the support of these people, you might end up back where you started.3. MethodsAccording to McKinsey research, 70% of organizational transformation efforts fail significantly short of fulfilling their change vision.
I have combined the key learnings from various articles and stories from great organizations about the strategic change. The present study is based on the secondary data. strategic change has dominated the theory and practice of change management since Kurt Lewin`s work. In 2002 J.Kotter came up with a new idea related to the change process, because they are available for analysis which influences their thinking.
Collection of data, analysis and presentation of data are important elements in the process of change, but change behavior analysis is the one that pushes people into a process to feel the change.Current issues and challenges in change management page 44. ResultsLewin`s model is a relatively simple design and can be used to develop cu. The most important goals in the process of change, are: create a sense of urgency, recruit powerful change leaders, build a vision and effectively communicate it, remove obstacles, create quick wins, and build on your momentum. If you do these things, you can help make the change part of your organizational culture. That is how we declare that the change is successful. The elements in Kotter – 8 steps model is extremely important, but the core issue is the behavior – what people do and that is how they need to be changed significantly react.
The above-mentioned models Kurt Lewin`s – 3 stage model and John Kotter – 8 steps model are the important models that serve to implement the change in an organization. Since all models are very specific, they are all inaccurate to some extent. The most important aspect we need know whether they are useful – whether they help us to improve and succeed.5. Discussion and OutlookThe challenges faced in change management are:1. The challenges and problems faced by the organization is related to the complexity and speed of change needed today.2.
There is no clear method for change management and change management is not always successful.3. Strategic change management does not have a timeline during which the expected changes are completed.4.
It is highly important that all members of an organization agree on the change management and are willing to accept and work together for overcoming barriers.5. Management should maintain regular communication with their employees and ensure that any new information or change implementation is done with all employees on board.6. Employee resistance is a bigger challenge for business organizations.
5.1. Theoretical ImplicationsAfter the discussion on the models and their results, it is important to consider how strategic change is implemented in the real world. The example of Nokia which was one of the leading makers of the mobile handsets few years ago and which now finds itself at the bottom reminds us that the strategic drift occurs without anyone noticing it and by the time it getsCurrent issues and challenges in change management page 5noticed, it becomes too late. The collapse of once famous companies like Chrysler pointed to the transformational change that was sudden and radical in nature.
The main aspect about strategic change is that it is difficult to predict and control. Thus, it is important to deal with it by expecting the unexpected and be ready for anything. The companies need to embrace change, they are likely to be fail unless companies prepare to deal with sudden, unpredictable, discontinuous, and radical change.5.2. Managerial ImplicationsAs to the managerial implications of the study, we find that differences in professional discourse should be made explicit and be a constant point of attention in teams.
Managers typically think that it is not their role to interfere in the details of change projects. Yet, by adhering to this perspective, managers will use a specific discourse, specific kinds of speech acts and certain negotiation styles, which might not be understood by other professional groups. Thus, an explicit reflection on their own style and its effects on the interaction dynamics could help managers to develop a broader view on the implementation of change and possible resistance on the part of employees, thereby creating more and new options for action.5.
3. Limitations and Future researchThe study findings could have been complete if all the targeted changes like organizational were considered. It is recommended that a similar study be conducted with a different change but with a larger sample. Large sample size will resolve part of the limitation on this study and particularly that which relate to the number of articles studied.