The sources of change are both internal and environmental. The range of impacts of a change trigger will be felt as shock waves through the organization and will affect staff and management at all levels. Change must be handled carefully to avoid the organization being overwhelmed. In the era of globalization, organizations function across the cultural boundaries with large investments in human capital as well as physical resources, give utmost importance to technological change and innovative practices for a leadership advantage. Business alliances like mergers, acquisitions, diversifications, takeovers and various other collaborative ventures have become the most preferred strategic best practices for the organizations to survive the fierce forces of competition, through transfer of peoples, technologies, processes and leadership. For successfully handling this transition and converting the threats of change into opportunities, organizations must be flexible and open for change management. People can play a very vital role in driving business excellence at any organization as they are the most valuable assets.

Change management usually involves a three-step process, firstly, unfreezing (desired change is identified, and the organization is prepared for what is about to come), secondly, changing (the desired change is executed), finally, refreezing (staffs are monitored to ensure the change has been incorporated into the organization).

The need for an organization to change or develop could be caused or triggered by a number of factors like changes in the environment i.e. changes in what competitors are doing, what customers are buying, how they spend their money, changes in the law, changes in social behavior and attitudes, economic changes, and so on. Another important factor for an organization to change or develop is the changes in products the organization makes, or the services it provides are made in response to changes in customer demands, competitors’ actions, new technology, and so on. Changes in technology and changes in working methods are also in response to environmental change such as the advent of new technology and new laws on safety at work. Changes in management and working relationships, For example, changes in leadership style and in the way that employees are encouraged to work together. Also changes in training and development. Changes in organization structure or size might involve creating new departments and divisions, greater delegation of authority or more centralization, changes in the way that plans are made, management information is provided and control is exercised, and so on.

Change management is a complex process and requires serious attention as well as involvement from the management and people from all levels, in order to achieve a meaningful or a progressive transformation across various levels. For being ahead in the competitive race and gaining a winning edge, organizations have been focusing on expansion of business worldwide, achieving excellence in processes and operations, implementing innovations in technology and identifying/developing the right talent.

Effective change management process help organizations in understanding the changing customer needs, meeting their demands and expectations much better since the requirements are well defined. If implemented with proper planning, change management does not affect the day to day functioning of an organization rather it functions concurrently. Instead it creates a scope for establishing best practices, defining the operational framework and regulations for the people, processes and system. It engages people in the entire process and motivates them to work towards realization of a common goal or objective and deliver excellence in performance through collaborative efforts and involvement in the process as a whole.

There are three main levels to which organizational development and change efforts may be directed. Individual level can focus on improving individual skill levels, attitudes and motivation. Techniques employed could include education and training, management development, coaching and counseling, team building activities, inter-group activities, role analysis, job re-design, planning and objective setting activities and process consultation. Organization structure and systems level focus on the characteristics of the organizational situation in which people work i.e. job redesign, reward systems, setting clear objectives that help achieving organizational goals. Finally, organizational climate and interpersonal style levels like the improvement of social and other informal processes among organization members by creating a system with a wide climate of high interpersonal trust and ingenuousness and a reduction in the negative consequences of excessive social conflict and competitiveness.

The importance of staff support during a change programme should not be underestimated. And reactions of proposed change must be handling carefully. Change can be big or small, easy or complex in an organization and does not necessarily indicate a major transformation every time. But it can seriously help to build competition, which can help organizations progress and develop themselves. Without change, organizations would struggle to lift up themselves to face the competition put forward by their competitors. Technology plays a vital role in development of an organization. To beat the competition, organizations can make use of new technologies.  It also enables employees to adopt the new technology and indirectly helps in growth of organization. For Example, Toyota, the company to follow in the automobile industry, it has emerged to become one of the most successful organizations in terms of establishing change management. Adopting change in organizations can create a certain extent of dissatisfaction among employees and also among customers. But, once change brings in a favorable effect, customers and employees start accepting it and subsequently this change brings satisfied customers which in return act positively for customers. As always said, satisfied customer is a boon for every organization.

Remember, post-acquisition like incoming management will wish to improve and integrate the firm into the new parent’s structure and systems. This will involve visible change to names and signage and also deeper changes to organizational structures, culture, job roles, staff numbers and management systems. Change is such a fundamental part of organizational existence and growth. In additional to organizational change, degree of stability is a prerequisite for long-term organizational success. The organizational survival and growth are most probable when both stability and adaptation are high within the organization and vice-versa.  

The writer is a certified

finance specialist