6.0 Advantages and disadvantages of organisational change
Organisational change is usually good for any organisation because it can bring the fresh idea for the organisation. However, it also can be a challenge in any organisation if the strategy is not implemented properly. It will bring either the positive or negative effect to any organisation if use the change. Next we will discuss some advantages and disadvantages that can affect an organization.
6.1 Advantages of organisational change
6.1.1 Improved organisational performance
The first advantage is improved organisational performance. (D’Netto et al, 2000) It can help the organisation to perform better. It may become higher productivity through use the advance in technology,
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It can provide the opportunities to the employees to harness a broader range of perspectives, way of thinking and ideas. Therefore, the employees can better handle the customer or other thing which is urgent and etc. For the example, after Toyota Company implements the Toyota Production System (TPS) they also focus on environment product, advance in the new technology, follows the green product and even active to 3R which is Reduce, Recycle, Reuse concept. Besides that, they very creative which are add the “Hybrid” concept into the new form of the car. (Robbins et al, 2011)
6.2 Disadvantages of organisational change
6.2.1 Experience high turnover
The first disadvantage is the organisation will experience high turnover (Baron et al, 2001). That is because not all the people like to change and maybe some employees like to maintain in the current situation. On the other hand, the employees may fear of the unknown. They do not know what will happen if they are accept the change. So, they may resign rather than accept the change. The occurrence of the organisation experience turnover is higher. Besides that, it also will influence the normal operation of the company and may cause the growth of the company downturn. Therefore, in my opinion not all the organisational change is suitable for the company.
6.2.2 Cost to benefit ratio
The second disadvantage is cost to benefit ratio
1 Improved productivity: improving the efficiency will help the organisation to produce more products/ goods for the same overheads, whilst earning better profits
A benefit of change in the organisation would be it promotes creative ways of thinking, so that ideas can be developed to keep the organisation fresh and exciting. Change breaks monotony so that people are re-energised and so the interest in the job increases. Change in the workforce brings out the true colours of employees. Those that have a positive attitude and work hard to cope with the differences in their work environment are people that a company wants to keep so that overall
Due to the greater encouragement, it reduces employee turnover and increases efficiency. This causes the company to be able to fulfill their goals and objectives that have been both created and managed through the strategic management process.
Speedup time to market. Because there are more people involved the process of innovation is faster
Organizational change is a very critical and yet very inevitable process ofan organization’s structure. It can create a lot of pressure from the workers as well as management as a result of fear of the unknown.
There are many reasons that change can or must occur within and organization. The key will be in understanding the organization and the prospective change. According to Mangundjaya (2015) "there are many variables that can influence the success of organizational change, such as the content of the change, the process of the change, individual characteristics, leadership, external environment and organizational context" (p. 67). Organizational change has the potential to successfully align an organization with its goals or completely derail any future success and progress. It is important that the organization takes the proper steps to prepare for, implement, and evaluate change.
Organizational change encompasses many challenges to both the individual, and the organization. An organization is a living system, as Flower (2002) states “living systems cannot survive without change, challenge, variety, and surprise” (Flower, 2002, p. 16). An organization requires the ability to adapt in to survive as Darwin states in The Origin of Man, “It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change” (Read Me First, 2013, p. 1). It must adapt to the changing market, global economic pressures, stakeholder demands, and the diverse needs
John Everet will act as the playboy by displaying a lack of involvement through his
Organizational change is difficult, although necessary to support growth and excellence in the market place. The concept of change can have negative connotations among employees, especially if change implementations have not been successful in the past. This paper is going to describe the need for change, barriers to change, factors that might influence change, readiness for change, the theoretical change model that relates to the change, and resources that support change implementation.
When discussing adapting to change management the organization must consider implementation of core competencies that are new and innovative. These challenges faced by the organizations require agility and a shift in strategic congruence that strengthens market adaptation. As business strategies transition, capabilities within functional departments must evolve as operational strategies are implemented.
Week 3, the lecture on Managing Change describes organizational changes that occur when a company makes a shift from its current state to some preferred future state. Managing organizational change is the process of planning and implementing change in organizations in such a way as to decrease employee resistance and cost to the organization while concurrently expanding the effectiveness of the change effort. Today's business environment requires companies to undergo changes almost constantly if they are to remain competitive. Students of organizational change identify areas of change in order to analyze them. A manager trying to implement a change, no matter how small, should expect to encounter some resistance from within the organization.
The purpose of this paper is to discuss organizational change and the management of that change. I will talk about the different drivers of change, the factors a leader needs to weigh to implement change effectively, the various resistances a leader may encounter while trying to implement change, and how various leadership styles will effect the realization of change. I will also discuss the knowledge I have gained through the completion of this assignment and how I think it might affect the way I manage change in my workplace.
Introducing organisational change is often hard, the main reasons for that can be variation in perceptions of the employees, fear of disruption or failure and underlining the right approach to apply change. Then even if the change in a specific organisation is projected successfully there is still lot to be done to manage it in an appropriate way (Oakland, 2007).
Change management is relevant as though the research finds that change is taking place at an ever-increasing pace, the evidence suggests that most change initiatives fail. For example, recent CIPD research suggested that less than 60% of re-organisations met their stated objectives which are usually bottom line improvement. This is consistent with other published research.
Change in business is good, but it 's seldom easy and can often be expensive. Managers are often drawn to change by imagining the possibilities and positive impact it can have on their organization. Before launching an idea, however, spend a little time wrestling with the costs and disadvantages also a part of the change.