Executive summary
Along with the development of organization,rapid, volatile, discontinuous change is emerging in Political, Economic, Social, Technological, Environmental and so on. In this paper, it will outline what is concept of rapid,volatile,discontinuous change,and how impact on strategic management process, Then, it is going to suppose if I was a CEO and use models to explain details in recent cases as responding to discontinuous changes.
Introduction
As a successful Organizations, it should do to achieve strategic competitiveness and earn above-average returns.(hanson,2011) Nowadays organization may meet rapid, volatile, discontinuous change that makes strategic management further challenging and multifaceted because there
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Afterward when employees understand more about the situation, it is time to inform the direction and plan of strategic change. In this step, eventhough the implementation becomes more constant, organisation must maintain flexibility for unexpected situation. Finally, when organisation is covered with understanding and predictable situation, the normal operation of implementation was brought in to perform (Kenny, 2006). Consequently, it can be concluded from above implementation step, which applies the radical approach when there is a lot of risk and uncertainty and the incremental approach when there is lower scale of risk and uncertainty, is the process of transformational strategic change based on learning for transformational organisation.
The hardest step of changeAccording to Zeffane (1996), strategic change needs to well mould existing people system, new technology and new work process together, and management of organisational culture is essential to succeed in business. Additionally, development and concentration on belief among employees in organisation help create the effective performance of company. Appelbaum et al. (1998) support that the largest obstacle of strategic change is not coping with technology or work process, but it is coping with people. In the other words, changing people system is the most difficult part of strategic change process. Hence, individual aspect is needed to be more concerned in
The fourth step is the communication of the vision. The message should be powerful and convincing. The management should use the same vision in solving daily problems. The management should respond to the employees concerns and anxieties honestly and try to convince them the change is necessary (Kotter, 1996). The fifth step is empowerment of the change processes. Kotter (1996) asserts that the stage should try to remove the obstacles of change. This is a critical point especially when the organization is implementing new processes. At this point, some people will resist the change processes because they are used to a particular method of doing things. The management can hire change leaders whose role will be studying the organization’s structure, reviewing job descriptions and compensation systems (Kotter, 1996). The sixth step is to create short-term wins. The management should plan for visible short-term performance improvements. The management should analyze the potential benefits and disadvantages of the short-term goals. In some cases, failure in attaining the short-term goals may jeopardize the entire change process. The seventh step in the implementation is to build on the change by planning for visible performance improvements. The management should reinforce the
Fortunately, it has been established (Bateman and Zeithaml), some steps can help managers to overcome resistance changes in organization. One of demonstrated methods is communication and education. According to (Elving, 2005, cited in DiFonzo and Bordia, 1998; Lewis and Seibold, 1998; Schweiger and Denisi, 1991), “communication is vital to the effective implementation of organizational change”. Therefore, workforces should understand about processing change in company before organization announcing the changes through commercial reports, meeting or individual discussions. Then, employees will be became a part of overcome resistance by participating in activities during the period of organization change such as design and implementation. Another solution to against organization change is through assistance and encouragement. For example, during phases of change, employees will be ensured that they will be provided the resources help them make the change. Besides that, (Managing Change and Transition) the managers also support employee’s efforts and listen to their troubles as well as accept initial their
This paper will discuss some of the primary components of a strategic management process, while also explain why the process is crucial for a company success. This paper in addition will evaluate one organization that uses the strategic management process to accomplish their short-term, long-term goals, and objectives of the firm’s (University of Phoenix. (2015).
Strategic change views the renovation of a business, not only the way the firm works but also do way all system is organized, while operational changes only are important to prevent the business to fail.Mintzberg (1998) has offered five definitions of strategy: as a plan, a ploy, a pattern, a position and a perspective. Whittington (2001:2) equates four ways to lead to strategy: a classical, an evolutionary, a processual and a systemic model.The classic approach is basically a traditional view of strategy, where the strategic plans are drawn up by the senior managers to be implemented by others. The evolutionary approach is the answer of senior managers to the market,
Changing situations throughout the world affect all organizations in business today. Therefore, most organizations acknowledge the need to experience change and transformation in order to survive. The key challenges companies face are due to the advancements in technology, the social environment caused by globalization, the pace of competition, and the demands regarding customer expectations. It is difficult to overcome the obstacles involved with change despite all the articles, books, and publications devoted to the topic. People are naturally resistant to fundamental changes and often intimidated by the process; the old traditional patterns and methods are no longer effective.
Today in the global business world we know that strategic changes are fundamental in order to
Organizational change has many concepts from wide changes to small changes that can affect a company. Introducing a new person into the company, changing mission statement, restructuring, and even adding stock options are examples of organizational changes. According to Spector it is important to understand, analyze the dynamic of change, and requirements of effective change implementation. Successful changes requires management to explore many drivers of change. Strategic responsiveness occurs when external factors affects the company for example, government regulation, new competition, and economic changes. In response to these events an organizational change is necessary to create and
According to Laurentiu (2016), change is the altering of organizational visual prospective or the social environment of the business in respect to the structure, technology, and employees. This is distinguishing the differences in factors that influence change. The author goes on to identify the nature of organizational change. First, change management is a vast landscape and the tactics employed in the management of change are different according to the business or the project. Second, the operational change of an organization has its complexities. Therefore, both internal and external factors influence these processes. The external influence catalysts of change consist of:
The development and growth of an organization will gradually change over time. Whether the modification is minor or substantial, the approach that change managed makes the determination of its accomplishment or disappointment. The implementing of change can become complex if improper techniques utilized. However, managers should become proactive and inform their department regarding what the differences are on the horizon as it can affect their jobs. Developing useful tactics to present and execute change might ease the tension of how the employees feel about change, and it capable of assisting the sellers, consumers and partnership amend how business conducted. If the procedures for implementing change followed, it can save many of problems later on. In this paper, it will discuss the responsibility and role of managers during the implementing change, the appropriate way to handle the staff that resistance to change, and the change process.
Strategic management is vital to business and ensuring profitability. “Businesses see survival, improvement and success” as objectives (Pickton & Wright, 1998, p.103). Successful strategies are created through analysis of the business industry environment, and involves trade-off’s between operational effectiveness, benchmarks, and cost minimisation (Abdolvan & Asadollahi, 2012; Agarwal, Grassi & Pahl, 2012; Stonehouse & Showdon, 2007). Gary Hemmel comments, in Porter (2010, p.1), that, “Strategy is, above all
For this assignment I will be looking at the recent organisational restructure which took place in our work place. Having a background in senior management for over 20 years I have always viewed this sector with continual improvement as a key to stay one step ahead and in the words of Isaac Asimov “The only constant is change, continuing change, inevitable change, that is the dominant factor in society today. No sensible decision can be made any longer without taking into account not only the world as it is, but the world as it will be.”
Chapter 1 The Nature of Strategic Management Strategic Management: Concepts & Cases 14th Edition Fred David Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Ch 1 -1 Learning Outcomes
Change is not an easy process; it requires team work in planning, organizing and implementation. Organizational change is successful when it is effective and yield growth, but a failure when is unproductive. This paper will
Change can be defined as a set of result-driven, tangential variations of structural nature that organizations undergo which lead to interim modifications of behaviour. Transformation, by contrast, is a continuous process through which the individual power and the collective strength of an organization are engaged and leveraged in order to maintain a continual attitude of learning and collaboration that is in tune -and responsive to- both the external conjuncture and internal circumstances. Transformation transcends the idea of change by acknowledging and affecting the variables on which assumptions regarding human groups, attitudes and behaviours are based upon. Understanding that all business systems are - afore operational or technological - human systems is key to any successful organizational transformation. Thus, key to business itself.
Business world is such a competitive environment for most of the organizations. They have to find a way of differentiating themselves from others, fasten management process, predict future and try to gain comperative advantage. Strategic management and implementation of its strategies is the way to achieve this.