Employees tend to view change as a bad thing for their career. It is the managements job to look into the reasons an employee might be facing, and then to address them accordingly. Without such management, there is little hope for organization's future.
Another change could be mergers and take-overs which can sometimes leave employees feeling uncertain about their future with the company, loss of trust and experience staff leaving.
“Creative destruction“ is why capitalism can be a brutal and cruel process. “Creative destruction” is when something new comes in and can possibly destroy many companies. Naked Economics uses the example of Wal-Mart. Wal-Mart benefits the customers because of the range of product and the cheapness of those products. This leads to smaller businesses closing up due to the loss of customers and the inability to combat Wal-Mart. People embrace this idea in theory because it brings new technologies and makes our lives easier. For example, with the creation of more efficient farming tools, fewer people have to farm to sustain more people. This allows people to branch out and create new things like cell phones, light bulbs, car, etc. On the other
Restructuring the organization will be considered to be a major reconfiguration of the internal administrative structure that is associated with an intentional management change program. The goal of the restructuring will include results such as productivity improvements, cost reductions, increased shareholder value, and/or a better alignment of the organization with a changing environment. It’s important to recognize that although management views restructuring as a source of order during a turbulent time, their subordinates view restructuring as a source of disorder because it
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.
A company with financial instability is a company that is sitting at the pit of fire. Restructuring means a company’s modest effort to get rid of debts, modify resources, operations, and corporate structure to improve the company’s performance and maximize financial stability.
The impact to change or resistance to change will have influence by the forces, motivations and even attitudes that employees or groups have towards the change. Change is inevitable, however our willingness to change the status quo is determined by these driving forces. Leadership, management and employees will have ups and downs as they move thru the different change models steps, however, communication along with understanding of emotions, attitudes and past experiences are going to impact the success of the change in process or structure.
The impact of failures to introduce effective change can also be high: loss of market position, removal of senior management, loss of stakeholder credibility, loss of key employees.
I start by saying "thank you" for expressing your concerns about the addition of a private business consultant to your team. I think it's great that we agree on several common goals providing a superior product, exceeding customer expectations, streamlining the business and improving Karsten's bottom line. In response to your questions regarding the proposed restructuring, I'd like to highlight a few key points.
When organizational changes are announced, particularly when there is downsizing involved, employees generally divide into one of two groups: those who will attempt to control their fate and those who want to get out before the changes occur. The group taking control will usually dig in, increase their productivity, hit their deadlines and do everything they can to shine in front of their managers hoping they will sail through the changes with their job intact. The remaining employees cope with the changes by avoiding them. You may see these employees taking longer lunch hours, coming in later and leaving earlier or simply not
Refreezing. An organisation can refreeze once changes have been implemented and people have accepted the new ways of doing things. After the refreeze a new and stable organisational chart and other core documents can be published. Managers must monitor that changes are being used at all times until they become a part of the normal everyday routine. Employees will then become comfortable and confident with the new methods. Reaching this future state and refreezing is important as it gives staff a sense of stability. It will also ensure they are motivated to tackle future changes with confidence that results will be successful and beneficial to them (Mind Tools, n.d.). Useful strategies during this stage include (Young, 2014):
The purpose of this report was to examine organization restructuring. Research for the report included literature based on organizational restructuring and the various processes involved in restructuring. The major findings indicate that the two methods commonly used for organizational restructuring to be downsizing and reengineering of business processes(Cummings & Worley, 2008). Downsizing assist the company to reduce its workforce, and this saves cost in terms of payroll reduction. Reengineering allows a company to change and adapt to the way it