Theoretical Concepts of Organizational Change Management

Question: Discuss about the Theoretical Concepts of Organizational Change Management. Answer: There are several theoretical concepts of the organizational change/management of change/change management discussed in the text book and academic readings. For case, the following are the two major theoretical concepts that are discussed in the text book/academic readings such as: In the current time, it is more essential and valuable for the business firms to focus on change management in order to respond the changing business situation and environment effectively. With the effective change management, companies or business firms can bring innovation within the organization and improving the organizational efficiency. In the same way, business firms can be able to adopt and use best strategies and practices in order to improve productivity, maximize efficiency, gain competitive scope, respond business changes, and achieve organizational strategic vision and mission effectively. Moreover, organizations can also reduce several operational costs and minimize business risks (Hayes, 2014). It is also accessed that, organizational change is one of the major business strategy used by the companies in order to bring innovative and dynamic changes, improvements and innovation in their structure, strategies, operational methods, technologies, or organizational culture to affect change within the organization (Hodges Gill, 2014). Definition of Organizational Change and its relation to theoretical concepts of Textbook: Organizational change can be defined as the innovative, dynamic and systematic approach or methodology used by the business firms or companies to deal with unexpected changes so that negative impacts of internal and external factors can be overcome effectively. In the same way, it is a strategy to respond the market changes and negative forces in an effective and proper manner. Overall, it can be said that, organizational change is all about the defining, using and implementing the methods, procedures and strategies in order to gain business opportunities by dealing with the change. So, it is a method to transitioning individuals, teams, and organizations to a desired future state (Cummings Worley, 2014). Moreover, it should also be noted down that, the given definition of organizational change is directly or indirectly linked and related with the theoretical concepts of the textbook. For case, the given definition states that, organizational change is about innovative method to deal with unexpected outcomes. Also, the theoretical concepts state that, by using specific ways and methods negative forces or outcomes or risk can be overcome and minimize. Additionally, with the help of change, an organization can be able to gain competitive advantages in the market and reduce cost effectively (Andriopoulos Dawson, 2008). Description about the Organization and Change Management Background Information About the Company: In the context of this research paper, Myer Holding Limited Company is selected as an organization in order to fulfill the aims and objectives associated with this research paper. Moreover, it is also important to know that, Myer is one of the fast growing and leading retail organization of the Australia that is offering a wide range of retail products as well as services to the different kinds of customers such as: women, children and men at the lower prices. On the other hand, the company has a wide product range including home wares; toys; food and confectionery; footwear and accessories; electrical; cosmetics and fragrance; furniture and bedding; books and stationery; and travel goods. Moreover, it is also found that, the company is the biggest and largest in the market not only in number of employees but also sales, profit, revenue, and market share. Additionally, the company is satisfying millions of their customers by offering them new products at the best possible price or cost. For example, the company follows a lot cost strategy in order to attract a number of customers from the market (Myer Holding Limited, 2016). It has a good brand reputation and image in the eyes of customers that is the major reason that company had increased maximum profit effectively. On the other hand, it is also found that, this company was established in the year 1899 by the Sydny Myer for the purpose to offer low cost products and services to the customers in the market. Additionally, the company had established a lot of departmental stores, retail outlets, and store network in order to effectively reach to the customers. In the same way, the company is offering unique values to customers by delivering them best possible range of products and services. For example, within the Australia, the company had developed more than 67 department stores along with an approximate 12, 500 team members. The company also has a strong supplier network that plays a key role in delivering the products to the customers effectively. Finally, it can be said that, it is the market leader within the Australian retail industry (Myer Holding Limited, 2016). Change within the Myer Holding Limited: It is analyzed that, recession or market shutdown had forced the company to reduce the costs of their products in order to align customer wants, needs and demand for the purpose to survive in the market. In the same way, the recession in the market had decreased the level of profitability, marketability, sales and revenue and increased the operational cost directly. For example, in the current time, there are strong changes in the perception, attitude and behavior of customers that forced the company to reduce the costs of its various brands or products (Aziz, Fooi, Asimiran Hassan, 2015). Moreover, the changing market situation is also forcing the company to bring and adopt several strategic changes within its business strategies, process and methods. For instance, Myer is implementing many strategic changes at its stores to make it competitive and attract customers more customers. So, company had focused on adopting a low cost strategy and p roviding the low cost products to customers. In the same way, the company is aligning the cost structure with the current business strategy. Moreover, in order to survive in the market and to respond the changing needs of their customers, company is opening different traditional retail stores within the nation. Relation of Organizational Change definition with the Change occurring in organization: The definition is directly related with the change of the company because the company is adopting different innovative and specific ways to respond the unexpected change. For case, with the help of effective strategies, the company is reducing the cost of the product and opening new stores at the different locations (Carayannis, 2010). SWOT Analysis In this section of the research paper, a SWOT analysis in the context of Myer Holding Limited is conducted in order to assess the major caused behind the need for the organizational change. In addition to this, SWOT analysis would also provide a clear description about the key and fundamental reasons behind the organizational change (Cameron, Green, 2012). Strengths Weaknesses Talented employees/workforce Wide range of Products/Services Large and strong supply chain network Exclusive Design of products Lot of retail outlets/stores Low cost products and services with high quality High standard of service Market leader in the industry Competitive advantages over competitors Strong financial situation Skilled suppliers No investment in the RD activities Tight competition in the industry No international presence Lack of traditional stores/outlets Limited brand presence Low brand image as compare to global leaders Tight production system Part time employees or workforce Target customers are only in Australia No effective and adequate use of retail stores Undeveloped distribution channel Lack of strategic business strategies Opportunities Threats Acquisitions Joint ventures Introduction of new products/brands and services Economic growth Tie up with the Foreign players at the global and national level Global expansion in developed and developing markets Expansion of product lines Opportunity to reduce risks Improvements in accessibility Opening of new stores at the different location Various categories of product and concessions Increase in the customer income level Fluctuation in the market situations Changing needs and wants of customers Tight competition in the local market in the industry Changes in corporate tax structure Increase in internal and external business risks and costs Rising cost of raw materials, additional operational costs Changes in the rules of government Technological factors Increasing rates of interest Local competitors are offering low cost products with greater customer services Increase in labor costs (Myer Holding Limited, 2016). Explaining, Discussing and Evaluating Analysis: Based on the above SWOT analysis of the company can be said that, there are a lot of specific causes or reasons or factors that directly forcing the company for the change. Moreover, it is also important to know that, the weaknesses as well as threats are the two major element of the SWOT analysis that indicates the major reasons behind the change. For example, Myer is not able to effectively align and fulfill the needs of their customers due to changes in the market. In the same way, these market changes are changing the behavior and attitude of the customers regarding the company products and services (Jarvis, 2015). So company is adopting various methods to respond such unexpected changes. In addition to this, it is also found that, tight competition within the market had forced the company to bring changes and improvements within the organization effectively. Moreover, the company does not have traditional stores/outlets to attract the customer. On the other hand, the company is also want to expand their business operation by opening new and attractive retail outlets not only in the Australia but also in the global market. At the same time, it is also analyzed that, low brand image, undeveloped distribution channel, Fluctuation, Changing needs, increases in the costs risks, changes in the legal and political regulations etc are the major and specific causes that forcing the company to bring organizational changes in order to compete and survive in the market (Dailey Browning, 2014). Benefits and Drawbacks of using a SWOT analysis: There are several benefits and drawbacks of using a SWOT analysis. For example, by conducting SWOT, Myer can be able to access the need for the organizational changes. Moreover, the company can respond the market and other unexpected changes effectively by minimizing the weaknesses, improving the strengths, gaining the opportunities and responding the threats. For example, SWOT analysis is also more valuable because it provides strategic directions to the company about how to bring innovation and improvements within the current systems and process (Bischoff, 2011). Moreover, with the help of SWOT, the management or managers can access the overall situation of the company and make strategic decisions for the total success. But, the main drawback of using SWOT includes subjective analysis, Ambiguity, no proper analysis, increase in costs, lack of control, oversimplification, need of specific huge information etc. For example, the manger can make decision on the basis of assumption and the decision would not produce hundred percent accurate results. Hence, all these are the major disadvantages of using this (Jolly, 2015). Role of the Change Agent in the Organization A change agent is an important individual that play a wide range of roles and functions in the change process or management within the organization. Moreover, the change agent can be from the company or outsider who assists a company to transform changes by focusing on organizational development, improvements and effectiveness. In addition to this, it should also be noted down that, a change agent is reasonable to perform several change management functions effectively. For example, a change agent plays a key role in motivating, encouraging the employees about the change and tell them how the current change would improve their work performance, skills, and abilities in an effective and proper manner. In addition to this, change agent is also guides and provides directions to the company and its management about how to operate executes and implements change successfully within the organizations (Visagie Steyn, 2011). On the other hand, a change agent is fully liable to analyze access and address the issues faced by the company and propose specific ways and strategies to overcome such serious issues. For example, a change agent performs a lot of role before and after the change within a company or organizations. At the same time, it is also accessed that, a change agent analyze the structure, systems, employee base, organizational process, of an organization and take specific actions to deal with unexpected outcomes. Moreover, a change agent is also suggests the need for the change not only for the company but also for the employees. For example, a change agent is provides specific directions to the company and its management that how they can improve individual and organizational performance and compete in the market. It indicates that, change agent offers scopes for competitive advantages to the business firms (Malhotra, Hinings, 2015). Along with this authentic as well as unbiased suggestions are provided by the change agent to the company about the development and improvements. Additionally, change agent is also spent a lot of time on learning that how the company, its management and employees should work inside and outside the organization and gain competitive advantages from the market in an effective and proper manner. In this way, change agent plays a key role in developing a stronger sense of understanding about how the organization should works. Moreover, it is also accessed that, a change agent is also assume a major role in improving the knowledge of employees in the context of change (Curlee Gordon, 2010). Hence, a change agent is deal with the attitude, behavior and opinion of employees with diverse workforce. In addition to this, change agent is also adopt specific ways and innovative strategies to encourage and motivate the different level of employees to participate in the organizational strategic ch ange process (Rajput Novitskaya, 2013). Furthermore, it is also a major role of a change agent to gain direct or indirect support for the initiative and effectively engages the organizational people to participate in the process in order to make change more successful. On the other hand, a change agent is fully committed and responsible to understand and access the personal implication of employees and develop a clear understanding about the change so that they can feel better and comfort about the change process. For example, a change agent works as a manager or leader within the company and try to address the issues and problems of employees with regards to the change process. Hence, in the successful execution and implementation, change agent is also liable to find the innovative, new and dynamic ways or methods to help the organizational people for the change. This help the employees to better understand the value and importance of new change within the company (Visagie Steyn, 2011). At the same time, managing the con flict and diversity issues is also the key role of the change agent. For case, a change gent try to overcome conflict issues by assuming mediator role and helps the partitas to see the situation by finding common goals and objectives. So, a change agent plays a key role in enhancing the understanding of the employees about the change and reducing the friction and misunderstanding. This function of the change agent allows the people to collaborate and implement change successfully. Moreover, transferring the knowledge and information by using training is also the fundamental role of change agent (Vakola, 2013). Problem-Centric and Dialogic Approaches to Change Problem-Centric Approach to Change: It is one of the major method or approach among others that provides solutions of the real problems at the workplace and improves skills and abilities of employees so that they can perform their functions effectively after accepting the change within the company (Finne, Sivonen, 2008). In the same way, it can be said that, a problem-centered approach is a valuable method that offers a vehicle to the organizations in order to attain the strategic goals, and long term objectives according to the change. According to this approach conceptual understanding is developed in order to solve problems in a more effective manner. On the other hand, as per this method, a learning environment is provided to the learner in order to develop an inquisitive style of learning (Todnem, 2007). Moreover, this is also play a major role in self directed learning skills, abilities and knowledge of the learner. This approach is also allows to gather, analyze, collect and interpret data in the process of finding the real time solution of complex issues or problems. At the same time, it is also known as a problem-based learning approach that assists the employees or learners to learn in the context of a real problem and fulfill organizational tasks in more appropriate and innovative manner. For example, by using this approach, Myer can be able to find the solution of their issues or problems effectively (Bushe Marshak, 2012). Additionally, this would also allow the company to look into the potential opportunities and utilize them effectively. For case, it would also allow the company to understand the problems of their issues and provide and develop the products and services according to the needs and wants of their customers effectively (Daft, 2008). Hence, the company can take several advantages with the help of this approach and can successfully execute the change within the company. Overall, Myer would be able to bring innovation, improvements, and developments within the organization. But, there are several disadvantages or drawbacks of using this approach. For instance, through this approach, the company can improve learning in only small groups of people/employees. Moreover, this would only allow focusing on basis or the stimulus to develop problem solving skills. Finally, learning is based on the self-directed activities etc. All these are major drawbacks of using this approach (Tonder, 2014). Dialogic Approach to Change: It is another method used to change by the business firms. According to this approach to change, leaders of the organization sit down and try to diagnose the issues through dialog. It means leaders solve the complex issues by discussing with each other and execute change within the origination by assuming a top down approach. The decisions made by the leaders are filtered down to the ground level staff that is expected to implement the change and be monitored on their effectiveness at doing so (Bangert, 2012). The major advantage of using this method is that, according to this method change is not implemented by a company blindly based on the employees beliefs and attitude. It is because before taking final decision for the change, each and every thing are discussed and analyzed by the top management of the company. In addition, dialogic approach is also play a major role in changing the employees attitude and mindset and allows their behavior to respond the change effectively. The main disadvantage of this is that, it focuses of change on the mindset and not simply the behavior (Hazrat, 2016). Best Approach to Manage the Change: After analyzing both the approaches to change, it is accessed and found that, Problem-Centric Approach is much more effective, appropriate, dynamic, innovative and valuable as compare to Dialogic Approach to Change. It is because this approach is based on the real problems and allows the people of the organization to learn and improve their skills, abilities and knowledge in the context of a real problem. On the other hand, with the help of this approach, the employees would be able to work according to real life without any fear of consequences (Baskarada, 2010). For example, Problem-Centric Approach is more significant method that assists the learners such as employees to solve complex or big problems effectively. In the same way, it plays a key role in enhancing the problem solving and communication skills of employees. At the same time, this approach is also provides a lot of advantages to the company. For instance, this approach is based on th e knowledge so the company can bring changes according to the customer requirements and results in improvements in organizational performance (Jabri, 2012). Moreover, this method is also very cost effective because it does not require any additional cost. For case, this approach can be applied by the employees when dealing with the customer. Along with this, by using this problem centric approach, a company can also Cognitive Skills of their employees can be improved on a zero cost. It means through this approach, employees can improve their critical thinking and make strategic decisions for the overall success and growth of the company (Dobson, Starkey, Richards, 2009). Furthermore, this approach is also effective as compare to other because it helps the company and learner to understand the value of collaboration within the change process. Additionally, with the help of this, strong relations among the employees or management can be developed that is essential to effectively and successfully implement the change within the origination. Finally, it can be said and suggested to Myer holding limited to adopt problem centric approach as c ompare to dialogic Approach to change in order to fulfill all the goals, objectives and vision associated with the change (Tutka Seifried, 2015). References Andriopoulos, C., Dawson, P. (2008). Managing Change, Creativity and Innovation. USA: SAGE. Aziz, N.A.A., Fooi, F.S., Asimiran, S., Hassan, A. (2015). Literature Review On The Relationship Between Principal Instructional Leadership And Teacher Readiness To Implement Change. International Refereed Research Journal, 6(1), 12-19. Bangert, P. (2012). Optimization for Industrial Problems. USA: Springer Science Business Media. Baskarada, S. (2010). IQM-CMM: Information Quality Management Capability Maturity Model. USA: Springer Science Business Media. Bischoff, A.L. (2011). Porter's Value Chain and the REA Analysis as an Accounting Information System. Germany: GRIN Verlag. Bushe, G, R., Marshak, R.J. (2012). Dialogic Organization Development: The Theory and Practice of Transformational Change. USA: Edgar H. Schein. Cameron, E., Green, M. (2012). Making Sense of Change Management: A Complete Guide to the Models Tools and Techniques of Organizational Change. USA: Kogan Page Publishers. Carayannis, E. (2010). Strategic Management of Technological Learning. USA: CRC Press. Cummings, T., Worley, C. (2014). Organization Development and Change. USA: Cengage Learning. Curlee, W., Gordon, R. L. (2010). Complexity Theory and Project Management. USA: John Wiley Sons. Daft, R. L. (2008). The New Era of Management. USA: Cengage Learning EMEA. Dailey, S. L., Browning, L. (2014). Retelling stories in organizations: Understanding the functions of narrative repetition. Academy of Management Review, 39(1), 22-43. Dobson, P.W., Starkey, K., Richards, J. (2009). Strategic Management: Issues and Cases (2nd ed.). UK: John Wiley Sons. Finne, S., Sivonen, H. (2008). The Retail Value Chain: How to Gain Competitive Advantage through Efficient Consumer. USA: Kogan Page Publishers. Hayes, J. (2014). The theory and practice of change management. USA: Palgrave Macmillan. Hazrat, R. (2016). Mathematica: A Problem-Centered Approach. USA: Springer. Hodges, J., Gill, R. (2014). Sustaining Change in Organizations. USA: SAGE. Jabri, M. (2012). Managing Organizational Change: Process, Social Construction and Dialogue. USA: Palgrave Macmillan. Jarvis, P. (2015). Greiner's model of growth. Teaching Business Economics, 19(1), 9. Jolly, A. (2015). The Growing Business Handbook: Inspiration and Advice from Successful Entrepreneurs and Fast Growing UK Companies. USA: Kogan Page Publishers. Myer Holding Limited. (2016). About Us. Retrieved From: https://www.myer.com.au/ Malhotra, N., Hinings, C. B. (2015). Unpacking continuity and change as a process of organizational transformation. Long Range Planning, 48(1), 1-22. Rajput, M., Novitskaya, A. (2013). Role of Organizational Culture in Creating Readiness for Change Project. Retrieved From: https://www.diva-portal.org/smash/get/diva2:694595/FULLTEXT01.pdf Todnem, R. (2007). Change management. Journal of Change Management, 7(1), 3 11. Tonder, C.L.V. (2014). Organisational Change: Theory and Practice. USA: Van Schaik. Tutka, P., Seifried, C. (2015). The Historical Ideal-Type as a Heuristic Device for Academic Storytelling by Sport Scholars. Quest, 67(1), 17-29. Vakola, M. (2013). Multilevel Readiness to Organizational Change: A Conceptual Approach. Journal of Change Management, 13(1), 96109. Visagie, C.M., Steyn, C. (2011). Organisational commitment and responses to planned organisational change: An exploratory study. Southern African Business Review 15 (3), 98-121.