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Strategic change Assignment

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The need for organisational change has increased over the past decades. Globalisation,
Organisational change is described as wilful or deliberate action, more often from senior
management, to initiate change aimed at increasing organisation profitability, cost efficiency,
competitiveness and survivability (Tenkasi and Chesmore, 2003, p. 285). Normally, minor
organisational change is initiated yearly and larger changes an average of every four to five
years (Kotter and Schlesinger, 1979, pg. 2).
market trends, innovation in technology, changing demographic and social dynamics and
increased knowledge of the workforce have created this need for organisational leaders and
managers to increase organisational change efforts (Yasir et al, 2016, pg. 1).
Change resistance behaviour rooted in position, power and organisational politics more often
arise before and during changes initiatives when maintaining the status quo and resisting the
initiated change in the interest of an individual or group within the organisation (Kotter and
Schlesinger, 1979, p. 4). Staff members resisting change can initiate power struggles in an
organisation if they interpret a proposed change as a threat or a violation of the psychological
agreements they have with an organisation (Lawrence, 1970, p. 8).
Groups and individuals react substantially different to change, from passive resistance to
aggressively undermining change, or sincerely embracing it (Kotter and Schlesinger, 1979, p.
3). Many organisational change initiatives fail completely, but few are completely successful.
The majority will experience issues, which drag the processes longer than planned, affect
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morale negatively and cost the organisation time and emotional frustration (Kotter and
Schlesinger, 1979, p. 2).
To better understand this phenomenon the approach was to review case studies, journals,
books and scholarly articles which recorded and studied organisations change initiatives in
different parts of the world, across different sectors in private, government, non-profit
organisations over the past few centuries. The objective was to focus our research around the
impact of leadership, informal networks in the workplace and politics, with the aim being to
exhibit how a nuanced understanding of resistance to change may be useful in managing
employees through change.
Organisational change initiatives often encounter employee resistance. In as much as
seasoned managers are aware of this general point, few conduct a systematic assessment of
resistance potential for any change initiative they plan to take (Kotter and Schlesinger, 1979,
p. 3). Individuals facing the uncertainty linked with crises and big change efforts tend to
resort to psychological response mechanisms that aim to maintain their own interests and
fosters decisions that resist organisation-wide behaviour of cooperation needed for strategic
change success (Krackhardt and Hanson, 1993). Any corporation seeking not only to survive,
but to flourish in a dynamic competitive business environment will be required to respond to
continuous change (van Marrewijk, 2018).
Leadership as a key factor in any successful organisational change initiative. It is a strategic
contributor in building the capacity for any organisation to change (Kotter, 1995). It is
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detrimental to any change initiative when top managers are unaware of how effective and
trustworthy leadership contribute to an organisation’s capacity for change (Judge, 2011). A
common mistake identified in some management study studies is the use of a singular or
limited set of approaches to any change initiate regardless of the circumstances. It is found
that a large number of leaders struggle with identifying the appropriate leadership styles
necessary for different organisations change initiatives in order to ensure staff buy-in.
Senge in the Fifth Discipline (1990) identifies a difference between compliance, commitment
and enrolment, proposing that it is not necessary to have complete buy-in from all staff
members for a change initiative, in as much as it is reassuring to have an organisation-wide
commitment to a change initiative. Senge recommends analysing support levels required
from key stakeholders and investing resources to achieving that, as opposed to convincing all
stakeholders to commit.
Top managers tend to rely on gut feel, office gossip or official reporting mechanisms for
information about their workforce and more often than not fail to understand the people links.
Small, medium and large corporation all have informal networks, which exacerbates this lack
of understanding management has of the informal networks that exist in their organisations.
(Cross and Prusak, 2002). The majority of managers consider informal networks as an enemy
they cannot see, which impedes decision making, and productivity in the workplace. Often
leaders find themselves struggling to identify and manage these informal networks and lack
the scientific management tools to observe them (Cross and Prusak, 2002).
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Over the past two decades increased research on informal networks within organisations,
resulted in a powerful tool called social network analysis tool which aids managers identify
and map out their informal networks (Cross and Prusak, 2002, p. 6). Expanding on the
informal network theory Beckhard and Harris (1987, p. 63) created a staff readiness
capability assessment tool that assists managers to identify and rank individuals and groups
critical to a change effort.
Organisational Change capacity (OCC) is a fairly new theoretical change management
development. Judge (2011) describes OCC as a “Dynamic multidimensional capability that
enables organisations to upgrade or revise existing competencies while cultivating new
competencies that enable the organisation to survive and prosper. Even though the concept of
OCC is still considered to be in refinement stages, Judge (2011) believes an in-depth
understanding of OCC gives organisational leaders and managers the necessary tools to
increase change management success averages. Further empirical research is required to
observe the efficacy and impact aspects like trust and leadership can place on OCC (Judge,
2011).
Numerous studies have investigated the impact on OCC that the role of different leadership
styles (laissez-faire, transformational and transactional) and the role of employee trust has.
Results from a study by Yasir et al (2016), found a significant connection between employee
trust and a transformational leadership style. The study found employee trust was
insignificantly impacted by a transactional leadership style, whereas employee trust was
found to be negatively impacted by a laissez-faire leadership style. The study concluded that
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OCC was positively linked with transformational and transactional leadership styles,
however, OCC was negatively impacted by a laissez-faire leadership style (Yasir et al, 2016,
p. 9).
Yasir et al (2016) presented lucid evidence from various case studies of global companies
they worked with across multiple sectors and recorded numerous scenarios which supported
their postulated stance. The work of Gillespie and Man (2004) found a transformational
leadership style built confidence and trust amongst its followers, through building a shared
vision, motivating and inspiring followers, which collectively builds trust. Their work
supports the findings of Yasir et al’s (2016) study.
Tenkasi and Chesmore (2003) point out how the lack of understanding of social networks
during organisation change initiatives was quite surprising as their research found the locus
of change resistance or acceptance was often these networks. After studying informal
networks in 50 large organisations across 5 years, Cross and Prusak (2002, p. 6) identified
informal social networks as critical to any change initiative. Results pointed to the need for
change leaders to foster strong network relations with changes recipients to ensure successful
change implementations. A Harvard Business Review paper by Krackhardt and Hanson
(1993) also highlighted how organisational dynamics many managers misdiagnose was
informal social networks. Their stance was that radical change in any organisation was
successful when a strong social network exists within an organisation (Krackhardt and
Hanson, 1993).
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Dianne Lewis (2002) in her paper "The place of organizational politics in strategic change”,
explored how power and political dimensions are another dynamic change leaders are
constantly grappling with. Political motivation often affects change and political and power
tactics are always used to some degree when change is being implemented (Lewis, 2002, p.
2). Traditionally politics are seen as taboo in change management literature, but she makes a
good argument in regards to how politics, when used right by top management, can be used
to resolve conflicts that overt tactics could not resolve. Political resistance can also play a
positive role when initiated from the bottom up when senior management decisions have
miscalculated an intended strategic change objective (Cross and Prusak, 2002).
Planning the approach of large scale organisational change initiatives has been an enduring
goal in the field of organisational development. Substantial research and theory has looked at
cultural, technical, rational and political agents of change, from top management down and
low-level employees up, as well as whole-system strategies of participation and how they
affect the implementation of successful change (French & Bell, 2000). The adaptation of
organisations to change has been a focal point in key research tradition in the area of
organisational theory (Tenkasi and Chesmore, 2003).
Early research understood research from an internal view and approached adaptation to
change from a structural and procedural need. In the 1960s Contingency Theory changed that
narrative by arguing that just as life itself, management could not be viewed from a simplistic
principle and that many dynamics affect how we manage organisations, like the age and size
of the organisation, the impact of the external environment, as well as the technologies the
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organisation uses (Lewis, 2002, p. 2). However, the degree to which these factors affect the
organisation is still debatable.
Lewin's (1946) Force feels analysis is cited across change management literature, as a
diagnostic technique applied to determine driving and restraining forces, that determine if the
organisational change will occur (Iles et al., 2001, p. 43). Experimental research findings
support Lewin’s postulation that reducing resisting forces is more important than increasing
driving ones (Zand, 2015). Lewin’s (1946) asserted that "theory should not only be used to
guide practice and its evaluation but that, equally important, results of the evaluation should
inform theory in aa cyclical process of fact-finding, planning, action and evaluation".
Organisational assessment before embarking on any change management exercise is a critical
competency in the theory of change management. Surveys remain effective tools to collect
assessment data, but employees can misconstrue the survey itself as a threat. Ensuring
confidentiality are tactics that can be used to ensure employee honesty and transparency
(Cross and Prusak, 2002). Change efforts in organisations, that are built on erratic strategies,
often result in predictable problems. Additionally, change efforts not planned clearly and
coupled with fast execution often result in unanticipated issued (Kotter and Schlesinger,
1979, p. 6).
There is historic literature that links good leadership with a variety of positive change
outcomes (Khan et al, 2014; Yasir et al, 2016). Furthermore, there is lucid proof that
attributes successful change initiatives to sound, impactful leadership (Yaser et al, p. 3;
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Kotter, 1995). Understanding fundamental principles and theories in this field is important.
Concepts like staff motivation and its subsequent drivers, the optimal leadership style in
certain situations, understanding team dynamics and response to new ideas, and concepts like
handling conflict, are all pertinent topics for a seasoned change -manager to grasp.
Top management knowledge of politics, and what influences the feeling of injustice or
justice, and factors that bestow power within an organisation, are important principles to
master (Iles et al., 2001, p. 59). Additionally, a succinct understanding of company culture,
and how it can enable or deter change is a critical skill for senior managers and leaders to
possess when faced with needs for change. Knowing how to approach desired organisational
change initiatives, when dealing with individuals as opposed to dealing with groups is critical
to planning and executing any change initiative, whether big or small.
There is sufficient evidence to support the view that having an understanding of informal
social networks and the various organisational behaviours they impact, can help leaders
leverage behaviour effects through informal social networks. Due to the prevailing nature of
official organisation hierarchies not recognising or rewarding positive informal social
networks, these networks are often not given the necessary management attention or
resources. The ability to accurately identify these invisible company forces is a skill modern
managers need to possess to lead their organisations through modern economic challenges.
Companies responsiveness, when faced with employee resistance to change, is a strong
determine factor to the survivability of a company. Understanding the different type of
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responses, and applying the right response is what separated good from great managers. Not
all change resistance is negative, as employees can resist change which will cause unintended
disruption, disorganisation of a company’s efficiency. Therefore, having a nuanced
understanding of the various sources and causes of resistance, will be useful in managing
employees through organisational change.
Word Count: 2,054
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References
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