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Organizational Change
Why is it that people issues can affect whether the change will succeed or fail?
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Executive Summary
Organizational change can be defined as the movement or shift of an organization in any form from one state of operations to another. There are many forms of organizational change. It might involve a company's change related to structure, policies, technology, culture, strategy or procedures. Such change might be a planned processor it might be a forced change in the organization due to a change in the external environment like competition or globalization. Change in any organization is essential to sustain the competition. If they fail to change, it may affect the ability of the organization to survive. Despite this importance, employees resist the change in their organization. According to a survey by SHRM (2007), one of the top reasons for the failure of change efforts is the resistance to change amongst employees. They do not support the change so easily. Hence, managers try to overcome this resistance amongst the people for the change. This report highlights the case of ABC Pvt. Ltd. and people issues faced by the manager in organizational change. Manager of the organization considered communication and leadership as the major components in implementing the change successfully.
Contents
Executive Summary    2
1. Introduction    4
2. Organizational Change    4
3. People Issues in Managing Change    5
4. The case of Organizational Change: ABC Pvt. Ltd.    6
4.1 Communicating the change    7
4.2 Leadership    8
Figure: 1 Leadership role in change management    9
5. Conclusion    9
References    10
1. Introduction
Organizational change can be defined as the movement or shift of an organization in any form from one state of operations to another. There are many forms of organizational change. It might involve a company's change related to structure, policies, technology, culture, strategy or procedures. Such change might be a planned processor it might be a forced change in the organization due to a change in the external environment like competition or globalization. The organizational change shall be radical as well as it alters the method of operation of an organization. But it is not necessary that every planned or forced change in the organization be successful (Will, 2015). Because in any situation of change, regardless of its kind or form, change will involve altering the old method of working and adopting new ways of operating in the firm. Hence, this process will involve people management as the most important function as these operations and change in the old ways have to be adopted by the employees only. This report involves a case study of an organizational change in ABC Pvt. Ltd., a software company due to high competition and technological development. This report will highlight the problems faced by the manager in managing the change in ABC with major components of leadership and communication with the employees in resistance to change.
2. Organizational Change
Organizational change can be said to be both a process of change in the organizational strategies, methods, structure, culture or technology as well as the effects of such organizational changes. It can be continuous or may take place at different time intervals. Such change might be a planned processor it might be a forced change in the organization due to a change in the external environment like competition or globalization (Cameron, 2016). The organizational change shall be radical as well as it alters the method of operation of an organization. But it is not necessary that every planned or forced change in the organization be successful. Because in any situation of change, regardless of its kind or form, change will involve altering the old method of working and adopting new ways of operating in the firm. The factors driving the organizational change may be:
· Workforce Demographics: The Company will have to make changes in their policies and methods according to the change in workforce demographics. For example, if the proportion of ageing employees is increasing in the workforce, the company will have to plan for retirement benefits, old age social benefits etc. for them.
· Technology: Many times an organizational change can be motivated due to the technological developments in the world. As per Moore's law, the integrated computer circuits' complexity shall increase two-folds in every period of 18 months, but there will be no cost increase associated with it. Hence, the companies are motivated to change the technology they use (Weiss, 2012).
· Globalization: Another opportunity as well as the threat to organizations is globalization. Globalization opens avenues for companies to establish their units in other countries at lower costs. It forces companies to adopt international policies and strategies to combat competition. Increased competition is one of the results of globalization due to free trade policies leading to struggle for the...