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Every Organisation Has To Prepare For The Abandonment Of Everything It Does"( Peter Drucker). Discuss This Statement In The Context Of Change Management And Strategy

2993 words - 12 pages

INTRODUTIONWhat is change management and strategy & why has it become compulsory to be carried out in organisations?Management , in an organisation, is to make things happen within it in order to make it's goals and objectives achievable. Strategies should be implemented , decisions and actions should be taken from time on time so that the an organisation can remain competitive in today's globalized market & economy. Although , many decisions and some strategies do not lead to an organisation to change , there are many that depend on change management skills. Peter Druker's statement is viewed at the same angle by many other management consultants. The reality is that nothing last ...view middle of the document...

Also some organisations might find themselves bound to change campaigns due to expansion , addition of branches or relocation of their primary headquarters.Moreover , the need for change can arise as a result of pressures both within and outside the organisation. In fact this need for change , this attack on the status quo , will usually result from one or more of the drivers; external pressures , poor performance , or internal dissatisfaction. External pressures arise as a result of :Changes introduced by competitors- such as new products , new packaging , stronger marketing , lower prices and so on.Change brought about by political or economic circumstances. Examples could be rate of increase of interest , political pressure on public sector organisations among others.Changes in marketplace perceptions , such as shift of trends in consumers perceptions and perceptions of consumer pressure groups.Technological change that introduces a more efficient way of producing products/services ( such as shopping via the internet or by telephone orders through call centres) or perhaps changes the way things are done( such as communication by email)The above four elements of composite change can be termed as PEST analysis-PoliticalEconomicSocio-cultural ( e.g public perception)TechnologicalTheoretical foundations of change managementThe three main theories of change that underpin models of change management can be distinguished by their perspective concentration on individual, group and organization. This leads on to an examination of models of change management themselves which reveals that the principle ones all stem from the work of one person.(Kurt Lewin -1890- 1947)Lewin's three-phase theory model for managing change, organization development, and macro change theories are useful for managers to understand the dynamics of change. It is also important for managers to know how to overcome resistance to change, including education and communication, participation and involvement, negotiation and agreement, manipulation and co-optation, and the use of coercion.Step 1: Unfreeze existing normsTo unfreeze the group's cultural norms, Lewin provided the group with data about its negative normsBy being confronted with the data, members would lower their commitment to the existing norms.Step 2: Change to new normsOnce the group is open to change, the new norms intervention designed to facilitate those norms can be introduced.Step 3: Refreeze (the new norms)Once the group is at a new, desired equilibrium, policies to support it can be put in place.Downsizing and Re-Structuring.Many organisations have adopted the downsizing approach in an attempt to make company's financial statements remain ever strong and satisfy shareholders who have a vested interest in an organisation as far as it's profitability is concerned.. Downsizing occurs within a definite time period , that is the campaign is usually over three months , six months or a year at the worst. There are a...

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