The process of change is becoming an ever-increasing reality within organisations throughout the world. ‘Today there is more change to contend with than ever before. The volume, momentum and complexity of change is accelerating at an ever increasing rate. (Conner. 2002 p38). Transformation outsourcing involves a form of change on a immense scale throughout an entire organization replacing old systems with almost entirely new systems. This kind of change brings potentially great benefits to all organizations involved but it also carries great risks.
The first section of this report endeavours to identify the risks associated with such a large scale change in general terms, but ...view middle of the document...
2. Identification of risks
2.1 General risks associated with change
The general risks involved which are connected with change are essentially the same for all organisations.
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Change is seldom easily accepted because people like to know their future is going to be just as they expect it to be. If change occurs which they have not anticipated in their future, then clearly it disrupts this image of what they expect to have in their future state.
The main stem of all risks associated with change originate from the individuals natural resistance to change, and the so often produced side effect of discontent and anxiety associated with that change. Such feelings can either be festered or dispersed or at least reduced depending on the action taken by the senior members of staff as well as the individual. However this section will focus purely on the risks and comment on the potential mitigation of these risks will be covered in following sections.
Discontent and anxiety can, if not dealt with quickly it can spread rapidly across a team of workers and all those concerned with the associated change. Danger signals to this discontent and lack of enthusiasm can include missing meetings about the change, making little effort to learn about the new systems involved, not releasing staff for training and a number of other subtle and some less subtle signs which need to be detected by whom ever is most senior and dealt with appropriately as quickly as possible (Boddy and Buchanen 1992, p124). The potential spread of discontent can make an initially small problem very quickly into a much larger one especially if members of management or more senior figures in the organisations hierarchy share the discontent.
The direct risks carried by allowing such discontent to exist and persist include the reduced efficiency of employees work performance, something which is of particular importance during periods of change where the process of change itself requires a huge amount of effort to succeed on any large scale, and requires both commitment and hard work, which may not be so readily available if the workforce is discontent and unwilling to accept the change.
It is often necessary to obtain advice or information from an individual who has expertise or unique knowledge of a system or part of the business who may then be called upon to gain useful input to ideas and new processes. If this...