EffectiveOrganizational Change Management
EffectiveOrganizational Change Management
Inthe course of their existence, organizations are forced to make someadjustments in the way they conduct their operations and also intheir structure. Unless the change is managed effectively, it couldcontribute to the failure of the organization. In many cases, themanagement may decide to force their ideas without involving managersat lower levels (Miller,1990).This is dangerous and it often backfires on them. It helps toinclude all the people to secure backing for the idea.
Thebusiness environment is highly competitive. During the formativeyears, all the people working in the business are fully committed toachieve their objectives. Companies set very lofty objectives theygive everything to achieve. However, once they achieve all theirobjectives, they become less strict on the way they conduct theirbusiness. The same thing occurred to Icarus when he soared near thesun without thinking of the danger he was exposing himself to(Miller,1990).As a result, the wax that held his wings melted and he plunged to hisdeath. Many high-flying firms collapse because they become complacentafter being successful and fail to look out for the little thingsthat might bring them down.
Everyinstitution irrespective of its size has a culture that it follows.Corporate change is about developing a new culture. Companies shouldhandle change carefully as it can create many problems. In order forthe change to be effected without any problems, the people in theorganization should accept and embrace it (Miller,1990).If it is against their culture and expectations, then they willresist its implementation. Any kind of change means some things,people, attitudes, approaches and even goals will have to be dropped.After being used to a particular system, it is often hard for thepeople to accept something new unless they are handled carefullyuntil they accept it.
Itis common for business to get into financial problems. In suchcircumstances, the creditors pile pressure on businesses. Unless anunderstanding is reached with the creditors, the pressure might leadto a financial crisis (Miller,1990).Most of the creditors are willing to accept new payment terms as longas there is a commitment to make the payments as it has beenpromised. Care should be taken to ensure the cash received in thecompany is managed in the best way possible.
Companiesmake lofty goals that they work very hard to achieve. When theyachieve their aspirations, they are tempted to become complacent andcareless. They start making mistakes that can cost them theirposition in the market. As a result, new firms emerge that takeadvantage of their mistakes. Before they are able to react to thechanges in the market, they find their market share hasshrunk(Miller,1990).It is important or the firm to watch out of the happening in themarket and respond to them in the right way. Failing to make changesto their approaches means that they will lose to the fast growingcompetition.
Ina corporate setting, there are several departments. There are thosethat are responsible for the incomes of the firm. Such departmentsmight be treated preferentially in one way or another. This isdangerous as the trend creates inter-department conflicts. The peoplein the favored departments might consider them special and ignore theothers. The management should make efforts to make everybody feelappreciated(Miller,1990).All the departments have a crucial role in the general performance ofthe business. Without those who seem to be poor performers, even thebetter ones could not reach the same levels of success.
Therewill be no effective change without the involvement of all the peopleworking in the organization. The actions or inactions of workers atthe lowest levels can ruin the big dreams of the firm. Managementshould find the best way to assimilate the ideas of all the people toensure the envisaged changed is accepted. Problems can be avoided ifall the people get behind the management and work towards the commongood of the firm(Miller,1990).Cash flow management is very important. Businesses should managetheir financial resources and pay their debts as they fall due. Itcan be very frustrating when the creditorsstart calling for thedebts. Where there are genuine challenges in managing cash flow,companies should appreciate the problem and find the best way tohandle the situation. If creditors stop their supplies or attach theassets of the business, there could be serious problems.
Changeis inevitable in the business world. In order to ensure that thechanges are made effectively, proper planning is necessary managersshould determine where they want to go in the proposed changes andtake appropriate steps to achieve it. Those that fail to makeadjustments are swept away(Miller,1990).Failing to make proper plans to respond to the changes in theenvironment can be disastrous for the business. Managers should alsoensure the transition is done smoothly by incorporating the views ofmangers in the lower levels. If this is not done, there will beproblems when implementing the change.
Inconclusion, the study of corporate change is necessary because ithelps managers know how to respond to change. The businessenvironment is dynamic and business leaders should always be ready torespond to the changes(Miller,1990).There are many ideas that can be used to deal with change. However,business leaders should select only those ones that are applicable intheir situations.
Somesuccessful firms have been sent out of business. This is because theyhave started pursuing short term targets as well as neglecting theproduction and customers who are the key assets in the company. Thefinal result has been massive employee layoffs and stressful workingenvironment. This has been realized in America where thecompetitiveness of business is way down as compared to other nationslike China and Japan. This has been realized in the American airline.After gaining a lot of benefits from their investment, they neglectthe business ethics by abusing and imposing strict guidelines. Forthe American Airlines, the employees have been mistreated as a resultof confiscation of their travel awards to save the revenue of thecompany. The end result has been the discouragement of employees whoend up being hostile particularly when mileage credits. Therefore, itis apparent that many organizations have ensured the employees aremotivated to improve the productivity of the company.
Itis recommended that, employees must not be abused and allowed toconduct their work in an ethical and consistent manner. Manycompanies are faced with financial distress when it is not able topay its debts as a result of company’s management structure oroperation. This will constrain the management and therefore, the topmanagement has to be laid off or forced to retire.
Incorporate governance, new governance structure has to be imposedwhenever there is financial distress. When the new management is inplace, then they can plan on how to maximize the value of a firm anddecide on the mode of paying the creditors in addition to maximizingdevelopment and production. Thus, the corporate governance shouldalways be reviewed and ensured that it is complete so that it shiftsits control whenever the insolvency threatens.
Miller,D. (1990). TheIcararus Paradox How Exceptional Companies Bring About Their OwnDownfall,Harper Business.