Topic > Change in top management

IndexNeed for strategic change in an organizationFactors that drive changeForce field analysisA system for involving stakeholdersInvolving stakeholders in change management strategiesResistance to changeKotter's change modelOvercoming resistance to changeManagement Change is an ongoing process and is followed by many organizations on a routine basis (Schroeder and Self, 2008). This process aims to achieve successful strategies, manpower and processes for an organization. Managing an organization usually requires change mainly due to its strong competition in the market due to globalization factor, technological innovation and demographic trend. Many people disagree with the concept, but few say that the organization is achieving good results managing major changes within it. Greenwood & Hinings, 1988 state that an organization needs to survive and to do so it anticipates and adapts to these changes through strategies that include organizational redesign. This adoption of strategies leads to change in the culture of the organization. (Schroeder and Self, 2008 cite Collins, 2001) stating that organizations that fail to adapt or respond to required changes in a timely manner run the risk of losing their market share to competitors, further implications could be that they could lose key employees or lose shareholder support and in extreme situations even death. They also outlined two key challenges organizations face. The first would be to recognize the need for change and the second, more significant, is how to implement the strategies formulated to implement the recognized changes. If the change implementation is planned correctly, the chances of failures are significantly reduced and the consequences of the failed change process, such as a decline in employee morale or decreased commitment, could also be prevented. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get Original Essay Need for Strategic Change in an Organization Coco-cola Company is one of the famous manufacturers and distributors of soft drinks. It operates in many parts of the world and provides services to various clients. Today, many companies are using a new approach for their products to reach more target markets and to ensure that they can survive the challenge of globalization. For this, the company must develop a new process of change to sustain itself in the world market and face fierce competition. The current status of Coca-Cola stores in Hong Kong is quite good and it is still one of the major distributors of soft drinks in Hong Kong. However, when compared to other Coca-Cola convenience stores around the world, the marketing, inventory, and workforce performance are not equivalent to those of other Coca-Cola companies. For this, the company decides to increase marketing and inventory efficiency as well as workforce productivity through the implementation of change management programs for maintaining standards and sustaining in the global market. If changes were applied within management, there would be an increase in company production in the future. Factors Driving Change Coca-Cola's primary goal is to meet and satisfy customer needs with excellent product manufacturing and distribution. The change management of this company is very fragile as they expected that there would be some marketing challenges in the near future whichthey would have to face. In order to access changes in the Coca-Cola Company, it is necessary to concretely identify the problems related to the company. The radical change process will affect Coca-Cola Company's employees and other stakeholders. In essence, the course of change is towards workforce development and not services. Since the company has already established a reputation of providing good services in the market. The change also concerns the possible financial problems that the company may face in the near future. From this discussion, the following figure shows the force field analysis of the suggested change management procedures for applying change management within the Coca-Cola Company. Force Field Analysis From this analysis, it is clearly seen that the forces calculated for the change are much higher than the forces against the change. Force field analysis is one of the most important tools used in change management (Bass, I. 2009). This means that the plan is quite logical compared to the possible opposition. In reality, change management is essentially defined as the formulation and assimilation of change into a methodical process (Kotter, JP, & Schlesinger, LA 1979). This means that the main goal of change management is the introduction of new systems into the work organization, so the change project is normal for companies engaged in change management. Similarly, this can be compared to adopting new marketing strategies. Companies like Coca-Cola Company normally have to undergo change to evolve towards a higher level of, for example, stability, management or production. The Coca-Cola Company has always wanted extreme development. Coca-Cola's CEO may include changing the company's mission, reforming business operations, applying new technologies, major team efforts, or adopting new programs. Usually, the organization is encouraged to opt for change management due to external influences, usually termed environment (Nickols, 2004). Therefore, change management can alternatively be defined as the response of various companies to changes brought about by environmental influences over which the organizations have little or no control. Perhaps the space between the design of the new organization and its implementation in reality covers the entire coverage of organizational change and development. However, some skills must be present on the part of the initiators of change in order to successfully implement their project. Therefore, managers must have the necessary skills not only to identify what needs to be changed, but also how to introduce the change effectively. increased marketing and inventory efficiency, as well as effective employee manpower. Stakeholders belong to the parties related to the company that can derive benefits or negative effects from the change (Friedmand, 2007, p. 172). Identifying stakeholders and their interests is important to develop ways to win over these different stakeholders who could contribute to the success of the planned change. Determining the stakeholders or parties affected by the change along with the impact of the change on these parties is also important for prioritizing the interests of the stakeholders and solving the problems faced by the stakeholders. (French & Delahaye, 1996, p. 22) Involving Stakeholders in Change Management Strategies There are a number of stakeholders in planned change who fall under internal or external stakeholders. TheFirst it is the top management of the organization who decides on the change, directs the strategy, implementation and responsibility for the results of the change. Second, it is the middle managers who are minimally affected by the change and include the implementers of the tasks that constitute the change. Third, employees are also affected by change and act as initiators of the change process. .These three stakeholders also constitute internal stakeholders since they are part of the organization and directly experience and participate in the change process. The fourth is the company's bottler partners who could be affected by the product change. The fifth is the investors and investment parties who provide the necessary capital in the change process. The sixth are the customers to whom the change is directed and by whom the impact of the change is evaluated. These last three stakeholders include external stakeholders not being part of the organization. These stakeholders influence the change indirectly but could influence the success of the change management activity. The most important analytical tool is the resource dependence theory (Frooman, 1999, p. 191) which classifies the relationship between the enterprise and stakeholders into four types, which are 1) enterprise power, 2) high interdependence, 3) low interdependence. interdependence and 4) stakeholder power. The nature of the relationship determines the issues that require resolution to effectively manage stakeholders. The central idea of ​​this analytical tool is the recognition of the limited self-sufficiency of businesses, whereby they must rely on their environment to cope with difficulties. Company-stakeholder relationship Stakeholder Power of the company Middle managers, Employees Power of stakeholders Customers, Top Management High interdependence Investors and parties involved in the investment Low interdependence Suppliers The implementation of this analytical tool shows the priority of the organization's stakeholders in achieving the planned change in the context of resource accumulation. Since the company has a heavy dependence on investors and investment parties as a source of capital, investors also rely on the company to earn returns. This means that the company should develop a mutually positive relationship with investors and stakeholders. Since the power of stakeholders is high in the case of customers and top management, this means that the company should consider the important role of top management in directing the change policy and of customers in justifying the change area. Resistance to changeThe main success of implementing change is achieved by identifying and understanding the factors that block the implementation process. Kotter (1996, p. 3) described blockages as the set of obstacles and problems encountered by companies in the course of implementing change. Unaddressed resistance can lead to severe delays, the accumulation of additional costs, and even failure to implement change. Resistance finds an explanation through the transition curve (Fisher, 2001). Resistance to introducing changes in marketing, inventory and staff performance at Coco-cola Hong-Kong will depend entirely on the managers and employees of the organization. It also restructures the organization by making some management changes by removing some employees or positions or by adding more employees or reassigning employees. This situation creates fear in the minds of employees and managers. The change also affects the hiring of new employees, which can beperceived as a threat by existing employees. In particular, there are many sources that may oppose the planned change. Employees have some concerns about their employment status if any changes are implemented. Therefore, employees' initial response will be to fight against the change to prevent their current position. On the other hand, it can create a positive attitude in employees that the new change will secure their position after the changes are implemented. Employees experience greater confidence by improving their skills and knowledge and completing their work effectively. Yet another issue concerns the different perspectives of managers and employees regarding the purpose and impact of the planned change. The difference in opinions could divide support for the change. Last is the negative perception towards change due to lack of consultation. Implementing the change without sufficient consultation, based on the perspectives of managers and employees, could develop a negative regard towards the change. Kotter's Change Model Kotter's model provides eight reasons why the change process in an organization fails. This means that if these eight reasons for failure are removed or their impact is minimized, a successful change process is possible. These eight steps can be divided into three categories: preparation (steps 1-4), action (steps 5-7), and grounding (step 8). So Kotter's model can be used to evaluate the change process in the Coco-cola company: Establish a sense of urgency: Coco-cola's senior management realized that a change in their operating system was necessary in order to grow in business. Therefore, the Coco-Cola company in Hong Kong was not slow to address the issue and realized the need for technological innovation and new marketing strategies needed in business operations. These were the internal factors that the company was sorting out after reviewing the financial report of convenience stores. All in all, it can be said that the sense of urgency has been established. Form a powerful guiding coalition: The second step is to create a strong guiding coalition. Coco-Cola management has formed a team of experts to help guide the management change process. Create a vision: The team of experts appointed by management presented a new vision to drive the success and growth of the organization. They also suggested some strategies to realize the vision in a short period of time. Communicate the vision: Management has created a vision for the change and it is very important for the company to communicate the vision to its employees. The company planned to increase the productivity of its workforce. Therefore, this may create a conflict or misunderstanding between the company's management and employees in communicating the vision. Top management should adequately guide employees on how to respond to such a change. Empower others to act on the vision: At this stage, Coco-cola's management failed completely because they did not empower employees to implement that vision. Employees were not encouraged to take risks without management approval and could not make decisions on their own. Even the management never welcomed new ideas from employees during branch meetings. Planning and creating short-term successes: In this case, management needed to motivate their employees by creating short-term goals for them with a low degree of failure. But it wasn't like that. Not.