Managing change within the organization
Managing Change Within the Organization
Stephen Kerr
Reasons for change
Planned change is change that is driven from the top down (Doppler and Lautterburg 35.) The change is well prepared and constructed to further the growth of the organization.
Emergent change develops from within the organization and is a result of an unexpected growth or failure (Doppler and Lautterburg 36.) Emergent change occurs when an organization is too static and not proactive in seeking out change.
Change can occur in four general areas: structural, cost-cutting, process and cultural.
1. Structural change consists of consolidations, mergers and acquisitions. Usually a direct result of financial growth (planned change.)
2. Cost-cutting change is an attempt to streamline operations through outsourcing and combining similar units. (planned or emergent change.)
3. Process change seeks to improve operations by making them easier, faster, more effective and less costly. Essential to the success and sustainability of an organization (planned change.)
4. Cultural change occurs as a result of deteriorated relationships and leadership. Tends to be in response to conflict or crisis (emergent change.)
Organizational climate and culture
Organizational climate describes the atmosphere within the organization and the extent which people work together. The organizational climate can be measured by the frequency and quality of internal communications.
Organizational culture is defined as how an organization views itself and how the employees within it feel about the organization. The organizational culture can be measured by the commitment to the organization, what the organization stands for and how the employees respond to management.
Employee Resistance
With all change comes resistance. Many employees fear change because they have become comfortable in the current system. Change can amplify deficiencies that were hidden under the old system and render employees vulnerable.
According to Gateway Information Services, a consulting firm, 70 per cent of corporate re-engineering and cultural change programs fail due to employee resistance (Reynolds.)
The four stages of change
Humans experience four distinct stages in the change process: denial, resistance, exploration and commitment (Doppler and Lauterberg 117.)
1. Denial takes form in the disbelief that changes will occur or make any difference in their day to day activities.
2. Resistance is expressed through bad mouthing management, continuing with old routines and a failure to assist change.
3. Exploration is when people need practical encouragement and support. Employees need to be involved in planning and setting goals.
4. Commitment is the time to implement an appropriate cultural change program. Recognize and reward people who respond well to change.
During the denial and resistance phases, employees dwell on the past and tend to be self-absorbed. The atmosphere of the organization suffers as tension and stress rise.
Four types of individuals involved in organizational change
1. Those individuals who thrive on change.
2. Those who are happy to provide support and willing to accept new challenges.
3. Those who perform well but are uncomfortable with change.
4. Those whose resistance to change is so strong that the company is better off without the
(Brill and Worth 77.)
Gateway Information Systems has broken down the percentage of employee responses to change within an organization. The chart indicates that 88 per cent of employees will be able to adjust under circumstances of change, while 12 per cent are unable to adjust and will be a burden to the organization (Reynolds.)
3% Innovators - Those who accept changes immediately.
9% Early adopters - Those who accept changes within the initial stages.
38% Early majority - Those who accept changes once change is underway.
38% Late majority - Those who accept changes after a lengthy adjustment period.
12% Staff that won’t get there - Those who will never be able to accept changes.
Making change possible
• Maintaining a positive organizational culture and climate is the primary responsibility of management while making change possible.
• Change requires positive leadership to keep employees focused and confident.
• Preparing the environment requires discussing the change with all employees. When people realize that the change will occur, resistance decreases.
• Show concern for both the employees and the organizational change. Managers must act as a buffer to protect their employees.
• Sharing knowledge is crucial, as information about where the organization is headed can give employees a clear idea of the organizational direction.
• Recognize the accomplishments of employees. A simple thank you can go a long way in reinforcing the belief that the organization values change.
An organization ready for change
• An organization ready for change must be agile, fluid, have great internal communications and have a plan in place for emergent change.
• Great internal communications help an organization accept and adopt change.
• Involvement of managers is imperative, as they act as role models for employees and are key players in cultural change.
• Staff must be aware of what is expected of them in regards to the change. Taking personal responsibility allows the change effort to move ahead smoothly.
• Management must strive to create a culture that accepts change and thrives on it.
Four conditions for organizational change
1. A workforce that is business literate.
2. A workforce with permission to act.
3. A workforce that will challenge the status quo.
4. Leadership that fosters a culture ready for change (Brill and Worth 134.)
• Business literate employees understand both the strategic context of business and they personal impacts they can have on critical business outcomes.
• The workforce must have permission to act with the authority and power to make day to day decisions.
• A workforce that challenges the status quo erases the typical hierarchy of ideas, where all innovative thought comes from the top down.
• Leadership that encourages a culture ready for change leads to a well prepared and confident workforce that meets change head on.
Works cited
Brill, P. and Worth, R. “The Four Levers Of Corporate Change” AMACOM
Publishing. (1997.)
Doppler, K. and Lautterburg, C. “Managing Corporate Change” Springer Publishing. (2001.)
Reynolds, L. “Understand Employees Resistance to Change” HR Focus Journal, Volume 71, Issue 6. (June 1994.)


