---MIS2 Assignment # 5---

Base in our study and readings we are to discuss the spectrum of organizational change, and answer the question which is the most radical type of change: automation, rationalization of procedures, business reengineering, or paradigm shifts?

According to them that the only thing that doesn’t change in this world is the time. Change is not an easy thing to go through. It does not matter if it is a change in where someone is living or where someone is working. The change process is not easy. You have to be able to adapt to your new environment quickly because you will be left behind. The change process is also not easy when it comes to changes that affect a whole organization. Everyone needs to be on the same page and all of the pros and cons of the change need to be weighed out before the actual change is taken place. In the following essay I will illustrate to you an organizational change that I was apart of and the result that it had on the future of the organization. In the 21st Century, you will not have an organization change which does not involve some sort of technology change or addition. Implementation of such a change must be planned well in advance and everything that could go wrong, from a production level, is accounted for and corrected. For example, if the new system will cause another system to function improperly then we can not set up that new system until we figure out a way to make sure that both systems work properly together. You have to make sure that business will be running as usual or at a good percentage.

Because of the rapid rate of all technological innovation, technological changes are becoming increasingly important to many organizations. One major area of change involves equipment, thus a change in work processes or work activities maybe necessary. Timex, for example, 3-D design software from Toronto based software Alias Research Inc. to be able to turn out watches faster. Organization control systems may also be targets of such a change.

Another area of organization change has to do with human resources. An organization might decide to change the skill-level of its work force and the level of performance of its workers. Perceptions and expectations, attitudes and values are also a common focus on organizational change. Organizational change is anticipated or triggered because of different changing circumstances; an organization might incur a change because of forces bending its environment. These forces might be either external or internal. The external forces derive from the organization's general or task environments. The general environment is parted into different dimensions: the international, the economic, the technological, the socio-cultural and the political-legal dimension.

Before to choose in which is the most radical type of change either automation, rationalization of procedures, business reengineering, or paradigm shifts, let me first discuss the terminology “organizational change and its impact”.

What's "Organizational Change?"

Typically, the concept of organizational change is in regard to organization-wide change, as opposed to smaller changes such as adding a new person, modifying a program, etc. Examples of organization-wide change might include a change in mission,restructuring operations (e.g., restructuring to self-managed teams, layoffs, etc.), new technologies, mergers, major collaborations, "rightsizing", new programs such as Total Quality Management, re-engineering, etc. Some experts refer to organizational transformation. Often this term designates a fundamental and radical reorientation in the way the organization operates

What Provokes "Organizational Change"?

Change should not be done for the sake of change -- it's a strategy to accomplish some overall goal. (See Organizational Performance Management.) Usually organizational change is provoked by some major outside driving force, e.g., substantial cuts in funding, address major new markets/clients, need for dramatic increases in productivity/services, etc. Typically, organizations must undertake organization-wide change to evolve to a different level in their life cycle, e.g., going from a highly reactive, entrepreneurial organization to more stable and planned development. Transition to a new chief executive can provoke organization-wide change when his or her new and unique personality pervades the entire organization.

Why is Organization-Wide Change Difficult to Accomplish?

Typically there are strong resistances to change. People are afraid of the unknown. Many people think things are already just fine and don't understand the need for change. Many are inherently cynical about change, particularly from reading about the notion of "change" as if it's a mantra. Many doubt there are effective means to accomplish major organizational change. Often there are conflicting goals in the organization, e.g., to increase resources to accomplish the change yet concurrently cut costs to remain viable. Organization-wide change often goes against the very values held dear by members in the organization, that is, the change may go against how members believe things should be done. That's why much of organizational-change literature discusses needed changes in the culture of the organization, including changes in members' values and beliefs and in the way they enact these values and beliefs.

How Is Organization-Wide Change Best Carried Out?

Successful change must involve top management, including the board and chief executive. Usually there's a champion who initially instigates the change by being visionary, persuasive and consistent. A change agent role is usually responsible to translate the vision to a realistic plan and carry out the plan. Change is usually best carried out as a team-wide effort. Communications about the change should be frequent and with all organization members. To sustain change, the structures of the organization itself should be modified, including strategic plans, policies and procedures. This change in the structures of the organization typically involves an unfreezing, change and re-freezing process.

The best approaches to address resistances is through increased and sustained communications and education. For example, the leader should meet with all managers and staff to explain reasons for the change, how it generally will be carried out and where others can go for additional information. A plan should be developed and communicated. Plans do change. That's fine, but communicate that the plan has changed and why. Forums should be held for organization members to express their ideas for the plan. They should be able to express their concerns and frustrations as well.

Some General Guidelines to Organization-Wide Change
In addition to the general guidelines listed above, there are a few other basic guidelines to keep in mind.

1. Consider using a consultant. Ensure the consultant is highly experienced in organization-wide change. Ask to see references and check the references.
2. Widely communicate the potential need for change. Communicate what you're doing about it. Communicate what was done and how it worked out.
3. Get as much feedback as practical from employees, including what they think are the problems and what should be done to resolve them. If possible, work with a team of employees to manage the change.
4. Don't get wrapped up in doing change for the sake of change. Know why you're making the change. What goal(s) do you hope to accomplish?
6. Plan the change. How do you plan to reach the goals, what will you need to reach the goals, how long might it take and how will you know when you've reached your goals or not? Focus on the coordination of the departments/programs in your organization, not on each part by itself. Have someone in charge of the plan.
7. End up having every employee ultimately reporting to one person, if possible, and they should know who that person is. Job descriptions are often complained about, but they are useful in specifying who reports to whom.
8. Delegate decisions to employees as much as possible. This includes granting them the authority and responsibility to get the job done. As much as possible, let them decide how to do the project.
9. The process won't be an "aha!" It will take longer than you think.
10. Keep perspective. Keep focused on meeting the needs of your customer or clients.
11. Take care of yourself first. Organization-wide change can be highly stressful.
12. Don't seek to control change, but rather to expect it, understand it and manage it.
13. Include closure in the plan. Acknowledge and celebrate your accomplishments.
14. Read some resources about organizational change, including new forms and structures.


Managing Organizational Change

It is important to have a change in the organization. In addition, such change should be successful and must contribute towards the success of the organization. The main objective of this paper is to characterize the prevalence of the change process in organizations and understand what occurs during organizational change. Organizational change is an ongoing process in order to bring the organizational systems and processes in line with the factors prevailing in the external and internal environment of the organization. The forces of organizational change include internal and external forces. Organization Development OD refers to the framework consisting of planned-change.

Learning Objectives For Organizational Change

Organizational change is important to usher in long-term success in an organization. A change entails realignment of organizational systems and processes. Managing change involves institutionalizing the philosophy of change in the organization. Effective change management entails creating a definitive vision and managing the transition to the desired future state.

Organizational Change and Stress Management

The forces prevailing in internal or external environment of an organization necessitate organizational change. The prime challenge before organizations is to fully institutionalize the philosophy of the change. The organizational change can be either planned or unplanned. After the change has been effected, initially, there is a resistance to change.

Organizations and Organizational Change
An organization operates in an environment of constant change. In order to survive, it is imperative for the organization to anticipate any change in the environment and proactively work towards eliminating the effect of the same. Organizational Structure OS defines the roles and the activities of different organizational positions.

Types of Organizational Change

Automation: Using technology to perform tasks efficiently / effectively
Rationalization of Procedures: Streamline SOPs; eliminate bottlenecks
Business Reengineering: Radical redesign of processes to improve cost, quality, service; maximize benefits of technology
Paradigm Shift: A new perspective on things

Automation-using the computer to speed up the performance of existing tasks
• most common form of IT-enabled change
• involves assisting employees perform their tasks more efficiently and effectively
• akin to putting a larger motor in an existing vehicle

Rationalization of procedures: the streamlining of existing operating procedures, eliminating obvious bottlenecks so that automation makes operating procedures more efficient
• follows quickly from early automation
• Toshiba had to rationalize its procedures down to the level of installation manuals and software instruction and had to create standard names and formats for the data items in its global data warehouse
• Think: without a large amount of business process rationalization, computer technology would have been useless at Toshiba (what ERPs do)

Business Process Re-engineering (BPR): The radical redesign of business processes, combining steps to cut waste and eliminating repetitive, paper-intensive tasks to improve cost, quality, and service and to maximize the benefits of information technology
• Involves radical rethinking
• Can change the way an organization conducts its business
• IT allowed Baxter to be a manager of its customer’s supplies
• Strikes fear, its expensive, its very risky and its extremely difficult to carry out and manage
• Develop the business vision and process objective
• Identify the processes to be redesigned (core and highest payback)
• Understand and measure the performance of existing processes
• Identify the opportunities for applying information technology
• Build a prototype of the new process


Paradigm shift-paradigm is a complete mental model of how a complex system functions a paradigm shift involves rethinking the nature of the business, the organization; a complete reconception of how the system should function. Radical reconceptualization of the nature of the business and the nature of the organization
• akin to rethinking not only the automobile, but transportation itself
• e-business is a paradigm shift
• Deciding which business process to get right is half the challenge
• 70% of time programmatic reengineering efforts fail
• Why then change? Because the rewards are high!

To close those gaps managers should know how to face and overcome resistance to change. Although there are no certain solutions, several techniques at least have the potential to decrease or even eliminate this resistance. Participation is often the effective technique for overcoming resistance to change. Employees who participate in planning and implementing a change are better able to understand the reasons for the change. Uncertainty is reduced, and self-interests and social relationships are less threatened. Having had an opportunity to express their ideas and to understand the perspectives of others, employees are more likely to accept the changes more gracefully. Educating employees about the need for and the expected results of an impending change may reduce their resistance. And if open communication is established and maintained during the change process, uncertainty can be minimized. Several facilitation procedures, which include making only necessary changes, announcing those changes well in advance, and allowing time for people to adjust to new ways of doing things, can help reduce resistance to change.

We conclude that whatever the changes inside an organization might be, and whatever the reasons that made these changes necessary, a good way of implementing the changes successfully is for a manager to treat the participation and the communication with his employees as integral parts of the change process.

Sources:
http://managementhelp.org/mgmnt/orgchnge.htm
http://www.zturk.com/edu/zagreb/podiplomski/slides/02-1-short-IT-strategies.pdf
http://dictionary.bnet.com/definition/organizational+change.html