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Leading Organisational Change

1. Introduction - Leading Organisational Change

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Organisational change is the process through which a company moves from its current condition to the desired future one. It is referred to as “leading organisational change” when the effort to implement change is planned and executed in such a way as to minimise employee resistance and cost to the business while also maximising its efficiency, as opined by Anyieni et al (2016). An overwhelming number of sources are forcing firms to deal with rapid and sometimes unwelcome change (Waddell et al, 2019). Employees at all levels, from the most senior to the lowest, exert internal pressure for improvement. Changes in the legal, competitive, technical, and economic landscapes put pressure on businesses. Problems that a firm is having can lead to efforts to reform the organisation. However, in certain circumstances, organisations are urged to change for beneficial reasons, such as in the case of the expansion of Richard’s business. This report will discuss how he can lead this change process during business expansion and will identify major areas for change in this process, potential areas of resistance towards the change and a mitigation method using a model. It will also identify which external or internal forces will have the most impact on this organisational change. Finally, it will recommend steps with an implementation plan to make changes in the identified areas for effective expansion.

2. Two Areas of Change for Business Expansion

2.1 Major Areas of Consideration during Change

“Strategy, technology, structure, and people” are the four key elements of organisational change, as Bateman & Zeithaml (1990) have explained. As a result, when attempting to alter one of these areas, businesses typically find that they must also alter the others.

Strategy: Small-scale strategic changes, such as increasing efficiency or reorganising the company’s resources to enter new markets, are examples of large-scale strategic change (Hamilton, 2020). When a company realises that its existing strategy is no longer working, it must create a new vision for the future, implement the new vision, and construct new processes to go along with it.

Technology: Though they may occur on their own, technological advances are generally parts of bigger geopolitical shifts (Metcalfe, 2018). A crucial part of new technology is evaluating which employees will be affected. The construction of a management structure to supervise the adaptation of a company’s processes to new technologies is necessary.

Structure: Changes in strategy, operations, or management style may also cause a firm to undergo structural changes, such as when it chooses to purchase another company and integrate it. Based on the opinion of Windolf (2018), hierarchical changes may be necessary to achieve more participatory decision making in a corporation.

People: Changes in the workforce may be necessitated as a result of other changes, or corporations may simply aim to alter the attitudes and behaviours of employees to boost productivity. Workers’ attitudes may be adversely affected by workplace changes, such as the introduction of new technology (Bateman & Zeithaml, 1990). On the contrary, management frequently launches programmes with the stated purpose of affecting employees directly and positively. In any case, dealing with people is the most challenging and vital part of any change effort.

2.2 Identification of Areas of Change for the Expansion of Richard’s Business

Nothing can be of actual priority when everything seems to be. As a result, many leaders or executives find themselves leading from a state of uncertainty in the wake of the COVID scandal. For years to come, the COVID-19 problem has impacted the way businesses operate across all industries and locations (LaBerge et al, 2020). Digitalization of consumer and supply-chain connections and internal processes has risen in the previous three to four years, as shown in a recent “McKinsey Global Survey” of senior management (Lund et al, 2020). Efforts to restructure organisations are being met with higher expectations than ever before. They hope that digital transformation would help them remain competitive and maintain a strong staff. In the current business and economic climate, Richard’s business needs new tactics and techniques to remain competitive, and for the expansion of his business, he initially needs to focus on the implementation of the change process in the strategic and technological areas of the business.

During the financial crisis, companies that had effectively implemented strategy adjustments were the first to market with new products. Their pioneering efforts with new digital technologies also made them pioneers in their fields. Faster delivery of essential business information and the reallocation of resources for new projects are also more common among these employees. Based on the report of Anderson & Marshall (2020) published in IBM, the global COVID-19 epidemic has changed the way businesses work for good. Several firms have permanently altered their organisational model as a consequence of the epidemic, according to surveys. Environmental concerns such as pollution, climate change, and other threats to global health were a major focus of sustainability plans before the discovery of coronavirus. A human health emergency brought environmental sustainability inextricably linked to questions of safety and health for the individual. Pandemic-induced adjustments in strategy, management and operations as well as alterations in budgetary priorities must be accepted by executives. Digitization, change, and the use of the cloud will all get increased monetary support for Richard’s business.

In terms of certain more visible changes taking place, technology has turned to be almost unyielding in its ability to develop and then re-invent contemporary life. No organisation, as per Craig (2017), can afford to overlook the potential that evolving technology brings in a globalised environment where demands and competition are increasing. Almost every sector now acknowledges that the way they do things and the products they sell will never be the same again. In today’s world, more than a billion individuals carry either supercomputers or smartphones, depending on how comfortable they are with technology. The COVID-19 responses have hastened the use of digital technology for many years. Richard must keep in consideration that many of these developments might be here for the long term.

3. Probable Resistance and Mitigation Approach

3.1 Probable Resistances to Change

The followings are the probable resistances that are going to be discussed below:

Human Resource Management

The primary goal of any firm is to make sure that the employees are having a proper work environment, opportunities¸ for effective nurturing so that the workforce can effectively increase their productivity. To achieve the sustainable development goals of the organisation requires a proper and effective procedure regarding the strategy implementation. The resistance coming from the side of the workforce in terms of changing which is also known as RTC (Resistance To Change), the employees unwillingness to adapt to the changes is among the prime factors for the organisational change. This is no surprise that the international labour market is evolving and the necessity of flexibility, continuous innovation and technological changes are obvious, the relationship between information and communication technology has already begun to penetrate all the elements of life (Diedericks, Cilliers & Bezuidenhout, 2019).

Another important aspect that comes under the whole notion, as well as the reality of Human Resource Management, is effective training and development. There is no denying the fact that “Training and Development” are the most important elements for the growth as well as the success of any organisation looking to expand or focus on the existing operations of the business (Malik, 2018). Richard’s new expansion business is bound to face this change since the quality of the product or services is primarily dependent on the level of skills that the employee is having or developing with the process of effective training and development or actively participating in the self-development growth. The ineffective training and development for the workforce can result in the weak performance of the employees and this can also lead to the high turnover of employees since the employees are not well trained for handling the business operations. This is among the probable resistance factors that Richard could face.

Disruptive Technology and Technological Changes

The next probable resistance that Richard could face is not adapting to the new technological advancements as well as the whole notion of disruptive technology and major identical changes taking place in the business environment which is connected as well as essential for the strategy development including the training and development to achieve the goals and objectives of the organisation (Harvard Business School Publishing, 2019). For instance, currently, various modified or customized software are being used regularly by the big corporations that mandate the need for huge investment in technological advancements.

Disruptive Technology means the technological changes that take place based on the competition such as Netflix disrupting the market by using a new model of business of offering DVD rental service via using the online subscription model. Richard’s new business expansion is also bound to face this problem of technological advancements that also includes the “Disruptive Technology” (Anindita, 2021). Various examples of disruptive technology such as Cloud Technology that can enable the organisation to assist in data analysis as well as mobile computing, other uses such as cloud storage etc are some of the effective instances where the company or organisation can face difficulties in terms of adapting to the disruptive technological changes that come under the umbrella of technological advancements.

This is a fact that the disruptions comprise of AI (Artificial Intelligence), Robotics, networking as well as advanced manufacturing, these all are the probable resistances that are essential to overcome. The training and development of the workforce are also very essential since they can contribute to increasing the productivity of the company or else it might decrease the overall productivity of the organisation. Information and technology is very essential for the whole Human Resource Management (HRM) since it enables the HRM in optimizing the human resources (Ojo, Tan & Alias, 2020)

3.2 Mitigation Approach

Human Resource Management

The employees or the human resource are the most important assets for any organisation especially in this time of technological advancements as well as the pandemic, the majority of the organisations are facing (McCosh & Wayne, 2018). For overcoming the challenges regarding improving the effectiveness of the human workforce of the organisation, there is a strong need for the impactful criteria of the leadership in all the aspects of the operational areas of Richard's new business expansion especially adapting to the changes in the whole process. The prime reason for the ineffective utilization of human resource management is when the companies put low investments in human resource management. Investments in HRM are essential for overcoming the resistance to the whole changing process (Greer, 2021).

There is no denying the fact that technological advancements are mandatory for the development of various aspects of HRM since the technological changes could allow the organisations to attain faster, reliable, precise and efficient results with the reduction in terms of the cost of HRM. As discussed above that the quality and skill of the employees are directly reflected in the product as well as services of the organisation. There could be many employees resist various changes in the organisation's policies and that can be overcome by the implementation of HRM since it can aid in solving the problem by developing an effective and proper communication channel plan, roadmap for the goals and objectives of the organisation which can hugely assist in providing clarity to the employees or the workforce (Nachit & Okar, 2020).

Disruptive technology is summarised into

four categories of artificial intelligence, robotics, networking and advanced

manufacturing (Evans, 2017)

Disruptive technology is summarised into

four categories of artificial intelligence, robotics, networking and advanced

manufacturing (Evans, 2017)

Disruptive technology is summarised into

four categories of artificial intelligence, robotics, networking and advanced

manufacturing (Evans, 2017

Disruptive Technology and Technological Changes

The pace at which the technological advancements are taking place is rapid and the companies who can’t able to keep up with the technological changes or the disruptive technological aspect is going to decline and can even lead to failure in the business environment (Deidda et al., 2019) The organisation’s ability to actively engaging and participating in the whole process of innovation and creativity is going to be the huge contributor in overcoming the problem of not able to keep up with the technological advancements as well as the disruptive technology. Richard’s new business must not resist in terms of changing the business model when the need arises or reinventing the business models.

One of the effective and proper examples for this will be “Netflix”, this company didn’t resist reinventing its business models based on new technological advancements. The company move their offline DVD rental business to the online digital space for selling their services which involves the introduction of the “Online Subscription Model”. The above point also put a huge emphasis on the importance of technological advancements as well as a disruptive technology. The technological advancements will enable the organisation’s HRM to make effective utilization of the data analysis ultimately that will assist in understanding the different trends in the business environment that will be probable resistance to change and thus it is solvable (Srinivasan & Swink, 2018).

4. External and Internal Forces Influencing Organisational Change

Changes in processes, methods, systems, operations, technology and the structure of an organisation are all examples of organisational change. Change in an organisation may be developmental, transitional, or transformative in nature, depending on the circumstances. According to Waddell et al (2019), organisational change may be caused by a single reason or a combination of causes. Financial/economic, technical, political, social, legal, employees’ performance, the ideology of leadership, etc. are all examples of these. A wide range of variables, both internal and external, may influence a person’s behaviour. Strategy shifts may be caused by both internal and external factors and have a direct impact on the way businesses are operated.

4.1 External Forces Influencing Change

Organisations operate in a wide-ranging context. The external elements, as outlined below, of organisational transformation are more difficult to handle than the internal ones, as per Rizescu & Tileag (2016), Rocque (2017), Rosenbaum, More & Steane (2018) and Smith et al (2019).

Competition: Every day, the competition is becoming stronger and more intense. An organisation’s innovative marketing tools and techniques might upset the overall market trend. As a result, every industry participant must adapt and devise a plan to remain competitive and grow in the market.

Market Opportunities: New business opportunities arise as a result of economic growth. When companies seize new market opportunities, they expand as well. Changing methods, learning new abilities, and hiring new workers is necessary for this to happen.

Technology: Technologies also have a significant impact on the way changes are shaped. Technology is a tremendous force. In today’s digital environment, firms must constantly modernise their technology to stay competitive. For example, about a decade ago, having a presence on internet marketing platforms wasn’t a must for every business, but it is now.

Economy and Politics: Both domestic and foreign politics and economies affect business. Single events have the potential for significant economic harm. Organisations must keep a careful eye on and assess political and economic developments, and make adjustments as necessary.

Social Change: Changes in social norms, educational attainment, urbanisation, and migration are all examples of this. Aside from affecting the environment, these societal shifts exert significant external pressure on organisations, causing them to transform.

Market Trends: The most recent trends determine modifications. In this day and age, individuals are becoming more health-conscious. Organisations provide healthy items and tell their clients how much they care about their health and cleanliness.

Government Rules: Trade policy, taxes, industry-specific regulation, and labour laws are just a few of the many government regulations that have a significant impact on how businesses conduct themselves. Organisations need to keep an eye on government policies and respond to any changes that may occur.

4.2 Internal Forces Influencing Change

An organisation’s internal forces are made up of all the things people do and the choices they make inside that organisation. Based on the opinion of Rizescu & Tileag (2016), Rocque (2017), Passetti, Cinquini, & Tenucci (2018) and Rosenbaum, More & Steane (2018), the following are the most significant and common internal forces that impact the change process:

Expertise: The organisation’s core competency dictates how it will evolve. A company that excels in a single technological area is more likely to come up with ground-breaking ideas and upend the industry established practices and norms in the long run.

Culture: Organisational culture has a significant effect on the future of the company. If a company’s culture is alive and dynamic, and its leadership promotes innovation, it is more probable that the organisation will embrace and execute change.

Workers: The ability of a company to effect change is directly tied to the attitudes and abilities of its employees. If workers are open to and embrace change, and their talents are also aligned with the planned change, the company has a better chance of coping with change.

Vision: Some companies have a clear sense of their long-term goals. In order to realise their mission, these organisations are constantly adapting. These organisations, on the other hand, tend to rethink and reinterpret their aims. And this is the driving force behind the acceptance and implementation of changes.

Leadership: Organisational transformation may be sparked by a shift in the leadership of a company. Every new leader brings a fresh vision, new strategy, and a new working culture to his or her firm. As a result, a change in leadership is a prevailing internal force that impacts change.

Management: Managerial decisions have a noteworthy effect on the firm’s overall success. Making the appropriate option in terms of a leader and business owner is critical for a company’s success.

Performance: The most critical aspect in driving change is performance. When an organisation’s performance isn’t up to snuff, good leaders make strategic modifications in their company strategy. A series of radical changes are made to organisational roles and responsibilities to improve industrial performance.

Restructuring: The firm is affected by the restructuring. The new strategies, innovative goods, or worldwide development of an organisation necessitates a considerable shake-up in the hierarchy and communication of the company.

Value: The essential principles of an organisation are also the driving force behind the transformation. For example, values like gender equality, cultural and ethnic diversity, and so on may have a significant impact on organisational strategy and procedures.

4.3 Forces Influencing the Expansion of Richard’s Business

If a company is to stay competitive in today’s economic world, it must continuously adapt to new market conditions. Businesses are forced to adapt to changing market conditions and technological advancements to thrive. This can be as simple as the installation of a new piece of software or as difficult as completely revamping the marketing approach. Based on the business scenario of Richard’s company and its expansion based on strategic and technological changes, he needs to focus on certain factors of significance that is going to impact the change process the most. Internal forces like core competency or expertise, workforce, vision and leadership, and competent management of the company are the most influential ones in the expansion process. Among the external forces, increased competition, opportunities in a new market, and new drastic technological advancement in the business arena are factors of consideration that are strongly and influentially associated with the change process during expansion.

5. Recommendations and Implementation Plan

5.1 Recommendations

Loyal Customer Base

One of the recommendations for the expansion of the business will be actively participating in refining the various strategies regarding the customers’ engagement in which the business must be able to improvise the relationship between them and the customers or consumers (Hasanat, Hoqueb & Hamid, 2019). This building of proper relationships can assist in retaining the customers which can result in a more loyal customer base and the loyal customer base for any existing business aids hugely in the expansion of the customers since the loyal customer base indicates that the existing commodities or services are selling extremely well and the customers are satisfied with the offerings of the customer. This will be a good stage for expanding the business.

Stable Cash Flow

The second Recommendation for the business expansion is that any organisation that does not have a stable cash flow in managing the business operations can results in failure when expanding the business venture. The organisations can sell commodities on a large scale but if the organisation is not managing the cash flow wisely for future business operations then it can result in the failure of the business and its subsidiaries as well (Penttinen et al., 2020). The poor ineffective and inefficient management of cash flow can also indicate that the management of the organisation is not working effectively in terms of generating profit. Therefore, the requirement of steady cash flow is mandatory for expanding the business as well as the business itself.

Huge Emphasis on Innovation

This recommendation for the business expansion involves putting heavy emphasis on the innovation and creativity for the business expansion as well as the business itself. There is no denying the fact that continuous innovation is among the crucial components for business growth and development. The business expansion can only prosper when it innovates slightly different from the existing commodities in the market (Raré, 2020). For instance; healthcare can be a prime example since it has the potential in terms of moulding or modifying the existing healthcare services. The different ways of advertising are among the examples of creativity. For instance; When Marvel’s Spiderman for Playstation 4 was released, it advertised the game by designing the whole New York Subway train according to the poster of the video game (Square, 2018). This is just one instance of creativity that can be utilized by Richard’s new business expansion.

5.2 Implementation Plan

Expanding the offerings

As per the known information, Richard is doing the business for 5 years and he is very confident in expanding the business. So it can be identified that Richard has something unique to offer in terms of commodities or services to the customer base. (Morrish & Jones, 2020) The commodity or service must be distinct and it must have some of the distinct features that can attract the customers or consumers towards the commodity or service. If the prices of the goods or services are high then it must be justified. The commodity or services should be bundled together since the bundled offerings encourage and attract customers.

Targeting the new customer base

According to the data, the world population was at 7.9 billion which shows there are still many more customers to attract and target for providing the commodities or services to the untapped customer base (Shobande & Shodipe, 2020). The world involves various people from different backgrounds, ethnic groups that represent a huge diversity of people in terms of varieties in ages such as Millennials, Baby Boomers, Generation X, Generation Z and more generations are still yet to come. The implementation plan can involve effective questions such as currently, who are the general customers of the existing business that are consuming the commodities or services. And can the commodities or services be altered to attract the untapped customer or consumer towards the business (Sarangi & Pattnaik, 2018)

Acquiring other companies

Business Acquisition refers to the business strategy which involves the process of combining two or more firms into one company to take a competitive advantage in the business environment (Chen et al., 2021). Richard’s business expansion can employ in terms of acquiring a new well-established company that is suitable as per the need or necessity of the organisation. The acquisition can enable Richard’s business expansion to get a competitive advantage in the business environment if the acquisition is properly getting managed by the parent organisation. The acquisition can assist Richard's business expansion to get more suppliers as well as the new technology for managing the business operations.

6. Conclusion

The two primary areas that can be identified are Strategy and Technology. The areas of the strategy involve the key actions such as formulating a strong and clear vision for the future and then executing the strategies for the success and growth of the business. With the advent of technological advancements, the technological area is essential for the company to survive and grow especially in this time of the pandemic. Adaptation of new technological tools or pieces of equipment is mandatory. In the terms of internal forces, expertise, workforce, a vision of the organisation, leadership, management, these are some of the primary internal forces that are very crucial for the organisation operations and decision making; the companies who are experts in the technological area can generate more profitability, the effective and flexible workforce is essential, a clear vision for the organisation assist in realising the goals and objectives, effective leadership is a powerful force that influences transformation, the management involves using the business owner as well as the leader effectively and efficiently for the business operations. The external forces that are necessary for handling the external business environment are; competition is one of the factors that the organisation has to face to grow and develop, Organisation should be ready to modify, acquire and hire capable employees to meet the demand of the growing market, technology is also required to be utilized effectively. 

The probable resistances that can be recognised are HRM and Technological advancements and disruptive technology. To mitigate these resistances, there is a huge requirement of investments in HRM to effectively manage the workforce of the organisation that are resistant to the changes. The technological advancements and disruptive technological changes can only be achievable by the organisation willingness to actively participate in innovating and creatively producing distinct commodities or services. The business expansion can be effective if the organisation has a strong loyal customer base, steady cash flow and huge emphasis on innovation. The implementation plan involves expanding the offerings of the organisation in terms of its distinct commodities or services, targeting the new customer base that can be accomplished by creating something that can attract the new customer base, another plan could be to acquire new companies or organisation to expand the business effectively along with the new technology and new suppliers from the acquired companies. This individual report has attempted to give effective insights for expanding the business to Richard.


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