Change management is considered as a collective term which is used to explain approaches to propose, support and guide individual, organizations or teams to implement changes. Change management process is one of the most effective process that is used by the organization to implement change in organization processes and operations in effective way(Cameron and Green, 2019). There are range of processes and methods are used by company to implement change in operations and other processes. This is important for organization to implement changes with in operations, processes, products & services in order to keep company productive in market place. By implementing changes in the business process organization can meet the changes that are occurred in the market place. Organization have to keep their services as per the market trends and customer needs. Organization change management process allows the company to implement changes that are required to meet market demand and needs. This is how change management process is important for business organization. In this organization change that are implemented by two different organization will be considered to understand the importance of change management process. Changes that are implemented by Microsoft and British Airways will be analysed in report. Various recommendations, barriers in change implementation and impact of these barriers will be evaluated for the leadership of organization. Drivers of changes also will be analysed in report. Impact of these barriers also will be analysed on decision making process of leader of organization.
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This is highly important for organization to implement changes in various processes in order to meet the goals and targets of company in market place. To understand the impact of change on organization's operation and business processes case of Microsoft and British Airways are considered.
The problem that is associated to the business of Microsoft was related to the structure of the organization in global market. Initially the organization structure of Microsoft was based on split organization structure. This kind of business structure is not effective for business organization.to work with split structure. This type of organization structure can create conflict between different branches of organization. because of this issue organization was not able to keep track on customers in market place. This is highly challenging for organization to keep their performance high with this kind of splits organization structure(Hayes, 2018). Du to this organization structure of Microsoft was facing serious problems with internal operations and performance of organization. It has affected the overall business of company. Internal conflicts and communicational issues have affect the positioning of the organization in competitive market. To overcome this issue CEO of organization has taken action to completely change the structure of organization on global level. This can be considered as most complex change within an organization. This is a challenging process for company. In this process organization have to implement range of changes in the operation process. This was major change for organization and it has affected the business operation of company in different ways. Satya Nadela has observed that there is high level conflict in different department of company. Two products of Microsoft are highly successful products are- Microsoft Windows and Microsoft Office. Main objective of implement change was related to the unifying the teams that are working on international level. By this process target of the company is to improve the productivity of company as compared to the competitors in target market. After the unifying the organizational team company has gain better productivity in market and it also has improve the productivity of employees with in the work place. With change implementation process organization also can implement various changes that can improve the performance of organization. For example IT and AI research can be used by the company to gain information about the market place. Specific and proper planning can be used by the company to reduce the complexity in the changing process. Microsoft also has changed their vision in order to improve productivity in internal teams(Doppelt, 2017). The vision of the company was to empower each person in organization to improve morals of employees. This is how by motivating employees change has been implemented in organization.
Drivers of Change in Microsoft
The drivers of change are mostly negative points of organization in market place. These operational failure, performance issue, productivity issue, business reputation issues and internal conflicts can make or force the company to implement change in market place. Main driver of change for Microsoft was poor competitive positioning in global market and internal conflicts between different branches of company.
The other example is related to British Airways that was majorly impacted with low operational profit in target market. This is highly challenging for company to maintain effective profit in market place to keep their actions regular in market place. British Airways was also facing issues with organization structure and in operation management. This is major challenge for company to keep their operations productive to gain high profit in market place. For this process leaders have targeted the mergers that are performed by company for the restructuring process. Organization has appointed new chairperson to improve the performance of organization in market place. There are different changes has implemented by the organization to keep their operations productive in market place. With the process of restructuring process organization also have changes in their routes on the global level(Cummings, Bridgman and Brown, 2016). They have reduced number of flights to different locations that are less productive. This is how they have reduced the operation cost of the company. Organization also have targeted to reduce the number of employees of organization. They have reduced the number of employees from 59000 to 39000 and it was major change in the work force of company. This is how by reducing the number of employees organization have also changed the structure. This is how British Airways have improve their business as per market requirement. These changes helped the company to improve their operational performance on different locations. This is changes have played major role in the success and performance of organization in market place. British Airways also can design new tours that can attract more customers to improve the profit of organization in market place. British Airways also can start new flights to new locations to improve the overall profit of company in target market. Capacity also can be improved to increase the overall profit and marginal profit of company.
Drivers of Change for British Airways
Similar to the Microsoft factors that have forced the organization to implement change in organization structure are related to their performance in market place. Low operational profit and high operational cost have forced the organization to implement some severe changes in organization and its structure in order to keep organization productive in market place. The changes implemented by organization have improved the performance of organization in target market.
This is how both British Airways and Microsoft has changed their organization structure and various other aspects to improve their business and profit in market operations.
There are mainly two types of drivers of change are there that can affect the leadership, individual and teams in organization(Lewis, Passmore and Cantore, 2016). These factors can affect people of organization in different ways. Here the internal and external drivers of change are discussed that are important to considered for organization.
External Drivers of Change
External drivers of change are mainly present outside the organization and these factors or forces are not in control of organization. This drivers of change are most crucial for organization. This is important for company to consider these changes in order to maintain performance of organization effective for long term business. Main external drivers of change for organization are- Competitor's Performance, current Trends and Economic Changes. These are major drivers that can affect individual, leader and teams in organization. External drivers of change can force the leadership of company to implement change in organization. It can affect their motivation level. It can be considered as pressure condition for leaders. Impact of these external factor is not much on individual employee with in organization(Van der Voet and Vermeeren, 2017). But these factors can increase the work load on teams to perform as per the conditions of external factors. This is how it is important for organization to consider these external drivers of change. These drivers increase the pressure on the organization and people of company. These change drivers can reduce the motivation level of employees in organization. This change in behaviour of employees can force the leadership of the organization to implement change in operations and business processes of company.
Internal Drivers of Change
The internal drivers of change are present inside the organization and these drivers can be controlled by organization by implementing various changes in internal operation of organization and structure of company. Main internal drivers of change are- Employee attitude, business strategy of company and technology used by organization. These are major drivers of change in company. This internal drivers can force the leadership of the company to update various factors that are important for organization to maintain effective performance in market place. For individual person these drivers can affect their performance in work place and it also can affect the morals of teams and employees. This thing forcer the organization and leadership to implement various required changes in organization(Lozano, Nummert and Ceulemans, 2016). This change drivers are directly connect to the performance of employees and various teams in work place. The impact of these drivers is critical for employees. These factors can reduce the efficiency of employees in organization.
There are different measures can be used by the organization top reduce the impact of drivers of change on employees, teams and leadership of company. These measures can minimise the impact by reducing the need of implementing change in organization. There are three main processes are used by the organization to reduce the risk related to the drivers of organizational changes. Both Internal and external Change drivers can be targeted through these process. These three processes or approaches are- change Co-Creation Strategy, Employee Ownership Change Implementation plan and Open conversation About Change. These are most effective processes that can be used by the organization to implement change with in the work place.
Change Strategy Co-Creation- This is most effective thing for an organization to minimise the impact of change drivers. This measure allow the organization to develop effective strategy that is high effective to reduce the needs of change by fulfilling the requirement of organization in market place. Using innovative and creative strategy the negative impact of change drivers can be reduced. This process also includes the participation of employees in the strategy development process. Employee's plays active role in the strategy development process for organization and it allows them to help senior leaders to develop effective strategy to minimise the impact of change drivers. This is how co creation of strategy can be helpful for the organization.
Employee Ownership of Change Implementation Plan- This is most important for organization to actively involve front line employees in the change implementation process. Organization need to implement change with support of employees(Weiner, 2020). With employee support changes can be effectively implemented in operations of company.By gaining employee support changes can be easily implemented in organization operations with high productivity. This is how ownership of employees in the change implementation process will reduce the negative and overall impact of change drivers on organization.
Open Conversation About Change-This is important for organization to develop an effective environment in organization to develop innovative and creative culture in organization. Innovative and creative culture is most important for company. It can help them to make employees capable to interact with their ideas and suggestions. Frontline employees are effectively aware of the problems and failures that are faced by organization in manufacturing or production process. By developing open conversation can help leaders and managers of organization to stay aware of the issues that are faced by organization. This is how open conversation can help to develop effective channel of communication that can help to create effective communication at time of change implementation process.
This is how different processes and methods can be used by organization to reduce or minimise the impact of change drivers on the performance and operations of company. These approaches minimises the impact of change drivers by providing effective solution to the issues and operations gaps that are faced by them.
In change implementation process range of barriers are faced by Microsoft that can affect the change implementation process in company. These barriers can create various situations that are not effective to implement change in company. Barriers create negative or misleading situation that can affect the change development process(Butt, Nawab and Zahid, 2018). Some of the main barrier in the change implementation process are- Lack of employee involvement, lack of effective communication, ineffective organization culture and complexity of organization operations. These are most common barrier that can affect the change implementation process in organization.
Lack of Employee Involvement
Lack of employee involvement in the change implement process can reduce the effectiveness of the change implementation process. Lack of employee involvement can create situation that can misguide employees in work place and it can cause negative impact on employees. This lack of employee involvement can reduce the overall effectiveness of change implementation process. Lack of employee involvement can reduce the effectiveness of change implementation process and it also can create negative environment with in the work place. For example due to lack of employee involvement in change implementation process, they will resist change implementation process and it can force the leadership to avoid change implementation process or it also can create pressure on leadership in situation.
Lack of Effective Communication
Communication is most important part of change implementation process. It is most important to develop and establish effective communication in organization to improve the change management and implementation process. Communication need to be effective in order to communicate information and data in effective way. This process also motivates the employees and managers to make them involve in the change implementation process. The main objective of developing effective communication is to keep employees motivated and aware of change that is going to be implemented in Microsoft(Weiner, 2020). This is different critical risks can be avoided by organization. Poor communication can put complete process of change implementation on risk and it can lead the organization towards failure. Poor communication can provide misleading information to the employees that can create conflicts between employees and leadership and this can affect the decision making process of leaders. This will completely affect the change implementation process.
Poor Organization Culture
This is most critical barrier for organization and it can affect the change implementation process for organization. Poor organization culture will develop negative environment in organization that can create negative behaviour in employees that are reduce the effectiveness of the change implementation process. Poor organization culture can make the employees to resist the change to be implemented in organization. Poor organization culture can affect the confidence of leader to implement change in organization. This process also will affect the decisions of leaders in change implementation process.
Complexity of Organization
This factor is related to the technicality of organization processes and structure. For the simply structured organization this is easier to implement change without any trouble but with complex structured organization it is most difficult to implement change. Complexity of organization structure and operation can create different errors and barriers that can reduce the effectiveness of change implementation process. With this type of barrier it is highly difficult for leaders to take decision to implement change in organization.
There are different approaches can be used by the leadership of the organization to implement change in Microsoft Inc. By selecting effective approach all the changes in organization can be effectively implemented. For example to implement change in organization leader of company can use Kurt Lewin's Approach of change management. This process can reduce the complexity of the change implementation process.
This model is consists of three different stages that are developed to reduce the complexity of the change implementation process. The stages of change implementation process are- Unfreezing, Change and refreezing. These are three main stages of implementing change in organization.
Unfreezing- These stage include various process which are required to open the organization for change process. Initially requirement of change is analysed in the organization to find proper changes that are need to be implemented in organization. Employees of Microsoft are encourages and motivated to implement change in organization. This is ensured that all the employees are supporting change implementation in organization. All the doubts and issues are resolved in this stage.
Change- This is second stage of implementing change process. Proper planning for change is developed in this process and all the required changes are implemented in organization(Uhl and Gollenia, 2016). Employees are also supported in this process to understand the changes that are implemented in organization.
Refreezing- This is third and last stage of change implementation process. In this process changes that are implemented in organization are reinforced by developing various effective strategies. This process is developed to reduce the complexity that is developed by the change implementation process. Changes are integrated in the organization processes and culture. Various ways to sustain change in organi9zation are implemented in this process to make employees and organization comfortable with new changes. At last changes that are implemented in organization are added to the organization culture in order to make these changes robust in company.
The above report was explaining the importance of change implementation and management process for organizations. Case studies of different organization has been studied in report to understand the importance of change implementation process. Internal and external drivers of changes also has been analysed in report. Various measures that can be considered by the organization to minimise the impact of drivers of organization also has been studied in report. Various barriers in the change management process and implementation process has been analysed in report. Process of change implementation process also has been explained for Microsoft Inc.
Books and Journals
Butt, F.S., Nawab, S. and Zahid, M., 2018. Organizational Factors and Individual Effectiveness: Moderating Role of Change Management. Pakistan Journal of Psychological Research. 33(1).
Cameron, E. and Green, M., 2019. Making sense of change management: A complete guide to the models, tools and techniques of organizational change. Kogan Page Publishers.
Cummings, S., Bridgman, T. and Brown, K.G., 2016. Unfreezing change as three steps: Rethinking Kurt Lewin's legacy for change management. Human relations. 69(1). pp.33-60.
Doppelt, B., 2017. Leading change toward sustainability: A change-management guide for business, government and civil society. Routledge.
Hayes, J., 2018. The theory and practice of change management. Palgrave.
Lewis, S., Passmore, J. and Cantore, S., 2016. Appreciative inquiry for change management: Using AI to facilitate organizational development. Kogan Page Publishers.
Lozano, R., Nummert, B. and Ceulemans, K., 2016. Elucidating the relationship between sustainability reporting and organisational change management for sustainability. Journal of Cleaner Production. 125. pp.168-188.
Uhl, A. and Gollenia, L.A. eds., 2016. A handbook of business transformation management methodology. Routledge.
Van der Voet, J. and Vermeeren, B., 2017. Change management in hard times: Can change management mitigate the negative relationship between cutbacks and the organizational commitment and work engagement of public sector employees?. The American Review of Public Administration. 47(2). pp.230-252.
Weiner, B.J., 2020. A theory of organizational readiness for change. In Handbook on Implementation Science. Edward Elgar Publishing.
Weiner, B.J., 2020. A theory of organizational readiness for change. In Handbook on Implementation Science. Edward Elgar Publishing.
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