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Business Management Question
One of the more recent issues in management is role of change management in organisational effectiveness. You are to undertake a literature review discussing the impact of change management on organisational effectiveness.
Business Management Solution
Introduction
Over the last couple of years, there has been an increasing trend in the corporate sector for bringing about changes in the organization. According to a recent study conducted by IBM wherein they had interviewed CEOs of 765 organizations, around 515 of them admitted that bringing about a fundamental change in the basic model of their businesses is the need of the hour (I.Tveteraas, 2009). Researchers opine that in order to make sure that the change models which are implemented in organizations are effective and result in better business, it is essential that the leadership is able to lead by example (Alas, 2012). This essay is aimed to find out the impact change management on the effectiveness of the organization. To deduce that, research on the existing literature has been done, the challenges that organizations face in the process of change management have been reviewed and existing theories on change management have been studied.
Definition of Change Management
Organizational Change Management is a concept that can be captured in frameworks and customized according to businesses to make it effective and successful (Turner, 2011). It is a technique that deals with the facts of how organizations prepare their people and equip them with the necessary skill sets so that they can bring about a transformation in their working which will ensure that the expected results are obtained (David Parker, 2013).
Challenges to Change Management
The whole process of organizational change is not an easy path and the whole journey starting for identifying the need for change followed by chalking out the blueprint for the change and implementing it on the ground level and observing its effects can be quite difficult. Sometimes rigorous planning and implementation might not be enough for the change management process to be successful (Pihlak, 2013).
Youmin Xi and his team while researching on the main challenges organizations face while implementing change management practices, narrowed down on the following (Youmin Xi, 2012):
Incompetent Planning
Without an effective end to end planning which includes the best and worst-case scenarios and corresponding preventative measures, any change initiative in any organization is bound to fail. Organizations tend to spend less time planning and are rather eager to jumping to implementation. The result is that potholes are discovered on every turn of the implementation process and the management doesn’t have any contingency plan of action in place (W.Ford, 2009). The need of the hour is to imbibe the sense of the importance of planning in the minds of the top leaders of the organizations. They ought to learn from the experiences of their contemporary organizations and make sure that they do not repeat the same mistakes.
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