Assessing the management change in organizations Essay Example
Assessing the management change in organizations Essay Example

Assessing the management change in organizations Essay Example

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  • Published: September 25, 2017
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Throughout history, economic changes can be comprehended in different periods, which involve shifts in our food preferences, clothing regulations, and cultural customs. These alterations originated from progressions in agriculture and have brought us to the present age of information. In earlier times, our predecessors depended on barter systems for exchange purposes as there was no monetary system in place.

The major economic epochs in the alteration of organizations are:

  1. Agricultural era
  2. Industrial epoch
  3. Technological epoch
  4. Informational epoch

Agricultural epoch

In the early phases, before the introduction of money, people used to exchange goods through a system called barter. However, due to inequality in these exchanges and the need for change, money became necessary. This period marked the establishment of foundations in organization theory. For instance, Sun Tzu's "The Art of War" (500 BC) ackno

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wledged the importance of hierarchical organization and staff planning. Ancient civilizations like the Greeks and Romans also developed their own insights on work organization and implementation strategies.

The classical organization theory, which originated during the emergence of the mill system in Great Britain during the 18th century, was influenced by key figures such as Adam Smith (1723-90). Smith's work "An Inquiry into the Nature and Causes of the Wealth of Nations" (1776) emphasized the importance of division of labor for efficiency in a competitive market.

Industrial era

The industrial era, which took place at the end of the Middle Ages, witnessed significant changes characterized by efficient resource utilization. This period saw advancements in agriculture, large-scale steel production, improvements in machinery, and innovation in creating new goods.

In the 20th century, coal industries held a dominant position, but they were later outdated by oil and gas.

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The cheap, concentrated, and abundant fossil fuels contributed to exponential growth in population, wealth, engineering, production, and trade. The industrial society witnessed innovation and advancement at a pace unprecedented in history, leading to a new era. This transformation can also be attributed to the rapid increase in global population.

There has been a rapid increase in engineering and technological changes in transit and communication systems. During the industrial revolution, the concept of scientific management emerged. It focused on the mechanistic model of input, process, and output. This involves taking raw materials, transforming them into goods, and ultimately breaking them down.

The text emphasizes the importance of achieving a balance between the environment and society by using effective extraction and production techniques. This includes the development and utilization of new products, as well as their disposal. Destructive activities such as deforestation, machinery corrosion, and accumulation of waste are remnants of a bygone era. During this time, two notable theories emerged. One is the theory of scientific management, pioneered by Fredrick Taylor, widely regarded as its father. Taylor introduced time and motion studies to determine the most efficient way of achieving production. Another theory that gained prominence during the industrial era is Max Weber's concept of bureaucratic organizations.

Max Weber ( 1864-1920 ) conducted a sociological exploration into bureaucratic organizations, analyzing how specific structural arrangements influence behavior and establishing an ideal-type bureaucracy. The industrial sector is characterized by economic systems of scale, work standardization, workforce standardization, and the perception of financial capital as a scarce resource. Additionally, theories were proposed regarding organizational nature and employee performance. The Hawthorne studies primarily emphasize the significance of worker attitude and provide insights into

factors beyond physical working conditions that contribute to positive attitudes. This also involves a more humane approach to treating workers on the job. Furthermore, Herzberg's theory suggests that there is no direct cause-effect relationship between working conditions and productivity (Herzberg, Mouser & Snyder am 1959).

Following the Second World War, the Neoclassical organizational theory was introduced with the aim of improving efficiency. This theory primarily criticized the work of classical theorists. A notable contributor to this theory was A Simon, who developed theories on decision-making within organizations and emphasized the importance of considering environmental factors (1957).

Selznick introduced the term 'cooptation ', which refers to the process of incorporating new elements within an organization's policy-making in order to prevent these elements from becoming a threat. All the aforementioned theories focus on understanding organizational behavior and improving the efficiency of the organization's performance.

Technological era

The emerging model of life sciences functions similar to a new species evolving in a new ecological niche, aiming to innovate, reproduce, and thrive. In this context, most species compete upon encountering each other, but organisms strive to reproduce more rapidly than their competitors and establish dominance through sheer numbers.

Economists refer to this as increasing returns, which is the discovery of new things and the development of new technologies that lead to the technological era. For example, companies like Microsoft Windows, Amazon, and the QWERTY keyboard sequence entered the market with the introduction of new technologies. In business, the merger of AOL with Time Warner was an attempt to establish dominance through consolidation in e-business and communications industries. During this era, several theories were developed. The systems approach focused on the overall organizational structure, the

interrelationship between structures and behaviors, and the range of variables within the organization. The socio-technical system considers the interactions between psychological and social factors, human needs and demands within the organization, as well as its structural and technological requirements.

Information Age

Organizations are now operating in a new economic era known as the information age or, from an organizational theory perspective, the postmodern age.

The main characteristic of this era is that the pace of change brought about by rapidly advancing information technology pushes organizations to the edge between order and chaos. Chaos is the state in which complexity and unpredictability are prevalent. Scholars like Warren Bennis (1966) and Charles Handy (1994) have predicted that the shift from technical systems to information technology is a significant change, pointing to the potential breakdown of traditional organizational forms and processes. The key aspects of this age are intellectual assets, brainpower, and the ability to acquire and deliver information effectively. In this era, the following theories are proposed: A contingency approach is an expansion of the systems approach, emphasizing possible ways of distinguishing among different forms of organizational structures and management systems.

The text suggests that organization theory should not aim to propose a single best way to manage organizations but should instead offer insights into the situational and contextual factors that influence management studies. This theory was developed in the information age, and the factors that lead to change are discussed below, including globalization, climate uncertainty, technology advancements, and triggers of change within the organization such as new vision and mission, adoption of new technology, mergers and acquisitions, low employee morale, opportunities perceived, and change of ownership.

Bureaucracy

Bureaucracy can

be defined as an organizational concept that emphasizes precise organization, speed, clarity, regularity, dependability, and efficiency. These qualities are achieved through the establishment of a fixed division of tasks, hierarchical supervision, and detailed rules and regulations.

Main features of bureaucratic organizations

The main features of bureaucratic organizations include a well-defined hierarchy and tasks being assigned according to position. These features are further elaborated below:

  • Proper division of labor
  • Allocation of the right work to the right people
  • All decisions made by top management
  • Clear differentiation between decision makers and workers
  • Lack of flexibility leading to no changes in rules and policies
  • Adoption of well-defined set of rules and policies to ensure smooth operations

Strengths

The strengths of bureaucratic organizations are as follows:

  • Well-defined hierarchy with clear differentiation between decision makers and workers.
  • Clear vision and mission objectives.
  • Centralized system enabling monitoring of all decisions.
  • Adoption of predefined set of rules and policies for strict adherence by all organization members.
  • Implementation of standard processes for everyone to follow.

- The determinations will be monitored and the whole system is centralized.
- The coverage relationships are clear and well defined, eliminating confusion.
- However, there are multiple levels of hierarchy leading to miscommunication.
- All decisions are made by top management, resulting in a lack of understanding between decision makers and workers.
- Additionally, this lack of communication between higher and lower level employees hinders innovation and creativity.
- Bureaucratic organizations also experience slow processes and decision-making.

The communication process in this organization will be unclear due to the numerous degrees involved. The responsibilities

within this organization will be tedious for employees.

Evaluation of strengths and weaknesses of bureaucratic organizations

In bureaucratic organizations, the key elements such as hierarchy, specialization, and impersonal decision-making are first analyzed, as well as their interrelationships. Lack of proper communication between employees and the organization hinders any innovative ideas for growth.

Due to the hierarchical system, decision-making is delayed in bureaucratic organizations because there are many levels involved in making decisions, which are typically made by higher-level authorities. The unfriendly work procedures and relationships in these organizations discourage employee commitment. Bureaucratic organizations mainly rely on order, processes, and regularity that were designed to handle well-established and predictable procedures. However, as things become more complex and uncertain, bureaucratic organizations struggle to adapt to change.

Relevance of bureaucracy in today's business world

Most government sectors still adhere to bureaucracy, characterized by well-defined rules and policies and strong control over administrative processes. In the modern age, we can also observe some large-scale organizations that exhibit bureaucratic features. Bureaucracy is most suitable for organizations dealing with low competition levels and well-established technology.

Organizational development:

The process of organizational development is implemented by organizations to make their operational people more efficient in order to achieve positive results. This includes improving the business through various strategic plans, increasing profits, and obtaining a top position in the market. Organizational development also involves expanding the current business, improving product range and infrastructure, increasing share value, and hiring more employees. It also involves entering different markets and achieving success in those markets.

Changes and development of supermarkets in UK

There

have been many changes in UK supermarkets. These include an increase in the range of food products offered, categorizing products according to different cultures due to the diverse population in the UK, and selling alcoholic products in supermarkets. Supermarkets have also introduced their own branded products and created a brand image for their products in the market.

Supermarkets have embraced new technologies to improve customer convenience and stay competitive in the market. One way they achieve this is by implementing self-checkout machines, which are designed to attract customers. Additionally, supermarkets prioritize excellent customer service and competitive pricing. To expand their business and secure a long-term presence in the market, supermarkets have also diversified into various markets. In the UK, Tesco, Sainsbury, Asda, Waitrose, M, Iceland, and Morrison are examples of supermarkets that entice customers with affordable food products. These supermarkets collectively form part of the UK supermarket industry and aim to attract a large customer base through value offerings and promotions.

Supermarkets have undergone significant changes in their structures to benefit customers. They now provide financing options and cash back payments, as well as offering a wide variety of seasonal and frozen foods.

To enhance convenience for customers, it is suggested that UK supermarkets upgrade their structures. This could include implementing new technology like self-checkout machines to improve the customer experience. Additionally, offering a greater selection of local products based on the preferences of residents in each store's location would be advantageous.

The introduction of new technologies or alternative measures is necessary to reduce thefts in shops and increase security for valuable merchandise. It is important to create a separate section

for non-food products in every supermarket to attract a wide range of customers. Offering cash back facilities to maintain customer satisfaction and introducing a larger variety of own-brand products will enhance the brand image in the market. Additionally, every supermarket should provide online shopping options and home delivery services for customers.

The operations in shops need to be efficiently run to provide quality services for clients and promote organizational growth. To achieve this, supermarkets should hire capable staff and implement specific programs for training new and current employees to improve their skills. This will not only enhance the supermarket's performance, but also support personal development in a competitive environment, ultimately leading to organizational growth. Therefore, supermarkets can improve their performance by adopting these measures. Additionally, UK supermarkets should reconsider their practice of importing fresh vegetables from countries like Africa and exporting them to other countries like Zimbabwe and Kenya. This decision should be based on factors such as cost, quality, delivery, product variety, innovation, and food safety and quality systems. By considering these elements, supermarkets can identify the appropriate suppliers and processors for their fresh vegetable supply chain and ensure optimal business development.The supermarkets in the UK should increase their selection of branded products, ensuring they have high quality, well-packaged items available at lower prices. This will help attract a greater number of customers. Additionally, supermarkets should strive to reduce their manufacturing costs for their own products, enabling them to offer these goods at minimal prices. This is one strategy that supermarkets can implement to improve their performance and remain competitive in the market. It is crucial that all supermarkets work together to address issues such

as waste reduction to prevent an increase in pollution. Therefore, supermarkets should implement a specific system or process within their stores aimed at reducing waste. This will contribute to maintaining a healthy environment that is beneficial to both customers and the long-term success of supermarket chains in the UK.

Comparing two thoughts

Developing more small shops with gas stations located at the shops, supplying online shopping and delivering products to customers' homes are two thoughts that are being compared. These two ideas are not feasible for all supermarkets. Developing more small shops can attract more customers by providing convenient shopping and saving customers' time, while opening gas stations can allow supermarkets to enter different markets and generate higher profits while satisfying customers. Providing online shopping is a good idea as it saves time for customers, but there is a chance of customer dissatisfaction if the products are not delivered according to their preferences. This idea may not be successful for all supermarkets as it requires a significant investment. Therefore, out of the two ideas, developing more small shops with gas stations is more beneficial and successful in attracting a large number of customers, resulting in higher profits for the organization.

Introduction to Tesco, a Major Supermarket in the UK

Tesco is one of the largest supermarkets in the UK. It is expanding its operations into various markets with the aim of becoming the top competitor by offering high-quality products and excellent customer service. Tesco has added numerous discount-branded items to its product line, which emphasizes their focus on affordability and delivering exceptional value to customers.

Tesco began with the slogan "Every little helps." They introduced

nine cards to benefit regular customers, offering returns on purchases and attracting a large customer base. They also implemented online shopping for busy customers who can't visit the physical stores. This move led to growth in their online sales. Tesco is expanding its supermarkets globally, including plans to open stores in India through a partnership with TATA. In addition to their larger supermarkets, Tesco has opened smaller shops like Tesco-Extra, Tesco-Metro, and Tesco-Express in convenient locations. They have also added gas stations to these smaller shops to retain existing customers and attract new ones. Tesco has adopted new technologies in their stores, such as self-checkout machines, to make shopping easier for customers.

Tesco has widened its product range by adding regional foods and seasonal items. Additionally, they have expanded the vegetables and fruits section in their stores. Furthermore, Tesco has ventured into the banking sector to offer financial services to their current customers. They also attract customers by selling electronic items such as laptops and iPhones in their stores.

They have also introduced Tesco Mobiles, which has entered different markets.

Suggested Changes to Tesco

Tesco is one of the top supermarkets in the UK. Several suggestions have been made to improve Tesco's performance and competitiveness in the retail chain market. The following are the changes that should be implemented in Tesco stores:

Tesco should add a wide range of Asian products to their existing product line, especially in areas with a higher Asian population. This will provide convenience for Asians who can easily shop for all their needed products nearby.

Tesco should also improve the convenience of product searching for customers. This can be done by introducing

electronic devices where customers can search for desired products by entering keywords. The related products will be displayed with sections and locations, making it easier for customers to find what they are looking for.

Tesco should implement security measures for items with a value above ?5 and install specific alarm systems inside their stores to reduce theft. These changes aim to improve the performance and efficiency of Tesco, ensuring its competitiveness in the market in the long term.

Supporting Model for the Changes

The implementation of these alterations can be explained through the Kaizen model, which emphasizes a continuous improvement process necessary for the supermarket industry to develop and remain competitive. This model has been chosen to enhance Tesco's performance and efficiency in order to sustain its ongoing growth.

Plan of Action

Tesco should strategize the appropriate changes within their stores. Firstly, they should assess whether implementing Asian products in their existing product line in areas with a significant Asian population would be beneficial for the organization.

Work

The Tesco program should be implemented by setting up a time table and gathering the necessary resources to bring about the desired changes. The progress of introducing Asian products should be monitored to determine its success in attracting a larger customer base compared to previous results.

Buttockss

The performance of the changes should be evaluated by comparing them to previous results. This involves assessing whether the introduction of more Asian products has successfully attracted a larger customer base and contributed to the organization's growth.

Rework

This evaluation process allows the organization to identify and address any shortcomings in their plan, ultimately leading to

improvement and competitiveness in the market. Feedback plays a crucial role in this process, providing valuable insights on the success of the plan and guiding any necessary adjustments for ongoing improvement.

The aforementioned theoretical model is highly beneficial for any organization to drive change and achieve success by identifying and correcting its flaws. It involves continuously implementing this process to ensure the continuous growth and performance of the organization, allowing it to sustain the competition from existing rivals in the market. Most organizations implement changes to maintain their long-term presence in the market and stay competitive against their rivals. In the case of Tesco, previous changes were proposed based on their current market position and future needs. Every organization considers the following factors when implementing change.

Tools for facilitating change and involving relevant stakeholders

These tools are utilized to develop systems and involve stakeholders in order to implement change within an organization.

There are two types of analysis that focus on stakeholders: stakeholder analysis and Force-Field analysis. Stakeholder Analysis specifically looks at the stakeholders involved in implementing change. These stakeholders include individuals who directly or indirectly have the ability to influence and bring about change within the organization. The first step in this process is identifying the stakeholders who directly or indirectly affect the organization. In the case of Tesco, these stakeholders include customers, shareholders, employees, communities, suppliers, government agencies, non-governmental organizations, pressure groups, farmers, competitors, distributors, investors, government policies, owners, and call centers. The next step in stakeholder analysis is assessing the importance of each stakeholder and their potential influence on the proposed change.

The important stakeholders for Tesco who can influence proposed change include customers, employees, suppliers, and

government policies. If we consider ratings such as low, medium, and high, these stakeholders fall under the high rating category. By keeping track of each stakeholder's feedback and suggestions regarding similar issues, and maintaining a record of these discussions, any future problems can be easily resolved in advance.

The proposed change for Tesco can be determined by measuring the involvement of each stakeholder. This can be determined through evaluation ranging from low to medium to high. To identify the stakeholders who are most likely to be interested and have the ability to influence the change, Tesco should conduct a support change questionnaire. The impact of the change can also be assessed on a scale of low to medium to high, ranging from 1 to 7. Tesco should adopt an approach that involves plotting the level of stakeholder involvement against stakeholder power, as depicted in the following figure. This tool should be utilized to obtain an initial understanding of how Tesco will respond to the proposed change.

I will explain this tool in the rating section. This tool is very useful for determining how adaptable an organization is to changing strategic commands and helping identify their progress as they implement change. Tesco should address all of its employees regarding offering a greater variety of Asian foods and electronic devices, by taking into account their opinions and customer feedback in order to successfully bring about the necessary change for organizational growth. Force-Field analysis is another tool to examine the factors that can support change implementation.

The proposed alteration at Tesco involves introducing Asian foods and electronic devices for product searching. Supporters of this change are known as driving forces,

while those who oppose it are called keeping forces. To ensure a balanced outcome, the organization must accurately assess the strengths of both driving and keeping forces. This will help clarify the potential result and identify the sources of greatest control. Possible action steps include negotiating with those opposing the change, conducting motivating programs, and demonstrating how the alteration will benefit organizational growth. Additionally, individuals who support the change should be included to increase the chances of successfully implementing it. In the case of Tesco, employees, suppliers, distributors, existing providers, investors, and the council may serve as restraining forces, while customers, strong support from top management, and key senior individuals within Tesco are considered driving forces.

Evaluation of the System proposed for influencing stakeholders

The proposed system needs to be evaluated to determine its success in influencing stakeholders and bringing about change. The questionnaire for assessing support for change can be found in ( Appendix1 ) . This questionnaire is used within the organization to analyze the level of support for the proposed change. It should be distributed to a diverse group of individuals within the organization.

In order to ensure privacy for individuals, it is important to aggregate scores. However, different scores should be made public for different groups such as middle senior management, marketing department, and production department. It is recommended to hold a meeting with interested parties to discuss the results. During this meeting, it is important to identify areas of agreement and disagreement and understand the reasons behind them. The meeting should promote a welcoming environment where people feel comfortable explaining their scores. By collecting information from the questionnaire

and subsequent discussion, it is possible to assess the implications of the proposed change. For example, it is important to determine if additional actions are necessary to improve the chances of successful implementation.

By considering the degree of involvement matrix, we can analyze several aspects. Firstly, we can determine whether new stakeholders need to be added to balance the changes. Secondly, we can assess if any opposing stakeholders should be encouraged to leave. Additionally, we can explore ways to increase the influence of pro-change stakeholders. If there is strong opposition from stakeholders, it may be necessary to revisit the proposal. The table in Appendix2 provides a helpful analysis of the results, which contribute to the success of implementing change. Each area should be scored between 3 and 15. Lower scores indicate areas of greater concern within the organization's design, while higher scores highlight strengths that can be built upon. This tool should be continuously used to assess how flexibly the organization can respond to changing strategic demands, aiding in identifying areas for organizational progress and implementing change. Finally, it is recommended that Tesco manages resistance to change through education and communication, informing individuals about the reasons behind the proposed changes.

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