Analyzing Change Management in Organization
Analyzing Change Management in Organization
by:
Charles Yonardy1
Peggy A. Mekel2
1,2
Faculty of Economics and Business
International Business Administration (IBA) Program
University of Sam Ratulangi Manado
e-mail: [email protected]
2
[email protected]
ABSTRACT
Every company will be faced a change either business or non-business company. A change will be
happened because of technological change, industry change, and institutional rules change. If the company lack
in adapt the changing of competition, business cycles, technology and institutional rules the company might face
a bankruptcy. Why? To make a successful change there are steps and process of change. Research objectives are
to analyze what should company do in order to do change management and to analyze the change management
inside organizational to help manager or owner reach their business goal in organizational. This type of research
is qualitative research with literature study which is using secondary data. A conclusion and results are the
company need to build an awareness of the change in organization and follow the four tasks which are
appreciating change, mobilizing support, executing change, and building change capability in order to make
successful change. A company must know that every problem in organization can be solved just inside the
organization not outside the organization so the leader needs to get information and data to know the problem
that make this organization lagging behind from the competitor. After that the leader need to make a goal not
too high and not too low so it will be easy to achieve that goal, and also understand evolution in business
environment.
INTRODUCTION
Research Background
People and performance in work land sometimes facing issue in common that concern for organizations
in every industry in the world. Basically, it came from people strategies and becoming stuck inside business
strategy. Business strategy is needed for every company must have for the company benefit or for becoming the
company reference to running the business. Some company or business want to expand globally through
acquisition or internal growth, restructuring entire divisions, attempting to standardize processes with new
technologies or outsourcing human resources (HR) services to minimize the cost.
Even thougK HYHU\ FRPSDQ\ ZDQWV WR H[SDQG WKHLU EXVLQHVV EXW LW GRHVQ¶W DOZD\V ZDON VPRRWK DV WKH\
want the way it is. Why? Because to run and hold the business into always has a good performance need a lot of
things to do, also the employee must active involved inside the company. Either business or non-business
organizations today facing a world that is challenging in a number of ways. Nilakant and Ramnarayan (2006)
argued that there are three challenges that managers might face.
First, globalizations, rapid technological change and unanticipated event are the factor for changes.
This means the organizations must adapt and compete in a world that is constantly changing. Over the last
decade, technological change has a big influence in organizational business such as in advertising from
newspaper to online advertising because of rapid growth in internet users. Over the years, globalization has
resulted in greater degree of inter-FRQQHFWHGQHVV EHWZHHQ PDUNHWV HFRQRPLHV DQG FRXQWULHV 2UJDQL]DWLRQ¶V
Research Objective
The objectives of the research are as follows:
1. To analyze the change management inside organizational to help manager or owner reach their business
goal in organizational.
2. To analyze what should company do in order to do change management.
THEORETICAL REVIEW
Theories
Change Management
Nilakant and Ramnarayan (2006) argue that change management is a systematic approach to dealing
with change, both from the perspective of an organization and on the individual level. A somewhat ambiguous
term, change management has at least three different aspects, including: adapting to change, controlling change,
and effecting change. Gill (2003) argues that change is a process of taking an organization (or a nation) on a
journey from its current state to a desired future state and dealing with all the problems that arise along the
journey, then change is about leadership as well as management.
Jansson (2003) argues that change management is an umbrella term comprising a wide range of
elements. Recklies (2001) argued that change management means to plan, initiate, realize, control, and finally
stabilize change processes on both corporate and personal levels.
Previous Research
Moran and Brightman (2001) described the change management cycle: understand the current situation,
develop a change plan, enlist others to develop critical mass and track and stabilize results. List what is needed
in leaders to increase their ability to manage organizational change effectively. Gill (2003) argued that change
must be well managed, it also requires effective leadership to be successfully introduced and sustained. An
integrative model of leadership for change is proposed, reflecting its cognitive, spiritual, emotional and
behavioral dimensions and requirements. Griffith (2002) described that failed change efforts are commonly
blamed on inadequate change management competence, which in turn drives the search for, and selection of
change management solutions.
Change
Management Organizational
The diagram above explain about change management through organizational. Which is change management
has influence inside organizational. Whether the change management that the company or organizational do has
bad impact or good impact in organizational performance, whether the organizational can keep going or
collapse.
RESEARCH METHOD
Type of Research
This research using qualitative method. Sekaran and Bougie (2009:29) suggested that qualitative data
refer to information gathered in a narrative form through interviews and observations. Qualitative data are in the
form of words and interview, or in other words means language. Examples of qualitative data are interview
notes, transcripts of focus group, answers to open-ended questions, transcriptions of video recordings, accounts
of experiences with a product on the internet, news articles, and so on. The other type of this research is a
descriptive method which did not seek to measure the effect of variables but to describe what will happen or
how it is happening. According to Sekaran and Bougie (2009:105) a descriptive study is undertaken in order to
ascertain and be able to describe the characteristics of the variables of interest in a situation.
Qualitative Method
Sekaran and Bougie (209:369) argue that qualitative data are in the form of words. Examples of
qualitative data are interview notes, transcripts of focus group, answers to open-ended questions, transcriptions
of video recordings, accounts of experiences with a product on the Internet, news articles, and the like.
Qualitative data can come from a wide variety of primary sources and /or secondary sources, such as
individuals, focus groups, company records, government publications, and the Internet. The analysis of
qualitative data is aimed at making valid inferences from the often overwhelming amount of collected data.
Qualitative data can give data, information, meaning, and objective or purpose in certain condition.
Descriptive Method
Sekaran and Bougie (2010:105) argue that a descriptive study is undertaken in order to ascertain and be
able to describe the characteristics of the variables of interest in a situation.
Change Process
Nilakant and Ramnarayan (2006) recommended that managing change involves managing four complex
tasks. Each of these complex tasks needs to be completed effectively in order to achieve a successful outcome.
Failure in any one of these four tasks will lead to a failure in the overall change. These four tasks are:
appreciating change, mobilising support, executing change, and building change capability.
There are related aspects of building capability by individuals. First, self-efficacy that means they must
have confidence in the abilities to learn and believe that their efforts will increase capabilities. In case to build
self-efficacy the managers need to make sure not centralised control of organisational resources, good
communication, good relationship and high discretion. Change leaders can establish their employees by creating
challenging goals and helping them to achieve those goals. Second, focus that means they must have clear set
goals, clear specific steps to be taken and evolve an action plan to build their capabilities. Third, energy that
means they must have effort to encourage capability building and know what to do to achieve the goals.
Discussion
Type of Change
Tushman et al (1986) argued that there are two types of organizational change which are both continuity
and discontinuity. Greiner (1972) argued that there are two types of change which known as evolution and
revolution, as organizations grow they move through five distinct stages of change. This research summarize
there are two types of change which are continuous and discontinuous. Each level of this change is suitable to
the organization with different problems. If an organization needs a rapid change in strategy, power, and control,
the organization should apply discontinuous change. During this period of change, an organization does a large
change in strategy. The other name of discontinuous change is known as frame-breaking change or upheaval. If
Steps of Change
To make a change an organization need steps. This step of change will drive a company with a structure
change. If the change in the company build with good structure the company will be easy to maintain and face
challenges. Nilakant and Ramnarayan (1998:53) recommend seven steps to make a successful change which
are: assemble a change management team, establish a new direction for the organization, prepare the
organization for a change, set up change teams to implement change, align structure, systems and resources to
support change, identify and remove roadblocks to change, absorb changes into the culture of the organization.
This research argues that to make a successful change an organization must follow these seven steps of change.
Forces of Change
Nilakant and Ramnarayan (2006:26) suggested that business cycles, competition, technology and
institutional rules are four main factors that can trigger changes in organisations by impacting on their
performance. This research suggested that technological change, institutional change, and governmental change
are forces of change. The example of technological change is for the newspaper organization. Since computer
and printer exist, newspaper organization tends to use computer rather than typewriter. As time goes, typewriter
became obsolete. That is why the newspaper organization need to change their system to use computer because
of efficiency and efficient. The other factors that influence change are institutional change and governmental
change. For instance, when the governmental change occurred and there is some institutional change, the
organization must follow the new rule and regulation. That is why change will happen and affect from this three
changes.
Conclusion
Recommendation
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