What is Organizational change management?
Organizational change management (OCM) is a framework for controlling the effect of new business processes, changes in organizational structure, or cultural changes within an enterprise. Simply put, Organizational change management discusses the people side of change management. Reference: organizational change management (OCM), searchcio.techtarget.com
Organizational change management in successful companies depends on many factors like employee engagement, motivation and the application of strategies in the process of change
The organization uses its resources (people, machines, technology, materials, money, time) to work for the benefit of its users and for itself. Reference: How Organizational Resources Affect Strategic Change and Performance in Turbulent Environments: Theory and Evidence by Matthew S. Kraatz, Edward J. Zajac, 2001
Even if it maintains its equipment well, it becomes obsolete and needs to be repaired first, and later replaced.
Even if it was modern, the technology became obsolete and began to need small improvements on-site, and subsequently more and more improvements, and finally a replacement.
Even if it is properly developed, each product reaches its stage of maturity and it is necessary to look for new solutions - first cosmetic improvements, and later - deeper - by radically changing the product or by replacing it with a newer one.
Similarly, they gradually remain and cease to meet the necessary management structure, information system, payment system... Economic efficiency may begin to decline.
Today, large companies often carry out dozens of initiatives - mergers and acquisitions, experimenting with e-business, developing new products, or entering new markets. This is required by the ever-changing environment. The consequences are that managers are constantly helping employees learn to work with a new program and deal with an uncertain future. Reference: A Guide to Organizational Resources and How to Manage Them By Grantham University, 2019
The major concerns about every change
There are three major concerns about every change, said Peter Theiss, CEO of Delta Consulting Group.
What will the future bring?
People ask themselves the following questions: "Will I be better financially? Will I succeed? Who does my career, my future depends on? ”
What to do now?
Employees wonder what to say to their family, colleagues, etc. about the situation in which they find themselves. They are hesitant about how to react to the change.
Can I handle this?
"Can we continue to perform well as we make the change?"
These worries are not expressed aloud, but are a topic of conversation during the lunch break, for example. ”These worries in the cafe will reduce productivity and cause your most talented employees to leave the company, says Catherine Yates, senior consultant at Hewitt Associates. Managers responsible for change know that they need to communicate with employees and diligently distribute newsletters and create PowerPoint presentations. These methods disseminate information by telling employees what to expect, but rarely allay their worries or enthusiasm about their future opportunities.
The successful organization and its employees
Every successful company builds a strong emotional bond with its employees, believes John Katzenbach, whose book "Supreme Performance: Win the Hearts and Minds of Your Employees" describes 5 different strategies for achieving emotional attachment. During change, positive employee emotions are often the best antidote to feelings of anxiety and helplessness. The manager's job is to link change to goals that excite employees. ”Discover the emotionally hot buttons of the group - what your employees respond to and what would interest them,” Katzenbach advises.
Technicians are excited about innovation and making exciting developments. Sales representatives like the idea of gaining market space.
Employees of companies such as Home Depot and Marriott are hired because they are interested in offering great service. Depending on the context, there is an opportunity to motivate employees for each of these goals or others, for example, the chance to win a big bonus or to acquire new skills.
As Corning Cable Systems prepares to undertake a significant corporate restructuring, CEO Sandy Lyons kicks off the process by holding individual meetings with about 50 managers. The goal is to make them think, "It's entirely possible", explains Lyons.
Most employees want to have the opportunity to express their opinions. "Be open, engage your employees and make them part of the solution," advises Lyons. It is also good to conduct surveys of employees' opinions about the change. Effective communication during rapid change is two-way. During the restructuring of Corning Cable Systems, says Sandy Lions, ”we created a site for the internal network. He informed about everything related to the change. Anyone could come in and ask a question. A response was received within 48 hours. Many worries go away when people get their questions answered. ”
Most change initiatives have been imposed on companies, says Chris Turner, a longtime Xerox employee. (Reference). Coercion, however, rarely succeeds. Even if employees do their job, they will lack enthusiasm. Invite employees to participate in the change and work with that 25 % who agree, Turner recommends.
Leadership may cause the company to meet its stated goals. "If the company wants more entrepreneurship, but the method of payment does not encourage such behavior, the role of the manager is to say: The current system does not encourage entrepreneurial behavior. We need to rethink the way we pay our employees. ”
The manager can apply different strategies in the process of change
In political strategy, the goal is the structure of power. It relies on attempts to influence formal and informal leaders. The economic strategy relies on financial stimulus. Therefore, from this point of view, the one who controls the organizational budget has the power to buy and change everything, especially in the firm belief that everyone has a price.
The academic strategy is based on the assumption that providing sufficient information and credible facts to people will lead to acceptance of the need for change.
The engineering strategy adopts the technocratic approach, according to which the change in the physical nature of the work will inevitably cause the people who perform it to change.
The military strategy relies on the approach of "brutal force" and "ignorance" to change a situation. Physical strength and endurance are required, and the following plans are rewarded.
Confrontation strategy is a high-risk approach, as it is based on the assumption that if you manage to arouse people's interest in the problem and then mobilize them to solve it, they will change. Much depends on the strategist's ability to defend his position and arouse "enthusiasm" for work without creating tension.
Approaches that organizations are trying to implement
Some of the more specific approaches that organizations try to implement:
Training and communication. They help people understand the logic and need for change. This process requires mutual trust.
Participation and inclusion. People are more supportive of change if they have participated in its formulation and design.
Facilitation and support. It is about training and counseling, which is useful, but there is no guarantee that it will lead to overcoming resistance.
Negotiation and consensus. This primarily refers to the negotiation of incentives and remuneration. When resistance is caused by something that people perceive as a loss, this approach can be very helpful.
Manipulation and inclusion. This approach involves veiled attempts to influence people, such as the selective use of information or the conscious ordering of events.
Explicit and coercive coercion. The use of threats may work for the time being, but it is unlikely to lead to long-term commitment to change.
Change is effective if three stages are followed
According to Kurt Lewin, change is effective if the following three stages are followed sequentially: thawing, alteration, and freezing. Reference: Lewin’s 3 Stage Model of Change Explained, bmc.com
Change management models, based on K. Lewin's view, are linear and reflect relatively static processes (Kanter, Stein, Jick 1992). The metaphor of the organization as an ice cube, which can be thawed and re-frozen in the desired shape, clearly and easily describes the process but creates the feeling of change as something simple and easy to do. In practice, organizations never "freeze" to "thaw", because they are constantly undergoing complex and multifaceted processes. Managing change in the desired direction.
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