How do these elements relate to organization change

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DQ 1

What are the most significant elements that ensure successful change and how do these elements relate to organization change?(Please place reference under answer)

DQ 2

How can an Ambidextrous Approach be helpful when changing organizational structure? Would another approach be more helpful? If so, how? If not, why not??(Please place reference under answer)

Changing or Modifying Organizational Structure

Introduction

Organizations prefer stability; however, competitive, economic, political, global, demographic, social, and ethical forces in the environment require that they respond by adapting to these forces. To remain competitive in a changing environment, organizations may modify their structures and their technologies, products and services, strategy, and culture. (Jones, 2013). Organizations remain competitive by innovating and responding quickly to changes in customer demand, a multi-generational workforce, cumbersome union contracts and pension plans, technologies and new laws including those that change organizations' responsibilities for health care coverage for employees.

Organizations can make gradual, evolutionary changes described in sociotechnical systems theory or revolutionary changes that are rapid, dramatic and have broad impact across the organization. Sociotechnical systems theory refers to changing roles, tasks, or technical relationships to improve organizational effectiveness, whereas revolutionary changes involve organizational strategy and structure (Jones, 2013). Evolutionary changes are small, incremental changes whereas revolutionary changes are large and innovative. As examples, retailers and hotels made evolutionary changes by adding coffee outlets in their stores and lobbies whereas the coffee reseller made a revolutionary change by introducing a new premium coffee concept to the marketplace.

Changing Structure or Design

Changing an organization's structure or design is strategic. Organizations may modify structure and design by implementing flatter organizational structures with increased spans of control and areas of responsibility to reduce overhead costs. They may decentralize and move decision making to lower level positions within the organization, have employees work virtually to improve quality of life and decrease costs, and engage in e-business.

People and organizations face challenges when implementing change. Organizational-level resistance to change can be a major challenge and barrier to organizational change. Factors related to organizational resistance to change include power and conflict, differences in functional orientation, mechanistic structure, and organizational culture. Change challenges existing power relationships, which can cause conflict if people perceive winners and losers in the process. Functional orientation causes people to view priorities from narrow perspectives without fully appreciating the priorities of others in the organization.

Mechanistic and organic organizations implement change differently. Mechanistic structures initiate and implement change through a hierarchical system, with a small number of people involved in planning and leading the change. A flat, organic organization offers employees more autonomy and involvement in the change process.

Changing Organizational Culture

Changing organizational culture is difficult because it challenges people's beliefs, values, and norms. Stimulants for cultural change within organizations include a four-generation workforce, cultural diversity, changing societal trends and mergers and acquisitions. The challenges of a multi-generational workforce require that each generation understands the values and priorities of other generations to allow them to work together effectively and with minimal conflict. Cultural diversity requires that people understand and respect the cultures and values of other cultures. Changing societal trends require that organizations respond responsibly, respectfully, and ethically to accommodate the new trends. Mergers and acquisitions require that different organizational cultures engage to create a new, combined culture. Failure to change the cultures of organizations that unite through mergers or acquisitions is a major reason for the failure of these organizational unions.

Making Successful Change

Successful change requires both ideas and implementation of these ideas. Many organizations form creative departments or new-venture teams for idea generation and make operations teams responsible for implementation. Leadership is responsible for coordinating these groups for successful innovation. Many organizations use Six-Sigma teams for evolutionary and revolutionary change. Six-Sigma is a statistically-based methodology that grew out of the quality movement and total quality management (TQM). Six-Sigma teams focus on value-added activities, eliminating waste and mistakes and improving products and services for all stakeholders of the organization. Several interventions can be implemented to modify organizational structure successfully. Effective leadership is essential to any successful structural change strategy. The leader needs to be totally committed to the change, share the vision, urgency, rationale, and benefits of making the change, and model a commitment to the change through behavior. The leader needs to involve key employees in the change process and can form teams within the organization to support the change. The leader needs to be aware of natural resistance as a barrier to change and to support people through the initial period of uncertainty and resistance to change.

A change intervention is a series of planned and sequenced actions to assist the organization improve its effectiveness. A successful intervention requires that it fits the needs of the organization, is based on knowledge of the desired outcomes, and requires that leaders can engage followers in the change. Contingencies to consider for effective interventions include the organization's readiness for change, the organization's capability to change, the organization's multi-cultural environment, and the capability of the change agent to lead the change (Cummings & Worley, 2009).

Conclusion

When organizations make structural changes, it is important that they follow a series of events that are specific to the desired change. Structural changes within organizations are difficult because they challenge existing power and authority relationships. A complete systems approach that considers the needs and well-being- of the entire organization is important to successful structural change. Communication is essential during any change initiative.

An organization that is downsizing will plan an intervention that is different from an organization that is re-engineering. An organization that is downsizing will need to begin by clarifying the organization's strategy, assess options, and make decisions outlining its new structure, implement the changes, offer appropriate support for those who leave and for those who remain, and continue with plans for growth. An organization that is reengineering will prepare the organization for future changes, analyze core business processes and define performance objectives, design new processes, and restructure the organization to support the new processes (Cummings & Worley, 2009). It is critical during any structural change that leaders are sensitive to the needs of the people involved in the change.

References

Cummings, T. G. & Worley, C. G. (2009). Organizational Development & Change. Mason, OH: South-Western.
Jones, G. R. (2013). Organizational Theory, Design and Change (7th ed.). Upper Saddle River, NJ: Prentice Hall.

Reference no: EM131273313

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