Introduction
Change is inevitable within the organizations. In essence, the organizations in the contemporary competitive environment are required to undergo changes so as to remain competitive. In other words, change is imperative for the organizations because it would be possible for them to lose their competitive advantages devoid of it. Alkaya and Hepaktan (2003) describe change as a response to some considerable opportunity or threat that arise out of the organization. It is imperative to note that change takes place when the organizations make a transition from their present state to some anticipated future state. The task of managing change in the organizations is not easy. In that breadth, the present paper focuses on the hard/soft system. The paper first explains the soft system change and hard system change theories. It then describes what change management entails and the critical success factors for managing change effectively under both the soft system change and hard system changing theoretical perspectives. Lastly, the paper provides the examples of the companies, which have succeeded and failed to change.
The soft system change is an approach for designing as well as implementing the change in the circumstances that have the features of soft complexity. Ideally, the soft system change theory is based on some key principles. The first principle is that the person attempting to solve the problem is an essential part of that problem. The second principle is that problems are regularly connected to messes. The other principle is that solutions are what individuals see to be solutions. Lastly, the different beliefs that people have regarding what a situation entails make them perceive situations or problems differently. The soft system change theory comprises seven steps. The first step involves one or more individuals identifying the existence of a problem. The second step involves the analysis of the situation. Specifically, the analysts try to extract the issues as well as key tasks during this step. The third step involves the definition of the relevant systems. The key tasks and issues extracted in the second stage form the basis for defining these systems. The succeeding step involves the creation of a conceptual model. In the subsequent step, the second and fourth steps are compared so as to relate the problem situation to the conceptual model. The next step involves discussing the desirable and feasible changes. The last step involves the implementation of the agreed changes.
The hard system change is an approach for designing as well as implementing the change in the circumstances, which have the features of hard complexity. The hard system is based on the change related to project management, operational research, and systems engineering. The hard system change has three steps, which include the description step, options step, and implementation step. The description step entails the explanation and diagnosis of the current situation, grasp of what is involved, and setting of the change objectives. The options step entails the generation of alternatives for the change, selection of the most suitable alternative, and deliberation of what can be done. The implementation step involves applying the feasible plans and monitoring the outcomes.
The change in any organization is caused by either the internal pressures or external pressures. The internal pressures include things like factory and office relocation, new service and product design innovations, and triggering job redesign, among others, while external pressures include things like government policies and new legislations, international and national politics, and changes in cultural and social values (Radović-Marković, 2008). Nonetheless, managing the organizational change under both the soft system change and hard system change is not a simple task. One of the main things that make change management complex is the resistance to change. According to D'Ortenzio (2012), resistance to change is normal for the recipients of change use resistance as a defense mechanism for maintaining the status quo.
The employees within the organizations resist hard/soft system change due to some reasons. One of these reasons is the fear of the unknown. As a matter of fact, they resist hard/soft system change when it is carried out devoid of the warning of the resultant consequences. The misunderstanding regarding the need for hard/soft system change also causes the employees to resist the change. Additionally, the absence of proper communication makes them resist the hard/soft system change. Any organization willing to introduce a change is required to make such a change in a systematic and planned fashion. Ideally, this is what change management entails. Creasey (2007) describes it as the use of knowledge, techniques, and tools to manage the people-side of change to attain the needed business result. Particularly, change management involves making hard/soft system change in a calculated and systematic fashion to achieve the required business outcome.
Without a doubt, effective change management plays an imperative role in businesses. There are certain critical success factors for managing the hard/soft system change effectively. One of these factors is good/effective planning. It is vital to note that good/effective planning involves having a valid and clear reason as well as the mission for the soft/hard system change. There are a variety of reasons for the change. The organization is first required to be in possession of valid and clear reasons, before embarking on any change process. The reasons for the change have an impact on how the organization plans its process of change. It is, therefore, crucial for those responsible for managing change in the businesses first to think about the reasons for change so as to come up with an effective change plan. Thinking about the reasons for change involves reflecting on why the organization needs to change in the first place. After thinking about the reasons for the change, the individuals responsible for managing change in the organization are required to ensure that their arguments for change are robust. As a matter of fact, this also ensures that the change plan formulated is effective.
An effective planning process encompasses formulating a clear vision that is in line with the mission of the organization, showing the need for change, and developing the plan for change. In point of fact, effective planning facilitates the success of the entire change process. According to Norris and Poulton (2008), effective planning helps the businesses overcome the organizational inertia, utilize the resources more effectively and efficiently, and exploit the new challenges and opportunities before their rivals do so. In essence, the organizations that effectively plan for the change process easily overcome the obstacles to change such as the resistance to change. Fernandez and Rainey (2006) suggest that effective planning provides the direction on the way to reach the desired end state, helps in detecting the obstacles, and facilitates the overcoming of those obstacles. The businesses that effectively plan the change process makes their employees understand why the anticipated change is unavoidable. As a result, this helps in overcoming the resistance to change and other obstacles.
Additionally, the organizations that effectively plan the change process succeed in attaining the desired end state as they do not waste the resources in the activities that are not needed in the process of transition. Effective planning helps these organizations account for the resources, which facilitates the change process. These organizations avoid the wastage the meager resources during the transition process. Above and beyond, effective planning helps the organizations align their current resources with the new strategies and tools that they implement. Furthermore, the businesses that effectively plan the change gain a competitive advantage by exploiting the opportunities and threats before the other players in the industry to do so. According to Prastacos, Söderquist, Spanos, and Van Wassenhove (2002), the contemporary business leaders understand the need to grasp the changes within the competitive environment. What is more, effective planning helps businesses reduce the risks associated with change. In particular, the creation of the change management plan, which considers all the participants involved in the change process facilitates the reduction in the likelihood of a futile attempt to change.
The other critical success factor for effectively managing change is communication. In point of fact, communication is a key factor, which determines how effectively the businesses manage the change process. Crawford and Nahmias (2010) suggest that the change managers utilize communication mainly to engage the stakeholders and sell change. Communicating the information about the change is paramount in change management. According to Alkaya and Hepaktan (2003), the communication regarding change ought to be frequent and involve all the organization members. Ideally, this ensures that the resistance to change is significantly reduced. Mourfield (2014) asserts that communication is crucial when undergoing change as rumors take control if one fails to communicate. The individuals responsible for managing the change in businesses are required to ensure that communication is strategic and well-organized nature. Additionally, they are required to ensure that they direct the communication at the workforces and the other stakeholders.
Husain (2013) also suggests that communication during change management helps in creating trust, reducing uncertainty, tackling employee queries, providing feedback, and building employee commitment and participation. In essence, effective communication helps in creating trust between the workers and the organizations during the change process. As a result, this reduces the resistance to change and facilitates the change process. In other words, effective communication helps in building the trust between the workforces and the organization’s management, which, in turn, contributes to the realization of the desired business outcome. Effective communication also reduces the uncertainty among the individuals participating in the process of change and prepares them for the desired end state.
Additionally, effective communication helps those responsible for managing change in the organizations make the members of staff understand why the anticipated change is necessary. Also, effective communication during the process of change helps the organizations offer feedback to their workforces. Consequently, the workforces become better prepared for the change outcomes. Moreover, effective communication helps the businesses undergoing change build employee commitment and participation. In fact, the two-way communication helps the employees raise the issues during the change process and the management resolve these issues on time. As a result, the employees feel appreciated and respected, which, in turn, enhances their commitment and participation in the change process.
Effective leadership is the other crucial factor for managing change effectively. The change process calls for effective leadership. It is vital for the organizations to ensure that their leaders have the ability to manage change successfully. The effective organizational leaders ensure that they involve the workforces in planning as well as implementing the change. Consequently, this helps in overcoming different obstacles of change, including the resistance to change. Besides, these leaders ensure that they relate the change to the needs of the customers as well as those of the marketplace. Consequently, this increases the understanding as well as acceptance of the desired change. The effective leaders possess straight and clear vision about the future of their organizations, and the effective management of change calls for a clear picture of the future (Abbas and Asghar, 2010). The change vision is required to be clear so as to facilitate the formulation of an effective change management plan. The change vision that is not straight and clear makes the employees not commit themselves in the change process. As a result, the change efforts become short-term. The organizational leaders are, therefore, required to have a straight and clear vision so as to offer the necessary direction during the change process.
The organizational leaders are required to possess some functional, cognitive, and social competencies to manage change effectively. In other words, the leaders must possess some functional, cognitive, and social capabilities for them to qualify as effective leaders, who successfully manage the change process. Regarding the functional competencies, the organizational leaders are required to possess the competencies such as robust decision-making abilities, good communication skills, knowledge capabilities, and managerial abilities, among others. The robust decision-making capabilities ensure that the organizational leaders make the decisions that facilitate the realization of the anticipated end state. Petrescu (2010) maintains that the successful implementation of change incorporates the decisions, which are centered on the soft areas such as the activities designed to assist the workers to embrace new technology and hard areas such as implementing software.
Good communication skills ensure that the organizational leaders do not leave gaps in the information regarding the change process. Lorenzi and Riley (2000) assert that effective leadership can quickly lessen the behavioral resistance to the change process. In fact, the effective leaders possess good communication skills that help them build trust in the employees. As a consequence, this facilitates the effective management of change as it reduces the resistance to change. The knowledge, capabilities help the leaders understand the need for change. These leaders make use of their good communication skills to make the employees see the need for embracing the anticipated change too. The managerial abilities ensure that the organizational leaders succeed in managing the change process.
The examples of cognitive competencies that the organizational leaders ought to possess so as to manage change effectively include problem-solving skills, divergent thinking, and creativity skills. The problem-solving skills help the organizational leaders promptly respond to the difficulties that arise during the change process. As a result, this facilitates effective management of change. Additionally, divergent thinking helps the organizational leaders explore different potential solutions for solving the problems that arise during the change process. Consequently, this leads to the generation of creative ideas for dealing with various obstacles to change. The organizational leaders become creative thinkers through exploring the possible solutions for resolving the problems that emerge during the process of change in their organizations. The organizational leaders are also needed to be self-reliant and future oriented so as to manage change effectively.
Among the social capabilities that the organizational leaders are supposed to possess so as to succeed in managing change include the stress management skills, team working capabilities, motivational skills, and interpersonal skills. The change process involves the change of the status quo. Various organizations, this process makes those who are involved, including the leaders and the employees stressed. Consequently, the organizational leaders who possess stress management skills to facilitate the success of the change process as they help the employees cope with the stresses associated with the transition process. The team working capabilities help the organizational leaders mobilize the workforces work together throughout the process of change. As a consequence, this facilitates effective management of change. The motivational skills help the leaders inspire the employees during the change process. What’s more, the interpersonal skills facilitate working relationships between the employees and the leaders. In essence, these relationships facilitate the change process.
The other critical success factor for managing change effectively is having clear goals and clear-cut performance targets. It is imperative to have clear goals before embarking on the process of change. As a matter of fact, the organizations that set goals before undertaking the change process know the progress they make by measuring these goals against clear-cut performance targets. Having clear goals also motivate the individuals involved in the change process. Indeed, setting clear goals before embarking on change inspires the workforces in the organization to utilize their knowledge throughout the change process. Additionally, the organizations that define clear goals energize their staffs. In particular, the challenging goals help in enhancing the employee efforts. Consequently, this leads to success in the attainment of the anticipated end state. The workforces correct the mistakes during the process of change by continuously measuring the preset goals against the preset performance targets. As a result, this facilitates effective management of change.
Several companies have utilized the critical factors described above to manage change effectively. Among the examples of these companies are the British Airways, Toyota, and Coca-Cola. British Airways is a good example of a company in which communication facilitated effective change management. The new chairperson successfully restructured this company back in the year 1981 after realizing that it was extremely inefficient. He provided the reasons for the privatization and restructuring of this company in an attempt to prepare the employees for the imminent change. Consequently, effective communication facilitated the company’s transition. Toyota Company effectively implemented the just-in-time manufacturing in the aftermath of the Second World War, when Taiich Ohno, an engineer at that time persuaded the managers to do so. The company was performing very poorly at that time. The effective leadership of this company managed the change suggested by Taiich Ohno effectively, resulting in the improvement in the performance. The Coca-Cola Company has undergone numerous external and internal changes since its formation. In essence, this company has several times effectively managed these changes. For instance, it effectively managed its position during the Second World War and expanded its operations into new international markets. Effective planning, good communication, and effective leadership have played a significant role in effective management of change in Coca-Cola Company.
Nonetheless, there are some companies that have failed to change. The two examples of these companies are Motorola and Kodak. Motorola failed to change due to a number of reasons. First of all, this company did not have a sense of urgency. It did not compete with the other companies when they were innovating. In other words, this company stopped innovating when its rivals were doing so. It failed to develop the needed technologies. Kodak refused to move into the digital world fast enough and well-enough. The company experienced technological discontinuities. It ignored the new technology. Besides, the company’s management did not understand fully the way the world around them was changing.
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