Organizational change models are helpful in assessing change at a macro level. This is the level at which many organization institutional leader view their organization. Change models can reveal why change occurs (driving forces of change), how change will occur (stages, scales, timing, and process characteristics) and what will occur (content of change, outcomes and way to measure it). In addition, each organizational change model represents a different ideology with its own assumption about the nature of human beings and social organization. Many organization change models have been postulated regarding how to effect organizational change.
John Kotter proposed management and leadership change model. He is accredited for his eight steps organization change process which are creating urgency, forming a powerful coalition, creating a vision for change, communicating the vision, removing obstacles, creating short term goals, building on change, and maintaining the incorporate culture (Weiss, 2012). John Kotter’s organization change model is appropriate for adoption by XYZ Inc for its short term change which includes expanding internationally through opening a store in Shanghai, China.
According to John Kotter change model step one includes urgency. As a XYZ Inc executive I have to create the need for change in order for it to happen. This will help in getting things moving through staff motivation. It should not only include making the employee and the whole organization fraternity realize deteriorating sales and increased competition but also have open headed discussions on change in market. The rationale of this step is to determine possible threat and predict the organization future, determine future opportunities which can be exploited, to engage in honest discussion and allow organization staff to brainstorm the change. It is also meant to enlist for support from the organization stake holders (McNamara, n.d.). Kotter emphasized that for an organization change to occur, executives should dedicate much time on step one for staff to admit the idea of change (Weiss, 2012).
In step two of the organization short term changes I should form a powerful coalition. This step requires back up from an organization top leadership and other core stakeholders and as executive I should convince staff on necessity for the change. To achieve objective it important to manage the change but spear head it. For short term change to be effective, it is important to appoint competent leaders in the new store in shanghai, China. As XYZ Inc executive I should work closely with the new formed team to build urgency and adaptation to the environment. Rationale for this step in organization change is to come up the competent leaders for the new store in shanghai China, initiate team work to make the new store successful, emphasize on the need for commitment and seriousness in the new venture and assess for any team weakness and ensure blending of relevant professional staff to run various departments (McNamara, n.d.).
Creating change vision is the third step in the XYZ organization change. It will involve linking of ideas and concepts a rising during this change to come up with something that every staff in the organization can remember. It is easier for organization employees to understand the need for change after grasping the idea behind it. The rationale of XYZ Inc creating a vision for change is come up with core values for change, develop an overview of future XYZ Inc store in shanghai China and develop change implementation strategy. After creating vision, it essential for XYZ Inc executive to frequently communicate the vision of the new store in shanghai China. The rationale of communicating stores vision is to allay personnel anxiety and fear in relation success of the new store and is a better way of leading by example. The fifth step in Kotter’s change model which should be in short term change in XYZ Inc is clearing any obstacles hindering smooth integration of its stores in shanghai China. This step should be achieved after the organization employees have agreed the idea of XYZ Inc change and vision. At this point they are ready to get to work to attain and promote the organization goal and objectives. As an executive I should come up with change structure and monitor for any existing and arising barriers. Alleviating change barrier will allow the store to move forward smoothly. The rationale for this step is to identify XYZ Inc leaders who can deliver required change, ensure performance, compensation systems, job description, and the organization structure match with my vision, identify any hindrances to change and convince staff to see its importance and act fast in removing any identified barriers (Weiss, 2012).
The sixth step is to have short term evaluation of the organization success. It is essential to show staff the achievement the organization has achieved to prevent negative critics which can bring down the success of the change. I should create smaller goal targets to be achieved within short duration of time. Frequent reporting of organization achievement will motivate the staff to work harder. The rationale for this step is to enable organization reward staffs that meet their objectives and analyze advantages and disadvantages of the change target. After establishing new stores in Shanghai China, XYZ Inc should build on that organization change. Organization should build on its strength and improve on its weakness for it to survive tough competition. Finally, in short term change XYZ Inc should absorb this change in corporate culture to form basis for determining the organization practices (McNamara, n.d.).
For long term change XYZ Inc should adopt force field model. This organization change model was proposed by Kurt Lewin. This model state that change is brought about by various driving forces which in return are balanced by resisting forces. Driving force in this change model entails competitors and economic pressure, change in technology and legislation changes both local and international. In other hand, resisting forces include organization culture which is firmly established, climate or customs specific to an organization. Lewin pointed out three stages required in organization change process. They include;
Unfreezing stage of change process entails creating motivation for change. XYZ Inc should be ready to embrace the long term change which is opening additional stores in Brazil, Russia, India, and China. This stage includes investigating any restating forces. I should understand that any high driving force which is premature will experience the same amount of force resistance. Additionally, in any organization change can not be effected unless there is motivation among the staff and executive should induce this motivation. The rationale of unfreezing is to do away with present attitudes and behaviors, motivate change by creating anxiety, guilty and discomfort, create safety psychologically though alleviating change barriers and provide information to staff and stakeholders. The second step in introducing organizational change is equilibrium adjustment. It entails adopting new behavior, attitude, beliefs and values relevant to new XYZ Inc business environment. After identifying the resisting forces and minimize them XYZ Inc long term change can be implemented. This will ensure that the organization is in the right path towards achieving its goal and objectives. The rational for introducing change is to enable persuasion. The final stage is refreezing. It entails adopting variety of strategies, regulations, rules and way of rewarding staff in order to reinforce the organizational change (McNamara, n.d.).
Organizational change has both positive and negative effects on its employees, managers and executive. Organizational change can cause mental stress to its staff especially when they occur simultaneously. This stress can be related to staff perceived injustices and poor communication during the change process. Organization change can result in loss of loyalty when staff feels that they not awarded accordingly or they do not agree with new work conditions. For instance in XYZ Inc a staff may loss loyalty if is expatriated to another country contrary to his wish. A staff that has lost loyalty to his organization can intentionally sabotage it operations. There is increased work load for XYZ Inc executives who have to deal with more stores and global market competition. Expatriate staff experience cultural difference in the new countries which may hinder their service delivery. They may also face harsh working conditions totally different from their country. The executive may face challenges which may bring down their idea of implementing organizational change (Watson, Barber, & Sharman, 1998).
In conclusion, John Kotter’s organization change model is appropriate for adoption by XYZ Inc in its short term change which includes expanding internationally by opening a store in Shanghai, China. For long term change, XYZ Inc should adopt force field model proposed by Kurt Lewin where by change is brought about by various driving forces which in return are balanced by resisting forces. Organizational change has both positive and negative impacts which affect its employees, managers and executive. The effects of change should be considered and addressed appropriately for it to be successful.
McNamara, C. (n.d.). Organizational change and development (managing change and change management). Web.
Watson, P., Barber, N., & Sharman, G. (1998).The self reported well being of employees facing organizational change: effects of an intervention. Division of Psychiatry and Psychology, 46 (6), 361-368.
Weiss, J.W. (2012). Organizational change. San Diego, CA: Bridgepoint Education, Inc.