Organisational Change: Theoretical Perspectives And Practical Applications

The Two Different Theoretical Perspectives on Organisational Change

In the recent years, various theories have helped in identifying the theoretical concepts that are related to change. Organisational change can be considered as a process adopted by managers to bring about success in the business. The changes implemented in business transactions and other processes have helped in identifying the appropriate modes that are necessary for bringing about success in an organisation (Booth, 2015). The ontology related to changes is a perfect example about the manner in which change can be implemented in an organisation. In the regard, it can be said that in order to get positive results from the changes, it is necessary that the people working in an organisation accept the changes (Cameron, 2015). Thus, this needs to be considered by the managers while trying to implement change in an organisation.

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It has been stated that the ability to control, identify and implement the requirements for change can be considered as a huge success factor for organisations. Hence, different ontological evidence can be stated with change management (Bradley, 2016). The first ontological theory that can be related to change management provides managers to identify the required policies and procedures that may cause hindrance for the success of an organisation. Employees need to embrace the changes by keeping in mind that the changes always remain constant in an organisation. The role of the managers is an important factor to maintain changes (Avolio, 2015). Hence, keeping in mind, two definitions of change can be analysed to identify changes. These theories can be related in order to identify the simple implementation of the change management process that is required in the organisation.

After analysing, the definitions related to change and the ontological theories it can be said that the resistance to change arise mostly from the employees. This resistance is due to the security of job in the organisations with the upgraded technologies and method of conducting a particular job (Clegg, 2015). Based on this, the second ontological view known as the worldview can be related. This involves the evolution of time, as organisations tend to implement changes based on the resources and suitability. An example can be sorted that identifies organisations to bring about changes in improving the technologies and the equipments of performing their work. This is mainly because it helps in reducing the manual labour of the employees and ensures quality performance (Bolman, 2017). Hence, employees incapable of applying technical expertise cannot be fitted in the organisation. To provide more light on the effectiveness of managing change, theories of Lewin and Kotter can be applied.

Definitions of Organisational Change and Their Relation to Theoretical Perspectives

Lewin stated a three-step change management model that defines simple method to implement changes. These three steps include unfreezing, changing and freezing. These processes need to be applied in a systematic manner in order to provide support to the employees in terms of accepting the changes (Burke, 2017). Kotter is of a different view and suggests eight systematic processes that can be used in order to manage changes in an organisation. The processes start with the identification of the problems and continue until the final implementation and monitoring of the problems. In order to gain success it is necessary for every organisation to follow these steps to implement successful changes. It is necessary that these changes be aimed at achieving a long-term goal for the organisations (Cameron, 2015).

Truelocal is a web based business identification centre that is situated in Sydney. It has small branches located all over the country notably in Melbourne and Brisbane. The company owns over 150 employees of which about 50% of the employees were recruited in the past couple of years. The company was established in 2005 by the NDM as a support system to provide information regarding weather and online sport. It also provides opportunities for search engines and recruitment of individuals based on web searching (Truelocal.com.au., 2017). With the advent of digital system in the world it is necessary that online media be used as a primary means of sourcing information. The demand for print media has diminished and people rely on online sites for searching of jobs, maintaining communication with people and collecting information about various topics. This is a step towards globalisation of the society. The digitalisation also had a severe impact on the News Corporations (Doppelt, 2017).

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In order to bring about changes in the organisation in terms of culture, structure and values, Truelocal underwent certain changes in order to meet the goals. The structure and value of the organisation needed to be aligned with the parent corporation. Many experts use three sets of primary changes in order to maintain the changes based on approach, technical design and political allotment (Goetsch D. L., 2015). Any of the issues can be a huge problem now in order to initiate changes. Truelocal have undergone various alternatives in order to evolve at one point of time. The organisation has been expanding itself since its inception in 2005. The websites of the organisation have operated as separate units of business. The focus is on maintaining sustainability in the various departments of the organisation. Decisions regarding aligning the terms of operations in the organisation need to be taken in order to influence the factors of performance and innovation within the business. This helps to provide the best online information in Australia (Farkas, 2016). Hence, it can be said that redesigning the structure of the organisation in a more appropriate manner can help the business to merge with the NDM and make it as a onetime location.

Case Study: Truelocal and Change Management

After its relocation to a different place, Trulocal began changing the organisational structure of the company. This involved appointing a new manager along with changes in team and CEO. Ever since the initial restructuring regular changes have been implemented in order to attain the goals of the organisation and ensure continuous growth.  Performance gap can be attained by analysing the steps involved in the process of maintaining the changes (Goleman, 2013). As a result, performance of the employees can change with the change in culture and policies of the organisation.

Certain changes took place in the organisation that had to be shifted from bureaucratic to the vertical approach. The formation of horizontal and vertical structure in the organisation and the modifications needed for forming a culture needs to be incorporated in the organisation. The existing culture of Truelocal can be deemed as a casual attitude due to the requirements in the formal tome of command. The formal dress along with informal expression of communication is one of the most effective strategic changes adopted by the organisation (Hayes, 2014). The changes have to in line with the change agents and need to be executed by the change agents in order to maintain proper management in the organisation. It is the duty of the managers to employ motivational techniques in order to implement the changes necessary for the growth of the organisation. The employees either are motivated or find the changes bearing unfavourable consequence for the employees (Cummings, 2014). This can be attributed to the lack of adaptability of the employees.

Truelocal can benefit from the application of the change management theories in order to understand the requirement for changes and the application of it (Hechanova, 2013). The reason behind this is the fact that the organisation deals with online business and it is required that the company embrace the changes that is required for the prosperity of the business. In the modern world, the use and implication of internet is one of the most important areas of business. Without proper net connection, organisations cannot remain competitive with the changing world. Internet has been the most reliable source of business and mode of collection of information (Hill, 2017). Truelocal ensures that the changes in the technological field can help in maintaining a competitive advantage and provide an opportunity to expand in international borders. The changes are required in order to ensure that the organisation remains in updated and continue to dominate the market both domestically and internationally.    

Change Management Theories: Lewin and Kotter

SWOT analysis is usually conducted in order to identify the internal factors that affect the working of an organisation (Kotler, 2016). The potential resources and capabilities of an organisation is analysed in this process. However, in this case the SWOT analysis of the changes taking place in Truelocal is conducted.

Strengths

· Highly maintained technology

· Merge with reputed company

· Relocation to a convenient location

Weakness

· Improper structure

· Affect of cultural factors

· Performance gap

Opportunities

· Global expansion

· Motivation to the employees to reach the targets

· Local recognition and fame

Threats

· Threat from competitors

· Continuous technical upgraded required

· High rate of employee turnover

Table: SWOT analysis

(Source: Created by author)

The table shows that one of the biggest strengths of Truelocal is the fact that the company have been able to merge itself with a reputed company. The merging with NDM has helped the company to continue its business in a successful manner. Hence, the required technologies that are required for the success of the organisation are obtained from the company. However, the main reason for the changes in the organisation is the poor structuring of the organisation. It is important to maintain a proper organisational structure in order to maintain success in business (Doppelt, 2017). Employees can report to the manager in a less complicated manner. Due to poor structure, the performance of the employees at Truelocal can be drastically hampered.

Apart from poor structuring, the cultural factors were also involved in the changing of policy in the organisations. Hence, every factor that has led to changes in the organisation has had a negative impact in the performance of Truelocal. The weaknesses displayed by Truelocal justified the need for changes in the organisations. Despite this, there are opportunities that can be gained by Truelocal. This includes gaining global and local recognition in the market. Motivating employee can be done in order to create more opportunities for success in the business. These opportunities can be gained by mitigating the threats of the company. The technologies used by Truelocal needs to be updated on a regular basis so that due to lack of technical prowess the company does not fall back in the competitive race. They also need to deal with the rate of turnover of the employees. Thus, the SWOT analysis provides solutions from the threats and weaknesses in the form of strengths and opportunities of the company.      

Organisational changes need to be done in order to gain opportunities after mitigating the internal and external factors. Objectivists are of the view that for the internal analysis, it is important to use the SWOT technique so that the managers can identify the changes required within the company. SWOT analysis helps in understanding the business in a proper manner (Higgs, 2014). SWOT analysis helps to understand the business well and prepare strategies that can help in gaining competitive advantage. It helps in implementing changes by addressing the weakness of the organisation. The strengths of a company can be used to gain a competitive advantage over the rivals. Based on the strengths, weakness can be mitigated by creating opportunities. Social constructionists also view it as a way of gaining opportunities to expand a business in new horizons (Hill, 2017). Despite this certain limitations also exist that may draw in many criticisms.

SWOT Analysis of Truelocal’s Approach to Change Management

It has been seen that SWOT analysis does not help to analyse the external issues that prevail in the market (Kramer, 1293-1306). From the point of view of an objectivist, it can be said that the issues identified are selected at random and systematically arranged so that the highest priority is solved first. This does not provide any assistance in the case of external factors.  This can be a weak point of the analysis as the external factors also pose serious threat. Moreover, it does not provide any alternate solutions after the identification of weakness. The only solution provided does not have any guarantee to work. The ability to come up with new and appropriate solutions each time cannot be provided by the managers. It can be said that the social constructionists perceive that the best solutions are also not provided in the analysis. Similar to solutions, the information gained from the SWOT analysis cannot be relied upon (Northouse, 2015).

The changes that take place within the organizations needs to be done by engaging some agents who can help in managing the changes within the organization. Most of these agents are commonly referred as agents of change who helps in analyzing the situations so that the important changes can be implemented within the organization. The roles that these agents of change are described as following:

Investigate: The performance of the work that has to be done after the changes have been implemented within the organization are based on certain characteristics of the people, which needs to be investigated. The agents of change are of the view that it helps in the identification of the clues that provides suggestion in preventing the changes. It helps in removing the threats, which might cause a delay in the process of change. With respect to Truelocal, the agents of change have to determine the various steps, which will help in removing the hurdles that may cause a delay in implementing the changes within the organization. The use of the analytical skills along with proper observation of the changes is an important task that the change agents have to carry out (Wood, 2016).

Advocate: To facilitate the changes within the organization, it is important that the opinions of the people have to be voiced with respect to the implementation of the changes. The agents of change help in voicing their support regarding the changes in the organization, which will help in gathering the support from the employees as well. This will also help in motivating the employees within the organization with respect to the changes that are being bought within the system. Truelocal needs to adopt some of the practices such as managing the changes in a proper manner by giving the responsibility to a particular individual who will oversee the situation in a better way. The change that will be initiated has to be enforced in such a manner so that it can help in maintaining the goals that are present within the organization (Waddell, 2013).

Encourage: The changes can only take place provided that the employees and the managers are willing to accept the changes that are going to take place within the organization. The attitudes, activities and the behaviors of the agents of change will help in ensuring that the changes within the organization can be encouraged so that it can be implemented at a faster rate. This also includes the risks that may be present in accepting the changes, as the employees have to work out of their comfort zone. The company can willingly implement the tactics that will help in encouraging the employees so that the changes can be implemented within the organization.  The agents of change have to understand the implications of the people on a personal level so that it can result in motivating the people for the changes to be established within the organization (Olins, 2017).  

Facilitate: One of the major attributes of the agents of change is that they have to analyze the ways in which the changes can take place within the organization. This includes the formulation of the strategies along with the risks that may help the organization. The changes that will be implemented has to be analyzed and presented among the employees so that it can act as a motivator among the employees and they are willing to accept the changes. With respect to the company, it is an important factor, as the agents have to facilitate the design system along with the necessary tools that is necessary for the organization to work in a better manner (Stogdill, 2014).

Mediate: There are different groups that have various opinions regarding the procedures, strategies and the policies, which are adopted within the organization. Likewise, with respect to the changes, these groups have different opinions regarding the implementation of the changes. The agent of change acts as a mediator, as they help in bringing out the factor of negotiation among the people so that a common goal can be achieved. This role helps the change agents to act as leaders within the organization (Todnem B, 2015).

Advice: The agents of change have to rely on their expertise so that it can help in building authority over the employees. This can be done by sharing the knowledge that they possess so that it can be useful within the organization. With respect to the company, it can be said that the knowledge that is imparted by the agents of change helps in signifying the level of reliability among the people. The advice that is given by them helps in better training of the employees, as it results in conducting meetings on a daily basis. This can be done when the agents of change are knowledgeable and confident with themselves, which will help in imparting the knowledge to the employees as well (Aladwani, 2011).

Manage: The other role that the agents of change ensure that the projects that are being taken up within the organization can be delivered along with the target and the goals and within the deadline as well. This results in maintaining the pressure that will help in realizing the goals of the company. The major drawback is that it makes the employees responsible for missing the targets within the particular deadline. An organization like Truelocal can have many risks within the system, due to the turnover rate of the employees within the company (Todnem B, 2015).

Therefore, the role of change agents is versatile and has to be evaluated in a better way by the organization. These roles will help the company in implementing themselves within the market of business.  

There are certain approaches that help in managing the changes within the organization. Most of these approaches are different and varies from one other so that it can help in managing the changes within the company. It is inclusive of the dialogic and the person-centric approach.

Person-centric approach- In this approach, the person are delegated the responsibilities and the roles within the organization in a descending order that is it flows from the higher to the lower authority. Most of the employees are given a goal that helps the managers and the supervisors in achieving the goals of the organization on a long-term basis. This approach helps in generating development of the organization through a sustainable manner. With respect to this, the approach helps in implementing the changes within the organization in a critical manner so that it can help in achieving the results. The application of the effective leadership will help in sharing the changes within the organization in a better manner. This helps in encouraging and motivating the employees so that the plans of change management can be effective within the organization (Bradley, 2016).      

The benefits in adopting this particular approach are that the employees have the provision to provide their opinions regarding the changes that needs to take place within the organization. It will also result in the formation of groups so that the problems faced by the employees can be ensured within the context of the organization. In most of the cases, it can be seen that the agents of change act as the advisor or the mediator among the employees within the organization. The agents of change give their advice to the employees along with the managers regarding the positive and the negative effects of change, which may take place within the organization (Kotler, 2016). However, there are many disadvantages as well that makes it difficult for the organization in adopting the technique.

One of those challenges is the setting of the goal. The employees have to wait for the setting up of the goals within the organization. This approach is done based on a hierarchical method, which makes it necessary for the setting up of the goals on a priority manner. This may result in more time, as the organization needs time in developing the goals on a short and long-term manner. This is due to the fact that the employees will feel the impact of the goals that are being set by the managers. Most of the focus of the managers is that the target has to be achieved that has been provide to the employees so that the success of the organization can be seen in the market. This is done on an annual basis so that the long-term goals of the organization do not affect the organization (Booth, 2015).

With respect to the case of Truelocal, this approach cannot be implemented due to the fact that the organization is lacking a proper structure. One of the major disadvantages of the company is that the proper information regarding the supervisors is not provided in the organizational structure that will help in facilitating the changes within the organization. Therefore, the existence of a proper hierarchical structure is not present, which will make it difficult for the company in maintaining the objectives and the goals (Cameron, 2015).

Dialogic approach- This approach is implemented within the organization, which is based on the planning results along with the implementation of the stakeholders and the organizational structure. This process consists of four levels so that the analysis can be done in a systematic manner. These levels are inclusive of engaging and exploring, formalizing and building along with evaluating and implementing. These levels help in meeting the demands and the requirements in the organization so that the changes can be implemented in a successful manner. The method of change that is transformational in nature is done to ensure that the change has been implemented and accepted within the organization (Hayes, 2014).

There are various benefits of this process as well that needs to be analyzed. One of the advantages is that the opinion of the employees does not matter in this approach and the managers can implement the changes and communicate it in a proper manner so that the changes can be accepted within the organization. This helps the attitudes of the workers to be changed so that it can help in assisting the changes that needs to be done within the organization (Burke, 2017).

There are disadvantages as well, which makes it difficult for the organizations in adopting this method. One of the limitations is that the factor of motivation is absent, which may not lead in encouraging the employees in a proper manner. The agents of change act as a motivator where the changes can help in higher rate of turnover for the employees. This hinders the proceedings of the organization, as the changes cannot be affected within the organization (Hechanova, 2013).

With respect to the company, this approach will help in motivating the employees so that it can decrease the rate of turnover of the employees. The company uses the modern technologies on a daily basis and the changes have to be made so that the technological advancements can be used. Therefore, partnering with NDM will help in the relocation of the organization so that it can be successful in the market (Clegg, 2015). 

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