Thursday, February 4, 2010

ASSIGNMENT #5

In the spectrum of organizational change, which is the most radical type of change: automation, rationalization of procedures, business reengineering, or paradigm shifts? (you are expected to read an article about this question) .. at least 3000 words

In the spectrum of organizational change, which is the most radical type of change: automation, rationalization of procedures, business reengineering, or paradigm shifts? (you are expected to read an article about this question) .. at least 3000 words


Another question to answer for this yuletide season.. Merry Christmas!



The world is rapidly changing into something too hard to easily predict, with a hundred opportunities and pitfalls passing by every moment. Typically, the concept of organizational change is in regard to organization-wide change, as opposed to smaller changes such as adding a new person, modifying a program, etc. Examples of organization-wide change might include a change in mission, restructuring operations like for example, restructuring to self-managed teams, layoffs, etc., new technologies, mergers, major collaborations, "rightsizing", new programs such as Total Quality Management, re-engineering, etc. Some experts refer to organizational transformation. Often this term designates a fundamental and radical reorientation in the way the organization operates.

Managing Organizational Change

[justify]It is important to have a change in the organization. In addition, such change should be successful and must contribute towards the success of the organization. The main objective of this paper is to characterize the prevalence of the change process in organizations and understand what occurs during organizational change and the forces responsible for unplanned organizational change. Organization change is a planned or unplanned transformation in an organization’s structure, technology, or people. However, there are internal as well as external factors forcing the change. Besides this, there are critical issues in the organizational development. One should be able to overcome such issues and led to effective change in the organization.



Typically, the concept of organizational change is in regard to organization-wide change, as opposed to smaller changes such as
adding a new person, modifying a program, etc. Examples of organization-wide change might include a change in mission,restructuring operations (e.g., restructuring to self-managed teams, layoffs, etc.), new technologies, mergers, major collaborations, "rightsizing", new programs such as Total Quality Management, re-engineering, etc. Some experts refer to organizational transformation. Often this term designates a fundamental and radical reorientation in the way the organization operates.


What Provokes "Organizational Change"?

Change should not be done for the sake of change -- it's a strategyto accomplish some overall goal. Usually organizational change is provoked by some major outside driving force, e.g., substantial cuts in funding, address major new markets/clients, need for dramatic increases in productivity/services, etc. Typically, organizations must undertake organization-wide change to evolve to a different level in their life cycle, e.g., going from a highly reactive, entreprenueral organization to more stable and planned development. Transition to a new chief executive can provoke organization-wide change when his or her new and unique personality pervades the entire organization.

Why is Organization-Wide Change Difficult to Accomplish?


Typically there are strong resistances to change. People are afraid of the unknown. Many people think things are already just fine and don't understand the need for change. Many are inherently cynical about change, particularly from reading about the notion of "change" as if it's a mantra. Many doubt there are effective means to accomplish major organizational change. Often there are conflicting goals in the organization, e.g., to increase resources to accomplish the change yet concurrently cut costs to remain viable. Organization-wide change often goes against the very values held dear by members in the organization, that is, the change may go against how members believe things should be done. That's why much of organizational-change literature discusses needed changes in the culture of the organization, including changes in members' values and beliefs and in the way they enact these
values and beliefs.


How Is Organization-Wide Change Best Carried Out?



Successful change must involve top management, including the board and chief executive. Usually there's a champion who initially instigates the change by being visionary, persuasive and consistent. A change agent role is usually responsible to translate the vision to a realistic plan and carry out the plan.
Change is usually best carried out as a team-wide effort. Communications about the change should be frequent and with all organization members. To sustain change, the structures of the organization itself should be modified, including strategic plans, policies and procedures. This change in the structures of the organization typically involves an unfreezing, change and re-freezing process.

The best approaches to address resistances is through increased and sustained communications and education. For example, the leader should meet with all managers and staff to explain reasons for the change, how it generally will be carried out and where others can go for additional information. A plan should be developed and communicated. Plans do change. That's fine, but communicatethat the plan has changed and why. Forums should be held for organization members to express their ideas for the plan. They should be able to express their concerns and frustrations as well.


Some General Guidelines to Organization-Wide Change

In addition to the general guidelines listed above, there are a few other basic guidelines to keep in mind.
1. Consider using a consultant. Ensure the consultant is highly experienced in organization-wide change. Ask to see references and check the references.
2. Widely communicate the potential need for change. Communicate what you're doing about it. Communicate what was done and how
it worked out.
3. Get as much feedback as practical from employees, including what they think are the problems and what should be done to resolve
them. If possible, work with a team of employees to manage the change.
4. Don't get wrapped up in doing change for the sake of change. Know why you're making the change. What goal(s) do you hope to accomplish?
6. Plan the change. How do you plan to reach the goals, what will you need to reach the goals, how long might it take and how will you know when you've reached your goals or not? Focus on the coordination of the departments/programs in your organization, not on each part by itself. Have someone in charge of the plan.
7. End up having every employee ultimately reporting to one person, if possible, and they should know who that person is. Job descriptions are often complained about, but they are useful in specifying who reports to whom.
8. Delegate decisions to employees as much as possible. This includes granting them the authority and responsibility to get the job done. As much as possible, let them decide how to do the project.
9. The process won't be an "aha!" It will take longer than you think.
10. Keep perspective. Keep focused on meeting the needs of your customer or clients.
11. Take care of yourself first. Organization-wide change can be highly stressful.
12. Don't seek to control change, but rather to expect it, understand it and manage it.
13. Include closure in the plan. Acknowledge and celebrate your accomplishments.
14. Read some resources about organizational change, including new forms and structures.
[/justify]


How organizational change occurs?

Significant organizational change occurs, for example, when an organization changes its overall strategy for success, adds or removes a major section or practice, and/or wants to change the very nature by which it operates. It also occurs when an organization evolves through various life cycles, just like people must successfully evolve through life cycles. For organizations to develop, they often must undergo significant change at various points in their development. That's why the topic of organizational change and development has become widespread in communications about business, organizations, leadership and management.

Causes of Organizational Structure.

In just a few months, the technology that an organization uses on an everyday basis may be outdated and replaced. That means an organization needs to be responsive to advances in the technological environment; its employees' work skills must evolve as technology evolves. Organizations that refuse to adapt are likely to be the ones that won't be around in a few short years. If an organization wants to survive and prosper, its managers must continually innovate and adapt to new situations.

Every organization goes through periods of transformation that can cause stress and uncertainty. To be successful, organizations must embrace many types of change. Businesses must develop improved production technologies, create new products desired in the marketplace, implement new administrative systems, and upgrade employees' skills. Organizations that adapt successfully are both profitable and admired.

Managers must contend with all factors that affect their organizations. The following lists internal and external environmental factors that can encourage organizational changes:

Generally:

• The external environment is affected by political, social, technological, and economic stimuli outside of the organization that cause changes.
• The internal environment is affected by the organization's management policies and styles, systems, and procedures, as well as employee attitudes.



Automation

Automation plays an increasingly important role in the global economy and in daily experience. Engineers strive to combine automated devices with mathematical and organizational tools to create complex systems for a rapidly expanding range of applications and human activities.

Many roles for humans in industrial processes presently lie beyond the scope of automation. Human-level pattern recognition, language recognition, and language production ability are well beyond the capabilities of modern mechanical and computer systems. Tasks requiring subjective assessment or synthesis of complex sensory data, such as scents and sounds, as well as high-level tasks such as strategic planning, currently require human expertise. In many cases, the use of humans is more cost-effective than mechanical approaches even where automation of industrial tasks is possible.


Rationalization of Procedures


Rationalization is the second stage of organizational change where the organization uses information technology to streamline a standard operating procedure. A database that holds information of available rooms is an example of this stage.

Refers to streamlining of standard operating procedures, eliminating obvious bottlenecks, so that automation makes operating procedures more efficient. improves efficiency and effectiveness. This range of organizational structure causes the organization to examine its standard operating procedures, eliminate those no longer needed, and make the organization more efficient. Both types of change cause some disruption, but it's usually manageable and relatively accepted by the people.


Business Reengineering


Business process reengineering (BPR) is, in computer science and management, an approach aiming at improvements by means of elevating efficiency and effectiveness of the business process that exist within and across organizations. The key to BPR is for organizations to look at their business processes from a "clean slate" perspective and determine how they can best construct these processes to improve how they conduct business. Business process reengineering is a more complicated and risky type of organizational change. Using the information technology the organization redesigns whole business processes in order to reduce waste and increase efficiency.

Radical redesign of processes to improve cost, quality, service; maximize benefits of technology.
BR on the other hand, can cause radical disruption. The mere mention of the term nowadays strikes fear in the hearts of workers and managers at all levels. Why? Because many companies use it as a guise for downsizing the organization and laying off workers. Business process reengineering causes planners to completely rethink the flow of work, how the work will be accomplished, and how costs can be reduced by eliminating unnecessary work and workers. In order to make BPR successful, you must first redesign the process, then apply computing power to the new processes. If problems existed in the process before the new system was installed and those problems aren't resolved, the new system could actually make them worse. Very few processes in business are as efficient as they can possibly be. It's a fact of life. The idea behind successful BPR is to find improvements or even new opportunities. For instance, Federal Express and UPS both have online package tracking systems. That simple process was never economically feasible before the Internet. They had to reengineer their business processes to incorporate this new paradigm shift.

1. Aims at
2. eliminating repetitive, paper-intensive, bureaucratic tasks
3. reducing costs significantly
4. improving product/service quality


Paradigm Shifts

The term paradigm shift, as a change in a fundamental model of events, has since become widely applied to many other realms of human experience as well, even though Kuhn himself restricted the use of the term to the hard sciences. According to Kuhn, "A paradigm is what members of a scientific community, and they alone, share." (The Essential Tension, 1977). Unlike a normal scientist, Kuhn held, "a student in the humanities has constantly before him a number of competing and incommensurable solutions to these problems, solutions that he must ultimately examine for himself." (The Structure of Scientific Revolutions). Once a paradigm shift is complete, a scientist cannot, for example, posit the possibility that miasma causes disease or that ether carries light. In contrast, a critic in the Humanities can choose to adopt a 19th-century theory of poetics, for instance.


Depending on the investment time horizon, the specific challenges and tools available may change, but the overall direction is unmistakable. The construction industry is about to experience a profound change: leaner organisations, more consistent and rigorous performance metrics, and relentless productivity improvements. The net result of these changes should also be increased profitability for those who are successful at mastering the new IT & technology tools with the promise to enable these changes.



REFERENCES:
http://en.wikipedia.org/wiki/Automation
http://en.wikipedia.org/wiki/Business_process_reengineering
http://en.wikipedia.org/wiki/Paradigm_shift
http://managementhelp.org/org_chng/org_chng.htm

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