Effective Change Management in Organizations

The study highlights the importance of effective change management in organizations. It emphasizes that leaders and management play a crucial role in managing change, ensuring that all standards are maintained, and providing proper training to staff members. The study also recommends the Kotter eight-step process for effective change management. Furthermore, it identifies various internal and external factors that can impact change management. Overall, the study suggests that transformative actions within an organization are necessary to achieve goals effectively.

Organisational Behaviour

TABLE OF CONTENTS
INTRODUCTION................................................................................................................................1
ASSIGNMENT 1.................................................................................................................................1
Case study details.............................................................................................................................1
Impact of culture on organisational performance............................................................................1
Advantages and Disadvantages of culture.......................................................................................2
Motivation techniques used by Siemens..........................................................................................4
CONCLUSION....................................................................................................................................5
ASSIGNMENT 2.................................................................................................................................6
Case study brief...............................................................................................................................6
Internal and External factors influencing change............................................................................6
Change management process...........................................................................................................8
CONCLUSION....................................................................................................................................9
REFERENCES...................................................................................................................................10

INTRODUCTION
Organisation structure is all about determining the way in which duties and responsibilities will
be controlled for effective accomplishment of organisational goals. On the other side, the organisation
culture can be termed as combination of various factors which can impact the organisational structure
(Buchanan, 2004). The classification of factors can be as values, vision, mission, beliefs, symbols and
behaviour. In order to have impressive success it is necessary for every business to focus on effective
learning or understanding of organisational structure and cultural aspects.
In the current report the learning will focus on work culture and structure of two business
organizations which are named as Siemens and Aegon. Report is also classified in two assignments, in
the first assignment the Siemens will be considered as a organisation to understand the issues regarding
culture and motivation. It will also focus on ways or approaches which is used by management of
Siemens to motivate the employees. However, in the second assignment the Aegon is taken as a
organisation in order to understand the internal and external forces of change which can impact the
business and operational activities. It will also focus on change management process and its impact the
work culture of Aegon.
ASSIGNMENT 1
Case study details
Siemens is one of leading engineering group which offers number of products and services that
amends the day to day actions. The classification of products and services can be as traffic lights, gas
turbine, medical scanners, wind generators, fridges, etc. Company focus is on innovation so that
products can solve real time problems. As per the case study the organisation is focusing on three
diverse theories of motivation which are used by management of Siemens in order to resolve various
issues.
Impact of culture on organisational performance
Culture is all about the combination of various factors which can impact the organisation
structure. The classification of factors can be as behaviour, values, beliefs, etc. It has been spotted that
the Siemens is focusing on functional organisational structure in order to accomplish the goals and
amend the production (Mullins, 2007). The management of Siemens effectively considering the three
key areas which are classified as production, marketing and finance. The management of Siemens has
created a positive work environment which provide strength to its culture and structure. Company key
motive is to bring innovation in its products so that opportunities can be boosted.
Other than this, it has also been identified that management of Siemens is focusing on personal
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performance culture approach in order to accomplish the goals (Martínez-León, 2011). It also
facilitates in enhancement of their business opportunities and provide better strength to organizational
processes. It also plays a key role in effective allotment of roles so that goals can be meet in better way.
In other words, it can be stated that with an assistance of this cultural aspects the Siemens is easily
obtaining its organizational goals and objectives. Moreover, it is also considered as a one of systematic
formulation which helps in creating better belief (Lund, 2003). It also renders a better opportunity to
have open communication style within the organizational environment.
As per the concern of case study it can be stated that the innovation and engineering culture at
Siemens also facilitates the management to develop products and systems which can resolve the real
time issues. This clearly indicates that the workers and engineers of Siemens are effectively
transforming creative thoughts into enhanced form of products, services, technologies and process
(Cardona, 2000). It has also been spotted that the engineering work is constantly changing so it is also
necessary for workers of Siemens to have improved focus on development of range of skills and
abilities which can boost the operational activities. In this respect the management of Siemens is
providing number of opportunities to workers. Siemens is focusing on recruitment of undergraduates
and graduates into the job profile of engineering. It is considered as a beyond standard approach which
attracts skills people and provide better competitive advantage (Chand, n.d.). This approach also helps
management of Siemens to create a open culture with better opportunities for employees at all levels.
In the support of above statements it can be said that the organisational culture is one of way in
which employees perform their tasks and interact with other members within organisation. Culture
plays a key role in success of every organisation because the change in culture is one of biggest
challenge for organisation (Brooks, 2003). For example, the Siemens is focusing on open culture and
friendly innovative work environment so they are considering standard procedures in order to define
the roles and responsibilities. It helps in gaining better competitive advantage and lead business to
impressive success.
It can also be understand by analysing the statement, If employees are feeling motivated and
considering themselves as a part of organisation culture then they will have efforts in optimistic
manner in order to meet the organisational goals (David, 2008). In the same manner the management
of Siemens is using various motivation theories to motivate employees and make believe them as part
of organisation culture. It improves the cultural aspects and enhances the performance to accomplish
goals in effective manner.
Advantages and Disadvantages of culture
It has been spotted that the culture have great impact on the organisational performance and it
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can influence the work performance in both positive and negative manner. In the support of this
statement it can be said that the culture have various advantages as well as disadvantages which
management of Siemens need to understand for better business opportunities (Hardy, 2006).
The one of key advantage of culture is that it facilitates in advancement of work performance
and provide various new areas for business development. It also have improved focus on various
factors which can amend the coordination level among all members or departments. It is beneficial to
attain the better results and have effective accomplishment of goals (Neff, 2006). In this respect, it can
also be said that the business culture of Siemens is more focused on motivation and development of its
employee’s which amends the business opportunities for the company. Moreover, the Individual target
accomplishment is taking organisation towards effective achievement of organizational goals. It also
facilitates in creating good team so that tasks can be accomplished in better way with considering
responsibilities (Martin, 2001).
As per the consideration of case study it can be stated that with an effective focus on cultural
aspects the management is capable to maintain the standards of approaches in better way. It also
provides better competitiveness to its all employees (Quang, 2002). The innovative work culture of
Siemens is providing wide range of opportunities to its employees by offering them further education
and training. It leads business opportunities in various directions. Moreover, with an assistance of
cultural aspects the management can maintain the the balance between various aspects such as
research, manufacturing, sales, marketing and project management.
In the support of case study it can be said that the Siemens business culture is to motivate
employees and make them feel as a part of organisational culture so that they can have efforts in better
way (Andriopoulos, 2014). It increases the motivation level of employees and provide them a various
innovative ways which can develop new system and overcome the issues. It also helps in reducing the
level of dissatisfaction within organisation. The employees are free to take part in various managerial
actions. The improved focus on open culture is also rendering a better support to its motivation theories
through which business is taking various benefits (Carnall, 2007).
Cultural aspects of Siemens also have some disadvantages which can create some barriers for
organisation. The classification of disadvantages can be as unavoidable, behaviour driver, acceptance
issue, thought of change and misalignment. In this respect, it is necessary for management of Siemens
to understand these aspects so that goals can be accomplished in better way (Kozlowski, 2009). The
one of key disadvantage of culture is that the management can not avoid its appearance as it have
direct impact the work performance. It is necessary for organisation to consider the this aspect for
effective development. Another key issue is that the cultural aspects also plays a key role in person
behaviour. Some time it can impact the individual behaviour in negative manner so it is necessary for
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management of Siemens to have improved focus on various this aspect (Purcell, 2009). The proper
leadership and work environment must be provided to person so that motivation level can be enhanced
and behavioural aspects can also be improved. If manager of Siemens behaviour is negative then it will
impact the work environment in negative manner which have direct impact on the motivation level of
employees.
Other than this, it has also been identified that the business can also face some issues regarding
acceptance of cultural aspects. For example, the management of Siemens has decided to create a open
communication culture but some of top managers are not ready to accept the change (McLean, 2012).
In This condition the management can face some issues which will impact the overall performance and
operational activities in negative manner. It is also one of key challenge for management of Siemens
to bring some changes in its culture as per the consideration of employees needs so that they can accept
the changes in better way (Edgar, 2007). In this support it can also be said that the some employee’s
may see opportunity in aspect of cultural change but some can consider it as threat so it is essential for
management of Siemens to look over it and overcome the issue.
The misalignment is also one of key issue for business organisation and it can impact the
business in negative manner. If cultural aspects are not supportive to vision and mission then it can
create some barriers for the management. It is necessary for management to ensure that the culture is
providing better support to mission and vision (Cohen, 2001). In this respect it is also essential for
management of Siemens to ensure that the employee’s are considering the vision of owner or
management in very determinant way.
Motivation techniques used by Siemens
As per the case study it can be said that the management of Siemens is focusing on three basic
motivational theories in order to encourage employee’s and lead business to impressive success. With
an assistance of motivation theories the employee’s of Siemens feel motivated to have efforts in
effective manner (Daft, 2009). In this respect the management of Siemens considers four key factors
which can be classified as self belief, basic needs, power and creative. Management of Siemens allows
its employees to share ideas so that work performance can be improved and make them feel valued.
The culture is also designed in manner which provides better values to its employees.
Furthermore, the management of Siemens is also focused on creating better relationship
between task and workers so that goals can be meet in better way. In order to motivate employee’s the
management is also offering various rewards as per their productivity (Iqbal, 2013). The payment
reward system is also adopted by management of Siemens to enhance employee’s prompt level. It also
improves the flexibility within organisational activities which also enhances the capability.
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Other than this, management of Siemens is also focused on Maslow motivation theory. It is
classified in hierarchy of needs such as physiological needs, safety, social, self-esteem and self-
actualization needs. In respect of basic needs of theory the management focuses on meeting the factors
like food, water, warmth, shelter and clothing (Men, 2013). Once the person has meet these needs,
individual focuses on physical security at work such as safe working practice, job security and
financial security. Social needs means the group belonging so management focuses on advancement of
socialising with work colleagues. After this, self esteem is also necessary so management provide
rewards to workers and provide various other benefits in order to make them feel valued (Adler, 2007).
At last, the self fulfilment means management of Siemens allot various challenges to workers which
amends their motivation level to accept the challenge and meet the objectives in better way. It also
helps in improving the skills of employees and also increase the work potential.
Moreover, the management of Siemens also focuses on herzberg motivational theory in which
management provides better opportunities for employees to meet the high order needs. It also
facilitates in meeting the self esteem needs by providing various rewards to individuals. Company also
focuses on development of people in order to meet the self actualization needs (Maddalena, 2007). The
proper training and development opportunities are provided to engineers so that their skills can be
enhanced and take them to the better future. It also facilitates in meeting the demand of global market
conditions. In order to enhance the job satisfaction level the management of Siemens is focusing on
motivators. To satisfy the people the better opportunity is provided for personal development. The level
of responsibilities is managed in better way so that activities can be take placed effectively and
motivation factor can be promote (Bonnici, 2011). At last the hygiene factors are also considered as a
key aspect to amend the motivation level and provide better satisfaction level. Improper
accomplishment of hygiene factors demotivate the employees and impact the organisational process. In
this respect the management of Siemens improved satisfaction level by creating balance between dis-
satisfiers and motivators.
CONCLUSION
As per the above study it can be concluded that the management of Siemens is more focused on
creating open communication culture in order to motivate the employees and meet the goals in better
manner. It has been identified that the company is also creating innovative work environment to meet
the cultural needs. It is necessary for management to consider the cultural aspects as key success
factors as it impact the organisational performance. It has also been spotted that the management of
Siemens is focusing on various motivational theories in order to amend the skills and prompt the
employee’s. It facilitates in effective accomplishment of goals.
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ASSIGNMENT 2
Case study brief
Change is essential part of every organisational process and it is necessary for management of
every business to have improved focus on it so that goals can be accomplished in better way. In this
respect it can be said that the management of business organisations can focus on various models of
change in order to implement the modifications within organisation. As per the study it can be said that
the Aegon is one of the world largest life insurance company. The study illustrates the success that has
been brought by Aegon by focusing on change management. With an assistance of this, the
organisation has improved its business opportunities in great manner. Change is also necessary for
business organisation as it provides better strength to operational activities.
Internal and External factors influencing change
It has been spotted that there are number of internal and external forces that can lead the
management of Aegon towards change. It is necessary for management to understand the external
factors effectively before taking any decision regarding change. There are some factors which can lead
business to change such as financial services authority, stock exchange, retirement age, customer
perception (Pirlot and et. Al., 2013). In the support of above statement it can be said that the changes in
retirement age can also impact the work culture of Aegon and forces management to implement some
changes which can lead business to impressive success with managing change factors. As per the case
study it can be said that the people plan their life insurance policy as per the consideration of their age
of retirement. For example, if age of retirement has decreased then people will look for insurance
policies which provide high interest or return in less time period (Riley, 2012). On the other side, if
age of retirement has increased then people will look for insurance policies which provide high level of
return in long term period. So this clearly indicates that it is necessary for management of Aegon to
consider it as important factor of change.
Furthermore, the business of Aegon can have some changes as per the rules and regulations of
financial service authority rules and regulations. It has been identified that some organisations have
been involved in mis-selling concept (Pirlot and et. Al., 2013). As per the concept the Aegon is not
providing valuable products to customers so in this respect the financial services authority has
introduced some regulations which management of Aegon must follow in order to avoid any legal
issues. In this condition it is possible that the management of Aegon may need to change the standards
of its services.
Other than this, the change in conditions of stock exchange can also lead business of Aegon to
some changes. The return of investment and mortgage endowments depends upon the growth rate of
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stock exchange (Bonnici, 2011). For example, the decrease in value of stock exchange has impacted
the investment return on some life insurance products of company. In this conditions it is necessary for
management of Aegon to understand the market circumstances in better way and then implement some
changes in product so that better sustainability can be attained. The change as per market conditions
and growth rate of stock exchange can deliver financial return as per the expectations (Maddalena,
2007).
In the support of above statement it can be said that the failure of product also have direct
impact on the customer base of company. It can be consider that the change is one of key objective so
that activities can be managed effectively on regular basis (Adler, 2007). In this management of Aegon
need to make sure that the products are more sustainable and gain better market share as compared to
its competitors or other banking organizations. It will also amend the success ratio and provide better
sustainability with motive of increase in profit margin ratio.
The classification of internal factors can be as leadership, managers, brand value and
management functions. In this support it can be said that the improper actions performed by
management can also forces to have some change implementation (Men, 2013). For example, the
market trend has changed a lot in modern era but the business is still focusing on traditional approach
which has impacted the business in negative aspect. In this scenario it become necessary for
management of Aegon to implement some changes as per market conditions so that they can have
better success.
In the support of internal factors it can be stated that the leadership plays a key role in brining
change within organisation. It is necessary for every organisation to ensure that the leaders are well
skilled in order to manage the workers so that competitive advantage can be gained in better way. If
leaders will not have proper skills then it may impact the business in negative manner and may also
affect the change management (Iqbal, 2013). The leaders must have proper information about the
change management process and its key factors so that change management goals can be meet in better
way. It is necessary for leaders of Aegon to ensure that they are taking key participation within change
management process so that business can have impressive success (Daft, 2009). It is also essential to
make sure that the followers have trust on leader and they follow actions as per guidance provided by
leader.
Moreover, before change management process the CEO of Aegon focuses on some key factors
which can manage change in better way and lead business to impressive success. As an leader of
Aegon the CEO focuses on three key questions which are classified as
 What do we stand for in the UK?
 What do we want to stand for in the UK?
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 What should we be doing about it?
It facilitates in effective identification of issue and then make decision about the change so that
goals can be accomplished in better way. It also provides long term saving and protection to business
from change. Other than this, behaviour of managers can also force management to bring some
changes in its operational activities (Cohen, 2001). For example, the HR manager of Aegon is not
feeling motivated and not able to perform actions in negative manner. It has also impacted the
behaviour of other employees in negative manner which have direct negative impact on the overall
organisational performance (Edgar, 2007). In this situation, it become necessary for management of
Aegon to ensure that HR manager is feeling motivated and bring some changes in work culture so that
motivation level of employee’s can also be increased. Company can bring some modifications in its
training and development program as per new needs so that goals can be accomplished in better way.
Change management process
It is necessary for every business to have improved focus on change management process so
that goals can be accomplished in effective manner. There are number of procedures which are used by
management of Aegon in order to manage the change (McLean, 2012). The classification of change
management process is lewin three step process and kotters eight change step process. In order to
understand the change management process effectively the management of Aegon is focusing on
kotters eight change step process (Purcell, 2009). It is classified in eight steps such as create urgency,
build guiding coalition, form various initiatives, enlist the volunteer, actions to remove barriers, create
short term wins, sustain acceleration and institute change.
In the initial stage the management of Aegon focuses on creating a urgency of product.
Company uses a significant opportunity as a means for exciting people to sign up to change the work
culture of organisation. In this management key concentration is on identification of threats and
develop conditions which can examine the opportunities so that proper support can be provided to
change management process (Kozlowski, 2009). In second stage, the management is accountable to
determine the true leaders within organisation and key stakeholders which can impact the overall
process. It is also necessary to ensure that the selected members are committed towards organisation
and they are well skilled in respect of change management. It is also necessary to ensure that the
members have proper information about the importance of change management (Carnall, 2007).
After this, the values will be determined to bring change within organisation. In this company
will decide its future standing in market and then create a strategy as per the newly designed vision. In
this it is necessary for management to ensure that the change coalition is reflecting the vision of
organisation (Andriopoulos, 2014). In fourth stage the management of Aegon will focus on
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communication of vision. It is necessary to make sure that the employees are well known about the
change vision so that they can also help in change management process. Company can have meeting to
discuss the change vision and understand all the aspects of operations. It will facilitate in effective
implementation of change within organisation (Quang, 2002).
In fifth stage, the management of Aegon will focus on actions which can remove the obstacles
and provide better opportunities of change management. In this, it is necessary for leaders to make sure
that the issues are resolved so that goals can be accomplished in better way. It includes proper study of
organisational structure, job description, performance and systems. Number of initiatives will be taken
to overcome the issues (Martin, 2001). After this, the organisation will make sure that the change in
can be implement within work environment and it will provide long term benefits. Proper identification
of pros and cons must be take placed in order to take initiatives and meet the goals in effective manner.
In seventh stage, the management will analyse that what is going right in work culture and what
else need to be improved. The new goals will be designed as per the analysis and try to bring actions
which can provide continuous improvement (Neff, 2006). It is necessary for management to keep their
ideas fresh so that change can be managed in effective manner. At last, the change will be implemented
and proper training will be provided to staff members so that company can manage the change in better
way. The designed plan must be followed by the leaders and ensure that the all standards are
maintained in better way.
CONCLUSION
As per the above study it can be said that the change management is all about the transforming
actions within organisation so that goals can be meet in effective manner. It has been identified that
there are various internal and external factors which can impact the change management. Leaders and
management actions plays a key role in change management process. It has also been spotted that the
management of Aegon focuses on Kotter eight step process for effective change management.
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