Organizational Change Management: A Review of Literature

The provided assignment is a comprehensive review of literature on organizational change management. It includes references to various articles, books, and online resources that discuss the topic. The references cover aspects such as leadership, employee engagement, performance metrics, and small business management. The assignment aims to provide a thorough understanding of organizational change management strategies and their application in different contexts.

SMALL BUSINESS
ENTERPRISES

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
..........................................................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Strength and weakness of DCSL Software Ltd.....................................................................1
1.2 Evaluation of company performance using comparative measures......................................2
TASK 2............................................................................................................................................4
2.1 Action to overcome the weaknesses.....................................................................................4
2.2 Ways to maintain and strengthen the existing performance.................................................5
2.3 New area for business expansion..........................................................................................6
TASK 3............................................................................................................................................7
3.1 Assessment of existing objectives and plans........................................................................7
3.2 Business plan to incorporate changes...................................................................................8
3.3 Action plan for implementing changes.................................................................................8
TASK 4..........................................................................................................................................10
4.1 Impact of the change on business and its personnel...........................................................10
4.2 Plan to manage changes in business....................................................................................11
4.3 Monitoring of performance and its improvement...............................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Small and medium Enterprise are small firms that have employees between 50 to 500 and
turnover between £6.5 million and £50 million (Cunningham, Sinclair and Schulte, 2014) With
the time UK Government has been focusing more on small enterprise. Government is paying
more attention towards small scale industries and realize that there are big opportunities for
small firms. Matt Hancock, the cabinet minister has announced that government is planning new
policies and strategies through which small enterprise can work on central government contracts.
This small organisation has big potential to change into large scale organisation and also have
good economic sense. it also contributes a lot in countries economy (Yildiz, and Karakas, 2012).
In current report DCSL software has been selected for conducting research. It's a
software company which work in building software and also provide their services in system
iteration and professional services. The detail information about company and will have focus
divulging into its strength and weaknesses and discussing the changes required for better
efficiency.
TASK 1
1.1 Strengths and weaknesses of DCSL Software Ltd.
DCSL software limited is a private limited company incorporated on 15 December 2000.
The company has only 50 employees but it still manages to become UK's one of the best
software developing company. It is working from many years and have partners whom they can
trust they provide these services to brands like BT, virgin, media, lidl, water aid, Ikea and the
NHS.
Strengths of DCSL company
 Design Intelligently – it has high intelligence to develop a design of software for clients
so it must fulfil the demands of client and must be the best from other companies.
Company should design software in effective manner.
 Cost efficient, the company develop software with main motive to reduce cost of
development so that it could deliver software at reasonable cost to its clients and also
attracts other clients (Mason and Brown, 2013)
 They have trusted partners like BT, virgin, media, lidl, water aid, Ikea and the NHS.
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 Their quality of software is unique as it is developed by them by considering requirement
of the latest trends.
 Talented personnel are the biggest asset of DCSL company. They are highly qualified in
their field which became strength of company. They develop software by using their un
paralleled skills which make them more efficient and perfect.
Weaknesses of DCSL company
 Lack of knowledge and expertise employees
 Lack of innovation skills and technology
 High tech knowledge requires developing software for which high tech personnel are
appointed. To appoint them special process is followed to test there knowledge and skills
this will take lot of time and money. The company is totally dependent on technical
experts for designing and developing innovative softwares.
 Huge capital is required to develop software (Peltier and Naidu,2012)
 Company has limited market share and growth.
1.2 Evaluation of company performance using comparative measures
DCSL software limited vs MA PS system
 THE DCSL includes CRM, mobile apps, consulting, software, database, enterprise
software whereas Ma PS develops only software.
 DCSL software limited develops software solutions for a wide range of applications
whereas Ma PS system offers an innovative solution for an efficient multichannel
marketing based on the centralisation and mastering of business data.
 DCSL software limited clients are BT, virgin, media, lidl, water aid, Ikea and the NHS
whereas Ma PS system clients are cyrillus verbaudet, Maisons Du monde, graines
baumaux, Aubrey gaspard, bergere de France, ukal, E.P.I. Centre, therm cross, knauf,
sycabel, atita, uniclima, gifam, chausson materiaux.
 DCSL software limited work for client server applications, web applications, mobile
applications and non-database applications such as mail sever utilities whereas Ma PS
system focuses on publication and development of Ma PS system software suite.
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 DCSL software limited provides services like consultancy, software project rescue,
enterprise IT services and outsourcing, source code recovery, application support and
maintenance and hosting services whereas Ma PS system does only develop the
application and distributing it via a network of integrator partners across Europe.
 DCSL software limited is privately held company whereas Ma PS system is supported by
ministry of economy of the grand duchy of Luxembourg and by lux innovation.
 Ratio analysis are also done by company where they compare assets and liabilities of the
company from its previous year as well as from their competitors (Down, 2010) DCSL is
a small firm so it’s easy for them to have this analysis
Year DCSL (£) MA PS System (£)
2016 6640 6570
2015 6450 6320
2014 5700 4530
2013 4980 4020
 Financial statement also helps in evaluating the performance of organisation. It checks
the balance sheet, cash inflow and out flow, profit, income statement and returns of firm
(Bewayo, 2015) The cited firm compare their statistic with competitor’s to identify actual
difference and try to find a way to overcome it.
TASK 2
2.1 Action to overcome the weaknesses
DCSL even being small firm is able to gain name and brand image in the world of
software. Company is fairing quite well in today competitive time but there are still many places
where company lacks and need proper management so that it can perform more efficiently.
Finance has always been week point of small business enterprise big small firm there
turn over are small and most of the time company face financial crisis. DCSL is well established
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company and doesn't have any problem with funds but the problem lies here is proper
management. Developing software is highly costly so much money is spent on proper research
and development (Halinen, Törnroos and Elo, 2013). This a department where company lacks
they need proper investment strategy so that the cited firm can have proper use of there financial
funds. This will increase the profitability of firm and also help them in getting sufficient funds
for business expansion.
DCSL is well known software company but still not many people knows about it. Its high
time that company make there presence known in market. To gain more visibility company can
use different way of promotion. It can release advertisement to promote there product and
company itself (Neubauer and Lank, 2016) This will help them in gaining more clients and many
people will come to know about organisation. This will enhance the sales and profit of
organisation and will also increase there market share.
Even though company have loyal and promising clients but there is still big potential in
gaining bigger market there current market is very limited, They can work on enhancing there
ability, they can operate globally and can open more store so that more people can reach them
and know about there services.
Weaknesses Suggestion
Weak management in finance Need proper investment strategy, better
management will lead to proper use of funds,
which will earn them good profit, and
sufficient fund for expansion
Low visibility Proper use of promotion and advertisement can
be a good investment it will not only provide
visibility but also help company in getting
more clients. It will increase sales and market
share of company.
Limited market Big potential in getting success globally
increase in availability will enhance the profit
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of organisation.
2.2 Ways to maintain and strengthen the existing performance
Company is performing very well in current market but firm has big potential and can
perform better to earn more profit. Various suggestions are made through which company can
strengthen its business performance:
 Better investment policy will help company top have proper management of funds.
Creating sufficient funds for global expansion (Chinomona and Ming‐Sung Cheng, 2013)
 Can increase its customer base by opening more outlet and increasing their physical
availability. This will not only promote the brand image of firm but will also increase its
productivity and sales.
 Company invest much in their employees make sure that only highly competent
employees are hired by company. Company can also invest in training of these
employees. It can introduce variety of training programme or workshop through which
the knowledge and skills of employee will enhance which improve the overall
performance of organisation and also increase productivity. It will provide organisation
with positive result as skilled person provide Its customer with quality service which also
increase the level of customer satisfaction.
 Company can introduce different way through which they can motivate their employees
it can use reward and recognition to make sure that employees are satisfied (Mason and
Brown, 2013). This will help firm in creating positive environment and increase the
loyalty of employee toward the organisation.
 Company need to maintain their customer policy so that they can retain their customer
and maintain customer satisfaction which will increase their revenue and sustainability.
 Regular monitoring and assessment will enhance the performance of organisation and
will also help them in recognizing weaknesses and work on it. This will also improve the
work efficiency of workers.
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 To increase the productivity firm should evaluate performance in comparison to their
competitors and with previous year performance this help company to realize the pace of
performance and also help them identify their problem which is causing hindrance in
growth.
2.3 New area for business expansion
DCSL has fat chances in converting themselves in big enterprise and establish there
business globally. They can upgrade and expand business in international market. There are
different areas where the cited firm can expand business
 Company can use the method of diversification and increase there working area in local
market. They can also enter in new market which will increase their customer base.
Company can use different tools such as cloud computing, big data etc. to expand
business (De Silva and et.al., 2012).
 Company can form an alliance with international software companies which will provide
them with security while going in international market, this will also give them better
visibility in market providing them with global recognition.
 To retain there customer and valuable client organisation can provide them with after
sales services. Institute can promote themselves in colleges and schools through different
seminars and workshop. This both activity will help organisation in attracting more
customer and maintain the brand name of company.
 DCSL is already using advanced technologies in there software but to attract more
customer firm can upgrade there technologies this will intrigue there customer and will
also help in keeping there interest in company (Zortea-Johnston, Darroch and Matear,
2012). This will attract more customer to brand which will increase the productivity and
revenue of organisation.
 The best way for firm to change in big enterprise is to have federal government as there
customer. Firm can work to win the government contract. Having a contract with Govt.
come up with many perks such as development agency help them in determine the type
of contract that is most suitable to you. They try to match buyers with entrepreneurs. This
will open gate of many opportunities for firm.
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TASK 3
3.1 Assessment of existing objectives and plans
DCSL already has some plans and strategies in order to gain there objectives and aims.
This plans had been followed by company since it enter in market and the same plans and
strategies are still implemented by company in current time company find these strategies very
effective. The plans and strategies of company are mentioned below: Integrity: Company main aim is make sure that there customer are satisfied with the
services provided to them. For this company has created the policy of creating integrity
between clients and employees of company. Entity makes sure that there each and every
customer are satisfied with there product as well as the services provided to them for this
every employee is required to listen the problem of there clients and provide them with
logical and appropriate solution (Davidsson and Gordon, 2012) Business Innovation: The reason behind the success of DCSL despite being a small
enterprise is there creativeness and innovation. Company work on the principle of
creativity, it encourages there employees to come up with new and creative idea in work
place. To promote there employee company also welcome failure and retain flexibility in
there structure so that employee are stress free and have better ideas. Reforms: Company implement regular reforms to keep them up to date with time and
dynamic market so that they keep satisfying there customer and keep improving there
performance (Eckerson, 2010) In current time company has adapted lean path theory in
there strategy where the focus lies on the demand of consumer. In this institute produce
only those feature that are the requirement of client it not only save time but also reduce
the cost of company.
 Continuous Development: Employees are important asset of company and it believes in
there continuous development for this firm organise different training session and
workshop from time to time. This help in developing the skills of existing employee and
new recruits of company also learn the way company work. This improve there
knowledge as well as skill of employee and also them to keep upgrade with the latest
technology in market these increase there performance efficiency and effectiveness and
also the growth of organisation.
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3.2 Business plan to incorporate changes
DCSL is using the same plans and technology that it has been using since the time it
enters market. Its high time that company implement new changes and reformation in there
current plans so that firm could achieve there goals and objectives this changes will bring
positive change in organisation providing them with better results (Hayes, 2014)
 Company is operating in the same limited market since its time of establishment,
company has great scope in international market. Any global venture will bring lot of
success to organisation and will be great plan for the expansion of organisation. This will
bring firm popularity and worldwide recognition increasing the sales and revenue of
organisation.
 DCSL need a proper management for sound use of there fund the flat structure wont help
them any further especially if organisation is planning ongoing international. This
management will help in proper investment and will bring good financial outcome.
 Company is in dire need of enhancing there physical availability for this it can open more
outlet or stores. It can also have franchising with different people which will Through it
more people will come to know about the entity and the product and services it provides.
It will increase the customer base and also the productivity of DCSL.
 Company has different policies to make the working envt. Of work place more employee
friendly, so that it can give birth to new and innovative idea. Company also organise
different training session so that they can enhance the skill of employee but some time it
affects adversely on the employee and kill there creative mind and ideas. Company also
need proper implementation of this policy so that employee can have full benefit of it.
3.3 Action plan for implementing changes
For effective and efficient working of organisation its essential for them to implement
necessary changes that can be beneficial for organisation (Doppelt, 2017). Positive changes are
very crucial to sustain in ever changing market. Company need to use proper and effective
change management. For this DCSL need proper action and plan to implement:
Before implementing plans its necessary for organisation to set there objective and aim
what the aim of implementing the plan what results are expected from this implementation etc. It
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also helps organisation from wandering away from main objective during the process. After
setting the objectives its necessary to evaluate the impact of these plans will have on
organisation. How many positive impact it will have and also the negative effect that can impact
the performance of organisation. After these priorities are set which task is more important and
need to be completed or which task can be left if there is not enough time. DCSL is small
organisation that have flat structure and owner himself is responsible to make all important
decision. Its necessary for owner to implement effective human resource management practices
for proper working. Time bound is also necessary for the effectiveness of plan, it determines the
time needed to complete a single task so that not much time is wasted and plan remain effective.
Dimensions Plan
Setting objectives Setting aim and objective of plan. Stop
diversion and make sure that objectives are
fulfilled in near future.
Impact Its second stage before incorporating any plans
its necessary to know the pros and cons it will
have whether it has more positive or negative
impact on organisation.
Setting the priorities After determining the impact of plan, the
chronological order of tasks are made in which
important task are given priority these task are
done earliest and task which can be left if there
is some issue become least important.
Effective management All the planning will be waste if there is no
effective management of human resource in
company. Owner is required to implement
proper management for best result.
Time management It’s important to set time scale for each and
every task within the plan. It makes sure that
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not much time is spent on single task and
whole plane can be implemented in limited
time.
TASK 4
4.1 Impact of the change on business and its personnel
Change can bring many positive impacts on organisation, its consider as effective
management plan which provide firm with chance to grow and develop themselves. Change
management have direct impact on the performance of firms some impact is discussed below:
Positive Impact
Growth of Business: Changes in internal environment effects business planning process. When
there are changes in any technology and employee don't know how to use it then it requires
reviewing planning as per changes in technology and also make plans to train employee so they
can use new technologies (Bewayo, 2015) These changes help business to grow. Also, when
new products are introduced due to changes in technologies also increases growth rate of
business. DCSL is also implementing different changes in their business plan to enhance their
performance, company have great potential in internet market proper change will help them in
their plan of expansion.
Encourages innovation and improve quality: Technologies changes as per market progress and
as per changes in trends it encourages business to be more innovative and creative to meet the
demand of customer it also improves the quality of products. These changes in technologies
effect business positively as advancement in technologies improve product quality which helps
business to attract new consumes towards good quality products and services.
Increase efficiency: The proper training and workshops helps organisation to improve their
work efficiencies. It improves the efficiency of planning committee and bring technological and
cultural changes that help in improving efficiency of workers. It increases productivity and
profitability.
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Company presence: These changes help organisation in enhancing brand image. In order to gain
customer interest it is required by firm to introduce more new products or to participate in social
activities.
Negative impacts
 Sometimes changes can also have negative affects on business as this changes requires
planning which require highly qualified members who can use there skills to make plans
to for such situations. Implementing changes and appointing highly skilled labour are
very costly that it increases cost of business.
 Also, to come up with new idea and innovation it requires the proper research of new
trends and preference of costumer which also require financial support adding more cost
to company finance (Neubauer and Lank, 2016).
 Increase in cost, increases the prices of products, which reduces the number of
consumers. It also adversely affect the employees as less salary are paid to them because
of high cost and less sales., leading to employee turnover
 Entering global market require deep research and any wrong decision can have negative
impact on the brand name of firm. It can be wrong partnership or venturing into wrong
market.
4.2 Plan to manage changes in business.
DSCL software company works to create unique software for there clients. They always
try to be innovations by adopting new technologies. They specialize in database driven
applications. They have to adopt changes so that they can grow in market and also can achieve
there goals without any error because of changes. They can use ADKAR model to manage there
changes.
ADKAR MODEL is created by jeffery hiatt. This model focuses the individual behind the
change and on achieving the set goals and objectives. This used to plan changes on both
individual and organisational level.
The goals of ADKAR model are as follows which help DSCL company to manage changes- Awareness of the need to change – this stage help company to make sure that there
employees understand need for change with the help of meetings, discussions etc. just
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telling about changes is not enough they should also make sure that that change is
adopted by employees and also company must have evidences to justify those changes.
 Desire to participate and support the change – this is the most important part here
company have to provides benefits of changes to there employees or other relevant
peoples they can do this by giving real world examples. Also, take feedback and useful
feedbacks must be implemented (De Silva and et.al., 2012) Knowledge on how to change – here to make changes in software highly qualified
knowledge is required so this changes positively effect DSCL. The knowledge about
changes must be given to every one so they can efficiently make changes in software.
Once team leader understand how to make changes they had to teach there teams how
changes will be completed. Ability to implement required skills and behaviours – only knowledge is not enough the
ability of employees must also evaluated to get efficient working. Once knowledge is
given then the ability of employees is check and assess that weather they need extra
training to understand the changes because the software work requires high tech
knowledge (Doppelt, 2017)
 Reinforcement to sustain the change: As DSCL is software company which requires
high tech knowledge the company make sure that incentives and rewards are
implemented to maintained changes.
This model helps DSCL to improve employees reactions on change when they already
know what are changes and how they are important to company. As when you make sure your
employees understand changes then check there ability. This help company to make innovative
software with help of changes and also attracts new customers by new software.
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Illustration 1: ADKAR model of change
(Source: Organisational Change)
4.3 Monitoring of performance and its improvement
Changes are important part of organisation. Any firm need to implement some reforms in
their plan and strategies to maintain their stability in this dynamic market. Company also need to
apply these changes at the time of expansion for effective and efficient working of organisation
Time-scale is created by organisation to have proper monitoring changes:
Time scale changes
In the end of 2017 Open more outlet and physical stores to gain
more visibility
Between 5 - 6 months Implement innovative business activity
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Within 1-2 years Expand business globally
From above given time scale it has come to notice that company need to invest much to
increase their visibility, company has decided to open more stores and outlet by the ending of
this year and have to find the best place which can attract more customer to them. Business
entity is growing at fast rate and its becoming a known name in the world of technology, the
company has estimated that it will take them one to two years in order to expand their business
globally. Company has chosen two period because it’s necessary to have proper research on the
international market before entering it. It will reduce the risk. It also needs time to find suitable
partner with whom an alliance can be created that can be helpful to them (Doppelt, 2017)
Furthermore, growing globally require financial stability and enough fund to sustain in market
which require time. Increasing creativity and birth of innovation are some changes which
company have to implement within the organisation its least time consuming and also doesn't
require much financial resources it will enhance the performance of organisation.
CONCLUSION
Small and medium enterprises are emerging as important part of business, it contributes a
lot in strengthening the economy of country with government growing interest in them it has
open many gates of opportunity for this firm through which they can develop and expand them
self into big enterprise. It has great potential in expanding their business at large scale. In above
report strengths and weaknesses of DCSL has been taken into consideration and possible
suggestions are made which can help firm to grow and produce more positive results. ADKAR
model has been used to manage changes in organisation. An action plan is made for proper
management and implementation of plans with a defined time
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REFERENCES
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Online
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Ashley May Organisational Change. 2017 [online] Available Through:
<http://digitalcommons.usu.edu/cgi/viewcontent.cgi?article=1142&context=honors>
[Accessed on 6th October 2017].
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