Change Management Models Analysis

This assignment delves into a critical analysis of prominent change management models. It examines Kurt Lewin's model, Kotter's 8-Step process, and the McKinsey 7S Framework, exploring their respective principles, advantages, limitations, and practical applications in organizational settings. The analysis draws upon academic sources and real-world case studies to provide a comprehensive understanding of these influential change management theories.

STRATEGIC
INTERNATIONAL
BUSINESS MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
About the changes occur in MNCs.........................................................................................1
Introduction to the change management in multinational businesses....................................2
Critically Evaluation of change management models and theories.................................................3
Kurt Lewin's model of change................................................................................................3
Kotter's 8-step change management model............................................................................5
McKinsey 7-S Model.............................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

ILLUSTRATION INDEX
Illustration 1: Kurt Lewin's change management model.................................................................3
Illustration 2: Kotter's 8-step change management theory ..............................................................5
Illustration 3: McKinsey 7 Step Model............................................................................................8

INTRODUCTION
The procedure of planning, organising, monitoring, evaluating and reviewing, adopted by
an entrepreneur in order to meet the expected as well as desired aims and objectives is referred as
business management. When a particular business enterprise takes any kind of decision and
frame strategies, then proper management of resources is referred to play a leading role. The
present study reflects a similar context of business management in the multinational businesses.
It has indicated several kind of changes that are usually required to be taken into consideration
for a smooth functioning of the firm and avoidance of leading into any adverse direction. In
order to adopt and manage any business changes, there exist certain effective theories as well as
models that are prepared by the authors. It is after the implementation of change management
models, the executive level of officers are easily able to adopt change and achieve the
organisational goals and objectives. The present project critically evaluates different models for
monitoring change at the workplace. The models described in the study involved Kurt Lewin's,
Kotter's 8-step and McKinsey 7-S theory of change management along with their illustrations.
MAIN BODY
About the changes occur in MNCs
According to International Business Management (2014), there exists different number
of issues and changes in the working environment of every enterprise which creates a negative
impact on the smooth processing of a business. In this condition, it is highly mandatory to
monitor and manage such changes as well as resolve issues up to a great extent. These things will
support the executives to reduce business obstacles and achieve agreed purposes and aims. In
addition to this, when talking about the multinational firms like British Airways, MNC
construction, Dyarco International Group etc., then they are known to face different issues like
cultural, employees, management structure, etc. In order to adopt such kinds of changes,
different number of change monitoring theories are needed to be implemented by it (Groves,
2015). The present study reflects the way in which the Dyarco International Group has adopted
measures for managing changes in their working environment. The selected entity is operating in
different industries with a diversifying market sector at global level. At the majority level, it
provides telecommunication services, electrical products like air conditioner, escalators, lift,
marble, furniture, etc., to the consumers, all over the world.
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As per the views of Intercol Dyarco (2017) the chosen multinational company has an
active presence all across the world where several issues relating to their adopted culture, IT,
management structure, refers to the business process and employees etc. Further, according to
the countries and international markets, the management of Dyarco has to make accordant
changes. Along with this, all the rules and regulations are also required to be followed of that
particular market in which it operates. Very basic issues related to change taken as an example in
the present study is related to the employees. Further, in order to manage workforce changes in
multinational market, executives of the Dyarco enterprise are known to implement and use Kurt
Lewis’s change management model in their working environment. Critical analysis of these
models is explained in the further concept.
Introduction to the change management in multinational businesses
In the opinion of Change management (2014), change management is referred to be a
procedure in which identification and analysis of the changes arises at the workplace is done. In
each and every working environment of multinational firms, different number of problem arises
which are necessary to resolve in a proper way. In the MNCs, executive officers have to look out
at each aspect of the work, where they always find some issues. Very basic changes arise in the
MNCs are mostly related to culture due to having employees from different countries. In this, the
firm has to provide higher level of training about the adopted working environment and other
related things (Ahmetagic and Piukovic, 2013). Further, it is not compulsory that all employees
can easily adopt the accepted culture of that firm. In different countries, managerial structure also
differs which is legally mandatory for MNC’s to adopt. Henceforth, they have to make accordant
changes and modify their existing structure and format with appropriate management of
resources.
In contrary to this, Sharma (2015) argues that, if the MNC not adopts all required
changes in the working environment while operating in multinational market, then they are
unable to meet their objectives. Further, different authors are in support of several change
management models and by following such theories, MNCs can also adopt issues in an
appropriate manner. Among various change management models, some are the most effective
which are described and criticised below:
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Critically Evaluation of change management models and theories
An Introduction to Theory of Change (2015) states that, the model which supports to an
entrepreneur for adopting change in proper direction at the workplace is known as change
management theory. When changes and issues in the working environment of multinational
company managed appropriately then it is able to achieve objectives and goals in fruitful ways.
There are wide range of such models given by different authors, among them three are described
in present study. The critically analysed theories of change management in present project
includes Kurt Lewin's, Kotter's 8-step and McKinsey 7-S.
Kurt Lewin's model of change
It is one of the widely used theory by MNCs for adopting and managing business
changes. The selected international firm i.e. Dyarco implemented this particular theory at the
business environment because of its effectiveness. Model of the Kurt Lewin has generally three
stages which are like unfreeze, transition and refreeze. Critical explanation of this change
management model is such as follows:
Illustration 1: Kurt Lewin's change management model
Unfreeze:
According to Hussain (2016) it is the first stage for adopting change in which issues are
introduced in front of the organisational members. When any type of change comes into
consideration at workplace then majority of the employees resist and ignore to adopt that. The
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Dyarco international firm implements new and innovative technology in the working
environment but the workforce not ready to consider that. The reason is that they have to attend
training sessions about innovations for adopting innovative techniques, employees resist for this
condition. In order to resolve this issue, management of Dyarco takes initiative with the help of
using motivations. When motivational support in different forms given to the workers then they
will ready to adopt innovative techniques.
In opposite to that, Three Types of Change Management Models (2012) criticised that,
this step is little more time consuming for the management of Dyarco international. The reason is
that, those employees who not having better and broad understanding about the technologies,
cannot operate such updated techniques and equipments within the workplace. Apart from this,
all the workers belonging from different countries and cultures which also created issues to
operate that systems. Henceforth, sometimes it leads to create negative impact on the efficiency
and productivity of the workforce up to the certain extent.
Transition:
D'Ortenzio (2012) states that, once the company takes initiative for enforcing employees
in order to adopt new techniques then go for second step i.e. transition. In this phase of change
management, the Dyarco moves towards adopting changes of the technology innovation. Here,
the company arranges effective training programmes where introduction and operating system of
innovations are described among the workforce. Along with this, for using and implementing the
changes, appropriate leadership as well as reassurance is taken into account by Dyarco group.
After using such all the strategies, the cited international entity able to execute the technology
innovations in fruitful direction.
Refreeze:
As per the opinion of Hayes (2014) when the workforce using the new techniques and
operate them within workplace then third stage comes into consideration such as refreeze. At this
particular step, Dyarco has attained success in making changes and resolving issue pertaining to
technology implementation. In this, overall organisational members and subordinates become
normal and stable as per the previous condition. Therefore, smooth functioning of Dyarco
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international comes at existing condition where staff refreezes and operate new techniques
according to the introduction and guidelines.
In contrast to this, Change Theory: Critical Analysis Paper (2014) argues that, at the time
of using Kurt Lewin's model of managing change in multinational workplace the managers need
to keep in mind the several aspects. One of the major thing which is necessary to follow while
using this model is motivation in form of monetary, non-monetary or others. The reason is that,
if Dyarco international group not motivates workforce then they will not take any kind of
initiative for operating innovative techniques. Along with this, training is also highly required for
the employees which lead to boost up total expenses. While taking initiation of such all the
strategies by the management, more time needed by which productivity of the MNC affects in
negative direction. Therefore, costing and profitability both aspects also influenced while
adopting Kurt Lewin's model of managing change up to the certain level.
Kotter's 8-step change management model
Another theory considered by the multinational entities for managing the changes is
given by John P. Kotter. In this model, total eight steps included which help to adopt any kind of
changes incurred in the firm easily. Further, explanation of this model is such as below:
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Illustration 2: Kotter's 8-step change management theory
1. Increase urgency:
According to Heraclitus (2016), initial step includes creation of the urgency within
workplace. In this, management of the MNC motivates to workforce in order to move towards
the change adoption and meet with the desired goals.
2. Build the team:
As per the views of Appelbaum and et.al., (2012), in the second phase of Kotter's change
management, a team or group of people is to be built. At the time of forming team, highly
skilled, knowledgable, qualified and right members needs to be considered. The reason is that,
these kinds of people easily able to work upon the changes and thereby would become able to
achieve goals.
3. Get the vision correct:
Parker and et.al., (2013), describes that, once team is built in the company, vision must be
clearly communicated to the personnel in a clear way. Apart from this, aspects like clear vision,
strategy, objectives as well as creativity are also considered by management of the MNC firms.
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4. Communicate:
As per the opinion of Matos Marques Simoes and Esposito (2014), proper and effective
communication is highly needed for the purpose of change and innovations. In this,
communication regarding to adopt changes and achieve above stated vision is done among group
of people in proper direction.
However, Dinovenik (2014) argues that, steps of the Kotter's change management is
highly time intensive at workplace. This aspect closely influences overall productivity of the
business in adverse direction. Henceforth, the main loophole of the respective model is time
consuming aspect for MNCs in relation to managing business changes.
5. Get things moving:
Quinn and et.al., (2012) says that, once the communication is done between the members
then feedbacks is taken from the \same for monitoring business changes. In this step, the
management of MNC moves ahead after removing the blocks and problems at the time of
empowering actions within the working environment.
6. Focus on short terms goals:
According to Cummings, Bridgman and Brown (2016), at this phase of Kotter's model
main aim or goal of change is divided into small parts. Further, to meet with the broken goals,
proper and effectual strategies are made by MNC. It is very easy and smooth procedure for
adopting changes and meets with desired aim appropriately.
7. Don't give up:
Anastasia (2015) sates that, according to second last step, the management and
employees of MNC firm do not to give up and ignore for adopting changes incur at the working
environment. If the things and tasks are tough or typical then also they should work upon it
which leads to manage and implement the changes in highly appropriate manner.
8. Incorporate change:
As per the views of Burke (2017) it is the last phase of change management theory of
Kotter's under which changes are incorporated within workplace of MNC businesses. It is one of
the very important step, because the strategies for managing change are adopted in the firm.
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Therefore, objectives and changes associated with the entity are easily achieved by the
management in proper direction.
It can be criticised by Letaifa (2015) that, while implementing Kotter's theory in the
MNC firm then it is mandatory to adopt all the steps in proper manner. Further, any of the stage
should not skip from the mentioned all the steps within the workplace. If any phase of the model
is skipped and forgotten by the management then, it cannot manage the changes and come back
to the existing business situation. Along with this, all the phases must adopt one by one rather
than using randomly.
Further, Booth (2015) criticises that, vision and goals must be clear and appropriate for
managing change and executing Kotter's model. The reason is that, vision is the base by which
overall strategies are framed and issues monitored in proper ways. Henceforth, due to lack of
proper goals the MNC firms unable to get idea that how to implement the theory within working
environment. Along with this, it cannot comes at the existing business situations and operate in
the international market.
McKinsey 7-S Model
The McKinsey 7 s model the management of the MNC needs consider the important
elements of business. These elements are strategy, structure, systems, style, staff, shared values,
and skills. All these factors are interdependent on each other, one's failure may mark failure in
the whole model. It can be said that the MNC is successful when all the factors are successfully
used.
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Illustration 3: McKinsey 7 Step Model
11 Strategy:
Sikdar and Payyazhi (2014) describes that, strategy can be considered as the key plan
made by management of the MNC in order to achieve its objectives. They are predetermined,
mostly well rehearsed. The strategy focuses on travel path of the MNC from where it is and what
it needs to be done in the upcoming time. Further, it also makes a detailed note to the constraints
of the capabilities and ability of the MNC.11 Structure:
As per McKinsey 7S Change Model (2017) structure refers to the way in which the MNC
allocates work or tasks to people and distributes authority among them. Further, the performance
of the MNC depends widely on its organisational structure. The traditional way of structure is
division of the company into various departments, each being responsible for the specific work.
Whereas the modern approach focuses on a flat structure in which all the work is done by a
specialist team, rather than having a whole department dedicated to it. It can be pined that, the
approach brings in flexibility and gives the authority in the hands of employees.11 System:
According to Frankenberger and et.al., (2013) every organisation has a particular range of
systems which is followed for formal and informal procedures to manage the firm. They include
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management control systems, performance measurement and reward systems. Further, under this
aspect planning, management information systems, budgeting and resource allocation systems
are also considered. These systems also facilitate the processing and implementation of day to
day activities. Moreover, the strict functioning of these systems are helpful to achieve maximum
efficiency.
However, Hamraz, Caldwell and Clarkson, (2013) says that, the interdependency of the
elements of the model poses a grave risk as the failure in implementation of one element.
Moreover, it directs to the failure of all other elements which basically involves in this change
management model. The model faces a major complexity and also has been criticised for the
loophole of not focusing on the differences. The rate of success in implementation of this model
is comparatively less due to occurring failures in most of the cases.11 Staff:
Fritzenschaft (2013) states that, staff points to the people or employees, who are the core
resources of the organisation in the success of it. The human resource is the central part of the
organisational strategy. The MNC gives a spot light focus on the recruitment, selection, training
and promotion of the human resources. Further, they pushed to employees through vigorous
training and mentoring for achievement of professional excellence.11 Style:
In the opinion of Mugo (2014) style refers to the management tactics of the managers, it
means the way the managers handle the overall functions of MNC. The managerial style is a
dominant feature in the success and achievement of goals of the organisation. It includes the way
through which managers deal with the problems and make business decision making. Along with
this, it consists the way by which they communicate with the employees. The managerial beliefs,
norms and values develop with the course of time and become the core part of the organisational
structure. This factor affects the working of the MNC from the root.11 Skills:
As per the views of Drew, McCallum and Roggenhofer (2016) the set of skills have vital
place among employees in the achievement of the organisational goals. The specialised
employees play a necessary role in the success of the MNC.11 Shared values:
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The organisation shares a wide array of values and fundamentals which serve as principle
to the important parts. All employees share some basic important values and guidelines which
build the organisation's structure.
Gyepi-Garbrah and Binfor (2013) criticises that, the model lacks the competence to
explain the organizational effectiveness or performance explicitly. It also has been criticised that
it not providing enough evidences to support their explanations. Indication of the finer areas in
which the actual gaps in conceptualisation and implementation of strategy has been ignored. The
importance of the external environment has been ignored and only internal environment has been
covered in the McKinsey's 7 s model.
By reviewing all the above mentioned models of change management it can be examined
that, Kurt Lewin's theory is one of the effective due to its simplicity and easiness. Therefore, it
includes only three steps which lead to reduce issues of time consuming. Henceforth, Dyacro
international group implements this particular theory for undertaking innovative technology at
the workplace.
CONCLUSION
From the present report of strategic international business management, it can be
summarised that using different tactics and strategies is highly supportive for the company in
order to resolve various issues. In the multinational companies, various number of changes arises
which can be easily adopted as well as managed in a proper direction with the use of change
management models. It can be concluded that, Dyarco international group adopts Kurt Lewin's
change management model at their workplace for resolving different issues as well as for
managing changes. Along with this, other theories are also highly effective to monitor and
manage various changes within multinational workplaces. Other effectual models of change
management include Kotter's 8-step and McKinsey 7-S model. However, in all the theories, there
are some loopholes that in turn mandate the MNCs to take care of, at the time of implementing
the identified theories in their accepted work environment.
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Hayes, J., 2014. The theory and practice of change management. Palgrave Macmillan.
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