HI6008 Effective Change Management Techniques in Organizations T1 2019

This literature review delves into the critical aspects of change management within organizations, emphasizing the importance of adapting to rapid changes driven by globalization and technology. It examines prominent change management theories, including Kotter's Eight-Step Approach, which focuses on establishing urgency, forming a guiding coalition, developing a vision, and institutionalizing changes into the organizational culture. The review also discusses the McKinsey 7-S model, highlighting the interplay between hard and soft elements such as strategy, structure, systems, shared values, style, staff, and skills. Furthermore, it identifies internal and external factors that drive organizational change, including technological, economic, socio-cultural, and political-legal forces. The paper explores different types of organizational change, such as developmental, transitional, and transformational change, and emphasizes the significance of effective implementation strategies, referencing Ford Kenya's successful change roadmap under Allan Mulally's leadership. The review concludes by underscoring the importance of leadership skills, communication, and collaboration in managing change and aligning it with organizational vision and values.

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Effective Change Management Techniques in Organization
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LITERATURE REVIEW
Organizational change management has attracted debates and publication of discourses
from intellectuals and academic scholars against the backdrop of technology and globalization.
The growing prevalence of change management is because of the increasingly rapid and
permeating change organizations regularly face. Globalization and the proliferation of
technology have made the world a global village. Economic uncertainty and sociopolitical
dynamics are some of the factors that drive change.
Change Management Theories
One of the prominent theory of change management is the Kotter’s Eight-Step Approach
— a holistic change planning and implementation process (Weiss, 2015, p.5). The first step
towards change, according to the theory, is establishing a sense of urgency. Sense of urgency in
this context means asserting the importance of the actions required to address critical issues—
things are central to organizational survival, success, or failure. Kotter contended that it would be
difficult to motivate employees if there is no sense of urgency. Creating sense of urgency,
according to Weiss (2015), involves assessment of markets and competitive realities as well as
accentuating and discussing major opportunities and potential threats (p.7). The second step is
the formation of a powerful guiding coalition. This involves bringing together a group with
agility and efficacy to lead the change effort and foster teamwork. Ideally, strong and visible
leadership creates momentum for change and aids in generating a sense of emotion of being
central to change. The third step of change is to develop a vision. The coalition develops a vision
and strategies that provide a blueprint for change effort and demonstrate an envisioned future
state of the organization once the change is implemented (Darnell, 2013, p.32).

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The fourth step is communicating the vision. Kotter encouraged leaders to employ
effective communication medium and strategies to ensure team members comprehend the new
vision and the blueprint of achieving it (Weiss, 2015, p.8). Effective communication fosters
employees' commitment to change. The next step is to empower others to work on the vision. It
involves enlisting of competent and willing members to implement change. It also encompasses
the removal of impediments to change, such as outdated technologies or performance evaluation
and compensation criteria. The sixth step is the creation of short-term wins, which include the
establishment of tangible and visible performance improvements. The seventh step is
consolidating improvements by using expertise to change structures and policies that are not
consistent with the new vision. The management can also accomplish this step by hiring
promoting, and training employees to implement the vision and enhance the change process
(Jones and Recardo, 2013, p.83). The final step is to institutionalize new changes into the
organizational culture. It involves making the change as an integral part of the corporate culture.
Another theory that supports change management is The McKinsey 7-S model. The model
was developed in the 1980s by Robert H. Waterman, Jr. and Tom Peters to provide a roadmap to
companies in, assessing, analyzing, and monitoring change in the organization (Hayes, 2014,
p..123). The 7-Ss, which the model sits on, are structure, strategy, systems, staff, skills, style, and
shared values. The first three are known as hard elements since they are easy to identify and
define, and management can directly influence them; examples, IT systems, strategy statements,
and formal processes. The last four are categorized as soft elements because they are difficult to
define and are often influenced by culture. Strategy refers to the plan designed to build a
competitive advantage in pursuit of sustaining competition. Starbucks business strategy is
entrenched on product differentiation with a focus on the quality of product and services

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(Dudovskiy, 2017, par1). Massive integration of technology with various business processes,
particularly in the ordering process represents a vital hue of Starbuck business strategy, for
example. When assessing the strategy of a company, there is a need to consider the objectives
and flexibility of the company in accommodating the change. The company's structure— in
terms of hierarchy, communication, and decision-making— should be simple to enhance the
effectiveness of change. For instance, Starbucks has a divisional organizational structure, which
integrates brand-based and geographical divisions (Dudovskiy, 2017, par2). On systems, the
organization should ensure that core systems— document management, finance, and HR— are
accurate, updated, and accessible to support change. In terms of values, the management should
analyze the corporate culture and core values, and identify strong values that inhere change.
Starbucks, for example, emphasizes on "Starbucks experience," which includes friendly staff,
coffee, and comfortable meeting place (Dudovskiy, 2017, par4). The style involves analysis of
leadership approach in the organization in terms of effectiveness, cooperation, and participation.
The organization style of Starbucks is defined as flexible, innovative, and team-oriented.
Assessing staff comprises analysis of specialization needed, gaps to be filled, and gaps that
demand competencies. Finally, the organization should analyze strongest skills and skill gaps in
change management.
Change Management
The concept of change management has been explored and documented by the existing
literature. Change management refers to the processes and approaches adopted by business
content to facilitating the leaders in moving units or entire organization from the present to the
desired state. Change management is underpinned on content-based disciplines of strategic
operations, business, management, and finance. Some of the areas that demand change

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management include financial analysis— design-solutions, inventory control, and workflow
analysis; marketing planning, project management, strategic planning, and IT infrastructure
support (Pollack, 2016). Ideally, the main aim of change management is to align business
objectives with new systems and strategies. Change management consultants usually specialize
on a particular content field such as manufacturing, strategy, IT, marketing, or operations (Weiss,
2015, p.14).
Factors that drive changes in the organization
Scholars have explored internal and external factors that trigger changes in the
organization. According to Cameron and Green (2015), the main internal factors that could drive
organizational change are unforeseen opportunities for business growth, change in managerial
personnel, and change in operative personnel, organizational culture, leadership, organizational
strategy (p.114). A new manager or operators may bring new ideas into the organization, which
necessitate change. Organizational culture is comprised of an interlocking set of roles, goals,
values, practices, communication, and attitudes. When these elements are combined, they can
influence or impede change in an organization.
Abudi (2017) documented macro or external factors that drive change in the organization
— technological forces, environmental forces, economic, socio-cultural forces, and political-
legal forces (p.33). Technology drives innovation and change. In practice, organizations optimize
information technologies to develop strategies and systems that enhance speed, effectiveness,
and efficiency in reaching stakeholders and customers around the globe. Resource supplies and
prices put pressure on business growth, which is influenced by taxes and government regulations
on the emission of carbon. Besides, consumers anticipate companies to adopt production
practices that are sustainable to the environment. Companies are therefore compelled to

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incorporate green logic into change management strategy. Based on economic forces
globalization, cost of labor, and market conditions are key drivers of change in the organization
(Cameron and Green, 2015, p.52). In terms of social-cultural forces, work-family and work-life
issues are the major drivers of workforce change. Cawsey et al. (2015) argue that not all
organizations should or will react to external forces of change, or in the same manner because
macro-environment is not always an entirely objective phenomenon (p.167). Besides,
environmental perception is underpinned on individual interpretation— managers and
organizational leaders.
Types of organizational change
Cawsey et al. (2015) explored different natures and frameworks of change in an
organization. Ideally, some of the frameworks are complementary, while others overlap. One of
the frameworks of change is developmental change, which entails improvement of what already
exists. An organization can adopt change strategies that focus on improving the already
established systems and processes like HR policy on a reward system, for example. Essentially,
the change is not elaborate and generates little stress. The second framework of change is
transitional change, which focuses on accomplishing the desired state that is diametric to the
existing one (Cawsey et al., 2015, p.212). The change is more intrusive and elaborate, and
usually, involve the installation of new technological systems that necessitate hiring or training
of employees and a paradigm shift in organizational culture. It is always suitable for mergers of
companies (Gehrke and Claes, 2014, p.238). The third nature of change is known as
transformational change. It refers to the emergence of unknown state for the organization, for
example, radical shift in different markets that demand new skills and strategies.

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Implementing change
The success of organizational change is mostly underpinned on change implementation.
Implementing organizational change is a process that is neither mechanical nor automatic (Levy,
2018, p. 261). Sliding into a new vision is not just an event; instead, it is a process. Implementing
change begins when the urgency of change has been communicated, assessment of organization
for necessary changes has been don, and the vision has been communicated through the
organization. According to Jones (2013), any change phase requires organizational leaders to
influence peoples’ behaviors and attitudes to accommodate new strategies, new ways of thinking,
and new cultures (p.104). Leadership skills, courage, intellectual software, and the utmost level
of collaboration are necessary for successful implementation of change.
Anderson and Ackerman (2010) developed a roadmap for implementing change to guide
leaders on an effective strategy of implementing change (p.23). One of the companies that
adopted a roadmap for change and was successful is Ford Kenya in 2006 when Allan Mulally
was hired as the CEO. Mullay developed a Way Forward Plan, which “centralized and
modernized plants to handle several models at once, to be sold in several Markets” (Weiss, 2015,
p.104). The first stage of the road map is preparing to lead the change, which involves learning
the reality on the ground by studying facts and detail and then lodging claim for change by
highlighting the desired outcome. When Mullay was appointed the CEO of Ford, he prepared for
change for by building capacity to lead change and ensuring employees have relevant skill sets
(Weiss, 2015, p.109). The second stage is developing a vision, commitment, and capability. The
CEO can accomplish this by reorienting functional managers and top-level global officers to the
long-term goals of the company and operating objectives. Mullay's ultimate vision was to
reposition in its previous status in the global auto industry. He expressed his strong commitment

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for change when he said he “expects the very best of himself and others, [and] seeks to
understand rather than to be understood” (Weiss, 2015, p.109). He built formidable capability by
reorienting 12 functional managers top-level global officers to the company’s short-term
objectives and long-term goals. The third stage is assessing the situation by using changing data
to analyze the vision's impact and company goals. Mullay assessed Ford's financial position,
marketing status, sales, and capabilities against the backdrop of global competition. Finally, the
leadership of the organization can plan, organize, and implement change. Mullay’s plan was
anchored on implementation of his “One Team, One Plan, One Goal” mantra (Weiss, 2015,
p.110). He met with Ford Chair, managers, and other employees to plan for change. Mullay
emphasized open communication and transparency. Coupled with his confidence, intuition, and
discipline, he successfully implanted the roadmap and implemented the change, which paved
way for Ford’s current success.
Abudi (2017) contributed immensely on change management building dimensions of
leading and managing change on a five-legged stool that sits on motivation, creating a vision,
managing transition, developing political support, and sustaining the momentum (p.161).
Leaders can motivate the change process by adopting effective communication of the new
visions and the planning on how to mitigate change resistance. Since the change process is
quintessentially dynamic, it is imperative that the change process is aligned with organizational
vision and values (Hornstein, 2015, p.295; Gigliotti et al., 2018, p.89). Leaders should be
cognizant of the fact that changing one part of the organization may have a significant impact on
other areas. For instance, introducing structural change may change the organizational culture.
Internal politics are vital for change implementation, and therefore, leaders should identify
influential and key stakeholders to facilitate the implementation process. Leaders can also

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develop political support by using social networks to leverage change and overcome change
barriers. Managing transition includes activities like hiring, firing, training, and analyzing
feedback for the implementation process (Abudi, 2017, p.313). Leaders can sustain the
momentum by effective communication of the progress in the change process and rewarding
employees for successful completion of new tasks.
Resistance to Change
Bailey and Raelin (2015) studied the reasons why people tend to resist organizational
change. The authors identified ten reasons why people do not accommodate change— loss of
face, loss of control, sudden surprise, excess uncertainty, increased workload; everything seems
different, fear of incompetence, the hurt of change, ripple effects, and previous resentments
remembered (Bailey and Raelin, 2015, p.127). In practice, significant organizational change can
lead to emotional and psychological distress, particularly when it is characterized by lowering of
compensation and perks, loss of jobs, and loyal customers are threatened. Park (2013) admits
that while leaders may not have the capacity to address all the people that are disgruntled about
change, they can ameliorate the situation by identifying the sources of resistance as a key step
towards mitigating resistance. Arnéguy et al. (2015) remind us that when change is sudden, and
the rationale is not clear, it is likely to generate an ambiance of uncertainty and resentment
among employees, which may be detrimental to their sense of competence and cause inertia
(p.127).
Leaders can support the change process by developing structure and certainty in
processes, schedules, and controllable tasks that are concomitant with simple step-to-step
instructions. The management should also facilitate education and training of employees to
support employees if they are assigned new tasks that involve the use of new technologies

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(Kenyon and Sen, 2014, p.84). Increased workload makes employees feel anxious,
overwhelmed, and resistance to change. Therefore, the management should provide them with
opportunity and time to concentrate on their new tasks and reward them with perks that motivate
them to accomplish the new tasks. Rizescu and Tileaga (2016) testify that the most effective
strategy of surmounting resistance to change is ensuring there is competent direction, adequate
planning, and preparation for the change (p.140). The role of planning and preparation of
stakeholders for change rests entirely on the top management level.
Conclusion
In hindsight, the existing literature on change management endorses the idea that change
is an integral part of organizational growth and performance. It is also evident that the leadership
of organization plays a huge role in effecting change by preparing the employees for change
through training and development, developing political support, effective communication and
rewarding employees for successful completion of new tasks. Besides, external factors are the
main drivers of change, albeit not all organizations should or will react to external forces of
change in the same manner. Without proper planning for change, employees may resist change
particularly if the vision of change is uncertain and seems to threaten their job security. The
management should ensure that the communication channels are effective in explaining the
rationale for change and fostering employees’ commitment.
Companies failed due to resistance to change
Eastman Kodak, a leader for a long time, sought financial protection in 2012. Blockbuster
Video ended up ancient in 2013. Correspondingly, Borders—one of the biggest book retailers in
the U.S. — left business in 2011. For what reason did these organizations, which once had

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extraordinary brands, at last fall flat? It is on the grounds that they neglected to adjust to change.
Moreover, they neglected to unlearn and relearn.
In spite of the fact that everybody knows that the main thing consistent on the planet is
change, individuals oppose change because of different reasons, including apprehension of
disappointment, dread of analysis, and dread of the obscure. They regularly think the villain they
know is superior to an obscure holy messenger. They failed to move with the present state of
affairs and ended up going extinct. Or on the other hand they neglect to change with the
changing occasions and advancements and endure a similar destiny.
There have been many suggestions that in the coming future, there will be use of artificial
intelligence in the management front in businesses. There will be need for managers to put into
place measures to ensure companies and workers will adapt to the use of these technologies in
the workplace. The common feature is where AI is seen as a potential in replacing administration
in organizations. From previous studies, there is a lot of time spent by the managers on
coordinating administration and the use of artificial intelligence is seen as the solution to this
time wastage.

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