Arden University BUS5006D: Managing Change in Organisations Report

This report delves into the multifaceted nature of managing change within organizations, exploring the dynamics of the change process, stakeholder identification, and the effectiveness of change management strategies. The analysis begins by defining and contrasting the change process, emphasizing its continuous nature and the need for organizations to adapt to remain competitive. Case studies of Qantas, BBC Worldwide, and Barclays Bank illustrate how different organizations have navigated change, addressing job shedding, structural reorganizations, and technological advancements. The report identifies key stakeholders, such as shareholders, customers, and employees, and examines how organizations like Barclays Bank engage with them to manage resistance and ensure successful implementation. It also assesses the effectiveness of change processes, highlighting the importance of communication, training, and stakeholder involvement. The report underscores the significance of adapting to external pressures and internal demands, emphasizing the need for strategic change to maintain a competitive edge. The report also delves into the role of different models to support the success of processes. The findings suggest that proactive change management, stakeholder engagement, and effective communication are critical for organizational transformation.

Managing change in the organizations

Managing change in the organizations 1
Contents
...............................................................................................................................................................0
Description and contrast of the nature of the change process that the organization faced.................2
Identification of the key stakeholders....................................................................................................4
Effectiveness of the change process managed in terms of the issues.....................................................6
Role of the models in supporting the success of processes....................................................................8
References...........................................................................................................................................12

Managing change in the organizations 2
Description and contrast of the nature of the change
process that the organization faced
The change process is deliberated to be a process, not an event. The change is the way to
grow and stay competitive. The change process is about planning for future changes and
becoming more alert to effectively handle persistent change. The changes are always
deliberated to be the feature of organizational life. The businesses nowadays are requiring to
innovate rapidly and regularly make improvements. The advancements are practiced in order
to work smarter and take advantage of every prospect to beat the competition. The states of
change comprise current, transition and future. The current state defines the way things are
done today. It is an assortment of processes, technologies, tools, behaviors, organizational
structures and job roles which institute how work is done. The transition stage is disordered
and unsystematic. This state is generally emotionally charged with the emotions vacillating
from anxiety to anger, fear, and misery (Mir, Rezania and Baker, 2020). The future state is
where organizations are trying to get to. It is not completely defined and is deliberated better
than the current state in standings of performance. This report comprises examples of some
organizations which define and contrast the nature of the change process faced.
Qantas is one of the top airlines in Australia and regions. The company generally innovates to
stay ahead comprising pioneering services. Qantas proposed changes in the organization by
job shedding, splitting international and domestic operations and changing foreign ownership
cap. In the process of job shedding, 5000 jobs were cut in 2014 comprising 1500 staff from
both back-office and management. The wages were also frozen till complete year underlying
profits were attained (Qantas, 2020). The pursuing of wages was also cut in some cases. On
the other side, Qantas split international and domestic operations. More foreign investors
were seeking by the company. In the case of change foreign ownership cap, foreign
ownership was allowed a maximum of 49% to maintain the status of ‘Australian carrier’. The
majority of the workforce and service amenities were necessitated to be based in Australian
territories (Leamon, et al. 2019). The changes were implemented in Qantas due to the nature
of the airline industry, outside environment pressures and progressing market competition.
So, the company made use of the classic organizational change approach to reduce cost.
Although changes processes in Qantas are strictly based on the company’s executive
management’s lenses. On the other side, external factors are perilous for the success of the
organisational performance of Qantas. The varying environmental conditions and progressing
popularity of Virgin Blue caused a change in Qantas (Maryani, 2018). The company goes

Managing change in the organizations 3
through the organizational transformation even now to reinforce its position and beat its
competitors. Qantas opted for a differentiation strategy to leverage its core competencies and
provide premium and value-added services. This strategy builds up the company’s agility and
absorption (Mir, Rezania and Baker, 2020).
Another example of the change process can be taken from BBC Worldwide. BBC Worldwide
is a completely subsidiary of the BBC. It is a content company and the way content it is
offering has changed in the last decade. The company decides to structurally reorganize itself
in 2012. It reconfigured the business from divisional to the geographic lines of management.
The purpose behind the change was to progress growth from global markets and be closer to
the customers. This structure was deliberated disruptive for staff and comprised some
terminations. On the other hand, BBC Worldwide lead to the change process by facilitating a
virtual worldwide GLT conference and seized them through the workshop (Fernandez and
Rainey, 2017). Such an approach described what the company was pursuing to attain and
recommend resources leaders could use to make possible as some individuals don’t do a
culture for the HR department. After changes, BBC Worldwide started to practice the culture
along with the vision of culture. The director also guided members to attain input and accord.
But there were routine difficulties and lack of clarity and led to dissatisfaction among the
employees. The employees wanted to be heard and acted on so that they can be treated fairly
and involved in the communications. The change process proceeded in conversation with
GLT in September 2014. This approach suggested leaders pursue business to attain what it
wanted.
Barclays Bank faced changes both internally and externally. The external changes were
realized in the form of technology, rivalry from other banks and changes in the demands of
the customers. Whereas, internal changes were realized like changes in IT systems, changes
in the employee’s demands, and variation of compensation pan. The changes in Barclays
bank are executed by the top and middle-level management staff, project teams and change
management team. There were some examples when changes created great resistance by
employees and therefore made it terrible to execute organizational enhancements
(Cummings, Bridgman, and Brown, 2016). The ten respondents mentioned that such instance
took place when the change was executed on the people. Moreover, change was not
communicated well and it also brings quite a substantial impact on the company. Some other
respondents mentioned that the change was not analytically executed and there was fear of

Managing change in the organizations 4
retrenchment or changes affected employee’s work-life balance. Barclays moved away from
the present state towards the anticipated future state to enhance the competitive advantage
(Mwihaki and Gekara, 2016). It took place as there was a strategic change in the
organization. A foremost change was also taking place in the lending procedure through the
initiation of unsafe lending. The most recent change introduced in Barclays bank was a
change of the information technology systems, BRAINS to a more successful system, the
Flexcube. The executive of the bank explained that the change was created on redefining and
reinterpreting prevalent norms and values. The bank took sufficient time to describe an
employee’s significance of change along with its influence. The bank also spent sufficient
resources in the form of time and money to advance human commitment to execute the
changes (Ngugi, 2017). The bank even undertook training before executing any change.
Identification of the key stakeholders
The key stakeholders identified by Barclays bank are shareholders, customers, employees,
suppliers, and community. The stakeholders are influenced by the bank’s social, economic,
environmental and financial actions. Barclays is having an obligation towards the
stakeholders in the form of proper accountability and control systems. While executing the
change in the organization, Barclay's bank focused on the stakeholder engagement to better
comprehend the perspective of change.
The business model of Barclays empowers to leverage resources and associations to produce
long term sustainable outputs for the stakeholders. The company makes decisions and
conducts business which offers stakeholders accessibility to the prosperous future. The
stakeholders of the company are assisted through the commercially successful business which
produces long term sustainable returns. The organization works together with the controllers
to assist in reducing risk in the industry (Nyanaro and Bett, 2018). A more sustainable
banking landscape is also offered over the long term. The stakeholder engagement in
Barclays is vital to make sure accountable balanced decisions are made. The bank provides
an opportunity for engagement by the year via diverse forums and channels to assist in
shaping the direction of the business. The needs and anticipations of the stakeholders are
aligned with the business (Altamony, et al. 2016).
Barclays could ideally manage resistance to change by undertaking change issue more
precisely. The loss of job security was deliberated to be accepted by 8 out of 10 management

Managing change in the organizations 5
personnel who were interviewed to know the factors affecting change management. It was
majorly in the case of a new banking system which would reduce some jobs in the back-
office department. There were also some employees in the organization, who were earlier
given early retirement but were rehired on the contractual terms (Mahmood, et al. 2017). It
led to a fear of renewal contracts among other employees. In the case of job security,
Barclays could systematically introduce change and well spread over time to enable
employees to get ready for the change. Other than this, changes should obey the laws of the
land to avert conflict with the higher authorities. Moreover, it was required that the effect of
the change on the personnel, customers, and competition required to be deliberated (Donders
and Van den Bulck, 2016). Barclays should create alertness on the necessity of change.
Moreover, the training should also be executed on changes like changes in technology.
Barclays bank faced challenges in executing changes in the organization. Various methods
were used by the management of the bank to address the challenges. Initially, information
was shared to handle stress. The analysts were also available in the bank mange stress
accompanied by the change. Team building activities were also managed to enable people to
interact with each other. Other than this, the personnel were prepared in the advance to
manage change along with sharing information on the anticipated challenges of the change.
Proper communication was also ensured so that the changes can bring profit (Lozano,
Nummert and Ceulemans, 2016).
The employees should be guided well to support change as they were resistant to change. The
information technology software changes should consume sufficient time before getting
things in new ways. The managers should make an attempt to use voicemail talk to each
employee along with the personalized letters to the employees when the new banking system
took place. It could help in inspiring all the employees and they could feel important. The
additional time could be given like extra time for change projects (Bakari, Hunjra and Niazi,
2017). The open forums could also be used to describe the changes to be deliberated and pre-
testing of the changes before execution. The close monitoring during and after the change and
set target could be helpful in managing the change in a better way. The training should be
evaluated along with attaining feedback on the changes executed (Kurek and Martyniuk-
Pęczek, 2018).
The bank reduced a lot of time and resources because of the resistance to change. The sense
of belonging should be engraved among the employees of the bank. This way employees

Managing change in the organizations 6
could own the change and make execution successful. While the introduction of an
innovative technology system, each department was expected to be involved to ease the work
done by every person of the organization (Gokdeniz, Kartal and Kömürcü, K., 2017).
Barclays Bank is visionary and it was quite easy to inspire employees and it could result in
more employee participation with the sense of ownership. The top performers could also be
offered an incentive for inspiring employees to execute change. The open communication for
the change can be a major factor to make the change effective at the Barclays Bank. The
effect of the change on the personnel, customer, and rivalries was also required to be
considered (Lehmann, 2017).
Effectiveness of the change process managed in terms
of the issues
The change process takes place in an organization when the transition is made from the
current state to a specific desired future state. Managing change is all about planning and
executing the change in the organization in such a way that employee resistance can be
minimized along with the cost to the organization. It concurrently maximizes the efficiency
of the change effort. The organizations nowadays are necessitated to undergo changes
regularly in order to remain competitive. The factors like globalization of markets and rapidly
developing technology on a regular basis force companies to respond so that they can
survive. These changes can be comparatively minor such as in the case of installing a new
software program or the case of re-concentrating on the overall marketing strategy or
transforming company in the encounter of international competition (Butt, Naaranoja and
Savolainen, 2016).
The initiatives for organizational change find out about the problems faced by the
organization. One of the examples of organizational change is changes taking place on a large
scale. When the company decides to shift resources to enter into a new line of business, it
tries to make productivity enhancements to minimize costs. The changes are implemented in
the organization in three phases:
 Realizing that the existing strategy is no more suitable as per the situation of the
company.
 Forming a vision for the future direction of the company
 Executing change and fixing systems to assist it

Managing change in the organizations 7
The technological changes in the organizations are generally introduced as apparatuses of
greater strategic changes. However, technological changes sometimes take place on their
own. A significant aspect deliberated by the technological change is defining who can be
endangered through the change. In order to be successful, technological change is required to
be integrated into the overall system of the organization (Domingues, et al. 2017). The
management structure of the organizations should also assist them. The structural changes in
the organization also take place because of the strategic changes such as organization
deciding to execute more participative decision making require to change its hierarchical
structure. The changes in the organization become more necessary due to other changes
taking place. The companies also pursue changing worker’s attitudes and behavior to enhance
their effectiveness. The change in the organization was also tackled by changing people on
the job with techniques like team building, education and training, and career planning
(Chaamwe and Lulembo, 2016).
Managing people on the side of change is generally the most stimulating and perilous
component. The change process is persistent nowadays as the companies face challenges in
adapting to the volatile environments. The issues are faced in the effectiveness of the change
process. The change process can be tackled by undertaking the following initiatives:
Manage resistance with patience: It has been believed that great power comes with greater
liability. Nonetheless in the world of change management, great change comes with a great
struggle. Whether it is anticipated or not changes should be tackled quite patiently with the
conversation and feedback (Brones, De Carvalho and De Senzi Zancul,2017).
An organization should recognize and manage change. The fear should be left behind.
Moreover, more unenthusiastic persons of the organization should be offered with certainty,
because confidence is regularly transmissible. The doubts create obstacles in the procedure
of change (Wiesner, Chadee, and Best, 2018). Therefore, the employees should be guided to
keep patience and provided positive guidance.
Manage conflicts: An organization should manage the issues caused by changes by involving
the team and cooperating with each other. The tough part of the change should be discussed.
Whenever the change issues take place in the organization and disrupt the schedule, the
management should step in as soon as possible. When the conflict is part of the change
process, the organization should be alert in finding solutions. Moreover, the issue should also
be categorized in the change process (Goudkamp, 2017). Patience is required in managing

Managing change in the organizations 8
conflicts. If the disruption is not required then the persons should be given time to view the
conflict as soon as discovered. On the other side, if conflict represents some faults in the
change process then it requires time and expertise (Whyte, Stasis and Lindkvist, 2016).
Handle with the setbacks: The disturbance is a normal part of the course of occurrences. Due
to this, the steps should not be presumed for change as it is deliberated a foolish action. The
morale should be kept up as it is resolute whether the setback is a serious failure or something
which can be tackled. It can enlighten the effect of a setback with high morale. It can even
minimize the delay as the team comes within to assist (Burkett, 2018).
The setback is the initial step to get ready and the further step is to recognize the most
challenging parts of change in advance. It should be making sure that the team can face
unanticipated events, but the complete process should not be derailed (Perera, Jubb and
Gopalan, 2019). Thereafter, the change issues should be managed to regulate if it is going to
change the results censoriously or just a problem to overwhelmed.
Protect team: The change issues can be handled in the organization by protecting the team. A
plan should be established for the team even if the conflict takes place. The senior staff will
be there to stand by them (Dopson, 2018). For instance, working with other departments like
IT, finance and management with the input required help in meeting other personalities.
Whenever any unproductive or unprofessional issues take place in the organization, the
members should know that the management is with them. It should be countered by
advancing associations throughout the company (Odor, 2018).
Look ahead: The organizations should inspire confidence among the employees. The
employees should be inspired to think censoriously and ask queries as a part of the process.
The managers should also explain to the employees, why change is significant and why they
should trust in their verdict. Tracking issues in advance can go a long way in proving that the
organization is on the right track (Hollow, 2017).
Role of the models in supporting the success of
processes
The change process states to the change or transitioning individuals, groups and organizations
from one state to another. When the change process is implied in the organization, it is
referred to as the evolution of the scope of the project in such a way that changing

Managing change in the organizations 9
requirements and objectives can be met. The execution of change management results in
increasing the chances of staying business on the budget which can lead to the attainment of
profits. In the current highly competitive environment, it is required to move ahead by
regularly bringing changes in the organization. It can bring useful and structural changes
through the adoption of innovative technology and methodologies to meet customer demand.
In order to execute and manage change in the organization, it is significant to implement
models. The change process in an organization necessitates the involvement of people or
employees. As a result, the employees got affected by the change process. Before adopting
any change management model, an organization is required to figure out why it needs
changes and what are the benefits going to be attained by the changes (Slater, Evans and
Turner, 2016). The models to be used by the senior managers to diagnose and plan change in
the organization are mentioned below:
Lewin’s change management model
This model is one of the popular and successful models which makes possible to guide
organizational and structured change. Lewin’s change management model was designed and
formed by Kurt Lewin in 1950. This model holds significance until now. The organizational
change was comprehended by changing states of the ice block. Lewin’s model comprises
three major stages such as unfreeze, change and refreeze.
Unfreeze: As per this model, unfreeze is the initial stage of the process of change comprising
preparation for the change. This step states that an organization should get prepared for the
change along with the view that change is vital and required. Such a phase is significant for
the senior managers as most of the individuals around the globe try to resist change and it is
significant to break this status quo. The concern of this phase is to describe people why
existing methods required to be changed and how change can fetch profits in the
organization. Such a step also comprises an organization to look into the core and reassessing
it (Hussain, et al. 2018).
Change: This is the phase, where real change occurs. This process generally takes time as
persons spend time holding new changes, occurrences, and advancements. This phase states
that good leadership and reassurance is significant as such aspects not only lead to steering
forward in the appropriate direction. It also makes the change process easy for the employees
and the persons comprised in the process. Communication and time are considered keys in
this phase to take place change effectively.

Managing change in the organizations 10
Refreeze: After the acceptance of change, embraced and executed by persons and
organizations in order to be constant again. It is the reason this phase is stated as ‘refreeze’. It
is the movement when employees and processes initiate to refreeze and then things go back
to the normal routine. This phase necessitates people to ensure that changes are used and
implemented all the time even after the attainment of the objectives. The staff also get
compatible and confident of attained changes with the intellect of constancy (Simeka and
Were, 2016).
McKinsey 7 S Model
It is one of the few models which have managed to continue even after the appearance of
others. McKinsey 7 S Model was advanced by consultants working for McKinsey &
Company in the 1980s. This model provides ways and methods to comprehend and attain
insight into the way it works. McKinsey model even assimilates emotional and practical
workings of change which is quite significant to enable the worker to deal with transition
effortlessly. The model deliberates all parts to be significant and of equal worth guiding
significant aspects. It also provides directional factor to the structural or organizational
change (Shaqrah, 2018). This model has a great role in providing guidance in the
organizational change due to the rational and emotional components. This model comprises
seven steps for sustaining change.
Strategy: Strategy is the first step of the McKinsey 7 S Model. The strategy is the plan
generated to get past the competition and attain the goals. This step comprises step by step
procedure.
Structure: The structure is the stage of the model linked to the way in which a company is
categorized it follows.
Systems: In order to accomplish a task, this stage performs routine activities with the
associated activities.
Shared values: The shared values state to the core or major values of the company as per its
functions.
Style: The style is deliberated to be the manner in which changes and leadership are executed.
Staff: The staff is stated to the employees along with their working capabilities.

Managing change in the organizations 11
Skills: The skills are deliberated to be competencies and other skills owned by the personnel
functioning in the organization.
In the case of Barclays bank, Lewin’s change management model was used. In the first stage,
unfreezing, the forces in the bank sustained the status quo in the organizational behavior. The
changes were facilitated in the bank due to environmental pressure like enhanced
competition, lessening productivity and performance (Sheikh and Kimencu, 2017). The bank
felt the need to improve the work style. The second change involved the shift in the
organizational behavior through the procedure, modifying system, people and technology.
Such a phase can be described in the form of recognition, compliance, and internalization.
Barclays also faced force as individuals were forced to change. The internalization took place
when employees in the organization were forced to face a situation that demanded new
behavior. The identification took place in Barclays when employees identify one among
several models as per appropriate to their personality. In the refreezing phase, Barclays took
action to manage the drive for change along with facilitating the institutionalization
procedure of change in day to day working (Tang, 2019). The bank positively strengthened to
the desired outcomes with the additional support required to overcome the difficulties.
Lewin’s model-assisted Barclays in comprehending the organizational change taking place. It
is used widely by the bank to enact major changes.

Managing change in the organizations 12
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