Change Management IMC Company

Question: Discuss about the Change Managementfor IMC Company. Answer: Introduction Change management is the process, which includes how we prepare and assist the people to accept the changes in the organization for achieving the desired outcomes and organizational success. This business report is very significant in understanding the change management at IMC Company, which is situated in USA as an MNC. It includes the analysis of the situation in the case study named as US MNC, IMC- Change management - predominantly on change and work transition to share services. This discusses the major issues in the case and literature review about the change management in this multi-national organization. For the literature review, related articles from various authors are used. Furthermore, it analyses the issue of the case by using the Lewins three steps model, i.e. unfreezing, refreezing, driving forces and restraining forces. This analysis will include the critical arguments about the change management and change issues in IMC Company. The adaptation from the given case stu dy will be used in writing this report in order to identify and influence the form of changes, which is required to deliver the fair recommendation to implement the change. The solution and findings of the report will be limited to the given case study only. Methodology In this literature review, the given case study of IMC Company is used to analyze the change management in the processes and systems. The findings and solution of the case is limited to the issues mentioned in the case. This will help in understanding the changes and its impact on the organizational life and recommendations to implement the changes in the processes. Case Issue In this discussion, the issue is regarding the changes in the processes of the organization. In Malaysia, the challenge is change management in processes and systems. The company is going through a hard time, when it is starting its shared services in Malaysia. It requires the changes in the processes and systems. The organization is concluded to bring the changes in some areas of the firm, which includes the change in processes and change in the job of some employees from different department to share services. Due to this, the people have the fear related to various things like; job security and loss of job. This migration plan can affect the employees greatly. The company may face some risks, like; resistance to changes, increase in the workload, less understanding about the shared services, right sizing workforce etc. Another issue in the company is language and communication barrier, because the shared services language uses the English as a medium but they are from the culture, which comprises multi culture lingua and diversities associates (Mills, Dye, Mills, 2008). Thus, the company is facing the issues because the people are not ready to adapt the changes of going from their department to the shared services. It raises fear in the employees of job insecurity and adoption of new culture in Malaysia. Literature Review Change management Change management is the process of adopting ideas, processes, procedures and behavior which is new for the organization. However, Stewart and Kringas (2003) states that change management like change is very difficult word to define. In this way, according to these authors, the term change management has become a universal theme in the literature of management. Apart from this tag, Cameron, a research described that change management has become one of the great point in the social sciences. According to Burnes (2009), change is becoming very significant and normal for the survival of the organization. Many researches has analyzed that organizations have accepted the requirement for change but around 70% of the change programs do not meet their objectives and expectation. He stated that in responding to the enhancing significance organizational change; there is growing form of literature looking at processes of the change management and various factors, which contribute to the success of the organization (Burnes, 2009). Change management includes the changes in the structure, process, organization, leadership and culture. Reasons for Change: Tetenbaum (2004) explained six factors, which are responsible for the changes those are occurring in the modern worlds organization. The reasons are given below: Adoption of new and advanced technologies Globalization that has resulted in the world, which is always connected as information, goods and money move around the world. Technologies and globalization together New processes and practices, which are now occurring faster than past Increase in the technological speed, that is matched in peoples lives and business Complexity and inconsistency, which are enhancing as the result of changes. Transitional Change or Process Change: Transitional change is also known as process change in the organization. Bass (2006), states that transitional change is more disturbing than other changes like; developmental changes and transformational changes. This change replaces the existing systems and processes with something, which is new to the company. This is the period, when an old system is being incomplete and the new business is being implemented is called the transition stage of the change management. There are some examples of transitional change, like; merger, acquisition, reorganization, introducing new services and new technologies. This type of change may not need a critical change in the behavior or culture, but it is more threatening to applying in comparison to developmental change. At the time of transformation, the future of organization is unknown. It can add a level of fear and discomfort in the employees. Furthermore, Bass (2006) identified that the result of transitional change are unpredictable. This is the reason that employees feel that their job is unbalanced and their insecurity can increase. At every stage of new service or process implementation, training and orientation should be conducted in order to reduce the insecurity in the employees. This will make them feel comfortable in the working environment. The employees will feel engaged and they will involve in the change management process in the organization. With the increase in the level of employees engagement, the resistance to change swill decrease. The management must be aware about the effect and stress, which the implemented changes will have on the employees (Bass, 2006). The organization should inform the employees continuously about their status offer support in assisting them in dealing with the personal changes, which they will be pressurized to make. According to Annan (2009), in an organization, simple or complex and yet predictable results require transitional change. To implement this type of change, there will be need of effective leadership and higher investment in comparison to transformational change. For leading this change successfully, some adjustments are required to the structure of organization, procedures and policies of the current systems. There is a need of improving some special skills and abilities, which are required to deal with the changes and new services (Annan, 2009). Moreover, this form of change enhances the modification in the organizational culture, strategy and mission of the company. There are some challenges and risks, which the employees or employer may face and they resist the implementation of the changes. These challenges are listed below: Insecurity and discomfort towards job Increasing work load can reduce the quality of work delivery There may be barriers of language and culture High employee turnover Challenges to the image of organisation Lack of core competencies due to geographical barriers Cultural diversity According to Higgs Rowland (2005), there is link between leadership and communication of organizational change. The leaders can motivate the people, who resist the changes. They can perform the below given tasks to implement the changes successfully (Higgs, Rowland, 2005); Building awareness Establishing structural changes Engaging employees Developing the capability and motivating them Model- Lewins Three Step Models The first change model was developed by Kurt Lewin in the year 1947. This model is also known as three step model. This model includes 3-steps; unfreezing, changing and refreezing. Armstrong (2006) defined that the first stage unfreezing refers altering the old ideas and practices, so the new ideas can be adapted. This stage considers the essential threats that change offers to people and the requirement to inspire those influenced to achieve the natural position of balance by adapting the changes. In this, organization gets rid of old practices and accepts new threats. It is important stage to understand the change. Schreyogg (2001) identified that changing refers to the stage, in which new practices and ideas are learnt. The organization executes the required and intended changes in the working environment. In this, the top managers help the employees in understanding the reasons for changes and perform in different ways. It includes the activities like; transforming the processes, organization restructuring, fixing new equipment and implementation of new appraisal and reward system (Schreyogg 2001). The third step is refreezing. At this stage, the implemented changes are made actual and permanent. In this step, whatever the employees have learnt from the changes will be integrated in actual practice. Analysis Change management at IMC Company As the IMC is a multi-national company, so change management is required in a manner to take the actions for improving the current situation and applying the change strategies to take the advantages and ensure that the organization is achieving its objectives (Hayes, 2010). But the major question is how the changes can be managed by the top management. According to the case study, IMC Company is facing the issues with the employees resistance to change. In order to explain this, Kotters stated that when the changes are implemented to the organization then the employees come with the complaints, deny accepting the changes, stay less engaged to the work and threaten to go on the strikes. In this case, the people are having the fear and job insecurity because there are changes in the process and systems and migration of administrative works from different departments to shared services. It has created fear among the employees (DOrtenzio, 2015). Thus, the employees will resist the change s at IMC. To overcome this issue, the top management has to play an important role by providing training and educating about the changes and reasons for the changes. Johnson, et al. (2009) described that there is a need of an effective communication at all the levels of management. Along with this, encouraging the participation, assistance and implementation of changes properly are also necessary. The change in the processes will support IMC in expanding its business and increasing its revenues. Thus, the managers at top level must work as the change agent, who will carry the changes to the company and accept the duty for managing the actions in change management process (Johnson, et al. 2009). Process Change Process change may include the introduction of new services in the existing business unit. Generally these changes are planned in the organizations (Reiss, 2012). In this case, IMC is introducing new shared services in Malaysia. There are the changes in the processes and systems of the company. The major issue hindering the employee engagement of IMC is the new services and migration plan, which the company is adapting to. The change plan of IMC is on the basis of top-down approach that totally the avoided the engagement of the employees. According to Mills (2008), the organization who is making efforts to change the organization in order to improve the performance and efficiency, should consider the human resources of the organization. Barret (2002) argued that if the company will not do this, then it will be in dark at the time of change implementation. The author suggested that IMC must use the down-top approach, so the employees can feel motivated and satisfied (Njuguna, Muathe, 2016). In the process change management, the leaders can work as the change agent and imply the transformational and transactional styles of leadership. It will increase motivation, satisfaction and productivity of employees. Implementation of Lewins Model on organizational Issues The organization should implement the Lewins model for applying the changes in the organization, because there are the changes in the process. In first step, the organization must create awareness among the employees about the change. Communication is very important in unfreezing so that employees can know about the change (Higgs, Rowland, 2005). In the second step, i.e. changing, the IMC Company will start to launch its new services in Malaysia. In this step, communication, training and education support will play an important role, so they will learn new things. After implementing both the steps, the third step, refreezing will set a new identity of IMC as shared services. It can resolve all the related issues, like; resistance, fear, language barriers and communication. Conclusion Change management is very important for the organizational survival and growth. IMC is adapting changes by making a migration plan. Thus, the IMC Company can address the issue in change management by implementing new practices and training program for the employees. It should consider the opinion of employees; like they want to migrate or not. If it does not focus on it, the performance of the employees will be affected and they will be less engaged to the work. The literature review includes the various aspects of change management and Lewins three step model for implementing and managing the changes in organization. Recommendation By reviewing this literature, it is recommended to the IMC Company that it must consider the Kurt Lewins three step model for change management. First, it should ensure that employees are ready for changes or not. It should use the strategies and tactics to reduce the amount of resistance to change. There should be a significant role of top managers in change management. Education, training and effective communication are also important component of managing the changes in the organization. IMC can enhance the performance of employees by motivating them towards the changes. It should provide the coaching classes to employees about the new processes like; shared services. This will be beneficial for IMC Company. References Annan, K, 2009, Transactional, Transitional, and Transformational Change, Retrieved from https://leadingspace.wordpress.com/2009/12/20/transactional-transitional-and-transformational-change/. Armstrong, 2006, Armstrongs Handbook of Management and Leadership for HR, Kogan Page Limited. Bass, B.M, Riggio, R.E, 2006, Transformational Leadership, Psychology press. Barrett, 2002, Change communication: using strategic employee communication to facilitate major change. Corporate Communication: An International Journal, Vol. 7, Issue No. 4, pp. 219-231. Burnes, B. 2009, Managing Change:A Strategic Approach to Organisational Dynamics. Prentice Hall. DOrtenzio, C, 2015, Understanding Change and Change Management Processes: A Case Study, Retrieved from https://www.canberra.edu.au/researchrepository/file/81c02a90-6a15-91ae-c7a2-ff44c96d60b2/1/full_text.pdf. Hayes, J, 2010, The theory and practice of change management, New York: Palgrave McMillan. Mills, J.H., Dye, K, Mills, A.J, 2008, Understanding Organizational Change, Routledge Publications. Johnson, S., Ostaszkiewicz, J. O'connell, B. 2009, Moving beyond resistance to restraint minimization: a case study of change management in aged care. Worldviews on Evidence-Based Nursing, 6. Higgs, M. Rowland, D, 2005, All Changes Great and Small: Exploring Approaches to Change and its Leadership. Journal of Change Management, vol. 5, pp. 121-151. Kringas, P. Stewart, J, 2003, Change Management- Strategy and Values in Six Agencies from the Australian Public Service, John Wiley Sons. Njuguna, E. Muathe, S.M.A. 2016, Critical Review of Literature on Change Management on Employees Performance, International Journal of Research In Social Sciences, Vol. 6, No. 3. Reiss, M, 2012, Change Management, Books on Demand Publishers. Schreyogg, G. 2001, Organizational Theatre and Organizational Change, Freie University, Berlin. Tetenbaum, T.J. (1998). Shifting paradigms: From Newton to chaos. Organizational Dynamics, 26(4), 21-32.