Table of Contents
Organizational change can be in various forms, such as changes in leadership, change in management, or change in the operations of the business. Some other causes of change are, merging of companies or total hostile takeover of organization (Gerbauer, Fleisch & Friendli, 2005). Such changes if drastic can lead to loss of data, failure of some operations as well as loss of revenue. In the event of organizational changes, various steps need to be taken into account to ensure the change is smooth and successful. Below are the details of various organic factors that contribute to changes.
Most organizations face competition from other organizations that either produce the same products or offer the same service. Competition either still or not can cause a company to have reduced operation or less revenue. In addition, competition can lead to the elimination of some of the business from the market. In such cases, the stakeholders meet to decide the best possible ways of coping with the competition. In such meetings, some of the recommendation may be the total change of leadership or the management of the organization, especially if the problem has been traced back to the management of the organization (Gerbauer, Fleisch & Friendli, 2005).
Diversification comes with the ever-changing needs of the consumers in various fields. For instance, an organization that produces electronics faces the highest changes of diversification, as technology is dynamic. New technological advances require new skills and therefore lead to changes in the workforce to incorporate the new advancements. In addition, diversification causes other companies to lose in the market, as their products get outdated. This can lead to the merging or absorption of such a company by another (Velcu, 2007).
The poor performance of a company can lead to drastic changes in both the management and the workforce. Such cases occur when the products of the company either faces competition, or the input becomes higher than the output in the sense that the total cost incurred by the company to purchase the raw materials and other expense becomes more than the total profit generated by the company. In addition, the performance of the organization can reduce due to poor leadership or poor strategic planning of the organization (Alas, 2008).
Leadership determines the success of failure of an organization. Various strategies need to be placed to change the leadership of an organization.
- Committee needs first to perform an inquiry y to determine the certainty and need for changes of leadership. The committee provides its finding to the stakeholders and board of governor who will have to ascertain the need of change in leadership (Kanter, 2003).
- Next, the organization’s board of governors will have to give the present leadership notice of change of leadership in due time for them to prepare to hand over all the particulars to the next leadership.
- During a change in leadership, the post of the existing leaders will be left vacant. I t is necessary to have acting leaders who will continue the operations of the organization while the next potential leaders are vetted. This will lead to a smooth transition of power from the former leaders to the incoming leaders (Velcu, 2007).
- The organization also needs to have a set protocol in place that is be able to deal with any changes in the leadership of the company since leadership change is quite critical. If the change is not swift, the operations of the organization can be compromised terribly (Gerbauer, Fleisch & Friendli, 2005).
- The vetting of new leadership must be very detailed in the job description. The new leadership must provide better experience and success in their previous leadership for them to be selected. This will ensure that the organizations pick itself from the ground and grow to maximum potential.
Situational leadership model
This type of leadership model entails a leader directing all the duties to the employees and paying close attention to their performance. The leaders monitor and correct the employees whenever they go wrong. In addition, the leaders’ can also work hand in hand with the employees and be interested in both their duties and their personal lives (Alas, 2008).
On its model of leadership, the leaders apply pressure to the employees to meet the targets and improve their productivity. Here the leaders give the management gives the employees ultimatums on their jobs. This leadership model is effective in organizations that manufacture products that are time sensitive products (Kanter, 2003). Laxity of any kind in the organization can lead to massive losses.
Organizations that are ever changing require a specific set of skills, both management, and leadership for the adaptation to these changes. Dynamic companies are characterized by changes in production, concerning mode and scope as well as changes in techniques, protocols and required skills (Velcu, 2007).
The most basic skills needed in management are:
Decision-making skill enables the management in an organization to make decision and choice those suites the company during the various changes that come up. In the decision the management, makes decisions that might not please everyone but is for the good of the company. In addition to the sacrifices are made during decision making for the greater good of the company. The management must, therefore, determine the right sacrifice to be made (Alas, 2008).
Problem-solving skill comes in handy in organizations that keep having their strategies. Constant changes are bound to bring setbacks and problems to the organization. The management must be able to have problem-solving skills to ensure that all the problems arising from the changes are kept under control (Kanter, 2003).
Leadership skills are also necessary for decision making in organizations that undergo constant change. The leadership skills necessary:
A well-motivated leader will be able to take the initiative and lead the organization through troubling times brought about by the changes that come in dynamic companies. Leaders that is well motivate will hold together the operations of the company whether the times are hard or not. This will ensure that the employees can look up to their leader (Gerbauer, Fleisch & Friendli, 2005).
Changes come with responsibilities and major decision that a leader needs to handle with care. A patient leader will be able to make decisions that are valid for the company by making them at the right time and with the right decision as well as without haste. The decisions must favor both the company and the workforce.
Leadership comes with responsibilities that require wisdom to manage. Poor decision making by leaders might cost the company in more ways than one. It can also result in loss of data or revenue that will bring general losses to the organization (Kanter, 2003).
The timing of the changes to be made in an organization must be timing. The best way to gather information on the timing of the change is to consult various stakeholders and get their views. This can be informing of interviews or questioners (Velcu, 2007). The view of the employees must also be considered and can be gathered through their various department heads. Wrong timing of the changes to be made can lead to various complications, which can subsequently lead to the loss of either stop or interrupts the operations of the organization.
- Alas, R. (2008). Implementation of organizational changes in Estonian companies. Journal of Business Economics and Management, (4), 289-297.
- Gebauer, H., Fleisch, E., & Friedli, T. (2005). Overcoming the service paradox in manufacturing companies. European Management Journal, 23(1), 14-26.
- Kanter, R. M. (2003). Challenge of organizational change: How companies experience it and leaders guide it. Simon and Schuster.
- Velcu, O. (2007). Exploring the effects of ERP systems on organizational performance: Evidence from Finnish companies. Industrial Management & Data Systems, 107(9), 1316-1334.