CT-2 – Managing Dynamic Environment

Organizational Change Issues (100 points)

Change is never an easy process. For years, researchers and theorists have attempted to develop frameworks for change to help individuals accept the need for change. Consider the scenario below about change in a large organization. Then, answer the associated questions related to organizational change.

Due to the impact of COVID-19, a large manufacturing company recognizes that organizational culture changes are necessary. Furthermore, process related changes must occur. The organization has experienced a decline in sales from early 2020 to present and recognizes that if changes are not made, many issues may arise. Reham, the CEO of the company, recognizes that organizational changes are needed.

Reham has proposed that the company reduce the size of the workforce by 20% until sales increase. The organization currently employs many full-time manufacturing employees, but only employs a handful of office workers. To further market the products provided by the company, many office workers are working 10-20 hours of overtime, per week, to assist with marketing efforts. Needless to say, office personnel are very overwhelmed with tasks and responsibilities.

At a three-hour meeting, Reham noted that a 20% reduction among manufacturing employees would be made within the next month. She then went on to state that three new positions would be added to the home office to ensure that the workload was not as intense for office personnel.

During the meeting, many individuals recognized Reham’s point and said that they would support her decision to make these workforce changes. Unfortunately, Reham’s colleague, Alan (the Director of Manufacturing), became furious about this change and mentioned that he did not understand why Reham was trying to ruin the company’s culture.

Based on the scenario above, answer the following questions:

  1. Why do you believe that Alan is having a difficult time recognizing the change proposed by Reham?
  2. What are the implications associated with Alan, the Director of Manufacturing, not supporting this change initiative?
  3. Although Reham is the CEO, and has ultimate authority, how might obtaining additional feedback from other organizational leaders assist Alan in further understanding the rationale for this change?
  4. Before Reham pushes this change forward, what short-term and long-term impacts should she consider?

Your well-written paper should meet the following requirements:

  • Be 5 pages in length, which does not include the title and reference pages, which are never a part of the content minimum requirements.
  • Use APA style guidelines.
  • Support your submission with course material concepts, principles, and theories from the textbook and at least three scholarly, peer-reviewed journal articles.

Why do you believe that Alan has a difficult time recognizing the change proposed by Reham?

ANSWER

Organizational Change Issues

Alan is significantly having a difficult time accepting the change in the organization’s culture due to multiple reasons.

Job insecurity

Alan is resisting the changes due to the uncertainties of keeping his job or the employees who may be friends or relatives working in the company.  Alan, therefore, resists any changes since it may result in the change in the administrative and technical roles reducing or increasing. He, therefore, views the changes to be harmful to his position in their organization.

Lack of Personal benefit resulting from the change

            Alan significantly does not find any personal benefit resulting from the changes that Reham, the company’s CEO, is trying to implement. The lack of a clear outline of the reward system makes Alan resist the changes. In most instances, organizational leadership resists the changes in the organization, especially if there are no rewards. Therefore, Alan resists the changes in the organization because he required the management to provide motivation and reward for the support of the changes. He required intrinsic rewards or even money to accept the changes.

Fear and uncertainties

            In most instances, any organizational changes that make the workers uncertain or less informed significantly cause a lot of fear among the employees. Therefore, Alan may resist the changes because of various uncertainties and fear. The implementation of the Reham comes unexpectedly (Mihaiu et al., 2018). Additionally, a lack of two-way communication may also sabotage the compliance to changes in the organization. Alan may have experienced the rumours of the people that will be laid off hence making him resist the process.

Peer pressure

            Regardless of the personalities of the people in the organization’s leadership, they are social beings. Therefore, some stakeholders such as Alan can resist the change to protect the interest of the 20% of the employees facing the risk of losing the job. He is resisting the process only to protect the co-workers and the working group (Mihaiu et al., 2018). Workplace significantly has different workgroups, and since the changes threaten the social bonds in the organization, Alan opts to resist the process.

Climate of mistrust

            In most instances, the changes in the organization do not occur under the trust climate. Trust significantly focuses on the intention of taking a given course of action of others.  Mutual trust significantly promotes acceptance of every initiative promoted in the organization by the management. in most instances, mistrust results in the failure and rejection of the change in an organization. Therefore, Alan may do not trust Reham and thus does not resisting the changes.

Organizational politics

In some instances, the people in the organization may significantly reject the changes just as a political strategy to frustrate the changes and prove to them that they are wrong. People resist the changes to intimidate the person trying to implement them to prove they are not enough to do the task (Cico, Rajnović, & Bošnjak, 2021). Others resist it since they risk losing power in the organization and focus on ensuring that the changes fail. Since the organization is after implementing overtime, Alan resists the change to prove that the CEO is not up to exploiting the employees.

Fear of failure

            The changes in the organization significantly cause unprecedented fear for the employees, for they tend to imagine the possible outcomes if the changes do become beneficial to the organization. The employees may also resist the changes due to the company’s collapse as a result of the new initiatives. They may also become resistant; they face increased work load such as overtime working. Therefore, this may be the leading cause of Alan’s resistance to the new changes in the company.

Faulty Implementation Approach 

Alan also may have resisted the changes that Reham, the company’s CEO, is trying to implement because of her poor timing and lack of tact in conducting the process. The communication may have been without intensive underground investigation and considerations that Alan may consider critical. Alan may not be resisting the changes but the process in which the changes will be done.

What are the implications associated with Alan, the Director of Manufacturing, not supporting this change initiative?

Alan’s resistance to the change initiatives has various implications for him and the company. One of the expected implications of his resistance is losing his job position, especially if this has been his character before. Reham, the CEO of the company and other administrative leaders can agree to lay him off depending on the intensity of his resistance. When he incites other workers to resist the changes, he will automatically lose his job and be replaced with someone else.

Due to Alan’s resistance, the implementation of the new directives may delay, which are significantly required instantly. With the escalation of the spread of the Covid-19, the new directive needed to be implemented immediately, but the process may occur slowly as a result of resistance (Bejinaru & Baesu, 2018). Delay in the implementation of working from home protocol results in the spread of the virus in the company. This may result in many becoming sick, paralyzing the operation of the company.

Resistance to the new changes leads to a significant loss of revenue. The emergency of the Covid-19 results significantly placed all the companies in the world in the position of doing things differently for their survival. All companies require doing things differently to avoid losses of their revenue. It promoted the organizations into developing new policies that involved the reduction of the workforce and the working from home systems. Therefore, resisting the change Reham, the company’s CEO, is trying to implement significant results into the company making significant revenue losses.

            Reham, the CEO, is after implementing in the company has a significant impact on the employees’ morale. The new change that is after increasing the overtime significantly causes the reduction in the morale of the workers. Therefore, since the Alan resists the changes, the management may significantly look for the better ways to increase the employees’ motivation (Mihaiu et al., 2018). Implementing the changes may go through various procedures and protocols that can significantly satisfy every employee in the company.

Although Reham is the CEO and has ultimate authority, how might obtaining additional feedback from other organizational leaders assist Alan in further understanding the rationale for this change?

Obtaining additional feedback is critical for Reham, the company’s CEO, to overcome resistance in the workplace. Additional feedback is significant for helping Alan substantially understand the urgency, the implications and the need for the changes. It also allows the company to clearly understand the benefit of the changes to both workers and the company. Feedback also allows understanding the position of Alan’s resistances, weighing the situations and coming up with the best and balanced alternative (Cico et al., 2021). It significantly promotes collaboration and cooperation in outlining the preferred solutions as the emergency of Covid-19.

It also promotes the slow implementation of the new procedures and protocols and changes in multiple phases. In most instances, slow implementation of the protocols does not result in resistance such much as all at once changes. The gradual process is significantly comfortable for both cultural and structural changes. This significantly enhances the employees’ trust that the management listens to them and does not use authoritarian leadership.

Before Reham pushes this change forward, what short-term and long-term impacts should she consider?

Reham is supposed to focus on the various short-term and long-term impacts such as the effect of reduced employees in the company, the risk of the high rate of infection in the company, the effect increased over time in the company, productivity rate. She should also consider the public options, the estimation of the period the pandemic will last, the profitability and the cost of production. Reham needs to consider the marketing and the sales strategy, logistics and the supply chain in the pandemic situation.

References

Bejinaru, R., & Baesu, C. (2018). Connecting approaches of sustainable development and organizational change in business companies. The USV Annals of Economics and Public Administration17(2 (26)), 87-94.

Cico, S., Rajnović, L. D., & Bošnjak, I. (2021). ORGANIZATIONAL RESTRUCTURING IS A WAY TO RESOLVE THE CRISIS CAUSED BY COVID 19 IN THE AGRICULTURAL SECTOR. Economics of Agriculture68(3), 611-625.

Mihaiu, D., Opreana, A., Christescu, M., Poole, E., Toohey, C., Harris, P., … & Brumby, J. (2018) ON SOME CHALLENGES OF ORGANIZATIONAL CHANGES. Стратегічні імперативи сучасного менеджменту: Зб. Матеріалів V Міжнародної науково-практичної конференції [Електронний ресурс].–К.: КНЕУ, 2020. 357,[1] с. ISBN 978-966-926-325-1, 108.

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