CONCEPT OF CHANGE MANAGEMENT

CONCEPT OF CHANGE MANAGEMENT

A systematic technique to dealing with the transition or transformation of an organization’s goals, strategies, or technologies is known as change management. Change management strives to put in place methods for bringing about change, controlling change, and assisting people in adjusting to it. A methodical strategy for seeking a change, as well as tools for responding to and following up on requests, are examples of such approaches. Comment by ayfa mk: Review about the concept of change management by various authors from articles. (review at least 5 articles) Insert citation for every description.

To be effective, the change management process must analyze how a change or replacement will affect the organization’s processes, systems, and workers. There must be a mechanism in place for planning and testing change, communicating change, scheduling and implementing change, documenting change, and assessing its repercussions. Documentation is an essential component of change management, not only for maintaining an audit trail in the event that a rollback is required, but also for ensuring compliance with internal and external controls, including regulatory compliance.

Four principles underpin change management. Understanding the concept of change is the first principle. It implies that before implementing a change, a company must first outline the goals and benefits that will be realized if the new management style is adopted. This concept could help a company understand the risks of not making the change. Change in plans is the second principle. Effective change does not happen by chance, and any strategy developed by a company must be tailored to the company’s needs. Depending on the business, change initiatives can be handled in a number of ways. Some change methods are very rigorous, whereas others are more open and flexible.

The third principle is to implement the adjustments. An organization must ensure that everyone involved in the change is aware of what must occur throughout implementation. Communication regarding change is the last principle. Change management can be a game changer when it comes to communication. Employees must understand what the organization expects of them and why they must comply, thus the desired change must be obvious and relevant. However, the organization must also set the appropriate tone in order to elicit the desired emotional response.

 

There are various change management models that have been used by an organization in order to implement change management in the company. The model will guide an organization a step to begin with in order to ease their process towards the changes. In this change management study, Padini Holdings Berhad had implemented Kotter’s approach for their change management. Padini Holdings Berhad uses the Kotter 8-step model because it provides an easy-to-follow roadmap for change managers, even if they are new to change. Besides that, each stage outlines precisely what must occur in order to keep a change project on schedule. The 8-step approach of John Kotter focuses on the passion that must be generated, particularly among the firm’s leadership, in order to bring about change. This model is suitable for Padini Holdings Berhad because it will guide the firm for every step that they needed to take in order to make employee change management in their organization.

To begin with, Padini Holdings Berhad is one of the world’s famous fashion company. The company was founded in 1971 by Yong Pang Chaun, and has gone through various internal and external changes since then. For Padini Holdings Berhad, change management is really important because it will help the company to continuously improve the business. Market pressures and new competitors that have likely impacted the business have been the primary drivers of change at Padini Holdings Berhad. For example, there are newcomers entering the Fashion industry, and that makes Padini Holdings Berhad a must to compete with them. They have to compete in terms of price, consumer preferences, brands and others. If Padini Holdings Berhad does not take action to compete with all its competitors, it will make the company unable to strive in line with their competitors and this will leave the company behind. However, the worker is the individual closest to the customer. “Good People Make Good Business”. (Padini, n.d.) This statement has become one of the factors that influenced the change of employee management in Padini Holdings Berhad.

Furthermore, Padini Holdings Berhad is aware that the employee will have an impact on the business’s operations because employee performance is aligned with the company’s goals. Employees understand exactly what is expected of them and the outcomes. As employees strive to provide a better experience for their consumers, customer experience is a vital component of their values. As a result, one of the foundations of the company’s growth strategy is to maximize the potential of its employees. They think that in order to realize their vision and achieve their growth objectives, they must rapidly and successfully develop their people, culture, and key organizational strengths. Padini Holdings Berhad company wants to be an irresistible place to work, where employees are heard, valued, supported, and encouraged to reach their greatest potential. One of the ways that has been implemented by Padini Holdings Berhad for this change management is by conducting Employee Engagement Surveys.

KOTTER’S APPROACH TO CHANGE MANAGEMENT

John Kotter, a Harvard Business School professor of leadership and change management, revealed his groundbreaking 8-Step Change Model. The model, which is based on Kurt Lewin’s work, lays out the eight main aspects of the change process, suggesting that missing any of them will result in the failure of the entire project (Praveen Gupta, 2011). Comment by ayfa mk: write a citation where it is necessary

This model can be divided into 3 categories which are the first three steps regarding creating the right climate for change. In these steps, an organization should focus on establishing, forming, and creating. The first three phases are crucial because they can help the organization generate initial motivation to get things moving. Companies should know their main objectives to change management. They need to create a clear vision for a change. Hence, it will be easier for companies to take an initial step to implement the changes.

Next, for step 4 up to 6, this step is about establishing a relationship to the organization’s change. During this stage, the organization should work to gain employee support and acceptance. This can only be achieved by sharing the new vision with employees as often as possible and taking their concerns, reservations, and anxieties seriously. The new vision must be fully integrated throughout the organization.

In the final category, steps 7 and 8, the emphasis is on execution and consolidation of the change. During this stage, a company must continue to seek improvements in order to achieve long-term transformation. Only after a number of successes can it be confirmed if the change is paying off. Change, on the other hand, will only become part of the corporate culture after it has been instilled in the organization’s core values.

Many businesses have adopted John Kotter’s 8-step transformation model because it is straightforward and easy to implement. It lays out in detail what should occur at each stage of the change process. The focus of this paradigm is on the employees’ commitment and well-being. Since Padini Holdings Berhad wants to change the employee management, the company has decided to follow Kotter’s approach. This is because the first two parts of John Kotter’s 8-step transformation model are the most powerful characteristics of the model, and they will assist the organization in seamlessly changing employee management. According to the paradigm, the project’s resolution and success are critical. After completing all of Kotter’s 8-Step Change Model steps, John Kotter recommends adopting the new vision as a beginning point for recruiting and hiring new employees. This is equally true for (current) staff training.

MCKINSEY 7-S CHANGE MANAGEMENT MODEL APPROACH TO CHANGE MANAGEMENT

This paradigm was created in the early 1980s by two consultants from McKinsey Consulting, Robert Waterman and Toms Peters. Because this model is an useful tool for measuring and analyzing changes in an organization’s internal condition, it is extensively employed by organizations. Other change management strategies are not constructed in the same way as the McKinsey 7S model of organizational management. It is made up of seven components that must be balanced in order for a business to be healthy and competitive. McKinsey’s change management strategy emphasizes both “hard” and “soft” organizational components that must be taken into account while driving or implementing change. (Mohammad Mehdi Ravanfar, 2015). Comment by ayfa mk: write a citation where it is necessary

It consists of strategy, structure, and systems for the challenging elements. According to McKinsey, strategy and organization are “two sides of the same coin.” It signifies that the strategy is focused on how an organization wants to direct its own organization toward its goals while being flexible. When it comes to a change project, the strategy part in the McKinsey 7S example is the precise plan or change management path a business takes to get from their current condition to their desired future state.

Besides that, In the McKinsey 7S framework example, the structure element relates to the traditional organizational structure or chain of command. These kinds of partnerships are often known as authority relationships. It depicts how the company’s many units and divisions are organized, who reports to whom, and how tasks are divided and integrated. A company’s structure could be hierarchical or flat, centralized or decentralized, autonomous or outsourced, specialized or integrated, and so on.

The next topic is systems. The physical systems with which the organization’s workforce interacts, as well as the processes and workflows in place, are referred to as systems. These are the primary and secondary activities that the organization performs on a daily basis. Systems include both core processes such as product development and support functions such as human resources and accounting.

Meanwhile, the soft elements have four components: common values, style, staff, and talents. Shared values, also known as superordinate aims, are the concept’s core component. The collective value system, which is crucial to organizational culture, is comprised of the company’s norms and conventions, attitudes, and values.

Style is the second factor for soft elements. This pertains to the management style of the company’s leadership. It includes their actions, manner, and interactions. Because style is so individual, enhancing people’s managerial styles entails assisting them in becoming more self-aware; this is one of the most difficult components of the McKinsey 7S research to master.

Furthermore, human resources, or staff, are an organization’s most valuable strategic asset. This section addresses the number of employees, recruitment, employee growth, remuneration, and other motivators. To realize economies of scale, a company must ensure that its workforce is well-balanced and diverse. At the start of a transformation endeavor, stakeholder analysis can help a company understand where everyone stands.

Finally, there are skills. The skill set and capabilities of an organization’s human resources are referred to as skills. Employees’ core abilities or talents are intangible, but they are crucial in achieving long-term competitive advantage. A corporation wants to ensure that their staff have the skills necessary to remain competitive. And, if they are working on a change project, a firm must ensure that their personnel are appropriately taught to handle the new way.

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