M8.4: Final Written Assignment

As we move to conclude the class, there are several central lessons that should be learned from the course which provides organizations and their managers with the necessary knowledge to make informed decisions and to articulate those decisions effectively. With that as a background, assume you are a senior executive at a large, 1000 employee firm. Your organization’s sales have fallen 30 percent over the past five years, and you have been tasked with leading a major change initiative at your organization. This initiative will result in the organization’s merger with an industry competitor, reduce salaries 10 percent, and eliminate almost 15 percent of the workforce.

In your role as a senior executive, you have been tasked in analyzing the organization and providing the following to the Chief Executive Officer that addresses the following:

Discuss the two most effective tools/strategies you would utilize to determine your organization’s readiness for change.
Present the steps the organization should follow to guide the organization through the change process.
Assess how best to present the change process in a manner that does not demoralize or disincentive the remaining employees to continue working at the organization in a productive manner.
Given the organization’s strained financial situation, separated employees will not receive a severance package. Recommend to the CEO at least 2, non-financial strategies that the organization should provide its now-former employees as they transition towards other jobs.
Finally, assess how such a traumatic and destructive event – too many – can be molded and framed as a great opportunity for the organization and its employees in the near future.

M8.4: Final Written Assignment

Determination of the Organization’s Readiness for Change

The determination of whether an organization is ready for change is important since it enables the management to determine the level of readiness and what needs to be done to better prepare for change. Two of the most effective tools to utilize for the determination of the organization’s readiness for change are Burke-Litwin’s and the Seven-S models (Benjamin, Naimi, & Lopez, 2012). The Burke-Litwin model is a simple model that enables management to predict the outcome of change. Using this model would allow the management to make any necessary adjustments to fine-tune the change and the organization strategy. It looks at the interdependence between the interior and exterior influences affecting change, as well as how external forces influence organizational performance. It gives a forecast of the probable results of introducing change.

The seven-S model is effective since it helps everyone within an organization align with the mission and vision of the organization. It focuses on the structure of an organization and looks at the distribution of duties, processes and systems, and the shared values within an organization. This model is appropriate since it considers the interrelation between various organizational aspects (Benjamin et al., 2012) – strategy, structure, systems, staff, style, skills, and shared values – and how the change will affect them.

Presenting Change and Guiding the Organization through Change

The successful implementation of change largely depends on how change is presented to employees and how management guides people and systems through the change. A proper change management plan presents a change in a good manner, supports a smooth transition during change, and ensures that employees are guided through the journey (Palmer, Dunford, & Akin, 2006). The following steps would ensure that the organization properly presents change and guides employees through it:

1. Clear definition of change for purposes of aligning it with the company’s mission and goals – this step will involve explaining why the change is necessary and what needs to change.
2. Determination of the impact of change and the people affected by the change – the determination of the impact of change on various organizational levels and systems and who will be affected the most by change.
3. Development of a communication strategy to effectively communicate change and manage employee feedback.
4. Provision of effective employee training – this step is important to provide training on the necessary or required skills and behaviors for the achievement of desired results (Palmer et al., 2006). It involves face-to-face training sessions, on-the-job coaching, and mentorship.
5. Implementation of a support structure – this is necessary to provide emotional and practical assistance to employees to ensure that they adjust to change and build proficiency. It may be done through an open-door policy to ask questions or through mentorship on-the-job.
6. Evaluation of the change process – the impact of change should be evaluated to determine the success of the implementation and whether the desired outcomes are achieved (Palmer et al., 2006).

Strategies for Smooth Employee Exit

It is important to provide as much support as possible to the exiting employees, as they transition to other job opportunities. The company may redeploy some employees to other areas of the company that can absorb them. Training may also be provided to fill a need in other areas of the company. Since the company cannot provide separation packages, and there may be no areas that can absorb employees, the company can reach out to other employers within the industry to make them aware of the availability of experienced employees. The company should find out whether other firms have open positions that some of the employees could fill, facilitating a smooth transition.

Conclusion

The laying off of employees is a traumatic experience for many, including the remaining employees who will have lost their colleagues. By properly managing the transition and the process, such a change can be turned around into a great opportunity for the remaining employees and the organization. The organization will have cut down its costs, which can mean better performance and increased profits. The remaining employees should be motivated to look forward to a bright future, by assigning them more duties and by the awarding of promotions (Brockner, 1992). This way, the organization’s performance in the future would be guaranteed.

References

Benjamin, B. M., Naimi, L. L., & Lopez, J. P. (2012). Organizational Change Models In Human Resource Development. Leadership & Organizational Management Journal, 2012(2).

Brockner, J. (1992). Managing the effects of layoffs on survivors. California Management Review, 34(2), 9-28.

Palmer, I., Dunford, R., & Akin, G. (2006). Managing organizational change. New York, NY: McGraw-Hill.