Establishments are bound to implement change due to various reasons to either respond to these grounds or to prevent the occurrence of any troubles within their control (Fuchs and Prouska, 2014). The change could be due to the crisis, performance gaps in the sense that the companys bottom line is not consistent with the objectives of the company, new technology, response to both internal and external pressure, mergers and acquisitions and others change for no apparent reason but because they feel like it. For instance, a firm may decide to change because other entities are implementing change.
Transformational change refers to the alteration of a business culture of an enterprise arising from a modification in the fundamental techniques and methods that the enterprise has previously used. Transformational change is mostly companywide which normally takes a defined duration of time (Fuchs and Prouska, 2014).
Developmental change is designed to revamp on the predetermined processes and methods and does not essentially require to be extensive. Despite the fact that they are not large scale change, they are predominantly a form of business change. Companies can face these changes as additional enhancements with the intentions to boost efficiency, respond to an identified flaw, or improve upon a previous success.
Most of the time change is necessary to maintain the competitive advantage of the establishment. The management of the firm needs to comprehend the current status of operation and the change process for it to be effective. Transitional change may arise due to merger, acquisition or introduction of a significant process in the company (Fuchs and Prouska, 2014).
Transformational change is the most befitting kind of change for Red Carpet. The company is facing various challenges including Human Resource management difficulties, employee relations concerns, performance issues, restructuring of the firms structure, amelioration of its business culture, internal politics and interaction, marketing support, and federal investigations. Red Carpet cannot continue to conduct business the same way as it used to because these processes and procedures have proven to be weak which is evident in the broken organizational culture that hampers employees to interact effectively within the organization. The company also experiences employment law issues. Poor customer service results in the dissatisfaction of customers. Red carpet is also facing challenges with its partners and vendors mostly due to its history of being non-negotiable. For Red Carpet to move forward as a successful business, it cannot ignore these concerns. Once the company changes its strategy, then it will address most of these problems that are mostly caused by poor approaches.
What employees or employee groups should be key stakeholders in the change and why?
Adjustments in the enterprise affect everybody both within and outside the organization. The business executives, management, and employees should adapt to the new approach. This change will also shape the communication between the company and its suppliers, customers and partners. Enacting an effectual change management process mandates participation from every component of the enterprise, particularly the employees.
Employees will be beneficial in the change process by enabling an easy flow for your clients from the old to the new routines. It is prudent to come up with a plan for the workers that highlights how customers are enlightened of the transformation. Employee involvement is vital in any form of business change for it to be prosperous. Preparation of a comprehensive list of the divisions that will be influenced by the amendments is done in the planning phase of the change process. From the description, a change committee that comprises of individuals from each division can be formed to establish an effective change policy. Involving employees in the planning process will make it more simple for them to discharge it.
Continuous employee involvement in the change process is imperative. Getting employee ideas and suggestions on the impact of the change is helpful. The management should regularly seek opinions of change committee and get updates from the test unit before the ideas can be an abiding part of the change (Fuchs and Prouska, 2014).
What initial activities should be planned to begin the change process?
Conducting a readiness assessment to establish the timing of the change is important to ensure minimal disruption (Jungsik, Song and Seongsoo, 2013). Assessments are instruments employed by the change group to examine the entitys readiness to modification. Readiness assessments comprise of culture and history assessments, change assessments, and employee assessment. Each of these contents enlightens the change committee of the problems and opportunities that they are bound to experience during the entire change.
Communication planning is another cardinal activity that is essential is the change process. There are virtually three constituents that should be taken into consideration to ensure effective communication: the content communicated, the timing of the communication and the audience. Developing awareness among the workers and long for change is key. Consequently, initial communications are intended to develop awareness by enlightening the workforce the reasons for the change and the ramifications of not adopting change.
Fuchs, S., & Prouska, R. (2014). Creating Positive Employee Change Evaluation: The Role of Different Levels of Organizational Support and Change Participation. Journal of Change Management, 14(3), 361-383.
Jungsik, K., Song, E., & Seongsoo, L. (2013). Organizational change and Employee Organizational Identification: Mediation of Perceived Uncertainty. Social Behavior and Personality: An International Journal, 41(6), 1019-1034.
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