Change management

Change management
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Change management expresses itself in all actions of inventing and implementing different states or processes in organization (system) or object. It is determined in a given period of time and due to the adopted basis for comparison. The changes can be divided into quantitative and qualitative.

  • Quantitative changes relate to the differences in the size of one or more parameters. With regard to the quantitative changes we can speak of: growth, organizational complexity, size, etc. These changes are measurable: i.e. number of employees, size of the organization, rate of labor ratio as an example of organizational growth rate.
  • Qualitative changes point to the new properties or behavior of particular system. Qualitative often involve: invention (design, inventor), Innovation (ideas, concepts), administrative changes (e.g. new ratings system), cultural, regulatory, structural changes.

Relations between change and development

Both change and development are the key highlights of today's changes taking place in the whole economy. Their main function is adaptation, of organization to environment and active impact on the environment. These are the processes necessary for the firm to compete effectively with others, to neutralize the threat of the environment and problems within the organization.

The change management may relate to various aspects of the company. The change is not a single event with immediate visible results. It is not a one-time event, after which the solutions are applied suddenly. The change must be part of the company, penetrate into its structure. It is important to realize the fact that the place in the environment is not granted permanently. Law of entropy tells that all systems have a natural tendency to fall. In this case change is needed, understood as a struggle against entropy, and aimed at improving of company's position.

Increasingly, managers are not only see change as an opportunity, but rather recognize its inevitability.. Organizational changes can be divided into quantitative and qualitative. The first point to differences in the size of one or more parameters, the other point to the new behaviour, properties and reactions of the system highlighted. Development is treated in terms of positive changes aimed at particular goal.

Reactive and proactive change management

Changes can also be divided into reactive and proactive. Reactive changes are carried out by the analysis and diagnosis. To find the best solution one must first recognize the current state and possible weaknesses of the organization. The speed and relatively low cost, are key advantages of reactive changes. Unfortunately, it was noted that as the need for change becomes more apparent, cost of response are increasing. Managers should take care of the time to make changes, because the longer they wait, the effectiveness of changes decreases. With proactive changes search for the optimal solution is preceded by constructing a model based on synthesis. This model is a forecast, it is not a reflection of a particular object. This is the result of creative thinking, research and development. So it is a heuristic process. To a limited extent managers can take as a basis for analysis existing objects or methods.

Scope of change management process

Change management may have a various scope. From continuous improvement, including a small ongoing changes, up to a radical and fundamental changes, including building of new organizational strategy. Managing change can be reactive or proactive. Change can be caused by factors in the external environment of organization or by something related to internal processes, structures, people or events. It can also be introduced as a remedy, for example, in anticipation of future adverse economic circumstances. The management of change usually consist of following steps:

  • Identify the reasons pointing to the need for change,
  • Specify an endpoint or "where we want to be in the future"
  • Planning to carry out changes,
  • Implementation of the changes,
  • Ensure that the changes will be permanent.

Effective management of change includes changes on the personal level, for example, changes in mood or procedures. Hence to make effective change management managers should have proper motivation skills. Other factors which have an important impact on the success in managing change is a style of leadership, communication, and consistent positive attitude to change among employees. The restructuring of the business process is one of the types of change management. It includes processes of transformation of the organization to improve operational effectiveness. Promoters of change are persons in the organization who are leaders and champions of the change process.

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Author: Krzysztof Wozniak