Lawal Abdulrahman Tambari Tp024691ContentsIntroduction ......................................................................
Lawal Abdulrahman Tambari Tp024691       Staff ..............................................................................
Lawal Abdulrahman Tambari Tp0246911IntroductionChange is a phenomenon which is inevitable in every aspect of human life an...
Lawal Abdulrahman Tambari Tp024691two banks in Norway, which are the commercial bank, and the savings bank. The type of ch...
Lawal Abdulrahman Tambari Tp024691    Source: Amateur management review http://amrjournal.blogspot.com/2008/09/organisatio...
Lawal Abdulrahman Tambari Tp024691Competitive forcesThis force is usually associated with the fight or battle between orga...
Lawal Abdulrahman Tambari Tp024691Reaction of employees on the new cultureThis is a situation which is also inevitable, pe...
Lawal Abdulrahman Tambari Tp024691HabitsThis is also a reason why some employees resist change, due to the comfort of the ...
Lawal Abdulrahman Tambari Tp024691whereby an employee will needs to record the amount of sales in a week. This will threat...
Lawal Abdulrahman Tambari Tp024691                                                                   can   result   to   l...
Lawal Abdulrahman Tambari Tp024691                             Mckinsey 7 S framework model                               ...
Lawal Abdulrahman Tambari Tp024691SystemsThe activities which the employees and management carryout on daily basis in orde...
Lawal Abdulrahman Tambari Tp024691                 Kotter and Schlesinger six change approaches                           ...
Lawal Abdulrahman Tambari Tp024691rather than resisting the change effort. It is greatly recommended that management shoul...
Lawal Abdulrahman Tambari Tp024691ConclusionIn the process of managing change in organizations, it is relevant to identify...
Lawal Abdulrahman Tambari Tp024691Chen, M, 2008, Organizational change and innovation [online] Amateur management review,A...
Lawal Abdulrahman Tambari Tp024691Yuh-shy C. 2006. Individual resistance from employees to organizational change. [ONLINE]...
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Managing change and leadership

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Managing change and leadership

  1. 1. Lawal Abdulrahman Tambari Tp024691ContentsIntroduction ................................................................................................... Error! Bookmark not defined.Assessment of the impact on implementation of cultural change in the financial sector of Norway ........... 3Transformational change .............................................................................................................................. 4 Transformational change in Norway financial sector ............................................................................... 4 Forces of change in Norway financial sector ............................................................................................ 5 Competitive forces .................................................................................................................................... 6 Global forces, economic, legal and political ............................................................................................. 6 Impact of change on the implementation of new organization culture ..................................................... 6 Reaction of employees on the new culture ............................................................................................... 7 Perception ................................................................................................................................................. 7 Personality................................................................................................................................................. 7 Habits ........................................................................................................................................................ 8 Threats to power and influence ................................................................................................................. 8 Fear of the unknown ................................................................................................................................. 8 Economic reasons ..................................................................................................................................... 8 Success and failures of the new sales culture in the commercial and savings banks of Norway .............. 9Recommendations ....................................................................................................................................... 10 Mckinsey 7 S framework model ............................................................................................................. 10 Structure .............................................................................................................................................. 11 Systems ............................................................................................................................................... 12 Shared Values ..................................................................................................................................... 12 Style .................................................................................................................................................... 12Page |1
  2. 2. Lawal Abdulrahman Tambari Tp024691 Staff ..................................................................................................................................................... 12 Skills ................................................................................................................................................... 12 Kotter and Schlesinger six change approaches ....................................................................................... 12 Communication and education............................................................................................................ 13 Participation and involvement ............................................................................................................ 13 Facilitation and support....................................................................................................................... 14 Negotiation and agreement ................................................................................................................. 14 Manipulation and co-option ................................................................................................................ 14 Explicit and implicit coercion .............................................................................................................. 14Conclusion .................................................................................................................................................. 15 References ............................................................................................................................................... 15Page |2
  3. 3. Lawal Abdulrahman Tambari Tp0246911IntroductionChange is a phenomenon which is inevitable in every aspect of human life and it is alwaysconstant despite the fact that people do resist change due to some reasons. Organizational changeis also a phenomenon which cannot be avoided by organizations, because internal and externalfactors exist which can cause an organization to change. According to Mills and et al (20081)organizational change can be defined as an alteration of a core aspect of an organization’soperations. These core aspects involve culture of the company, the technology used or thestructure of the organization. This report will evaluate the impact of organizational change whichwas implemented in the financial sector of Norway in the early 1990,s, this change affected twomajor banks, the commercial bank and the savings bank of Norway. Conclusions on the successand failure will be drawn and any further recommendation will be provided based on the analysisof this report.Assessment of the impact on implementation of cultural change in the financialsector of NorwayOrganizations change due to different reasons, and there are different types of organizationalchange, Pham H (2011).2This section of the report will assess the impact of the cultural changeand implementation that occurred in the financial sector of Norway. The case studies involved1http://books.google.com.my/books?id=FpCMo58zcrYC&pg=PA174&lpg=PA174&dq=alteration+of+a+core+aspect+of+an+organization%E2%80%99s+operations&source=bl&ots=JreFcXYm3E&sig=UR7vMW5lpRffvNdLkvdz3Ktow1M&hl=en&ei=I682TqKTNcnsrAfzyZS1Cw&sa=X&oi=book_result&ct=result&resnum=1&ved=0CBkQ6AEwAA#v=onepage&q=alteration%20of%20a%20core%20aspect%20of%20an%20organization%E2%80%99s%20operations&f=false2 http://www.scribd.com/doc/13754469/CHAPTER-10-TYPES-AND-FORMS-OF-ORGANIZATIONAL-CHANGEPage |3
  4. 4. Lawal Abdulrahman Tambari Tp024691two banks in Norway, which are the commercial bank, and the savings bank. The type of changethat occurred in these banks is known as transformational change.Transformational changeThis is the type of change that took place in the financial sector of Norway. It simply refers tochanging the basic characteristic of an organization, these changes includes the structure, cultureand basically how the organization relates to its environment. These changes usually occur inanticipation of major changes in the environment of the organization. These changes are oftenassociated with the need for the organization to change its structure internally as well as thecooperate culture of the organization.Transformational change in Norway financial sectorThe two major banks in the financial sector of Norway changed their organizational cooperateculture and organizational structure in order to meet up with the needs that emerge from theenvironment. These environmental needs anticipated changes which made the employees ofthese banks to being marketers and sales persons instead of being financial oriented that theywere used to. Below is a diagram that illustrates the factors that can effect organizations tochange their mode of operations.Page |4
  5. 5. Lawal Abdulrahman Tambari Tp024691 Source: Amateur management review http://amrjournal.blogspot.com/2008/09/organisational-change-and-innovation.htmlForces of change in Norway financial sectorOrganizations all over the world have different forces that affect them to change, but these forcesfall under the above categories, Chen M (2008)3 see (diagram 1). The major force that affectedthe banks in Norway was the external forces which include further deregulation and continuedcompetition from other financial institutions, these reasons fall under the legal, political andcompetitive forces.3 http://amrjournal.blogspot.com/2008/09/organisational-change-and-innovation.htmlPage |5
  6. 6. Lawal Abdulrahman Tambari Tp024691Competitive forcesThis force is usually associated with the fight or battle between organizations that offer to itscustomer’s similar or exact goods or services. This organizations are mostly affecting by thisexternal force, the reason is most of this organization desire the needs to surpass its competitor ininnovation, efficiency or quality product and services.Global forces, economic, legal and politicalThese factors really affected the banks in Norway, which are the commercial and savings banks.The further government deregulations, made the banks to change their existing co operate culturein order to meet the desirable requirement to compete in the market share in which it operates.These are also the forces that were responsible for the mergers that took place in the financialsector of Norway.Impact of change on the implementation of new organization cultureThis section of the report will analyze the impact of change on the implementation of newcooperate culture in the commercial and savings banks of Norway, every organization has aculture in which it operates and many authors defined organizational culture in various ways.Change has impact on any organization, and employees react or resist change in different waysYuh-shy C (20064). The reaction of the employees towards change determines the success orfailure for the organization to achieve its goal on the implementation of the new culture.4 http://www.jgbm.org/page/19%20Dr.%20Chuang,Yuh-Shy.pdfPage |6
  7. 7. Lawal Abdulrahman Tambari Tp024691Reaction of employees on the new cultureThis is a situation which is also inevitable, people react to change or in order words resist changefor various reasons. According to Hellrieyel and Slocum (2007)5 six reasons are responsible forindividual resistance to change, it should be noted that these are not the only reason , but they arethe most common of reasons why individual do resist change. The reasons are listed below Perception Personality Habit Threats to power and influence Fear of the unknown Economic reasonsPerceptionThe perceptions of the employees and managers have to be positive towards the change process,in order for the process to be effective. Some managers and employees in the commercial andsavings bank of Norway were positive towards the change process. They realized the need tochange, it was obvious to them it was an inevitable situation and the change process is necessaryfor what lies in the future. While some managers and employees saw the new culture asproactive, creates a great deal of uncertainty and also a bit pushy.PersonalityIndividual’s personality is a contributing factor when change in an organization arises.Employees with high self-esteem are most likely to perceive the positive aspect of change, whileemployees with low self- esteem do otherwise. That’s the reason why some employees andmanagers in the commercial and savings banks of Norway saw the positive need for change,while some saw the cultural change as proactive and a bit pushy. Employees that are moody, selfdoubting and nervous have serious problems in changing their behaviors. They are likely to resistchange until employees with high self esteem endorses it.5 http://www.cengagebrain.com/shop/content/hellriegel4225x_143904225x_01.01_toc.pdfPage |7
  8. 8. Lawal Abdulrahman Tambari Tp024691HabitsThis is also a reason why some employees resist change, due to the comfort of the way theyoperate. It is a habit they are all ready used to and would want to clinch to it for as long as theycan. Habit being a constant reason for resisting change depends on the type of change. Thisreason is usually not effective in transformational change, which occurred in the commercial andsavings banks of Norway. The structures and cooperate culture have been modified, thereforethere is no room for employees to operate, the way they use to in the past.Threats to power and influenceIf the new culture threatens the ability to exercise power and influence their subordinates. Thiswill make them to resist change, but the situation in the commercial and savings bank of Norwaydid not threaten the ability of the managers to exercise power, instead they are the main agents ofthe change process. Despite the situation some managers still left their jobs, because they werenot satisfied with the new sales culture.Fear of the unknownThe employees in the commercial and savings banks of Norway are already used to the culture ofbeing financially oriented. The employees stay in the bank while customers come in to meetthem, but the situation where they need to go out to meet the customers is a culture that they arenot use to. So this reason makes them afraid of the unknown, so employees feel that the newculture is going to take away their jobs in the future. One employee stated that they are trying tosell products to customers that will make them lose their jobs in the future. Fear of the unknownis also a reason why employees resist change in an organization.Economic reasonsThis is one of the major reasons why employees resist change; the question they ask themselveswill this new change affect my income. People are naturally selfish; therefore if change is goingto affect their income, they will try to resist it. The new sales culture in the commercial andsavings banks of Norway created a new appraisal system of measurement of performance,Page |8
  9. 9. Lawal Abdulrahman Tambari Tp024691whereby an employee will needs to record the amount of sales in a week. This will threaten someemployees and make them resist change. They will feel it will reduce their performance, whichwill lead to deduction of income.Success and failures of the new sales culture in the commercial and savings banks ofNorwayChange is a process which requires implementation Efuntayo M (20106), this section of thereport will identify the major success and failures of the new sales culture which wasimplemented in the commercial and savings banks of Norway. Below is a table which illustratesthe major success and failures of the new sales culture.No Success failures 1. Employees responded more to recognition via daily Employees did not respond quite reinforcement by branch managers in both banks. well to the formal reward system which was introduced in the new sales culture. 2. The crises that evolved in the implementation of the The banks offered little positive new sales culture created a context where all the rewards for the desired behavior. employees and managers in the banks knew something The reward system is basically at has to be done. the disposal of the bank managers. 3. Information was properly channeled effectively, The measurement systems had employees were clearly aware of the need to adopt the its obvious weaknesses as they new sales culture. It was quite obvious to them, if they emphasized the acquisition of don’t adopt the new culture; it is possible they will lose new customers or sales rather their jobs, because the bank would not get enough than preserving old customer results to keep them employed. relationships, at the long run this6 http://ezinearticles.com/?Implementation-of-Change-Management&id=4813135Page |9
  10. 10. Lawal Abdulrahman Tambari Tp024691 can result to loss of old customers.RecommendationsTransformational change is a change process which is difficult to implement, because it dealswith changing the structure and culture of organizations. The commercial and savings banks ofNorway need to adopt change management approaches in order to facilitate easytransformational process. There are numerous well organized models or approaches used inmanaging change in organizations. Below is an illustration of the management approaches tochange which the banks can adopt to tackle resistance to change.P a g e | 10
  11. 11. Lawal Abdulrahman Tambari Tp024691 Mckinsey 7 S framework model Structure Strategy Systems Shared values Skills Staff StylesSource: Value based management.net http://www.valuebasedmanagement.net/methods_7S.htmlThis framework is used to ensure all parts of the organization are in harmony with each other, theframework is depicted above.The reason why shared values is in the middle of the model is that, shared values determines thelevel of development of the other critical elements of the model, which includes theorganizations structure, strategy, skills, styles, staff, and systems. This model is used to helprealign and reinforce, in order to improve the performance of the change process. This modelwill help the commercial and savings banks of Norway to ask the right question involving thecurrent change that is taking place in the organization and also identifying the current situation ofthe organization.StructureThe plan initiated to maintain and create competitive advantage over the market share andcompetition which exist in the organization.P a g e | 11
  12. 12. Lawal Abdulrahman Tambari Tp024691SystemsThe activities which the employees and management carryout on daily basis in order toachieve the desirable goals and objectives of the organizationShared ValuesThis refers to the cooperate culture of the organization and the values which are depicted in theorganization. This element is the core of this modelStyleThe style in this aspect refers to the type of leadership style which the organization isoperating; this is of great importance, because leadership has a great impact in managingchange in organizations. A good example is the recognition of branch managers and middlemanagers in the commercial and savings banks of Norway as the agents of change and not theCEO’s of the banks.StaffThis element is concern with the capabilities of the employees; it is also of great relevance tothe organization when it is trying to realign and reinforce, for the benefit of improvement.SkillsThis refers to the actual skills and competence of the employees, do they have the desirecompetence to carry out the change initiated by management, and are they any skills gaps.These are the questions ask in relation to this element.Kotter and Schlesinger six change approachesThis is one of the most effective approaches to manage resistance to change in an organization,the approaches were initiated or created b y Kotter and Schlesinger for effective changemanagement. The approaches are illustrated below.P a g e | 12
  13. 13. Lawal Abdulrahman Tambari Tp024691 Kotter and Schlesinger six change approaches Education and Communication Participation and Involvement Facilitation and Support Negotiation and Agreement Manipulation and Co- option- Explicit and Implicit CoercionSource: 12 manage the executive fast track http://www.12manage.com/methods_kotter_change_approaches.htmlCommunication and educationEducating the employees on the new change and an upfront communication betweenmanagement and the employees with regards to the change that will take place, this is reasonablein order to prevent or reduce the level of incorrect rumors concerning the effect of the change inthe organization.Participation and involvementWhen employees of an organization participate in the change effort through involvement bymanagement, this tends to increase employees motivation towards realizing the new changeP a g e | 13
  14. 14. Lawal Abdulrahman Tambari Tp024691rather than resisting the change effort. It is greatly recommended that management shouldinvolve employees in change processes.Facilitation and supportManagement should try and provide the basic support for its employees in terms of difficultiesfaced by the employees during transition stages of the change process. This can be achieved bymanagement with the introducing of special training, counseling and time off work with regardsto the employees situation.Negotiation and agreementThis approach is relevant to employees who are in the position of power to resist change in anorganization, management should try to provide incentives to these employees not to resist thechange efforts or provide the means for the employees to veto the change which is threatening. Itsimply means management should try and initiate a means of negotiation and agreement foremployees who are resisting change in the organization.Manipulation and co-optionThis approach is should only be used by management where other tactics fail, the approachinvolves manipulation of the leaders of employees resisting change. This can be achieved byselecting the leader into the planning committee for appearance only not for substantialcontribution.Explicit and implicit coercionThis is usually used by management as last alternative, when employees keep on resisting thechange effort in an organization. Managers can clearly or completely force employees intoaccommodating change by making clear that resisting changing can lead to losing jobs, firing,transferring or not promoting employees.P a g e | 14
  15. 15. Lawal Abdulrahman Tambari Tp024691ConclusionIn the process of managing change in organizations, it is relevant to identify the agents of thechange in the organization, this will make the change effort easy to implement if the agents ofchange are fully educated on the change process and are aware of the importance of the changein the organization. The management in organizations needs to utilize the knowledge ofmanaging changes in organization before change can be perfectly implemented.ReferencesAnon. (2011) Dealing with resistance to change, six change approaches [Online]. Netherlands:Value based management .net. Available from:http://www.valuebasedmanagement.net/methods_kotter_change_approaches.html [Accessed 23June 2011].P a g e | 15
  16. 16. Lawal Abdulrahman Tambari Tp024691Chen, M, 2008, Organizational change and innovation [online] Amateur management review,Available from http://amrjournal.blogspot.com/2008/09/organisational-change-and-innovation.html, [Accessed on 21th June 2011]Efuntayo M. 2010. Implementation of change management. [ONLINE] Availableat: http://ezinearticles.com/?Implementation-of-Change-Management&id=4813135. [Accessed10 July 11].Hellrieyel and Slocum (2007) Organisational behavior [Online]. U.S.A: Thomson southwestern. Availablefrom: http://books.google.com.my/books?id=VAfMJO11rWIC&pg=PA456&dq=organisational+structure+book++Don+Hellriegel,+John+W.+Slocum&hl=en&ei=adsRTuPMEoeyrAeX_tiHBA&sa=X&oi=book_result&ct=result&resnum=1&ved=0CCkQ6AEwAA#v=onepage&q&f=false[Accessed 20th June 2011].Moore, M (2009). Resistance to change: how it can help with the success of your program me.[ONLINE] Available at: http://www.improvementandinnovation.com/features/article/resistance-change-how-it-can-help-success-your-programme/. [Accessed 13 July 11].Roy, K E tal. 2010. Chapter 4 Personality, affect, and organizational change: a qualitativestudy . [ONLINE] Available at: http://www.emeraldinsight.com/books.htm?chapterid=1870491.[Accessed 13 July 11Seel R (2008) New Insights on Organisational Change [Online]. UK: New Paradigm consulting.Available from: http://www.new-paradigm.co.uk/culture-complex.htm [Accessed 25 June 2011].Stroh U M (2005) Approaches to change management [Online]. South Africa: University ofPretoria. Available from: http://upetd.up.ac.za/thesis/available/etd-05092005-123748/unrestricted/03chapter3.pdf [Accessed 28th June 2011].Specht M (2008) change management approaches [Online]. Australia: Specht network ofexpertise. Available from: file:///C:/Users/AbdulR/Downloads/ref%20mcl22.htm [Accessed 18thJune 2011].P a g e | 16
  17. 17. Lawal Abdulrahman Tambari Tp024691Yuh-shy C. 2006. Individual resistance from employees to organizational change. [ONLINE]Available at: http://www.jgbm.org/page/19%20Dr.%20Chuang,Yuh-Shy.pdf. [Accessed 10 July11]P a g e | 17

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