In this era of globalization and cut-throat competition in which companies face it difficult to ensure their survival, change has a significant role to play. If the companies change when the situation demands change, then only they can ensure survival and maximum returns. The main barriers to change are that there will be some staff that resists the change.
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Organizational change is nothing but making a change in the present system or practice of the organization. “Significant organizational change occurs, for example, when an organization changes its overall strategy for success, adds or removes a major section or practice, and/or wants to change the very nature by which it operates.” (McNamara 2009).
There are several reasons for organizational change.
“Globalization, deregulation, privatization, mergers, advances in technology, business process redesign are only some of the reasons for organizational change.”
(Communicating organizational change: the role of information, communication climate, and uncertainty on readiness for change, result for three cases n.d.).
There are lots of advantages to organizational change, but the condition is that it must be effective. Otherwise, the efforts and money spent on this purpose will become a waste. Some of the reasons for the failure of the change process are lack of proper communication of vision, ignoring the short-term objectives of the organization, lack of awareness of the need for a proper and clear-cut vision…etc. (Preventing common mistakes in change processes. Explanation of change phases of John Kotter. (90) 2009).
Organizational change; a personal experience
The writer is the managing director of Thai Lay Fashion Company. The personal experience that is going to be explained here is the organizational change that was implemented in Thai Lay Fashion Company. “There are several types of changes in an organization. They are changing in nature of the workforce, technology, economic shocks, competition, social trends and world politics.” (Eric 2009).
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The change in the company was total computerization. This change comes under the category of technological change, just like the change in IBM explained in the first chapter. Though Thai Lay Fashion Company was already using the services of computers and the internet for some essential purposes, the above said change is a complete and well-planned change involving the total computerization in the company. The employees of the company were not familiar with the computers. The company gave them effective training which helped them to become computer savvy. The benefits that the company derived out of the computerization include high speed in business operation, improvement in accuracy, providing management information, reduction in the total cost of the company, saving of space inside the organization…etc. (Admin 2009).
First of all, the company changed its manual accounting system into a computerized system. It resulted in simplifying the accounting process of the company. The company benefited from the computerization in such a way that the complex calculation and processing of financial data became easier with the help of the computerized accounting system. The traditional system of accounting involves manually recording the business transactions in the books of accounts. And also it required a very good portion of the office space for shelves and tables for keeping these books. But the computerized accounting system helps the company to save time and space.
The company provided computers to all of the office staff. The company implemented a local area connection and high-speed internet connection for the communication between employees and also between the employer and the employees. This made the communication process very fast. And also, it helped the staff for easy sharing of the information and helping the co-workers in their work.
The company made significant changes in the order-making and purchasing process. Instead of preparing and sending the purchase requisitions manually the company implemented a system of preparing and sending the purchase requisitions with the help of computers. The benefit is that it saved time in the processing of purchase requisition. And also, the company started to make the purchase order electronically with the help of computers and the internet. This ensured the timely availability of the materials.
One of the crucial changes implemented by the company was that it started its e-commerce website with the help of which the customers can make a purchase online. The customers have only to place orders using the facility provided in their e-commerce website of the company; the rest of the things will be done by the company. The company will ship the products according to the online order placed by the customers. This ensures saving of time and money for both of the parties, that is, the company and the customers.
Barriers to change
It is a commonly known fact that in most cases there will be some barriers to change. Here in the case of computerization in Thai Lay Company, the main barrier was the resistance of the employees to change. Most of the employees initially did not cooperate with the efforts for change. The reason was that they thought computerization may cause some of them to lose their job. But the top management gave them awareness and made them understand the need for computerization. And also, the management assured that none of them will lose the job. After that, the employees co-operated and participated in the change process.
If the companies properly manage the organizational changes, it can have a significant positive impact on the future of the companies. The computerization change introduced in Thai Lay Company helped the company to improve the overall performance though it had some disadvantages like the high initial cost of computerization, high cost of training…etc. As a result of computerization, the efficiency of the employees improved and thereby resulted in the growth of business of the company.
Admin 2009, What are the advantages and disadvantages of computerization of business activities (electronic data processing)?, Career Gears: Education Guide. Web.
Communicating organizational change: the role of information, communication climate, and uncertainty on readiness for change, result for three cases: abstract n.d., Allaccdemic Research. Web.
Eric, P 2009, The definition of organizational change, AC: Associated Content. Web.
McNamara, C 2009, Organizational change and development (include the field of organization development): introduction: why is it critical for leaders and managers to be successful at organizational change? Because it’s their job, Free Management Library. Web.
Preventing common mistakes in change processes. Explanation of change phases of John Kotter. (90) 2009, 12manage The Executive Fast Track. Web.