Mgmt1101 | Business | Driving Assessment Answers

External sources

Following are the important source of the organization which can be classified as the external sources of change in the organization-

Economic Environment- this environment mainly includes the factors which directly affect the organization such as competitors, customers, suppliers, different rates of interest, unemployment rates, settlement of income, policies related to the credit, gross domestic products, etc. It is necessary for the organization to identify these sources because these sources will have high influence on the organizations and for handling these effects in right manner, organizations needs to make changes in their processes. In other words, organizations need to track these changes on time for making the right decisions in the change management.

Technological environment- Another important source is the technology, as it is considered as the simple usage of knowledge, approaches, and systems which mainly transforms the inputs into the outputs. The degree within which technology is deemed as external source of the organization and its influence on the organization is varying from industry to industry. It is necessary for the organizations to adopt new technologies for conducting their operations, and for adopting this new technology, organization needs to make changes in their process (Morris, 2007].

Socio-cultural environment- this environment is also considered as the source of change of external environment, and it mainly includes in its ambit people’s standards, conducts, averages, outlooks and demographic characteristics. Each and every society includes different types of socio-cultural characteristics and these characteristics mainly relied on the area, ethnics, etc. All these components highly influence the manner through which business organizations conduct their operations.

Political environment- this zone is deemed as the external source of organization which mainly deals with the laws, regulations, rules, etc. In other words, any changes occurred in the law and rules which directly and highly influence the business organizations and their workings. Political area mainly includes the elements such as legislation, stability of government, strikes, etc. It becomes necessary for the organizations to respect these changes and incorporate these changes in their systems as well.

International environment- Country in which business organization conduct its operations is deemed as the narrower environment, but the international organizations in which company operates its business is the international environment. International environment Anything which occurs in the universal market affects each and every business organization.

Internal sources

These internal sources are considered as that forces which mainly created inside the organizations, and control these changes is deemed as easy approach of the organization. Controlling these changes in the organization is simple because it required changes within the organizations. These are something which required changes in the management functions, and these changes can be controlled by the management.

Internal environment of the organization is defines as all those components which can be managed and controlled within the organization. Therefore, it can be said that internal environment consists almost three important factors that are People, structure, and process.

People- these are also known as human resource of the organization, as they are the employees which conduct all the activities of any particular business. It is necessary for the organization to ensure the best process and best structure in the lace, but these structures and process are of no use if efficient human resources are not available in the organization. Human resources of the organization are important source of change in internal environment of the company.  Employees of the organizations are those persons who hold the power to take initiative to make changes in the workplace or also changes in the tasks for ensuring effective and efficient performance of the organization.

Structure- Another important source of change in the internal environment of the organization is the structure. Structure of the organization ensures the mutual relations in all the departments and components of the organization. This structure in the organization defines as the lace in which employees work according to their hierarchy and role assigned to them. Structure also defines the rules and regulation for the employees of the organization. With changing time, structure of the organization lost its efficiency, and because of this it becomes the effective internal source of change.

Processes- processes in the organization are considered as collection of activities which need to be done in context of transforming the input to output. This transformation of input to output wills help the organization in creating the value for customers. There are different types of processes in the organization, but all these processes are important for conducting the operations of the business such as technological process, raw material process, etc. It must be noted that all these processes are considered as important sources of the internal organizational changes (Rizesku, 2016].

Models of the organization change

In terms of managing the change and implementing the strategies related to the change. It is necessary to avoid the methods which are not relevant, and organization needs to focus on the effective plan. Following are some of the best change management models which can be adopted by the organization-

Lewin’s Change Management Model

This model is considered as one of the most famous and effective model that help the management of the organization in understanding and implementing the change in organization and structures (MSG, n.d.]. This model of change was introduced by the Kurt Lewin in the 1950s, and still it is considered as effective model in present environment. Following are the important stages of this model-

Unfreeze- The first stage of this model involves the reparation for the change. In other words, at the first stage of the process of change required the organization to prepare for change. This stage of the model is considered as important stage because maximum humans across the globe try to resist the change, and similar thing happen in the organizations also. The most important concept is to explain the humans why it is necessary to make changes in the existing ways, and how these changes can bring profit in the organization.

Change- second stage of this process involves the real transition of the change, which means, in this process change is taken place. The process might take time to happen because humans take lot of time in adopting these new changes. This stage of the process of change required good leadership and re assurance, because both the factors not only result in the taken actions in the right way but also make the procedure easy for the human resource of the organization. This stage can be completed with the help of Communication and time management (Pieterse, Caniëls & Homan, 2012).

Refreeze- Once the change has been accepted by the humans, after that organization needs to gain its stability again. This is the only reason because of which this stage is referred as refreeze stage. In other words, at this stage organizations need to refreeze their staff members and things start going back at the normal pace and routine (Quickbase, 2012].

McKinsey 7-S framework

This model is considered as famous model even in those situations when other models are in and go out of trend. This model was developed by the consultants who were working for the McKinsey & Company in the 1980s, and they develop seven steps of changes or stages in terms of managing the change-

Strategy- It is defined as the idea which is framed to deal with the rivalry and also fulfil the objectives. This is defined as the first phase of this framework and it also involves the development at each step.

Structure- another important stage of this process is defined as the structure, which means, attributes of this model related to the manner in which different attributes are divided or the structure is followed (Meaney & Pung, 2008).

Systems- in context of getting the task completed, in the similar way in which normal steps are taken.

Shared values- These values of the organization refer to the important values adopted by the organization because of which organization conduct their operations.

Style- The way in which these changes are occurred and the management are accepted and implemented is defined as style of the organization.

Staff- another stage of this model is defined as staffs which mainly include the workforce, employees and working capabilities of the organization.

Skills - The competencies and other skills owned by the workforce of the organizations, for conducting the operations of the business organization (Mulholland, 2017].

Kotter’s Change management model

This model was developed by John P. Kotter, as he was the professor of the Harvard Business School and he was also the author of the number of books which are writing on the management of change. This model includes almost eight stages, and all these stages are stated below-

Increase in urgency- this stage of the model includes the creation of sense of urgency among the human resources of the organization for motivating them to move forward and achieve the objectives.

Build the team- this stage of the model includes the task of selecting the right employees on the team by determining the mix of skills, knowledge, and commitment (Darwin & roust, n.d.].

Correct vision- This stage deals with the correct vision which means it not only consider the strategies but also consider the creativity, emotional connect and objectives.

Communicate- communication with the staff in terms of change and the need of change is deemed as part of the change management process.

Get things moving- in terms of getting the things moved and empowering the action, an organization needs to support, remove the barriers, and apply the feedback in constructive manner.

Short terms objectives- organization needs to focus on the short term objectives and divide the final goal of the organization in small and achievable parts.

Don’t give up- Perseverance is deemed as the key to success, and in change management also, it is necessary for the organization to not give up (Anastasia, 2015].

Incorporate change- after managing the change in effective manner, it is also necessary for the organization to implement the same in effective manner.

Conclusion

Changes required flexibility in their processes and for making these changes flexibility is necessary in terms of organizational processes. Flexibility is the term which ensures quick changes in the management and in the business. It is necessary for the business organizations to ensure the system through which they can identify the possible source of the required changes, and able to make changes in their procedures without any delay.

References

Anastasia, (2015]. Major Approaches & Models of Change Management. Retrieved from https://www.cleverism.com/major-approaches-models-of-change-management/.

Darwin, C. & roust, M. Models of Change. Retrieved from https://edu.hioa.no/underveis/propdf/changemodels.pdf.

Kajmi, S. (2013]. Collection of Change Management Models – An Opportunity to Make the Best Choice from the Various Organizational Transformational Techniques. Journal on Business Review (GBR) Volume 2(4}.

Management Study Guide. Systems Model of Change Management and Continuous Change Process Model. Retrieved from https://www.managementstudyguide.com/systems-model-of-change-management.htm.

Meaney, M. & Pung, C. (2008). “McKinsey global results: creating organizational transformations”, The McKinsey Quarterly, August, pp. 1-7.

Morriss, T. (2007]. Internal and External Sources of Organizational Change: Corporate Form and the Banking Industry. The Sociological Quarterly, Volume 48(1].

Mulholland, B. (2017]. 8 Critical Change Management Models to Evolve and Survive. Retrieved from https://www.process.st/change-management-models/.

Pieterse, J. Caniëls, M. & Homan, T. (2012). "Professional discourses and resistance to change", Journal of Organizational Change Management, Volume 25(6], pp. 798 – 818.

Quickbase, (2012]. Three Types of Change Management Models. Retrieved from https://www.quickbase.com/blog/three-types-of-change-management-models.

Rizesku, A. (2016]. Factors influencing continuous organisational change. Journal of defense source management, Volume 7(2].