Answer to Question #262105 in Management for Shusha

Question

Focusing on organizational culture in the management of change, change is a wastage of resources. Discuss

Answer 1

Discussion

A change is the project, initiative or solution being introduced in the organization to improve the way work gets done, solve a problem, or take advantage of an opportunity. Nearly any project, initiative or solution that improves an organization will affect how employees do their day-to-day work. Change in business is good, but it's seldom easy and can often be expensive. Managers are often drawn to change by imagining the possibilities and positive impact it can have on their organization. Before launching an idea, however, spend a little time wrestling with the potential negative aspects of change. Below are some disadvantages of change;

• Change Might Not Equal Progress

Many companies emphasize a culture of continuous improvement. While never being satisfied with the status quo can drive excellence in the organization. Mistaking change for progress is similar to the common problem of mistaking activity for productivity. Every organization can be improved, no matter how well it is performing, but a manager should always ask the question, "How is this proposed change going to improve the organization's ability to achieve its key goals?"

• Cost-to-Benefit Ratio

Change is never free. Every change has opportunity cost; for example, spending equipment budget on new computers means an organization has to wait to upgrade the phones. There are also intangible costs such as morale and customer satisfaction during the adjustment period. Determine whether the cost of a change is outweighed by the benefit that change will create.

• Coping with Internal Resistance

Reasons why people resist change are a lack of knowledge about coming changes and fear of the unknown. One can expect some level of resistance to any change, no matter how small or how much benefit it might promise. The key tools for managing this problem are complete, honest, and timely communication with the organizations work force, clear communication of the value of the change, and patience with the team as they go through an inevitable adjustment phase.

• Choosing the Wrong Solution

Organizations often initiate change because they have a problem that needs to be solved. But it's dangerous to assume that they know the root cause of a problem and implement a solution prematurely. Sometimes management doesn't sufficiently investigate the true cause of a problem, the stakeholders affected by the solution, and potential unintended consequences of change. This approach creates all the costs of change without the intended benefit, plus it can create problems in areas that were functioning properly. 

Reference

Nica, E. (2013). Organizational culture in the public sector. Economics, Management, and Financial Markets, 8(2), 179-184.