SUSTAINABLE BUSINESS DEVELOPMENT PERSPECTIVES

Facts and Thoughts on Organizational Change Management

Torsten Huschbeck ¹ , Christian Horres ² & Oliver Haas ¹

¹ Comenius University of Bratislava, Odbojárov 10, SK-820 05 Bratislava 25 (Slovakia)

² Ruhr University Bochum, Universitätsstraße 150, 44801 Bochum (Germany)

https://doi.org/10.5817/CZ.MUNI.P280-0197-2022-7

Abstract

Change management is an organized strategy to ensure that changes are implemented completely and smoothly, as well as producing long-term advantages. Change management focuses on the larger implications of change, particularly on people and how they behave as they transition from one state to the next. The change could range from a modest process alteration to a huge system overhaul in order to maximize the business potential. There are two major philosophies of change management. They are investigated from several perspectives with the goal of determining whether they can be utilized as an appropriate analytical instrument to thoughtfully probe contemporary challenges in businesses.

Keywords: Organizational Change Management, Organizational Behavior, Behavioral Change, 3-Step Model (KL), 8-Step Model for Leading Change

1 Introduction

Change refers to a shift in a company's strategy, structure, technology, or culture as an outcome of changes in the environment, structure, technology, or people. If there were no changes in these areas, a manager's job would be quite simple and uncomplicated. Change management is a skill that good managers possess. Changes in job design, breadth of control, authority relationships, and coordination methods are examples of these changes. Changes in equipment, work procedures, or work methods, as well as in workers' behaviors, perceptions, expectations, or attitudes, are all possible. Change is becoming an ever-present characteristic of organizational life, against a backdrop of rapid technological development, a growing knowledge workforce, and the shifting of accepted work norms (Huschbeck & Schnödewind, 2021, pp. 126-128). However, whilst many organizations appreciate the need for change, a lot of the change programs do not achieve their intended outcomes. As the importance of organizational change grows, there is a growing corpus of literature examining the concept and procedures of change management, as well as the elements that influence its effectiveness. This literature has been regarded as abounding in intricacies and holding numerous contradicting and perplexing theories and study findings, as it draws from a wide range of disciplines and theoretical viewpoints. One of the most significant perspectives within the so-called 'planned approaches' to change is that of Lewin, who stated that change occurs in three phases. The first phase is the unfreezing of the existing behavior, then the shift to the new behavior and finally the freezing of the new behavior (Lewin, 1953, pp. 63-73). Although popular, Lewin's original theory has been criticized for being under-differentiated (Ruf et al., 2020, p. 233). As a consequence of these concerns, the 'emergent approach' to organizational transformation was established as an alternative to planned procedures. Organizational change, according to an emergent approach, is so fast and unexpected that it cannot be managed from the top down. Change, it is said, should be viewed as a learning process in which the organization adapts to internal and external environmental changes. Despite not advocating for pre-planned procedures for change, numerous proponents of the emergent school have proposed a series of acts that organizations should do to improve their chances of success. Creating a vision, fostering a feeling of urgency, developing strong leadership, and empowering employees are just a few of the suggested actions, which vary in quantity and type. Emergent theories assume that managers must have a thorough awareness of the organization, its structures, tactics, people, and culture in order to respond to change. Understanding these will enable managers to select the most effective change strategy and identify elements that may function as change facilitators or barriers. The increasing prominence of organizational development (OD) as a paradigm for thinking about change is consistent with this focus on the organization as a whole entity when discussing change (Chin & Benne; 2021, pp. 383-385). Critics of the emergent approach have questioned the use of broad-natured action sequences and their application to specific organizational situations. They prefer a (de)centralization of organizational structures (Buchheit, 2020, p. 91). Others have advocated for a more 'situational' or 'contingency' approach, saying that an organization's performance is highly influenced by situational elements (Huschbeck & Schnödewind, 2021, pp. 121-124). As these vary from organization to organization, managers' reactions and change strategies must also vary. In this context, the following scientific question is examined in more detail:

• What impact do situational variables have on organization's performance?

• To what extent can organizational managers influence this?

2 Resistance to Change

It goes without saying that understanding the organization's change process needs a comprehension of the organization itself. When people engage in a structured or organized fashion to achieve a stated purpose or objective, they form an organization, and this type of group requires management (Döhler, 2019, pp. 18-19). It is necessary to have someone who is responsible for the organization as well as the control and coordination support. If there are more than 10 people in the organization, there must be a structure in place for their actions to avoid anarchy. The assignment of responsibilities, the grouping of workers' activities, and the coordination and supervision of these are all fundamental parts of the structure of an organization. Any structure must serve the aim of achieving the organization's objectives. The acceptance of change by employees is critical to the effectiveness of organizational change. In this context, it may be stated that when faced with a loss or change, all humans go through five phases of 'grief' (denial, anger, bargaining, depression, and acceptance). This has been recognized as important and has been applied to the management of organizational change. This concept can be helpful that people communicate more effectively and support during a period of transition, and it should be personalized to the employees' current stage of change. Employees, for example, require information to deal with their rejection after receiving the news of change. They will require various types of help once the knowledge has sunk in and they have experienced rage, bargaining and sadness. Employees require a vision to commit to once they have begun to accept the situation. Others take a more individualist approach to researching resistance to change, saying individual’s emotions are highly complicated and vary substantially. In addition to personality factors influencing the level of resistance caused by organizational change, situational variables were discovered to play a major influence (Huschbeck & Schnödewind, 2021, p. 118). The importance of good management skills throughout a period of change was found to have a particularly substantial effect on affective, cognitive, and behavioral resistance, highlighting the importance of good management skills throughout a period of change. Various subject matter experts, on the other hand, discovered that providing folks with more information about the change resulted in a lower opinion of the change and a greater desire to act against it. This last conclusion suggests that there may be a limit to how much information can be supplied before employees get overwhelmed. In a similar vein, if the change had bad consequences for the individual, it would not be surprising if learning more about it raised opposition to it. This conclusion emphasizes the critical role of management, in this case in terms of communication strategy. It might also be claimed, in accordance with emergent theory and OD proponents, that in-depth understanding of the organization's strategy, structures, personnel, and culture is essential to make successful decisions about such challenges. Involving employees in the change or empowering them to make changes themselves is one technique for minimizing employee resistance that has been highlighted extensively in organizational transformation literature (Griffin et al., 2020, p. 1) . Empirical research has backed up the efficacy of this technique for successful change implementation, particularly among the general population. However, employee involvement is not enough; managers must also play an import role in encouraging and rewarding creativity as well as showing support for the change. Some academics agree with this viewpoint, recommending firms to involve employees throughout the transformation process and at all stages, while also highlighting the need of a supporting and involved management team. Others advocated for a more emergent approach to dealing with employee opposition, claiming that the circumstances of the change and the content of the change will differ greatly different firms, and that this should dictate the proper reaction (Errida & Lotfi, 2021, p. 6). They describe when and when to use a variety of tactics, from education to compulsion, to lessen resistance, as well as the benefits and drawbacks of each. It is important emphasizing right now that when thinking about change management tactics, it is a good idea to think about the many personality 'categories' that employees may fall into. There is a substantial corpus of literature on the subject on personality types, as well as a variety of frequently used tests for detecting which type someone is, however all have their detractors. From the perspective of organizational transformation, it is important examining whether a specific group of employees is more likely to have a certain personality type and adjusting change management tactics accordingly. However, any group of employees is likely to have a variety of personality types, implying that a variety of techniques may be required, and that managers at the individual line management level must carefully examine how an employee would react to change.

3 Implementing Change

What was true over 2,000 years ago holds true today as well. We live in a world that is always changing. New projects, project-based working, technological advancements, and keeping up with the competition are all factors that influence how we work (Lauer, 2019, p. 116).

As internal and external conditions change, processes and work regulations are altered, new equipment is introduced, product lines are discarded and the workforce is adjusted. Confronting the unknown scenario and loss of familiarity entails change, which is describe as putting something in a new form than its original location (Errida & Lotfi, 2021, p. 5).

You understand that change is required, but you are not sure how to go about bringing it about. So, where do you begin? Who are you going to enlist? How are you going to see this through to the end? Many theories exist regarding how to 'do' change. John Kotter, a leadership and change management specialist, is the source of many of them. In his conception of 'Leading Change', an eight-step change process is particularly advantageous (Kotter, 2011, p. 35, as cited in Kotter et al., 2021, p. 6).

3.1 Step 1: Instill a sense of urgency in your audience

When it comes to change, it helps if everyone in the firm is on board. The implementation of the theme mentioned in the heading may assist you in igniting the first drive to start things going on (Kotter, 2011, p. 38, as cited in Kotter et al., 2021, p. 6). It is not merely a matter of showing dismal sales data or citing increasing competition. Open a direct and persuasive discussion about what is going on in the market and with your competitors:

• Look for possibilities that should or could be taken advantage of.

• Present compelling explanations in order to get people talking and thinking.

• Enlist external stakeholders, and industry experts to strengthen your case.

3.2 Step 2: Organize a Strong Coalition

Persuade others that they must change (Kotter, 2011, p. 49, as cited in Kotter et al., 2021, p. 6). This frequently necessitates strong leadership and visible backing from important members of your team. It is not enough to manage change; you must also lead it. Effective change leaders can be found throughout your organization, and they do not always follow the typical organizational structure. Your 'change coalition' must work as a unit after it has been formed:

• Determine who your organization's true leaders are.

• Require and encourage the emotional involvement of these important people.

• Examine your team for flaws and make certain you have got a decent mix of employees from different departments and levels within your organization.

3.3 Step 3: Make a vision for the future

Everyone can comprehend why you are questioning them to accomplish anything if you have a clear vision ( Kotter, 2011, p. 66, as cited in Kotter et al., 2021, p. 6 ). When others can see what you are seeking to accomplish, the instructions you offer them tend to make greater sense. When you initially start thinking about change, you will probably come up with a lot of amazing ideas and solutions. Connect these ideas to a broader vision that people can understand:

• Decide on the values that are at the heart of the transformation.

• Create a synopsis that summarizes your vision and your plan.

• Make sure your change coalition can communicate the vision in less than five minutes.

• Frequently practice your 'vision speech'.

3.4 Step 4: Make the vision clear

To express your vision, don not only hold special gatherings. Instead, talk about it whenever you have the opportunity ( Kotter, 2011, pp. 77-78, as cited in Kotter et al., 2021, p. 6 ). Use your vision to make judgments and solve problems on a regular basis. People will remember to it if you keep it fresh in their thoughts ( Kotter, 2011, p. 80, as cited in Kotter et al., 2021, p. 6 .). It is also crucial to 'walk the walk' when it comes to leadership. What you do matters considerably more - and is far more credible - than what you say. Demonstrate the type of behavior you want others to exhibit:

• Talk about your change vision a lot.

• Openly and honestly address people's problems and anxieties.

• Set a good example.

3.5 Step 5: Obstacles must be removed

Removing roadblocks might help you empower the individuals you need to carry out your vision and bring the change forward ( Kotter, 2011, p. 91, as cited in Kotter et al., 2021, p. 6) . Is there, however, anyone who is opposed to the change? Are there any procedures or structures that are obstructing it? For this reason, the following considerations should be made:

• Identify or hire change agents with a track record of success.

• Check to determine if your company's structure, job descriptions, and performance and compensation methods are in line with your objectives.

• Recognize and identify those who have helped to bring about change.

3.6 Step 6: Create Wins in the Short Term

Success motivates people more than anything else. Early in the transition process, give your business a taste of success ( Kotter, 2011, p. 102, as cited in Kotter et al., 2021, p. 6 ). You will want to have some 'quick wins' that your employees can see in a short period of time. Without it, naysayers and pessimists may sabotage your growth. Make short-term goals rather than a single long-term aim. Each smaller goal should be attainable, with limited opportunity for error:

• Look for projects that are sure to succeed and that you can undertake without the support of any staunch opponents of the change.

• Early aims that are costly should be avoided.

• Analyze the potential benefits and drawbacks of your targets thoroughly.

• Reward those who assist you in attaining your goals.

3.7 Step 7: Build on the Progress

Each victory allows you to construct upon on what worked well and discover areas where you can improve. It is fantastic employing a new system to create a new product ( Kotter, 2011, p. 114, as cited in Kotter et al., 2021, p. 6) . However, if you can launch ten products, the new system is up and running. To get to that tenth success, you must continuously look for ways to improve:

• Analyze what went well and what needs to be improved after each victory.

• Set goals to help you maintain the momentum you have gained.

• Discover the concept of kaizen, or continuous improvement.

• Bring on new leaders and change agents to keep your change coalition's ideas fresh.

3.8 Step 8: Make it Last

Finally, in order for any change to persist, it must become a part of your organization's core. Because organizational culture typically impacts what gets done, every vision's values must be visible in day-to-day work ( Kotter, 2011, p. 126, as cited in Kotter et al., 2021, p. 6 ). Continuous efforts should be made in order to ensure that the change is permanent. This will aid in embedding the change in the organization's culture ( Kotter, 2011, pp. 128-129, as cited in Kotter et al., 2021, p. 6 ). It is also critical that the company's management remain committed to the transformation (ebd.). This comprises both current employees and newly hired leaders. If these people's support wanes, the process will have failed, and you may find yourself back where you started. There are two sides to the major transformation. Resistance is prevalent, even when employees understand that doing things differently is required due to new opportunities, mergers, acquisitions, reorganizations, crises, or an alliance. The most difficult aspect of leading through resistance is detecting its numerous disguises. When resistance is overt, it shows up as unpleasant interactions with people, ignoring requests, or outright unwillingness to change. Even the most astute CEOs and executives, however, sometimes overlook signs of subtle resistance. This is because everyone looks to have good intentions, therefore pinpointing the source of the difficulties can be difficult. Employees, for example, may agree to take on new initiatives or follow new policies or procedures at first, but then get increasingly preoccupied with other concerns or forget to do things differently. In the end, progress comes to a halt. While each company is different, there are certain best practices that can aid in overcoming resistance to new business strategies and resuming development, regardless of the kind of resistance (Errida & Lotfi, 2021, p. 6).

4 Discussion

Implementing new practices is one aspect of changing organizations; nevertheless, evidence suggests that 'initiative decay', or the loss of gains from change due to the abandonment of new practices, is common (Pisecky, 2020, p. 138). As a result, thinking about how to keep change going is clearly an important part of the change management process. Surprisingly, while there has been a lot of research and theory on implementing change, there has been relatively little research on the question of sustainability (Senior et al., 2020, p. 77) . This could be attributed to the high cost of longitudinal study, as well as the widespread impression of stability as 'inertia' and a lack of reactivity to changing circumstances. After reviewing the evidence, it is clear that there are multiple elements that influence sustainability, and that the more of these factors that are addressed, the greater the possibility of long-term improvement. Furthermore, these elements can be further expanded into a preliminary model that shows both the relative weighting of these aspects in terms of importance to organizational change sustainability, as well as their interaction with one another. The substance of the change, the implementation process itself, and temporality are all important factors in sustaining change. Regardless of the establishment of a broad model of sustainability, it is crucial to note that the interplay of contextual variables will vary based on the specific scenario of each company.

5 Conclusion

Behavioral change is the subject of a large corpus of research. However, a few significant elements from that review that are pertinent to the difficulties discussed in this study are worth highlighting. To begin with, the variety of behavior change theories presented suggest that it can be difficult to persuade people to change their behavior, even when there are compelling reasons to do so and the change is clearly beneficial to the individual. While the psychological contract provides a compelling analytical framework for explaining why employees may resist change if they do not believe the new 'bargain' is fair, the general literature on behavioral change suggests that even if managers address those concerns and employees believe the new exchange is fair, there can be resistance to change (Turgut & Neuhaus, 2020, p. 178).

Comprehensive behavioral change theories suggest that a variety of elements influence an individual's ability to change that are not related to their logical, conscious mental processes. Unconscious urges and fears, as well as conditioned behavior and thought, are examples. External factors such as the degree to which conduct is socially desired and the degree to which someone believes a given action is attainable will both influence their intention to change, regardless of their own thoughts about it. The understanding from systems thinking that changing a specific set of behaviors or a section of a system may necessitate fundamental modification of the system itself is linked to this, but at a higher level. This is due to the fact that systems thinking has proved that a system is bigger than the sum of its parts, and that changing one component of the system may not result in change because other aspects of the system are ready to restore the system to its prior state. This may appear abstract, but its practical application to challenges like obesity and reforming the health-care system suggests that it is relevant to any complex organization seeking to make significant change. Finally, even if all other barriers have been removed, there may be very practical, but very significant, impediments such as time and resource constraints that prevent behavioral change from occurring. Organizational development is concerned with in fact, the rapid pace of change is now recognized as a leading cause of stress (and distress) for senior managers nationwide. So, it is not surprising that compensation levels across the country have begun to reflect the pivotal role that change managers have assumed in keeping companies competitive. The speed and unpredictability of events in the corporate environment need frequent and rapid organizational change. Change must become an intrinsic component of a company's strategy if it is to endure. This means a never-ending improvement.

6 Limitation

There is seldom a good reason for a transformation process to start. For the most part, change procedures are triggered. New regulatory requirements, increased competition, or internal factors are just a few examples. Top management spends a lot of time talking about these triggers. This raises awareness of existing issues as well as the need for change. Change is often seen as unnecessary by the lower-level management and his or her personnel. In a company, new leaders try to safeguard workers from disruptions and issues in order for them so that they can be more productive and work uninterrupted. This protection or buffering is sometimes misunderstood. It is doubtful that workers will support the change process if they do not have a clear picture of the company's predicament. The most common blunders occur in the field of communication. Communication frequency is generally too low at the start, throughout, and after changes are implemented, according to experience. Information events and, on occasion, discussion forums are required as part of the change process. It is even worse if the required information is released in stages. In IT projects, the desire to engage personnel in a 'eat or die' mentality is common. Employees must work with new software or hardware in such a project, regardless of whether they were involved in its implementation or not. Ignoring objections or counterarguments, making public statements about opposing doubts, and presenting inaccurate information in support of the desired change are all examples of unsuitable procedures or 'poor style' that should be avoided. This conduct is counterproductive, and it is frequently reciprocated by those affected like a boomerang, by purposefully delaying or failing to implement the desired changes. To thrive in today's markets or in the organization's environment, every business and organization must continually adapt to changing general conditions and factors. The tone of change processes is frequently determined by external variables. Changes are frequently implemented too soon or noticed too late. At any given time, people can only tolerate a certain level of change. People will not continue if this amount is not increased. This may not be readily apparent from the outside. It can manifest as a lack of motivation. If a change process is started, it is important to consider the long-term viability of the desired changes. During installation, too little control attention is applied. It might be difficult to assess the success of an implementation, especially when employee behavior must be considered. It is possible to include the issue of accountability.

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