Organizational Readiness For Change
Organizational readiness for change is a multi-level and a multi-faceted construct. As an organizational-level construct, readiness for change denotes the resolve of the members of an organization to implement change and the mutual belief in their common capability to change efficacy. According to Kotter & John P. (2011), the organizational readiness for change is a variance of the function of to what extent the members of the organization attach value to change and how favorable they embrace the three main determinants of capability of implementing change which are: task demands, resource availability and situational factors. When there is a high degree of organizational readiness, the members of the organization can effectively initiate change, exert greater effort, have high persistence and be more cooperative. The purpose of this paper is to examine Factors Used to Determine if Change is Needed and the Structural Readiness to Support Change.
Factors Used to Determine if Change is Needed
Unsatisfactory Performance. Every company measures its performance in comparison to its objectives. Every company’s aim is to perform financially and survive on its own. When it is not making money then it means the company is underperforming. If the performance of the company is not as desired, then this company obviously needs a change to correct this situation and improve its performance to the desired level.
Encountering Unpleasant Surprise. If the news of the industry always comes as a surprise to the company, there is a big difference between the view of the company on the market and the what the market is. This is a very bad state and can lead to fall of the company. this means the strategic position of the company is not right and a fundamental change is needed to align the company with the market.
Competitors are Doing Better. Every organization strives to lead in the market. If the rivals are doing better than you it means you’re not doing your best. Although smaller companies are usually dominated by larger ones, this is not supposed to be a permanent situation. If the market share is not reliably increasing, then it is important to take a decisive decision action so as to align the company.
There are Inefficiencies. Anything that makes a business less competitive and less profitable is an inefficiency. This why an action should be taken as soon as possible to remedy this situation so that the company can remain competitive. No organization can stand successful without being more efficient than its competitors.
New Opportunities. Since the business world keeps changing with new markets and niches cropping up, there is always new opportunities that present themselves for the taking. When a new opportunity presents itself it is important for an organization to make it its top priority. Triggering an internal change would be the best way to seize this opportunity.
Structural Readiness to Support Change
Each organization has its structural formation which depends on its style of management, the leadership style and its control system. Approach to change in an organization solely depend on the structure of the organization. Structural readiness concerns with how the structure of a certain organization is set for a change anytime it comes their way. There are three different structures of organization: he military structure, political structure and healthy structure. the military structure is inspired by army which always has a strong leader at the top. Political structure is very open and gives a room for new leaders to emerge long as they help in strengthening the power of the top stakeholder in the organization. In healthy structure, the workers have freedom to carry out their job and leaders are servants of the people.
Strategies for organizational change include the top down approach and the participative approach. Not every structure reacts the same to these approaches. Some organizations don’t like participative approach because it might be seen as a sign of weakness from the leaders although it is considered as the best approach by others. According to a study carried out by Project Management Institute (2013), they Considered dealing with organizational change as a way of dealing with people. Some structures are very rigid that change cannot happen easily. There are a lot of bureaucracies involved that even before a change could be realize and opportunity has already passed by. The infrastructure, processes and relationships between people are sometimes some of structures that prevents change from being effected.
In conclusion is important for an organization to be able to recognize when a change is needed and what action to take towards it. This will enhance efficiency and increase the profitability of the organization. It is also important for organizations to adopt the political structure because this is open to change any time.