CHANGE MANAGEMENT

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Change Management: DaimlerChrysler



Change Management: DaimlerChrysler

Definition of Organizational Change Management

Organizational change management refers to the practice of properly managing large, organizational changes in business. Change management is a quickly evolving practice designed to help support both managers and employers through the change process. As large changes can be very disruptive to an organization, change management seeks to minimize these impacts, while improving the efficiency of the change, and allowing DaimlerChrysler to focus on continued growth.

Managing change means making required changes in a planned and systematic fashion. As such, change management requires a variety of skills to be effective. These include managing employees and expectations, handling office or corporate politics, analyzing situations and reacting quickly to solve problems, basic business skills and understanding, and importantly, strong people skills.

This paper will discuss about DaimlerChrysler's strategic change management.

Introduction

Globalization results in rapid and constant business environmental changes. As a result, most organistions tend to be more transformational organization so as to be flexible to respond promptly to those changes. Strategic change is one of the effective solutions to this situation. (Brock et al., 2005)This paper will discuss the nature of strategic change by analysing DaimlerChrysler case study; whether the strategic change by merger bring them sustainable competitive advantage. (Appelbaum et al., 1998);; (Douglas and Wind, 2001)

Nature of strategic change

The causes of strategic change

To be effective transformation organisation, DaimlerChrysler needs to be ready for incessant change of outside and also inside circumstances. The factors which lead to strategic change in organisation are categorized as external environment, including competitor's movement, governmental regulation, trade constraint, economic situation, information technology advance and market infrastructure: such as accessibility and cost of supply and internal environment containing new vision and operation, bringing new technology in institute, new CEO, organisational culture, and merger and acquisition. (Douglas and Wind, 2001)

Moreover, contemporary business system which has been becoming more globalization, rapidly and continuously change in technology industry, and higher degree of competition in each industry, forces organisations which would like to survive by innovating themselves to be more flexible in order to respond rapid change effectively and paying more attention in the way people in organisation think and learn (Kenny, 2006). Therefore, strategy for transformational organisation must be build and re-build coherently.

The process of strategic change

The best way to change strategy within organisation is to integrate the incremental and radical process of change together. Incremental change is defined as rational, anticipative and proactive change. This kind of change takes long time process because of changing little at a time (Kenny, 2006); (Pfeifer et al., 2005); (Appelbaum et al., 1998); (Beugelsdijk et al., 2002). Moreover, it seems to be the plan emphasizing on effective restructure along with transformational leadership provides top-down management which suit for static and predictable situation and easy to be learned. It can often be seen from the past that strategic change was rather annual plan which became the rigid arrangement, limited abilities of response to changing environment and conflicted with globalization (Kenny, ...