Managing Organizational Change

Managing Organizational Change

Introduction

The recent financial crises has led many organization to make major changes in its structure. One of the most common decisions taken is the laying off of employees in order to reduce costs. Although this is considered an effective approach, the employees who manage to retain their jobs have to work significantly more in order to cope with the shortage of employees. this reduces the motivation and makes employees unhappy due to which they begin to look for better jobs. A sudden decline in the number of employees could be disastrous for any organization. It is the role of managers to ensure that during any change in organizational structure, the number of employees remains up to the optimal level so that the organization may run smoothly (Cawsey, 2012).

Discussion

Faced with a decline in profitability and lack of innovation, managers are constantly finding ways to bring about organizational change without having a negative impact on the organization. It is being noticed that any organization change leads to a reduction in the number of employees. The reason for this effect is that employees are already frustrated with the jobs and any change increases their workload. This leads to groups of employees resigning together. This can be considered a serious issue because no employee would want his employees to resign together (Myers, Hulks & Wiggins, 2012).

Organization change is compulsory in situation where the external environment changes. With every change in the external environment, the nature of the competition in the market changes. In order to tackle this change, the organization has to make changes without increasing its costs. This is exactly what the organization is currently trying to do. In order to improve the structure of the organization, the employeer has made changes to the structure which eventually led to a restructuring plan. This plan did not work and instead resulted I several employees resigning. In order to ensure that the organization remains competitive, it has to make some changes without having an impact on its employees. The solution to this problem is to take small steps that would ensure that the employees do not notice the changes and eventually adjust the changes (Lewis, 2011).

Organizational Crisis Management

Crisis can hit any organization without any warning. The most severe crisis are related to financial loss or a failure of the product. In such situations, the blame is put on the leadership. However, in the case of a global financial crisis, the entire economy gets distorted and the change in the external environment impact every organization. In order to cope with such changes, organizations prefer to get rid of employees in order to reduce costs. This is a highly demotivating decision which also impacts other employees.

In order to manage crisis, it is suggested that the organization focuses on introducing new technology that can bring about a positive change in the organization. The use of technology reduces the need for employees and results in better operations; however, this organization is not adapting to this change ...