First, the organization may determine the needs for changes to make organization more responsive, flexible and competitive. Before the changing, the organization should find the gap between performance objectives and actual performance, and uses some indicators, which like total net profit, sales per employee, and labor costs, to measure the gap in order to decide whether the organization needs to change.
Second, the organization need to identify the obstacles, which like resisting changes at organization, division or individual level, Unions resistance, the culture, strategies and structures of the organization, and financial ability, to introduce new policies and practices when the organization need to changes. For example, for the financial ability, HR manager expects to introduce new technology to make the organization more competitive. However, the organization doesn’t have enough subsidies to afford all staffs to learn new skills. Therefore, the organization should identify all potential barriers.
Third, the organization should consider which methods to implement in the change to reduce the resistance from managers or employees. The organization can use internal managers or external consultants to carry out the changes. The internal managers have more knowledgeable about people and business operations, but the internal managers often are too narrow to successfully introduce change. Besides, the external consultants are politically neutral and possessing broader and have more knowledgeable viewpoints, but the external consultants do not know the organization and its staff. Therefore, the organization should measure which method is more suitable for the organization.