Analyzing changes that have being implemented at Bank of America. Name:
In the past decade, different terms have been used for the concept of the reduction in workforce. These include downsizing, rightsizing, re-engineering, job separation and workforce imbalance correction. Scholars and human resource practitioners have not clearly documented the technical differences between all these terms but one thing that is common to all is that they all result to lay-offs. Employee lay-offs is not a new phenomenon, over the last decade the business world has witnessed tremendous amounts of changes with the most noteworthy been the technological developments and breakthroughs, deregulation, privatization and globalization (Hiatt & Creasey, 2003). Some of the changes have transformed the way organizations conduct businesses by interconnecting all the worlds’ economies. Dynamic environments like these require dynamic processes, people, systems and culture especially in managing the change successfully. According to Kandula (2003), if organizations are to develop, they often must undergo change at various levels in their development. There three types of organizational management changes that can occur; planned versus unplanned change, gradual versus transformational changes and organization wide change versus departmental change (Anderson & AcKerman-Anderson, 2001).. Key factors for success include planning the long tern strategic vision in advance, empowering people to make decisions at the operating level, optimizing the in formation communication to enable effective information management (Kotter, 1996). Change in the organization is a difficulty issue to manage due to internal resistance coupled with uncertainty on the part of the organization (Paton & McCalman, 2008). There are different change management models which can be utilized by the organization while implementing changes like downsizing, new product development, new processes implementation and alignment to new government legislations. In our discussion will focus on McKinsey 7-S model, Lewin’s change management model and Kotter’s eight step change model. Each of the above models has its own strengths and weakness.
Kotter’s 8- step change model was developed by John Kotter. The model utilizes eight steps in the implementing change in the organization. The first step is to create urgency, for change to happen there should be a sense of urgency for the need of change (Kotter, 1996). This is necessary to spark the motivation among the stakeholders. Creating urgency will involve opening an honest and convincing discussion about what is happening in the marketplace. At this step the management should identify potential threats and develop scenarios about what is likely to happen in the future (Kotter, 1996). The management should identify opportunities that can be exploited to maximize the welfare of the organization. This is done by brainstorming and holding consultations with customers, suppliers and other stakeholders. This is a vital step especially if the organization wants to develop and implement a new product in the market. The second step will involve building a guiding team. The management should assemble a team with enough skills to lead the change efforts (Kotter, 1996). The management should motivate the group to work as a team. The group should consist of the influential and true leaders in the organization. The management should gain the emotional commitment of the group towards the desired change. The group should consist of people from all the departments and all levels of the management. The third step will be the creation of the vision for change and developing strategies to achieve the vision. A clear vision will make the employees understand the need of change and stop their resistance to the change. The management should talk often about the vision and...