MGT388 – Organisational Change
Print media such as Fairfax media faces many challenges and threats today – threats to effectiveness, efficiency and challenges from turbulent environments – increased competition and changing customer demands are of great interest and importance in keeping organizations healthy and viable. To manage a turbulent situation, the leadership role is important during the change process. The leader’s task during the change processes is to convey the vision and the goal and it is important to carry through with a change and be patient; the results will not come immediately.
The culture has a big impact on a process of change, while the culture is always ”the winner” over the strategy. A changed strategy will not automatically lead to a wished change if the culture has not changed in the same way. The leader cannot perform organizational changes by using only formal structure and systems as principal instruments. The leaders also have to pay attention to the organizational culture and provide a new basis for cohesion (Hirschhorn, 2000).
Kurt Lewin’s Change Management Model
Force Field Analysis was developed by Lewin (1951) and it is powerful strategic tool widely used to inform decision-making, particularly in planning and implementing change management programmes in organisations. It is a powerful method for gaining a comprehensive overview of the different forces acting on a potential policy issue, and for assessing their source and strength (The British Library Board , 2012); (Change-Management-Coach.com, 2012). Lewin's force field theory viewed people's activity as affected by forces in their surrounding environment, or field. Three main principles of force field theory are that: * behaviour is a function of the existing field
* analysis starts from the complete situation and distinguishes its component parts * A concrete person in a concrete situation can be mathematically represented (The British Library Board , 2012).
Application of Kurt Lewin’s field theory model to Fairfax media group Internal Forces for Change (Micro-environment) for Fairfax Media Group If the root cause of a problem is not identified, then one is merely addressing the symptoms and the problem will continue to exist. For this reason, identifying and eliminating root causes of problems is of utmost importance (T.Fagerhaug., 2000); (Dew, 1991); (Sproull, 2001).
External Forces for Change (Macro-environment/PEST) for Fairfax Media Using the PEST analysis to assess the Macro environment of the Fairfax Media group shows that the technology and recession are two of the major factors that have been affecting the newspaper industry as well as the socio culture side. Technology
The Internet, a powerful and advance technology, has changed the model of mass communication. The Internet has had a major impact on the external environment of the newspaper industry and has been gradually substituting the prints. It has also increased competitiveness with easy entry barriers requiring low capital cost and resources, which has been a threat for many established prints publications such as Fairfax media. With Internet connection in almost every home, readers open sites that offer nearly everything found in newspaper. Many newspapers, such as Fairfax, have had to complement their daily prints with online version and further updates throughout the day, instead of waiting for updates till the next day’s print (Fairfax Media, 2012). Online news medium has also attracted incremental readership from other countries that were not as accessible to news in the days of prints. The Technological progress and internet has changed readers habits and their perception of news, reduced readers’ demand to prints and resulted drop in circulation that has affected newspaper industry’s economy and drop in advertisement revenue 21% drop in March 2012 quarter sales, according to Audit Bureau of Australia (Audit Bureau of...
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