Change is perhaps the greatest competitive challenge that companies face. They feel extremely challenging to embrace it as it is a continuous process having no end. This is because companies keep redesigning and changing their internal organisation and management systems constantly. As Dave Ulrich (1998: p127) mentions: ‘Successful organisations will be those that are able to quickly turn strategy into action, to manage processes intelligently and efficiently, to maximize employee contribution and commitment and therefore to create the conditions of seamless change’. His statement suggests that changes in organisations occur to improve the management, the workforce, to work efficiency and hence bring productivity to the highest level by fulfilling the objectives for the organisation’s benefits. Change is a way of life and survival for the organisations. If it doesn’t keep happening in the scale of growth with other firms, it might not fit in with the rest of the global parameter and end its way to lose. In the following essay we will analyse why managers introduce change initiatives to the company focusing on various factors such as what provokes change? Benefits of change? However on the other side what does the change process involve? Why does transformation fail? How do management systems differ from before? And what management schemes are introduced by change. Wilkinson et al (1991) argues that organisations have this complex interactions and social relations in the internal environment of work which is why it makes it very hard for them to be coherent, ordered, consistent and rational in their management schemes. They have their ideas all over the place and so the job is not being done effectively. Due to this managers need to introduce change initiatives to be able to give order and make the firm reach its goals in the well-organized way. Reengineering is one way that organisations could develop their change process on. ‘Reengineering is the fundamental rethinking and radical redesign of business process that brings out dramatic improvement in performance’ (Michael Hammer, Steven A. Stanton, 1995: p.3). It is composed of 4 main key processes being radical, performance, process and redesign which ultimately contribute to successful changes that need to be done to attain maximum efficiency. The first process which is radical means going to the root of things. It communicates that it is about re-inventing how organisations set up work for their employees. Work systems should be changed so that they fulfil the objectives more efficiently. If they try to improve what already exists they will fail in the change process and further improvements won’t be made. Performance is the second key process in reengineering which is measured by reduced costs, increased speed and greater accuracy. These measurable aspects are results of ‘organisational change’ as well as contributing to ‘successful change’. Process is the most important out of all the other reengineering steps as it consists a group that work on putting together all the components to a successful value for a customer. For example an order fulfilment consists of many different tasks such as receiving an order, entering it into the computer, checking customer’s credit, allocating inventory from stock, picking inventory out of the warehouse, packaging and loading the packets into the truck. Many different tasks come up to one single value that ends up consumed by a customer. The company has to make sure that the end user is satisfied by it and will keep loyal to their products. To make processes more efficient change is introduced. The last process of reengineering is redesign. It is about the design of how work is conducted. Design is not only seen in terms of products but also the work. For example, how many hours put into work, how work is managed, who supervises the work, rules and regulations, how much flexibility is given and so on. According to Michael Hammer...
References: Professor Darren McCabe (2014) ‘Perspectives on Change 1’, Lecture 2, Lancaster University
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