Thursday, June 10, 2010

MIS 2 - Assignment 5


In the spectrum of organizational change, which is the most radical type of change: automation, rationalization of procedures, business reengineering, or paradigm shifts?

Change is an absolutely critical part of business. And yes, organization does need to change—preferably now and not later, when organization has no other choice. The problem is that people hate it when their bosses announce a “transformation initiative.” They run back to their cubicles and start frantically e-mailing one another, complaining that the changes are going to ruin everything. People love familiarity and patterns. They cling to them. The phenomenon is so entrenched it can only be chalked up to human nature. But while managing change can sometimes feel like moving a mountain, it can also be incredibly rewarding, particularly when organization starts seeing results.

Typically, the concept of organizational change is in regard to organization-wide change, as opposed to smaller changes such as adding a new person, modifying a program, etc. Examples of organization-wide change might include a change in mission, restructuring operations (e.g., restructuring to self-managed teams, layoffs, etc.), new technologies, mergers, major collaborations, "rightsizing", new programs such as Total Quality Management, re-engineering, etc. Some experts refer to organizational transformation. Often this term designates a fundamental and radical reorientation in the way the organization operates.

Change should not be done for the sake of change -- it's a strategy to accomplish some overall goal. Usually organizational change is provoked by some major outside driving force, e.g., substantial cuts in funding, address major new markets/clients, need for dramatic increases in productivity/services, etc. Typically, organizations must undertake organization-wide change to evolve to a different level in their life cycle, e.g., going from a highly reactive, entreprenueral organization to more stable and planned development. Transition to a new chief executive can provoke organization-wide change when his or her new and unique personality pervades the entire organization.

Organization-wide change is difficult to accomplish. Typically there are strong resistances to change. People are afraid of the unknown. Many people think things are already just fine and don't understand the need for change. Many are inherently cynical about change, particularly from reading about the notion of "change" as if it's a mantra. Many doubt there are effective means to accomplish major organizational change. Often there are conflicting goals in the organization, e.g., to increase resources to accomplish the change yet concurrently cut costs to remain viable. Organization-wide change often goes against the very values held dear by members in the organization, that is, the change may go against how members believe things should be done. That's why much of organizational-change literature discusses needed changes in the culture of the organization, including changes in members' values and beliefs and in the way they enact these values and beliefs.

Organization-wide change can be successful. Successful change must involve top management, including the board and chief executive. Usually there's a champion who initially instigates the change by being visionary, persuasive and consistent. A change agent role is usually responsible to translate the vision to a realistic plan and carry out the plan. Change is usually best carried out as a team-wide effort. Communications about the change should be frequent and with all organization members. To sustain change, the structures of the organization itself should be modified, including strategic plans, policies and procedures. This change in the structures of the organization typically involves an unfreezing, change and re-freezing process.

The best approaches to address resistances is through increased and sustained communications and education. For example, the leader should meet with all managers and staff to explain reasons for the change, how it generally will be carried out and where others can go for additional information. A plan should be developed and communicated. Plans do change. That's fine, but communicate that the plan has changed and why. Forums should be held for organization members to express their ideas for the plan. They should be able to express their concerns and frustrations as well.



If you belong to an organization, there are some guidelines in order to achieve a successful organization-wide change for you to do. And these are;
1. Consider using a consultant. Ensure the consultant is highly experienced in organization-wide change. Ask to see references and check the references.
2. Widely communicate the potential need for change. Communicate what you're doing about it. Communicate what was done and how it worked out.
3. Get as much feedback as practical from employees, including what they think are the problems and what should be done to resolve them. If possible, work with a team of employees to manage the change.
4. Don't get wrapped up in doing change for the sake of change. Know why you're making the change. What goal(s) do you hope to accomplish?
6. Plan the change. How do you plan to reach the goals, what will you need to reach the goals, how long might it take and how will you know when you've reached the goals or not? Focus on the coordination of the departments/programs in the organization, not on each part by itself. Have someone in charge of the plan.
7. End up having every employee ultimately reporting to one person, if possible, and they should know who that person is. Job descriptions are often complained about, but they are useful in specifying who reports to whom.
8. Delegate decisions to employees as much as possible. This includes granting them the authority and responsibility to get the job done. As much as possible, let them decide how to do the project.
9. The process won't be an "aha!" It will take longer than you think.
10. Keep perspective. Keep focused on meeting the needs of the customer or clients.
11. Take care of yourself first. Organization-wide change can be highly stressful.
12. Don't seek to control change, but rather to expect it, understand it and manage it.
13. Include closure in the plan. Acknowledge and celebrate the accomplishments.
14. Read some resources about organizational change, including new forms and structures.

In addition to guidelines, there’re principles to embrace in implementing change especially in organization for you to do. The following are four practices that illustrate the organizational change:

1. Attach every change initiative to a clear purpose or goal. Change for change’s sake is stupid and enervating. Change should be a relatively orderly process, but for that to occur, people have to understand why change is necessary and how changes will affect them. This is easier, of course, when the problems are obvious—earnings are collapsing or a competitor has dropped prices 20 percent. But sometimes the need for change isn’t immediately apparent. Competitive threats seem to be emerging, but you don’t know for certain, and still, you have to respond. In those cases, relentless communication about the business rationale for change, reinforced with lots of data, is the best ammunition you have. The larger the organization, the more challenging it will be to communicate the need for change. In big companies, calls for change are often greeted noncommittally. After all, if the organization has been through enough change programs, employees will assume you’ll go away if they just wait long enough. Stick to your guns—your solid, persuasive business case. Over time, logic will win out.

2. Hire and promote only true believers and get-on-with-it types. Everyone in business claims to like change. To say otherwise would be career suicide. But by my estimate, less than 10 percent of all businesspeople are true change agents. Once the next group—about 70 to 80 percent of people working in business—is convinced that change is necessary, they’ll say, “OK already, get on with it.” The rest are resisters.To make change happen, companies must actively hire and promote only true believers and get-on-with-its. But with everyone claiming to like change, how can you tell who is for real? Luckily, change agents usually make themselves known. They’re typically brash, high-energy and more than a little paranoid about the future. They often invent change initiatives on their own or ask to lead them. Invariably, they are curious and forward-looking. These people have a certain fearlessness about the unknown. If they fail, they know they can pick themselves up, dust themselves off and move on. They’re thick-skinned about risk, which allows them to make bold decisions without a lot of data.

3. Ferret out and remove the resisters, even if their performance is satisfactory. This is the hardest of the four practices to implement. It’s tough to let anyone go, but it’s particularly difficult to fire people who are not actually screwing up and may in fact be doing quite well. But in any organization, there are people who will not accept change, no matter how sound the case is. They are so invested—emotionally, intellectually, or politically—in the status quo that they cannot see a way to improve anything. These people usually have to go.
That may sound harsh, but you’re not doing anyone a favor by keeping resisters in the organization. They foster an underground resistance and lower the morale of the people who support change. They’re wasting their own time: They’re working at a organization where they don’t agree with or share in the vision, and they should be encouraged to find one where they do.

4. Look at car wrecks. Most companies capitalize on obvious opportunities. When a competitor fails, they move in on their customers. When a new technology emerges, they invest in it and create product line extensions. But to be a real change organization, you also have to have to look at bolder, scarier, more unpredictable events, assess the opportunities they present and make the most of them. Fostering this capability takes a certain determination, but the rewards can be huge. Take the 1997 Asian financial crisis. Currency traders certainly capitalized on this awful event; they live on exploiting change. But they’re not the only ones who should do this. GE had real success buying undervalued Thai auto loans in this period. Others prospered by buying real estate at fire sale prices. Bankruptcies are another type of calamity that reveals all kinds of opportunities. Of course, they’re tragic to the employees. Jobs are lost, and pensions disappear into thin air. But jobs and futures can also be created from the cinders. With all the noise out there about change, it’s easy to get overwhelmed and confused. But these are the only four practices that matter. That’s it. There’s nothing to be afraid of.

The most radical type of change is paradigm shift. Paradigm shift is the term first used by Thomas Kuhn in his influential book The Structure of Scientific Revolutions (1962) to describe a change in basic assumptions within the ruling theory of science. It is in contrast to his idea of normal science.

The term paradigm shift, as a change in a fundamental model of events, has since become widely applied to many other realms of human experience as well, even though Kuhn himself restricted the use of the term to the hard sciences. According to Kuhn, "A paradigm is what members of a scientific community, and they alone, share.". Unlike a normal scientist, Kuhn held, "a student in the humanities has constantly before him a number of competing and incommensurable solutions to these problems, solutions that he must ultimately examine for himself." (The Structure of Scientific Revolutions). Once a paradigm shift is complete, a scientist cannot, for example, posit the possibility that miasma causes disease or that ether carries light. In contrast, a critic in the Humanities can choose to adopt a 19th-century theory of poetics, for instance.

The agents of organizational change are driving a new paradigm shift today. The signs are all around us. For example, the introduction of the personal computer and the internet have impacted both personal and business environments, and is a catalyst for a Paradigm Shift. We are shifting from a mechanistic, manufacturing, industrial society to an organic, service based, information centered society, and increases in technology will continue to impact globally. Change is inevitable. It's the only true constant.

Paradigm shifts tend to be most dramatic in sciences that appear to be stable and mature, as in physics at the end of the 19th century. At that time, physics seemed to be a discipline filling in the last few details of a largely worked-out system. In 1900, Lord Kelvin famously stated, "There is nothing new to be discovered in physics now. All that remains is more and more precise measurement." Five years later, Albert Einstein published his paper on special relativity, which challenged the very simple set of rules laid down by Newtonian mechanics, which had been used to describe force and motion for over two hundred years. In this case, the new paradigm reduces the old to a special case in the sense that Newtonian mechanics is still a good model for approximation for speeds that are slow compared to the speed of light. Philosophers and historians of science, including Kuhn himself, ultimately accepted a modified version of Kuhn's model, which synthesizes his original view with the gradualist model that preceded it. Kuhn's original model is now generally seen as too limited.

Kuhn himself did not consider the concept of paradigm as appropriate for the social sciences. He explains in his preface to "The Structure of Scientific Revolutions" that he concocted the concept of paradigm precisely in order to distinguish the social from the natural sciences (p.x). He wrote this book at the Palo Alto Center for Scholars, surrounded by social scientists, when he observed that they were never in agreement on theories or concepts. He explains that he wrote this book precisely to show that there are no, nor can there be any, paradigms in the social sciences. Mattei Dogan, a French sociologist, in his article "Paradigms in the [Social Sciences]," develops Kuhn's original thesis that there are no paradigms at all in the social sciences since the concepts are polysemic, the deliberate mutual ignorance between scholars and the proliferation of schools in these disciplines. Dogan provides many examples of the non-existence of paradigms in the social sciences in his essay, particularly in sociology, political science and political anthropology. In The Structure of Scientific Revolutions, Kuhn wrote that "Successive transition from one paradigm to another via revolution is the usual developmental pattern of mature science."

Kuhn's idea was itself revolutionary in its time, as it caused a major change in the way that academics talk about science. Thus, it could be argued that it caused or was itself part of a "paradigm shift" in the history and sociology of science. However, Kuhn would not recognize such a paradigm shift. Being in the social sciences, people can still use earlier ideas to discuss the history of science. There is a paralysis in a paradigm. Perhaps the greatest barrier to a paradigm shift, in some cases, is the reality of paradigm paralysis: the inability or refusal to see beyond the current models of thinking. This is similar to what psychologists term Confirmation bias.

In conclusion, for millions of years we have been evolving and will continue to do so. Change is difficult. Human Beings resist change; however, the process has been set in motion long ago and we will continue to co-create our own experience. Kuhn states that "awareness is prerequisite to all acceptable changes of theory". It all begins in the mind of the person. What we perceive, whether normal or metanormal, conscious or unconscious, are subject to the limitations and distortions produced by our inherited and socially conditional nature. However, we are not restricted by this for we can change. We are moving at an accelerated rate of speed and our state of consciousness is transforming and transcending. Many are awakening as our conscious awareness expands.



References:
http://www.managementhelp.org
http://www.businessmirror.com.ph/home.html
http://en.wikipedia.org
http://www.taketheleap.com/index.htm

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