A Study On Change Management Commerce Essay

A Study On Change Management Commerce Essay Accepting change is considered the biggest paranoia in todays world. Organizations – both business and non-business confront a challenging world. Some of the challenges that are faced by managers today include competition from other firms, globalization, and technological changes besides others. Let us consider a small example that can set the stage for discussing the effects of change. Daily life in a modern society is like a routine, where we wake up in the mornings, have breakfast, go for work, have lunch, come back from work, eat dinner and then sleep again. It has become a scheduled life, or so to say, we conform to structure in our lives. This structure provides us the necessary security. But, if we were to live in a world full of anxiety and unexpected mechanisms, it may leave us feeling uneasy and apprehensive. If this is the condition of individuals, a large-scale change in an organization can surely transform its people into anxiety, exasperation, frustration, depre ssion or even fatal incidents. To curb this, organizations practice what is to be referred to as Change Management. Change Management is a process whereby, the individual, team or the organization develops a planned approach towards any sort of an alteration. The objective is to capitalize the benefits for the people and lessen the risk of failure of implementation. Change management entails thoughtful planning and sensitive implementation, and most importantly, consultation with the people who are going to be involved in the process. This task studies how organizations have evolved to accept change. But let us first look at the drivers that affect organizational change: Ø Inadequate Financial Performance – the 2008 economic slowdown can be well quoted as an example for this. Companies failing to reach their financial benchmarks, have to undergo change. Competitive organizations can cannibalize their market share, provided they enter with cheaper labor or superior technolo gy. Failure to maintain the market share can force companies to rethink their opportunity cost and also the deployment of resources. Ø Changes in Strategic objectives – many companies shift their focus from being product-driven to being customer-driven or even process-driven. To enable this, restructuring and re-orientation of processes, people are required of in the organization. Ø New Technology – companies that neglect the new trends in the market are set to suffer a setback, and, therefore, should adapt to the changes in technology. Ø Mergers and Acquisitions – when companies merge and consolidate their operations, people and the culture, re-engineering takes place. The streamlining of the operations, infrastructure and the structure of the two organizations into one centralized theme is a huge part of the change management process. These, could be defined as the drivers of change that evolve businesses and markets. Organizations, today, have learn t to adapt to change. In this era of globalization, fast-moving lives and business-centered organizations, people and the processes have accepted the transformation. For instance, a lot of investment banks had to undergo transformation during the economic slowdown. Citigroup Inc. restructured its banks and other affiliates during the recessionary period, to acclimatize with the new environment. And it did happen. The management has to ensure that a smooth shift occurs, and for this it adopts a number of organizational theories as a basis for effective change management. Some of them are listed in the next few paragraphs.