MANAGEMENT OF CORPORATE CHANGE

ASSIGNMENT 1
MBA 719

BY

JEROME ADZAH
R1712D4033826

INSTRCUTOR: DR. FANOS TEKELAS

DATE: 28TH SEPTEMBER, 2019

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TABLE OF CONTENT

1 INTRODUCTION-------------------------------------------------------------------------------- 3

2 CHANGE DEFINED----------------------------------------------------------------------------- 3

3 ORGANIZATIONAL CHANGE IN PERSPECTIVE-------------------------------------- 4

4 BENEFIT OF CHANGE TO BUSINESS----------------------------------------------------- 5

5 REASONS WHY ORGANIZATIONS REQUIRE CHANGE----------------------------- 5

6 REASONS OF FAILING CHANGE IN ORGANIZATIONS----------------------------- 6

6.1 Inadequate Resources Required For Change------------------------------------------------ 7
6.2 Unreasonable expectations--------------------------------------------------------------------- 7
6.3 The absence of support from top management---------------------------------------------- 7
6.4 Poor employees’ motivation and satisfaction------------------------------------------------ 8
6.5 Insufficient education and training programmes-------------------------------------------- 8

7 STEPS OF LEADING CHANGE BY KOTTER--------------------------------------------- 8

7.1 Build a sense of urgency----------------------------------------------------------------------- 9
7.2 The formation of a guiding coalition--------------------------------------------------------- 9
7.3 Build a vision for change---------------------------------------------------------------------- 9
7.4 Communicate the vision----------------------------------------------------------------------- 10
7.5 Elimination of Obstructions------------------------------------------------------------------- 10
7.6 Build short-term wins-------------------------------------------------------------------------- 10
7.7 Consolidate developments--------------------------------------------------------------------- 11
7.8 Incorporate Changes into Culture------------------------------------------------------------ 11

8 ENVIDENCE-BASED SITUTIONS OF ORGANIZATIONAL CHANGE ISSUES-- 11

8.1 Examples of Some Companies Who failed to Adjust to Change----------------------- 11
8.2 Deed Consulting Limited (From Software Reseller to a Developer)------------------- 12
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LEADERSHIP RESPONSIBILITIES IN ORGANIZATIONAL CHANGE------------
10 CONCLUSIONS AND RECOMMENDATION--------------------------------------------- 13
11 REFERENCES------------------------------------------------------------------------------------ 14
12 APPENDIX --------------------------------------------------------------------------------------- 15

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 1. INTRODUCTION
All things undergo change. Change is inevitable. Change is highly influenced by both
internal and external factors. The environment at this present time is changing with enormous
uncertainties as a result of the constant advancement in technology, globalization and the
high level of competition in the world of business. This has really contributed to the necessity
for organizations to strategically adopt and apply some change irrespective of their size
(Lawler & Worley, 2006; Armenakis & Harris, 2009).
The survival of any organization is highly dependents on the application of change.
As proposed by Kotter, every organization requires at least seventy-five percent (75%) of its
management and staffs to accept the idea of change and the willingness to assist in its
implementation before change can be successfully applied to reflect in the development of an
organization.

2. CHANGE DEFINED
Change is considered as a process or a movement out from the present through to the
transition and finally to the future. Change is happening in our everyday lives, in our
organizations, community, country and the world at large.
According to Kotter (2012), change management could be term as the fundamental
components and arrangements whereby certain aspect of change is well controlled.

3. ORGANIZATIONAL CHANGE IN PERSPECTIVE

It is suggested by (Cumming & Wolley, 2014), that there are about three key elements
influencing changes in an organization. These elements are: Globalization, Technological
advancement and Innovation from the Managerial Level of organization.

The movement in the general business environment is as result of Globalization which has
altered the marketplace within which businesses function. The entire continent is quickly
becoming interconnected politically, legally, economically and socially among other things.

Change in an organization can strategically position it to perform in the industry and also be able
to outwit the activities of some competitors in the future.

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Distribution of products and services among other logistics and supply chain resources between
countries is constantly increasing the socioeconomic interdependence between organizations and
the international communities as a result of globalization (Cumming & Wolley, 2014).

In addition, the advancement of technology has uplifted business operations by changing the
increase in patronage of ecommerce. Information is being shared easily by the application of the
internet.

On the other hand Innovation from the Managerial Level of organization has also contributed to
organizational change tremendously. Managers with innovative approach are able to react or
attend to the issue of globalization and the advancement in technology in a more effective way
that help in the survival and development of an organization.

Cumming & Wolley, (2014) suggest that an innovative managerial approach includes the
formation of strategic partnership, employee involvement among other examples are very critical
tools for the implementation of certain strategic programmes.

Burke, W. Warner (2011) also proposed that business establishments change on a regular basis.
This change may happen in any business institutions mostly as either accidental/unexpected or
slow. It is believed that organizational change that are planned to affect a larger scope of the
whole organization system is mostly infrequent.

4. BENEFIT OF CHANGE TO BUSINESS

According to Caetano (1999) the improvement of organizational processes requires change

which is demanded by seasons. Any business institution that fails to embrace change will fail to
withstand the test of time ([Link], 2000). Changes in business establishment offer a wide
range of benefits. As suggested by Smith & Jones, (1996), the survival of an organization
through deliberate efforts to manage change effectively is very important. Some of these benefits
are demonstrated below as proposed by ([Link], 2000):

i. Improvement of an organization’s nature of competiveness

ii. Enhancement of staff performance which reflects in the satisfaction level of
customers

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 iii. Helps to improve the financial status of an organization’s performance
iv. improves financial performance, enhances employees
The process of change in every situation could be highly challenging and very crucial to the
success and survival of every organization .According to Boston (2000), change must be duly
managed properly for the organization to be able to keep moving towards it strategic goal. It is
very prominent that all businesses encounter some forces that makes change an unavoidable
element. These pressures are internal and external which dictate organizational performance and
existence; it is therefore admonished that these forces be well managed (Senior & Fleming,
2006).

5. REASONS WHY ORGANIZATIONS REQUIRE CHANGE

There is some school of thoughts and academics who have express the necessity of change in
organization in diverse viewpoint. It is being suggested by some academics that change provides
competitive advantage for businesses to successfully sustain their operations for future survival.

Every institution encounters certain level of inconsistency in the business environment.

However, business establishments are being given the admonition to consistently keep abreast
with change promptly in order not to extinct (Kotter, 2012). Despite these pressures from both
the external and internal environment, top level managerial staffs are being encouraged not to
take any hatsful decision when implementing a lot of change programmes rapidly (Bruch and
Menges, 2010).

In this era of technological advancement and the high level of competition in the business
environment, most business establishments’ existence and sustainability is heavily at the mercy
of meeting and adequately filling what is demanded by stakeholders. The inability of a company
to fulfil or satisfy shareholders may force them to channel their resources to a different
programme or establishment. This is why it is very important for business institutions to embrace
change that has the tendency of improving the productivity of the company and its market share.

According to Orlikowski (1996), an organization’s success in change management is

demonstrated in its attainment of setup goals on the basis of change initiatives.

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Organizations are changing in order to attain their desired plan for the future. Although the
reason for change may differ from one organization to another; the essential requirement for
change is mostly motivated by an expected opportunity.

6. REASONS OF FAILING CHANGE IN ORGANIZATIONS

There a lot of reasons that leads to the failure in organizational change, among these errors are:
the failing of organizations to institute countless sense of urgency, lack of vision, poor
communication, and poor teamwork spirit among others. All change that are successfully
implemented commence with personalities and or some team who are able to evaluate an
organization’s competitive and market position, technological developments and other
performance indicators. It is believed that change, by its meaning entails the creation of
innovative structure anew that is people centered. People require great leadership and motivation.
The absence of this will lead to people shirking their responsibilities during the change
processes. The following are some reasons why change fails in organization.

6.1 Inadequate Resources Required For Change

Change is not implemented in a vacuum; change entails quality time, cost and effective
teamwork. The inability of an organization to make all of these resources among other things
available for the implementation of a change agenda is likely to result in a failed change agenda.
(Sebastianelli & Tamimi, 2003).

Apportioning the required resources at the right time with the best team work is very important
for a change agenda to be effectively executed. Business with financial setbacks may not find it
easily to withstand the change process since they may not have enough capital to implement the
change programmes.

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 6.2 Unreasonable expectations

Every change processes is led by a leader, hence it is very important that an organization engage
the expertise of a great leader with a vision to implement all the change programmes. An
effective leadership qualities that inspires and empower a team spirit that will collectively
motivate staffs to participate in the change agenda by accepting task for the implementation of
organizational change (Goleman, 2000). According to Shortell et al. (1995), the role of leaders in
the change process is very crucial. This means that the absence of effective and motivated leader
may lead to the failure in an organizational change as suggested by (Cummings and Worley,
2005; Mourier and Smith, 2001)

6.3 The absence of support from top management

The contributions and commitment of top managerial team is highly significant towards the
outcome of an organizational change (Hansson and Klefsjo, 2003). Srinidhi (1998) suggested
that the low patronage of top managerial team in the change process is one crucial barrier
towards the successful implementation of change. According to (Hansson and Klefsjo, 2003), the
involvement of top managerial employees in the change agenda aids in the creation of an
intelligence, space the determination for the change agenda to be implemented.

6.4 Poor employees’ motivation and satisfaction

A well-motivated and gratified workforce mostly develops progressive and positive work
attitudes towards any change agenda in an organization (Wanberg, 2000). Mosadeghrad et al.,
2008 also suggested that well-motivated staffs who are well satisfied by employers have positive
mindset and are very committed to their organizations during the implementation of any change
programme.

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 6.5 Insufficient education and training programmes

According to (Huq and Martin, 2000), improper education or training programs is one significant
barrier that affects the successful implementation of organizational change.

For a change to be effectively implemented and to reflect in the development of an organization

requires certain level of knowledgebase of management and employees and the right mindset,
skills and experience to drive the change processes successfully.

7. STEPS OF LEADING CHANGE BY KOTTER

According to an article titled ‘Kotter’s 8 Step Change Model’, it is suggested that Kotter
presented Kotter’s 8 step change process which is aimed at increasing the success of an
organization’s approach to change for future survival. Change is not an easy thing to practice; a
lot of workforces do not easily accept change since some do not see it as a progressive
component for development. Nonetheless, the workforce of every institution plays a vital role
when it comes to the application of the change process in the organization. It is highly agreed
that the recognition and the application of these steps influences the success of a company
thereby reducing its rate of failure when implemented. Below are the demonstrated Kotter’s 8
steps:

7.1 Build a sense of urgency

It is very important for a market research to be conducted so as to identify any possible

threats, competitions and opportunities. According to Kotter, the only way for change to
occur is when all stakeholders desire for the change. This he further indicated that
workforce ought to be exposed to the necessity for change; it is by this means that most
people will rally behind the change process by offering their support for the change to
take place. Stimulating employees through series of dialogue and the provision of a
motivational platform could simply encourage all stakeholders about the current trend in

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 the market environment thereby creating certain sense of urgency for the change to be
effected (Kotter, 2012).

7.2 The formation of a guiding coalition

Engage a team made up of resilient individuals willing to advance the change process by
leading with an example.

Every organizational activity requires the creation of team work and allocation of
responsibilities for effective implementation. Organization change is a project on its own;
this requires the establishment of great team to initiate and lead the change process
through effective and deliberate efforts that seeks to collectively engage the expertise of
every individual team member towards the realization of the change agenda with an
effective and productive communication plan (Kotter, J. P. 2012, 1996).

7.3 Build a vision for change

It is suggested that the creation of a vision communicate important issues that simplifies
the direction the future trend and organizational growth strategy. The establishment of a
clear vision for any change process is very paramount to the success of change
implementation. According to Kotter, a vision provides direction to where the
organization is going. It is very important that a flawless vision is communicated to all
stakeholders for the change process to understand the set goal of the organization and its
timelines. The absence of a clear vision can create confusion and impede the effort of the
change process.

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 7.4 Communicate the vision
According to an article on the site [Link], Talula Cartwright, the co-author of
Communicating Your Vision suggested that one significant responsibility of a leader
is to create total commitment towards the achievement of an organizational vision.
This can only be achieved when a vision is shared among all stakeholders in a way
that matters to them.
The absence of reliable information makes it difficult for stakeholders to be patrons
of the change agenda.

7.5 Elimination of Obstructions

An effective implementation of change commence with the involvement of people
from different backgrounds. It is very important for top level management to
strategize in order to effective initiate the change strategies by seeking to know if
there is a resistance to change either from within or external and also ascertain if the
right tools and or resources are made available for the smooth process of the change
implementation. Stakeholders, managements and employees are the first contact to
initiate the change process that requires the development of innovative approaches.
Hence, the need to engage all staffs for a successful implementation of the change
process.

7.6 Build short-term wins

The greatest motivation in the world of business is success. It is very important for
any business organization to establish short-term goals in order to keep track of initial
change process and to celebrate the early win as a means of motivation. It has been
suggested that an effective and a successful implementation of Change could take
time to show hence, it is very necessary to put in short term objectives to constantly
evaluate the process and to reward individuals who are contributing to the change
process as well as encouraging team members.

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 7.7 Consolidate developments

As suggested by Kotter, most change processes encounter failures due to the early
pronouncement of victory. It is argued that the path leading to a successful change is that
of slow-moving and relaxed progression which ought to be influenced by an
organizational culture. Business establishments must constantly seek for development.
Premature wins are for the initial stage of the set goals for a long term strategy for the
change processes.

7.8 Incorporate Changes into Culture

This is the final step to leading the change process by Kotter. The only way for a change
to remain in an organization as part of its organizational culture is when all stakeholders
are efficiently part of the change process by contributing towards its successful
implementation so it becomes part of its central or core process in the organization

8. ENVIDENCE-BASED SITUTIONS OF ORGANIZATIONAL CHANGE ISSUES

The following illustrate practical demonstrations of actual examples.

“It is not the strongest of the species that survives, or the most intelligent that survives. It is the one
that is the most adaptable to change.” —Charles Darwin

8.1 Examples of Some Companies Who failed to Adjust to Change

According to an article by Professor M.S. Rao; Kodak, a frontrunner for so many years become
bankrupt in 2012. Similarly, Blockbuster became obsolete in 2013 and also Nokia could also be
cited as one of the leading technological companies who could not adopt to change effectively. This
has been suggested that these brands which once great, failed to adapt change. It is further suggested
by Professor M.S. Rao in her article ‘The Global Companies That Failed to Adapt to Change’ that
there are a lot of reasons why most individuals resist change; this may include the fear of failure,
criticism and the fear of the unknown. For instance Google has overtaken Yahoo’s space with an
innovative and constant change whiles Yahoo is still left behind with its old way of doing things.

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 According to Peter Drucker:
“We can already see the future taking shape. But I believe the future will turn in unexpected
ways. The greatest changes are still ahead of us. The society of 2030 will be very different from
today’s society and bear little resemblance to that predicted by today’s futurists. The next
society is close enough for action to be considered in five areas. Change agents. To survive and
succeed, organizations will have to become change agents. The most effective way to manage
change successfully is to create it.”

8.2 Deed Consulting Limited (From Software Reseller to a Developer)

In 2013, a team of two young entrepreneurs in Ghana started a small business as a
software vendor by reselling Sage range of products including Business Management
Software and Payroll Solutions in Ghana. After 5 years of reselling software, Deed
Consulting Limited decided to start developing its own software that meets the Ghanaian
market.

9. LEADERSHIP RESPONSIBILITIES IN ORGANIZATIONAL CHANGE

According to Kennedy (2000), every institution in this current competitive environment
needs a visionary leadership with effective functional responsibilities in order to push for a
successful agenda.
The development and the general management of an organizational change processes is
always the responsibilities to top management and leadership. This is why the role of leaders
is very significant to the adoption of all elements required for the change to take place.
The capacity of an institution to motivate its talents towards that attainment of an
organizational goal is highly influenced by an inspirational leadership that values motivation
and agrees to a reward system to help increase productivity Appelbaum, (1998). This is the
main reasons why the leadership style of an organization need to adopt various kinds of
training sessions and rewards scheme to successful influence the smooth running of an
organizational change processes.

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 10. CONCLUSIONS AND RECOMMENDATION
It has become imperative for companies to adapt to the constant revolution of the business
environment as a result of the enormous challenges in both the internal and external environment in
which they operate. Although there are huge opportunities and benefit accrues to business
organizations for implementing change programmes, there are a lot of challenges that impede its
success implementation and subsequent achievement as discussed in the above content
This assignment discusses the main reasons of failing change in Organizations and steps of leading
change. As discussed from the above presentation, failed change programmes are attributed to the
failing of organizations to institute countless sense of urgency, lack of vision, poor communication,
and poor teamwork spirit. Top managerial staffs ought to be conscious of all the obstacles for any
change programme.
Change management programme requires dedicated leadership, time and the suitable application
scheme of the change model in an enabling environment provided by stakeholders.

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 11. REFERENCES
Abbas, W. and Asghar, A. (2010). The Role of Leadership in Organizational Change.
Retrieved from [Link]

Cumming, G. T., & Wolley, G. C. (2014). Organization Development and Change, (10th
ed.). Stamford, USA: Cengage Learning

Kotter, J. P. (1995). Leading change: Why Transformation Efforts Fail. Retrieved from
[Link]
[Link]

Mulder, P. (2012). Kotter’s 8 Step Change Model. Retrieved

[Link]

Mosadeghrad, A.M. and Ansarian, M. (2014) ‘Why do organisational change programmes

fail?’, Int. J. Strategic Change Management, Vol. 5, No. 3, pp.189–218.

Rao, M.S. (2018). The Global Companies That Failed To Adapt To Change. Retrieved from
[Link]

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 12. APPENDIX

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