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Importance of Planning In Business

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Sample On Importance Of planning In Business Management Field

10676 Downloads I Published: 21 Jul ,2016

Introduction to Organizational Change

Organization change is considered as a framework for managing the effect of new business processing, changes in the organizational culture and structure within a business venture (Meaning of organizational change, 2015). It is also considered as a systematic approach where employees within organization seeks new behavior and skills in order to perform their business activities more efficiently and properly. Companies trying to set expectations from their talented employees, different employing tools to improve the communication and also proactive seeking ways to reduce the misinformation (Schein, 2010). This report is in form of essay which will specifically demonstrate the changes which organization have to take in case of emergency and also in sudden consequences. Further, with rapid change in technology, organization have to cope up with new machines and infrastructure which will improve their sustainability and revenue.

On the other side, change management is a formulation to transform employees, teams and organization into a desired future state. Organization change management applies a structured approach to ensure that changes has been smoothly and successfully implemented in order to achieve long lasting benefits. According to Reiss, 2012, globalization and regularly new changes in the technology resulting into a constant evolving business environment (Reiss, 2012). Change management have some core benefits which states that the change management is a planned and managed process as it help organization to respond more quickly in order to satisfy consumers needs and demands. Further, the time needed to implement change is reduced and  also the possibility of unsuccessful change is also reduced.  Upgradation like social media and mobile uses has revolutionized business organization and effect of this leading to an ever increasing need of change and change management as well. Further, development in technology has a secondary effect on organization where effect of increasing the availability which will therefore result in accountability of knowledge. On the contrary, Ramnarayan, 2006 stated that, with new changes in the technology employees are quite unsecured, especially the labor who are working in production unit (Ramnarayan, 2006). This is because with new technological advancement, machines will produce more of the goods in less time which might lead towards termination of their job and due to this they will be jobless and they will not have any source of earning as they are not that literate. Change is also required to satisfy the customers needs as consumers needs are extending for different types of goods and services which gives them lot more satisfaction and comfort. New training and development process will make life tough for newly recruited employees as they have to go through and learn many a new change within required time period. This will make employees hectic and due to this they will leave the organization of their own. 

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Importance of Organization change 

Moreover, importance of change management is that it increases the success of organization change and project initiatives by applying different types of structured framework of methods, tools and processes which manages a change from current position to a desired position in the future. Further, many organizations in today's world can benefit from a better way to manage the change. Many leading cooperation's, government entities, various institutions and non profit organizations are adopting change management as an organizational competency. Moreover, if risk is not managed effectively then company's production will decline and talented employees will leave the business organization. Change management also leads in improving morale, productivity and quality of the work. This change management also showcase on the personal/ loss gain in the organization which is acknowledged and addressed efficiently and effectively.

stated that internal and external factors have its own impact on organization and these factors have an great impact on the change. Internal factors are those factors which are in control of business enterprise and organization mission, culture and leadership style is typically linked with it. Further, this internal environment of the company is also influenced by employee's behavior and attitude. On the contrary side, external environment are those which occur outside the company and which significantly cause change within the business enterprise. It consists of customers, technology, economy, political and various social conditions are the common external factors which impact the performance of enterprises. Further, it is the prior duty of the manager to monitor the changes which are happening in the outside environment so that proactive steps are taken at earlier stages and with it organization will be able to achieve the goals and objectives along with the competitive position in the market.

As per the view point of Carr and Hancock, 2006, “business environment possessing dynamic changes as business enterprises have to learn and be comfortable with all the changes otherwise it will affect their production as well as financial performance” (Carr and Hancock, 2006). It is crucially essential to manage and adopt all the changes in the workplace for better and effective functioning. They can either grow organically by ploughing back profits and owners capital into the business. Alternatively they can borrow external finance, or grow by taking over and merging with other companies. Change as business organization have to develop effective strategic plans which will direct the employees to work according to these plans and policies of organization structure. These plans are generally quite flexible and organization can change them when any sudden obstacle is coming in front of them (Cameron and Green, 2012). Business ventures are affected by different changes in external environment in which company operates. Further, existing competitor existing the market but new competitor is coming with all new techniques and healthy financial resources which will make life of existing company tougher. Further, there are competition, technology, desire for growth, government regulations are some factors which cause change in the organization.

However, Andrews, Cameron and Harris, 2008 stated that internal environment can also affect the goals and objectives of organization and can significantly affect the strategic planning efforts (Andrews, Cameron and Harris, 2008). For instance, if a key employee leaves the business enterprise or a group of employee leaves organization then company will be in trouble as recruiting new employees and guiding them all the process will consume more time and till that time period organization performance will be affected. For instance, Nokia shifted from symbian software to Windows software so that more of the customers come towards the organization product and services. This has certainly attracts the minds of large customers base and corporate is able to increase more of the sale and productivity. However, this generally influence the change in employee behavior as some were in favor and some were against of it. With the new expansion lot of training and exercise used to be done and employees who were in comfort zone have to give lot of effort.

Realization for organizational change

Further, new technology is introduced in a factory and employees don't know how to use it (Barratt-Pugh, Bahn and Gakere, 2013). These all organization change can have both the positive and negative impact on business organization performance. But to stay ahead and get a competitive advantage over their competitors, companies have to adopt all the crucial changes which are coming in technology. Modern organizational change is motivated by outside innovations than as compared to internal moves. When such kind of development occurs within business enterprise, companies who adapts these changes as quickly as possible gets the competitive advantage as they are able to produce more of the goods within no time to improve their production as well as financial level (Manning, 2012). However, companies who refuse to adapt the change and carries with the old traditional technology gets left behind and within decade or so they generally get obsolesce.

Smith, 2011 stated that “organization change is a type of change that directly affects all the department within business enterprise ranking from lower level employee to the senior management” (Smith, 2011). Further, while adapting the latest techniques or innovations, companies have to emphasis on major factors like different levels goals and strategies; different measurement systems; procedural steps to achieve goals and objectives; implementation and organizational change. Further, change is treated as the best long term interest of the organization as it can wreak disturbance on employees within coming time period. Common sense tells that people who are going through the change need a personal interaction with those people who they trust the most (Nilakant and Ramnarayan, 2006). People spent more than 3 hours a day on social media and almost 80% of employees within business enterprise uses social media tool. By understanding this concept, companies have an opportunity to leverage the social media as a change management tool. According to Hughes, 2006, social media helps in flattering the organization and drives up the transparent cycle between top management to lower management across different level, functions and geographical areas (Hughes, 2006). Drucker, 2013 stated that research on CEO of the companies has been conducted and more than 75% of them said that social media participation gave employees chance to communicate directly with us and this social media helps us to understand what is happening within organization at different levels (Drucker, 2013).
For adding social media as a change management tool, companies have assessed their internal social media tools. Organization have to reach where large number employees are existing i.e. either on Facebook, twitter or WhatsApp. Companies can also switch to Google hangouts which are hosted in cloud and it can be easily integrated by companies with their existing systems.

stated that any kind of alteration and modification which is done by the organization in advance in order to improve the present position of organization into the brighter one is considered as a planned change. Further, for proper functioning of business activities, companies focuses on planned as well as emergent change. According to Brown, Waterhouse and Flynn, 2013, planned change management clearly sees the difference between the present and the desired state and also find the best suitable way to reach towards the desired state (Brown, Waterhouse and Flynn, 2013). Further, under this change organization moves into a structured format which highlights a structured set of different steps. Under this planned change, there are three phases which leads organization towards the success. Firstly, there is a strategy formulation zone where organization planned their initiatives in order to achieve their organizational goals and objectives. The second strategy which comes is the strategy implementation zone where business enterprise releases the planned strategy into effective results and outcomes. The final stage which persists is strategy outcome zone where organization sees their positive results. On the contrary side, Beech and MacIntosh, 2012 says that employees plays a crucial role in order to formulate the strategy (Beech and MacIntosh, 2012). This is because most of the organization in UK follows democratic style of decision making where they take the effective contribution of their workforce for making the productive decision. Employees also feel motivated as they are considered part of the decision making process and they start working with best of the efficiency and capacity in order to achieve the goals and objectives of company. These democratic style leads organization to get the competitive advantage over their potential competitors. Further, planned change in the organization leads to increase in productivity and ability of service. Further, it also leads towards the enhancement of quality which generally deserves the planned change in the organization. Customer satisfaction also plays a crucial role as it is one of the prime objectives of organization. Market expansion plan also taken into consideration by considering the needs and objectives of organization.

However, there is an emergent change also which is not in anyone's hand as it simply comes into social and biological system. This concept of change believes that there are many factors which has never been forecasted earlier in the change implementation phase. Organization have to formulate emergent strategy in order to tackle these emergent factors. For example, if we see towards the social media majorly like Facebook and twitter, they have been emerged as a global means of communication (Behal and Bansal, 2013). It has been concluded that no one forces us to use them as there was no advice given by anyone but we our self engaged in social media. These social media is discovered as a new way to meet the old friends and can share our personal information anytime and at moment. Apart from this Schein, 2010 stated that these emergent changes are likely to affect organizations routine work and they have to give more priority to a particular work against the other tasks in the organization.

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How it helps

Change management models helps organization to assist transition of culture. Each of the model has their own pros and cons and with the help of these change management process companies can implant the correct requirements in order to address the cultural change. There is Lewin's 3 stage model which is alternatively known as Unfreeze- Change- Refreeze model. This is a model which provides step by step approach towards the organizational change. According to Brown, Waterhouse and Flynn, 2013, Lewin proposes the changing organizational culture and bifurcated in three generic steps constituting: Unfreezing as it unlocks the current stagnant culture of the business enterprises (Brown, Waterhouse and Flynn, 2013). Under this step, individuals within the organization are prepared to accept all the changes in the organization in a predefined manner. Second is Change as this is the most important for every organization where it is required the way of working and behaving within the business organization. This is the stage where people begin to resolve their uncertainties look for the best things to perform their task and duties. The last one is Refreezing where organization confirming and sustaining new culture through the reinforcement. Different new ways of working has been practiced and people are becoming more concerned and embracing the new way of working within the business enterprise (Schein, 2010). This can be better done with the help of positive reinforcement and feedback. Further, Nilakant and Ramnarayan, 2006 stated that with the help of new sense of stability, employees will be feeling more confident and comfortable with the new organizational culture (Nilakant and Ramnarayan, 2006).

Furthermore, in today's generation we see that working of business has been changed in a decade or so. New initiatives has been taken by the organization, companies have introduced project based working in order to complete the task in effectual manner. Various technological improvements and developments has been taken place, etc. Father of change management has introduced a model in order to have an effectual working within business enterprise. It has been viewed from Andrews, Cameron and Harris, 2008 that this model has a powerful 8 steps to perform the business activities in more efficient manner. Creating the urgency depends upon the change to happen within the organization as whole of the enterprise is in need of it. Instead of demotivating the employee's by showing them past year results, tell them to perform well in this year as this will boost their morale (Andrews, Cameron and Harris, 2008). Next is forming a powerful coalition as business enterprises have to convince their employees that change is necessary in order to stay in the competition. Further, organization can develop a vision of change by thinking all the great ideas and solutions floating around the eyes of top managers. Company have to link those concepts in order to create a overall vision. After identifying the vision, business enterprise have to communicate it with the employees in order to determine organization success. Different communicating methods can be opted by organization in order to convey the set vision.

The Triple bottom line principle

According to the view point of Carr and Hancock, 2006 “By bringing change within the organization three different type of benefits will be gained by the manager of firm”. (Carr and Hancock, 2006). The statement as being depicted by the author is correct. In order to exemplify it further assistance has been taken from the triple bottom line principle. The given principle states that there are three basic pillars of sustainability. It consists of social, economic and environment. These given principles can be achieved if significant change will be brought within the organization. For instance, first element of triple bottom line principle states that the firm must look at the social aspects of business. In this regard, firm must take action with regard to make measures towards the welfare of its employees. This can be done by the manager of enterprise, by enhancing the motivation of its workers in an effective way. By complying with the given type of activity, manager can brought any kind of changes within firm. This is because, it has been seen that, in order to bring changes within enterprise it is being required by the manager that it must make measures with respect to enhance the satisfaction level of its employees (Hughes, 2006). Here, satisfaction of worker will be maintained if firm make measures towards their welfare. However, all the employees not have the same viewpoint as individual within the organization comes from distinct background and they have their own trait and culture to follow. Some employees might not be in favor of it and they will protest against all the new changes which have made by the organization.

In addition to this, environment is another element of triple bottom line principle. This principle depicts that organization must form appropriate strategy with regard to manage the wastage which is being occur within enterprise. The whole process of managing the wastage within firm brought some kind of changes within firm (Beech and MacIntosh, 2012). This change can be managed by corporation by taking assistance from the social aspect of given principle. By applying all these given principles economic benefit can be gained by firm in the form of increased profits and sales. Thus, it is by complying with the given type of practices only business can be sustained in the competitive environment for the longer period of time in an effective manner.

As per the view point of Schein, 2010 “In order to brought an effective change, it is being require by the manager that it must improve its understanding regarding the typology of change” (Schein, 2010). By understanding the typology of change, direction of firm can be set towards the specific approach. The given typology consists of four quadrants such as how it happens, magnitude, focus and level etc. With the help of this typology, sudden changes can be brought within firm in the emergency type of circumstances. For example, with the help of given typology organization can set its focus.

For instance, in the emergency type of situation firm has to brought some strategic changes. In the given circumstance, it became difficult for the firm with regard to prepare plan for the changes thus they will have to make instant or emergent decision (Drucker, 2013). Finally, manager have to make decision that whether the change must be brought at individual, team or organizational level. Thus, by using the typology of change any kind of change can be brought within corporation. Due to this, firm can get benefit in the form of increased profits and sales in an effective way. Moreover, organization shows their apologies to the clients if they have broken anyone trusts. Organization wants to win aback the trust of their employees as it will lead to bring back the same goodwill in the eyes of their potential clients and they will start have the new proceedings in effective and efficient manner.

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Conclusion

Conclusively, planned change is more improtant in organization as companies have to significantly study the core objectives of business as well as of the environment in order to get an competitive advantage. Proper plan is made by the top managers and ask for everyone's contribution. For proper learning of planning we must have to make our assignment writing better so thta we can learn from thta the impotrance of planning in business. This is effectively important to plan a new change either in updating new technology or to develop new product or service in the segment, competitiors analysis also need to be done by companies in order to set the price of their products.

Reference

  • Andrews, J., Cameron, H. and Harris, M., 2008. All change? Managers' experience of organizational change in theory and practice. Journal of Organizational Change Management.
  • Barratt-Pugh, L., Bahn, S. and Gakere, E., 2013. Managers as change agents: Implications for human resource managers engaging with culture change. Journal of Organizational Change Management.
  • Beech, N., and MacIntosh, R., 2012. Managing Change – Enquiry and Action  Cambridge UP.
  • Behal, V. and Bansal, P., 2013. Managing change in organization: Challenges and solutions. ZENITH International Journal of Multidisciplinary Research.
  • Brown, K., Waterhouse, J. and Flynn, C., 2013. Change management practices: Is a hybrid model a better alternative for public sector agencies?. International Journal of Public Sector Management.
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