Corporations are revolutionizing more promptly than ever before. Management of greater organisations are obligated to react immediately to the growing variety of demands. Change of the existing organization, altering or converting it and creating a new or altered form of the organisation, is then required. Organisational change is demanded when an organisation is under substantial pressure. These pressures could include technological change, communication, and an increase of competition. Any number of these pressures positioned on an organisation can result in changes to its structure, activities, policies, behaviours, culture, methods, processes and procedures.
Promising sources for alteration could involve, technological advancement, changing markets, and environmental issues. Changing markets in an organisation usually involves the change in products or range of products that the organisation produces. In some circumstances, for example, competition pressures, an organisation may need to expand their product range to compete with their competition. Organisations can also confront changing markets through product advertising or community relation campaigns, or by increasing/decreasing costs of production, therefore raising the issue of price competitiveness.
In order for an organisation to remain up with the opposition, large organisations have to rely on the use of modern and obtainable technology. However technology advances rapidly and therefore requires a change in technology when new and improved technology is available. This pressure requires a significant change and almost always requires changes in work practices within the organisation.
The community's interest for the condition of the environment has become a substantial concern for corporations. To maintain the environment in a positive state, a law is established governing the way organisations produce their products. This could require change in production procedures. In other instances the organizations own concern for their public image, in supporting a safe and unharmed environment, may require a change in its activities or structures.
Experiencing and implementing change can be a complex course of action. Management still consider Kurt Lewis's three-phase change process, which can assist in the implementation of the difficult procedure. Kurt declared that there are three major phases that aid management in applying a particular change.
They include the following:
Phase 1 - unfreezing the current situation
This phase prepares the organisation for the major change. The existence of resistance to change can occur in an organisation and this stage aims to minimize the resistance and gain commitment from the team (employees, managers, customers, etc) involved.
Phase 2 - Moving to a new state
This stage involves the change itself. Management implement the change and still are creating a positive culture within the organisation. A new situation is established and is put forward into action. Commonly, the same management actions and behaviour will be directed at unfreezing the situation and moving to a new state.
Phase 3 - Refreezing the new situation
This phase seeks to sustain the force of the change implemented in phase 2 (Unfreezing the current situation). This phase should involve the circumstance of alternative support for those implementing the change, tending to those effected, through retrenchment or loss of status, as a result of the change, and most importantly an evaluation of the overall change. The change must however be refrozen in positive terms, if not there is a threat of the change being disoriented and the time wasted.
When management consult with others about a significant change that they wish to implement, some could be resistant to comply, and don't accept the change. Resistance of employees can be avoided through the few of many tactics listed below:
Communication - if employees are effectively educated of the required change they are more prone to support it. Communicating to employees effectively of the new required change informs the employees of the change and deals with any predicaments that arise. Communicating can take the form of one-to-one personal communication, memos, reports, letters, committees, conferences and informal networks.
Support - Providing support for those in need during this procedure is essential. It provides the chance of resolving problems employees may obtain. Support made available by managers can take the form of active listening to the problems that arise over the change, training in new skills, and observing the amount of concern within the organization.
Participation - by allowing employee participation in the change process, it is then difficult for them to refuse to accept decisions that they have been part of producing. Participation is supported by management application of a participative style of management, a committee structure, and delegation of several decision-making authorities.
Managers implementing such a significant change that will effect the organisation drastically should provide some support and use these factors to enhance the positive outcome of the change. They should also listen and consider all feedback provided by employees.
Globalisation is a wide-ranging uncertainty. Definitions vary depending on an individual's concept. Some focus on the financial aspect and therefore emphasize the worldwide economy point of view, whereas some focus on the cultural aspects of this issue and how globalisation has affected different aspects of their culture. Still others focus on the political aspects of the structure of globalisation, yet others associate globalisation with advanced technology, particularly in the area of communication and transportation.
Globalisation, as I empathize, refers to the development of worldwide relations, the organization of social life on an international level, and the expansion of a global perception, therefore to the combination of world society. It describes the increased transportation of goods, services, labour, technology and assets throughout the world. Although globalisation is not a new advancement, its rate has increased with the arrival of new technologies, especially in the area of telecommunications.
"Globalisation is much like fire. Fire itself is neither good nor bad. Used appropriately, it can cook food, form iron, and heat our homes. Yet on the other hand, used inaccurately, fire can destroy lives, towns and forests in an instant." The Lexus and the Olive Tree, Thomas Friedman
Globalisation can be extremely empowering and awfully threatening. It can unlock opportunity and release panic. Globalisation has dangers and an unattractive depressing aspect. But it can also bring upon remarkable opportunities and benefits within a large organization. The key elements of globalisation consist of less restricted world trade and the rapid movement of money around the globe.
Globalisation creates more competition, and allows individuals to work amongst other cultures. In some circumstances, organisations globalising can create a more diverse market and a technological advantage over competition in foreign regions. Globalising could occur due to a high demand of products within an international region, resulting in an increased profit. By globalising, organisations can distribute lower labour costs to employees and in some circumstances, avoid high economies of scale. It also opens up new opportunities, higher profits, a decrease in production costs, and significant expansion.
Government policies may lead a company into globalisation through a better offer on economies of scale in other countries than in their national region. Lower labour costs and input cost into product production can also influence and organisation into globalising. Organisations would want to globalise as they can benefit from internationalisation by helping them obtain assets, skills, and new technologies as well as export opportunities.
Many opportunities evolve and develop as a result of globalising. However in order to maintain positive effects, an organisation has to be able to control the hindering factors of the globalisation effect.
Amongst the positive factors that may motivate an organisation to globalise there are some that hinder it. Globalisation can cause many complications. Complications such as different business cultures and ethical standards apply in different countries, language issues might arise if an organisation is expanding into a Non-English speaking region, and currency issues could become a concern and a difficulty.
Throughout an organisation that has expanded into the international market, producing their products in non-English speaking countries could bring upon many struggles. Production of packaging for the products produced would have to contain other languages, employees not understanding the English language, and communicating with those employees could be some of many difficulties concerning the language of the region the organisation has expanded into.
After the expansion of an organisation into the international market, you need to establish whether the management of this significant change was effective. To do so, you need examine the communication that exists in the organisation after the change, participation that has evolved or decreased as a result, and the corporate culture of the new established change.
If the change were to be considered "Successful":
ÃÂ· communication would be effective and efficient throughout the organisation between both management and employees,
ÃÂ· a positive corporate culture would be established and values would be held within the organisation,
ÃÂ· participation of all employees within the business would have to be efficient and well supported, and
ÃÂ· the change would be supported throughout the organisation and no objections would be made.
Performance indicators, both financial and non-financial, need to be examined. Financial indicators including profits, and non-financial including employee effectiveness and satisfaction, all contribute to an effective change. Once all these have been established and announced as positive then the organisation can then be considered to have experienced a "successful" management of globalisation.
In addition to the important organization issue of competitiveness, the fast tendency to globalisation institutes a number of significant minor concerns for management that effect the internal environment within an organisation. These include the knowledge of what preparation and training is needed to employee individuals in other cultures, the use of international technology systems and communications technology, the adjustment of management styles to suit the culture of the new region, and knowledge and sources of professional advice on foreign laws affecting business (for example employment practices, taxation, currency transfers). These sub-issues that are effecting the internal environment, need to be considered by management previous to globalising, as they are essential in the administration of an international business.
Other internal changes that occur as a result of globalising could include knowledge and sources on conditions in overseas markets, experience in the mechanics of worldwide commerce and what training is required, and the know-how of management of the employees in foreign countries. Basically, globalisation requires great research and study on how international organisations work and an understanding that minor changes have to be made within the organisation.
Without this knowledge the globalisation implementation is under risk of weakening and could cause a decrease in assets, leading to a negative experience. However implemented correctly and carefully, through extensive research, support and great management, globalisation can be a success.
War in Iraq, the threat of terrorism and the outbreak of SARS (Severe Acute Respiratory Syndrome) originating from Hong Kong had severely affected Qantas's flight schedules. With bookings being reduced radically, Qantas had to reduce their international flights by up to 20 percent. The reduced flying schedule resulted in a reduction of staff; through an accelerated staff leave program and a severe cut in their profits.
Under Qantas's devastating circumstances, they had no other choice but to reduce their flight schedule. Reductions were made on services to the UK from 21 to 17 flights per week, services to Rome from 3 to 2 flights per week, services to Paris from 3 to 2 flights per week and services of Australia-Los Angeles from 28 to 25 flights per week. Many other suspensions of flights were also necessary.
This change was a necessity for the people at Qantas. Chief Executive Officer, Mr. Dixon, "said that in these difficult times, Qantas must remain flexible to ensure the long-term viability of the airline and job security for the great majority of its 37,000 people."
As a result of this particular choice of necessary change, Mr. Dixon stated that Qantas would still record a strong result for the year, remaining one of the most profitable airlines worldwide. This strategy of overcoming a problem almost guarantees that Qantas will remain well positioned to maximise opportunities when the global market recovered.
Considering the long-term effects of the challenging decision the threat, Qantas has now twisted this threat into an opportunity for the organisation. With other airlines experiencing the same difficulties, Qantas was able to successfully manage the change and consider the organisations future, after the global market has recovered. This set Qantas out front and even though their profits have decreased they still hold a reliable future.