Change Management

Essay by olgjUniversity, Bachelor'sA-, January 2010

download word file, 9 pages 3.7

Change management is the process of ensuring that an organization is ready for change and takes action to ensure that change is accepted and implemented smoothly (Michael Armstrong and Tina Stephens, 2005). Based on the change management theories, this article will present what is the organization change, why the organization should change and how it changed. I will take Haier Group for example to illustrate how they change from Management by Objectives to SBU (Strategic Business Unit), and what is the successful part and what is the failure, also I will describe that why the SBU strategy cannot be promoted after nearly 7 years since it had been suggested to use in 2001. Several change models will be selected in the main body, such as Lewin's eight-step change model, Egan's three-stage model and so on. And the change agent of Zhang Ruimin - the CEO of Haier Group will be mentioned in the main body.

There are also some suggestions of how to change an organization successfully in my own ideas.

Keywords: organizational change, management by objectives (MBO), SBU (Strategic Business Unit), Force field analysis, Three-stage change model, ForceIntroductionOn industrial globalization trend, all companies face to higher competition than before, if still follow the inflexibility strategy for management, it will make company fall down in globalization business game. Change is the only constant. Change is the second to none approach for firms to maintain the competitive advantages under the current rapidly changing business environment of knowledge economy. It has been the direction for the organizations to pursue the better performance of change. Organizational change is the theory for an organization to adapt the environment and adjust the organization. It is an important method to keep the vitality of an organization.

Organizations are influenced by a multitude of factors, which...