The Implication of Change Management on Today’s Organisation
Rainner Marcellino Manurung (R2109D12786174)
Introduction
The human factor becomes a crucial thing in the industrial process, according to Mangkuprawira
S. (2006). Controlling and managing them has become a problem within itself for businesses.
And we now understand that in life, constant change is inevitable. As humans, we live in a world
full of change (Winardi J., 2010).
An organisation's ability to adapt is compelled by the quickly changing environment and
technology. Many companies fail to adapt to change, and as a result, they are left behind by their
competitors. Large organisations, on the other hand, that desire to move forward innovatively
and are constantly able to resist change, such as Unilever, Citibank, and others, can still survive
even if they are over a century old because these organisations can adapt to change.
When organisations become slow, susceptible, dull, and uninspired as a result of changing times,
they must be encouraged to change; if they do not, they will be displaced and left far behind by
competitors. Change management, according to Winardi J. (2010), is a constant process that
responds to any demand for change, because change always creates concerns and expectations.
One of the goals of change management is to make the transformation process proceed as
smoothly as possible. Meanwhile, change management is an important component of
management, according to Kasali R. (2010), and every leader's success is judged by his capacity
to forecast change and make it a reality.
According to Heller R. (2002), change is the most essential element of business strategy; in order
to compete in an increasingly competitive market, companies and the individuals who work for
1/R2109D12786174
them must embrace change. If an organisation ignores or underestimates evolving trends,
according to Heller R. (2002), it will suffer.
Different organisations may have different change management goals. However, its philosophy
of change management, on the other hand, is the same: making the company more effective,
efficient, and responsive to internal changes. The change process is usually carried out with an
emphasis on organisational change and begins with the corporate environment, which is the first
to recognize the necessity of change, in both the private and public sectors.
People struggle on a daily basis, but change causes them to fail frequently. Individual change and
response to change are always at the heart of organisational transformation.
Critical Discussion
Technology, economic conditions, global competitiveness, social and demographic shifts, and
internal obstacles are all variables that contribute to change. Various external and internal forces,
according to Winardi J. (2010), create changes in organisations. Organisations must respond to
and adapt to a multitude of influences in order to develop and survive. Organisations that engage
in innovation and ongoing product development in order to fulfil changing consumer
expectations and thrive.
Organisational change can be approached in three ways, according to Heller R. (2002): opposing,
following, and leading. Most individuals or organisations that fight change will fall behind or
fail, and will eventually follow the change.
According to Gunawan R. D., Suryono R. R., and Purwanto I. (2010), trying to anticipate and
lead change are more safe because the positive aspects of change are not as obvious as the
negative aspects, and if there has been a shift in perspective and the development of strategies to
2/R2109D12786174
enter and play in the business, then the trend of change will continue. The current status of the
organisation shows no signs of slowing down in terms of frequency, pace, complexity, or
volatility.
Change can have a negative influence on an organisation, according to Winardi J. (2010), but it
can also have a good impact. Being proactive about change, which is the only way to control the
organisation's future, can have an impact on every element of organisational life. Organisational
and market structural changes are frequently influenced by society, economic, and technological
changes.
There are numerous circumstances that can cause transformation. The book of Organisational
Behaviour, written by Kreiner Robert and Kinicki Angelo (2001) and cited by Gunawan R. D.,
Suryono R. R., and Purwanto I. (2010), behavioural experts in companies stated that there are
two strengths that can encourage the onset of the need for change, namely: (1) External forces
that arise from outside the organisation such as demographic characteristics (age, education, skill
level, gender, etc.) and (2) Internal , forces that come from within the organisation, such as
human resource (unmet needs, job dissatisfaction, productivity, work motivation, and so on),
management behaviour and decisions.
The Failure of Change Management
According to a research of the Total Quality Management (TQM) conducted by Schaffer and
Thompson and cited by Song Xiongwei (2010), 229 out of 300 electronics companies surveyed
in the United States failed to achieve quality improvement, with only 10% of these initiatives
succeeding. Only 8% of the top two-thirds of the top 500 firms in Europe, particularly the United
Kingdom, have made the change.
3/R2109D12786174
When to Expect Change and How to Make Change
According to Soerjogoeritno (2004), there are three elements that drive organisational change:
(1) the level of discontent with present conditions. The greater the discontent with the current
situation, the more likely it is that change will be favoured; (2) availability of the desired
alternative. The more alternatives available that are more feasible to upgrade the current
condition to a better condition, the more desirable it is to make changes; (3) the size of the gap
between desired and actual conditions. The existence of plans to achieve the desired alternative,
and if the planning is good and systematic, it means that there are more opportunities to make
changes.
It is not necessary to wait for a catastrophe before making changes. When a company is on the
upswing, usually the best changes are made. Because the company had a lot of confidence, a lot
of money (Cash Inflow), and a lot of resources at that time (Kasali R., 2010). Because the
organisation is growing and its members are in a comfortable state, resistance to change will
appear to be quite strong. Kasali R. (2010) claims that great teams and great players are required
to make a difference.
To put it another way, this concept argues that organisations do not wait until they are "sick" to
make changes and attract new individuals who are "fresh," and that if they are not obliged to do
so, they would sink. A thorough study is required to establish which topics should be addressed
in the face of change. Changes are made to improve one's quality of life. And, in order to
accomplish so, it must be implemented in a conceptual, methodical, and progressive manner.
According to Kasali R. (2010), the existence of a learning process is a condition for change, and
everyone in the organisation is a human learner. Organisations learn through several stages,
4/R2109D12786174
namely: (1) human resources are chosen through a rigorous process; (2) the organisation is led by
an entrepreneurial leader; (3) the learning process occurs both inside and outside the
organisation; (4) the existence of connections between the organisation and external
circumstances; (5) there is a place to collect and disseminate information; and (6) there is
recognition and reward for individual and group success (innovative culture).
According to Winardi J. (2010), a number of factors must be considered when making changes to
an organisation, including (1) agents of change; (2) determining what needs to be changed; (3)
the type of changes to be made; (4) the individuals who will be affected by the change; and (5)
evaluating the changes. Meanwhile, the organisational process has two goals: (1) adapting the
organisation in relation to its environment, and (2) improving employee behaviour (Winardi j.,
2010).
The success of a change is ultimately determined by the combined influence of the elements
indicated, as shown in the diagram below. The change agent, as seen in the diagram, is clearly
the most important aspect in initiating an organisational transformation.
5/R2109D12786174
Diagram 1 depicts the impact of five major elements on the success of organisational change
(Winardi J., 2010)
Resistance to Change
There are a number of reasons why businesses want to keep things as they are and refuse to
change. Personal interests, misunderstandings, norms, and power dynamic, as well as numerous
differences such as ideals and objectives, according to Handoko H.T., and Reksohadiprodjo S.,
(1997), are the causes of resistance. There is a sense of loss of ease, power, security, and identity,
and other privileges.
Changes will be rejected, and people will be hesitant to embrace changes due to
misunderstandings caused by misinformation. This will occur if they are excluded from the
discussions and drafting of the change plan, as they will be unaware of the purpose, processes,
and possible implications. Rules and norms that have been in place for a long time will also
impede any changes.
6/R2109D12786174
Resistance to change can arise when there is a lack of understanding regarding the need for
change and the consequences of not doing so. The conventional form of resistance to change
may not always appear directly. Rejection can be blatant (explicit) and quick, such as filing a
protest, threatening a strike, or holding a demonstration, or it can be subtle (implicit) and over
time, such as diminished organisational loyalty, decreased work motivation, more job errors,
increased absenteeism, and so on. Other issues, such as the lack of configuration information on
current infrastructure, can also be a concern.
One of the causes of failure faced by organisations in implementing change, according to
Gunawan R. D., Suryono R. R., and Purwanto I. (2010), is the failure to establish a strong
enough coalition among those who have the power and ability to facilitate change. The change
process is divided into eight stages: (1) Creating a feeling of urgency. (2) Forming alliances. (3)
Coming up with a strategic plan. (4) Getting the message out about the changed vision. (5)
Enable broad-based activity. (6) Achieve short-term success. (7) Compile your findings and push
for more change. (8) Changing the organisational culture using a new strategy. The eight levels
are sequential, however if the first two stages have been completed, there is no need to repeat
them.
The most significant consequence of failures in change management is the formation of
resistance from managers or employees to organisational changes. When there is a change in
routine work, resistance to change manifests itself as an emotional reaction/behaviour in
response to the development of threats, real or imaginary.
The Key to Successful Change Management for Leaders
Although just a few people in the company have a desire to change, change can be achieved if
there is an initiative that stems from a recognition of the need for change. The change process
7/R2109D12786174
will be initiated and maybe led by an initiator, and efforts will be made to persuade other
members to participate. This enables all members of the organisation to see change as a
necessity. However, a strong need for change will inevitably lead to resistance to change; if the
want and need for change is great, resistance will be attempted to be removed.
The method of managing change will be easier to undertake if leaders first seek awareness and
eliminate rejection. The next step is to agree on the type of change that is required, identify and
build important success factors, and establish procedures and structures that will eventually lead
to the creation of a strategy.
According to Ulrich D. (1996), the keys to success in managing organisational change are: (1)
leading change, which is the individual who advocates the organisation's changes; (2) generating
a common needs, i.e. persuading others to think together about why they need to change, what
needs they need to alter, and the possible rejections they will face; (3) constructing a vision, i.e.
overcoming change hurdles. (4) mobilising commitment, which entails identifying and defending
stakeholder interests that must be taken into account when managing change; (5) Changing
system and structure, i.e., ensuring that changes are embedded into the organisational
infrastructure through human resource and management activities (staffing, development,
assessment, rewards, organisation design, communication, systems, and etc.). (6) process
monitoring, which includes establishing benchmarks, milestones, and experiments to assess and
illustrate the change process; and (7) making change last, which ensures that change occurs as a
result of planning, thought, and commitment.
The presence of a change agent who will lead the organisational change process is the most
important aspect in deciding whether or not an organisation will succeed in dealing with change.
8/R2109D12786174
The change process will not become regular and will lose its direction without the presence of a
change leader.
A change leader's presence can come from both inside and outside the company. According to
Ulrich D. (1996), a change leader must be able to become a champion in an organisation's
change process, which includes the ability to: (1) spread his vision and encourage individuals to
achieve that vision; (2) play a role not only as a knowledge worker but also as a knowledge
broker; and (3) disseminate knowledge to other members.
Managing Change Resistance
Change is unavoidable for any business. People are afraid of economic loss, discomfort,
uncertainty, and despondency as a result of changing societal patterns. Almost any change in
structure, technology, people, or strategy has the potential to disrupt established interaction
patterns. The main threat to successful strategy execution, according to David Fred R. (2010), is
resistance to change.
People frequently reject strategy implementation because they don't comprehend what's going
on. The ability of managers to create a change-friendly working atmosphere is critical to the
strategy's success. Managers and staff should perceive change as an opportunity rather than a
threat.
At every step or level of the strategy implementation process, resistance to change might occur.
There are three main approaches for implementing change, according to David Fred R. (2010):
(1) forced change strategies, (2) educative change strategies, and (3) rational or self interest
change strategies. The forced change strategy entails issuing orders and fulfilling those
commands; the advantage of this technique is its immediacy, but the disadvantage is its low
commitment and high resistance. Educative change strategy gives knowledge to persuade people
9/R2109D12786174
of the necessity for change. However, the disadvantage of this method is that it is sluggish and
complicated to implement. Compared to a forced change strategy, this strategy generates more
commitment and less resistance. The last strategy is the rational or self interest change strategy,
which aims to persuade people that change is required for their own benefit or interest. If these
efforts are effective, the plan can be implemented quite rapidly. Changes in implementation that
benefit all parties are uncommon.
Rational change strategies are considered the most effective. By properly structuring change
efforts, a manager can boost the chances of a successful plan implementation. A rational change
strategy, according to Jack Duncan in David Fred R. (2010), consists of four steps: (1) employees
are invited to participate in the change process and the details of the transition; (2) a certain
motivation or incentive for change is required; (3) communication is essential so that people
understand the purpose or intent of the change; and (4) provide feedback to everyone to
determine the progress made.
In organisations, changes are inevitable. Industry and organisation evolve at different rates,
magnitudes, and directions across time. Strategists should strive to establish a working culture
where change is seen as both essential and beneficial so that people can adjust more easily.
Adopting a management strategy into the decision-making process necessitates significant
changes in a company's philosophy and procedures. Strategists can take a number of proactive
steps to reduce managers' and employees' resistance to change.
Conclusion
In order to thrive in today's world of global competition, an organisation must make adjustments
on a consistent basis. In order to avoid employee confusion in appreciating behaviour and culture
10/R2109D12786174
at work and minimise resistance, it is vital to have socialisation that strives to describe genuine
changes to every employee and be able to provide a mirror of change for each employee to see
about the original form of change. Changes are designed to have a good impact on the
organisation, which may be a fun challenge for employees who understand the direction of
change and how to respond to it.
The organisation must evaluate the implementation and assessment, as well as the influence it
has on the organisation, in order to determine progress and provide feedback in order to enhance
the organisational change instrument. In order to ensure the continuity of a good organisational
change process, an understanding of crucial success criteria and variables that can lead to failure
is critical.
11/R2109D12786174
References
David, F., 2010. Strategic Management. Jakarta: Salemba Empat.
Gunawan, R., Suryono, R. and Purwanto, I., 2010. Analisa Perubahan Manajemen Dalam
Implementasi Sistem Informasi pada Perguruan Tinggi ABC. Seminar Nasional Aplikasi
Teknologi Informasi (SNATI 2010), ISSN:1907-5022.
Handoko, H. and Reksohadiprodjo, S., 1997. Organisasi Perusahaan. 10th ed. Yogyakarta:
BPFE.
Heller, R., 2002. Essential Managers: Managing Change. 1st ed. Jakarta: Dian Rakyat.
Kasali, R., 2010. Change. Jakarta: Gramedia Pustaka.
Mangkuprawira, S., 2006. Model Manajemen Mutu. Jurnal Manajemen Publikasi Penelitian dan
Review, 1(2).
Soerjogoeritno, E., 2004. Total Organizational Change Berkelanjutan: Perspektif Manajemen
Perubahan. Jakarta: Majalah Usahawan, p.06.
Ulrich, D., 1996. Human Resource Champions. Harvard Business School Press.
12/R2109D12786174
