Management change is the secret of successful organisation

“Change is nothing new and a simple fact of life. Some people actively thrive on new challenges and constant change, while others prefer the comfort of the status quo and strongly resist any change. It is all down to the personality of the individual and there is little management can do about resistance to change”.  (Mullins 2010: 753).

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Everything in the world is always changing by the most effective factor that we call “Time”. Why do we need to change when the time changes? it is commonly to answer that we need to adapt ourselves to survive and handle all change things to be better than the past. Change is the common things of human life cycle, people always change the job when they dissatisfy or get better position, because they are changing to the better thing.

Why the organisation is keeping change? Getting ready for the change is the advantage of company and it helps company to understand the elements of change that the change can brings benefits and drive company forward to the setting goals. (Root III 2014) The organisation should keep changing because the market demand is changing by the surrounding factors that directly affected need and want of customers and the company need to improve the organisation structure to the better standard of performance.

There are a number of benefits that enhancing company improved. First, change is moving the company forward that is improving staff the gain new skills and knowledge. Employee is the important resource of the organisation if they are the quality employee the company will drive forward that can be one of the strength. This is the sign to employees to get ready for the change which is inevitable and understanding it. (Faucheux 2009)

Secondly, change is improving company to get stronger against competitors and gain more competitive advantage that will generate higher profit. To become a leader in the market is the objective of every companies that revolution of company can support the fundamental structure for more market share. (Faucheux 2009)

Demolishing company weakness is vital. Seeking the spot of weaknesses inside the organisation for eliminated and create the better methodology of operation with minimizing uncertainty. Change is adjusting the weak point of company and emphasize the good things, for instance, managing cost control by reducing expenses and spending for the necessary things for growth that would effects efficiency and maintain company’s productivity. (Root III 2014)

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Avoiding and overcoming the resistance of change is the thing that manager should do and take action with it. Lawrence stated that there are 3 step to deal with the resistance attitude (Lawrence 2014):

1. Getting people involve to participate the change. The participation is the intrinsic meaning of “listen” because they need to know before they make a decision. (Unfreeze)

2. Understanding the nature of resistance and using human relationships ease up the social change instead of technical change. (Change)

3. Taking concrete step with the staff attitude and emphasize the new standard performance to encourage them to think in different ways. (Refreeze)

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The resistance is cannot be avoid from the colleagues that have different perspectives with the leader or management. The way overcome with resistance is open-mind and understand all involved parties that have affected.

According to Insurance industry in Thailand, Srimuang Insurance is the insurer who provide all classed of insurance in Thailand. In 2011, there was a big flood in Thailand and all industries were effected, 7 industrial estate was submerged that was cost 24,654 trillion. (Thaipublics 2011) Srimunag was acquired by Tokio Marine group in Japan to indemnify the loss of flood.

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The organisation structure was changed with the Japanese management who governing all activities. Some staffs were resigning from the change situation including the president of company. However, after the flood situation, the company is growing steadily to become to 10 rank in industry. (Tokio Marine 2014) So, the change is significant impact to the organisation and brings a lot of benefits inside operation but there are some difficulties that should be concerned with the employees to accept then change and move forward together with the company.

In my opinion, I personally agree with the change that can develop the performance and create optimistic trend in the future. Moreover, the weakness is eliminated from the diagnosis of internal process. It is challenging to the organisation but it is the worthwhile experience with the objective of organisation. Anyhow, before the change, management should concern more about the factors that could happen after change and setting up a plan to handle with all employees and company’s performance.

 

List of reference

Faucheux, M. (2009) Negotiating the Advantage and Disadvantage of Change in Management. [Online] available on: <http://www.brighthubpm.com/change-management/18477-negotiating-the-advantages-and-disadvantages-of-change-management/> [16 June 2014]

Lawrence, R. (2014) How to Deal with Resistance to Change. [Online] available on: <http://hbr.org/1969/01/how-to-deal-with-resistance-to-change/ar/1> [16 June 2014]

Root III, G. (2014) What are the Benefits of Managing Change in Organisation? [Online] available on: <http://smallbusiness.chron.com/benefits-managing-change-organizations-108.html> [16 June 2104]

Thaipublica (2011) Thailand flood 2011: Bank of Thailand. [Online] available on: <http://thaipublica.org/2011/12/world-bank-flood-damage/> [16 June 2014]

Tokio Marine (2014) Company profile. [Online] available on: <https://www.tokiomarine.co.th/company01.php> [16 June 2014]

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10 thoughts on “Management change is the secret of successful organisation

  1. Smooth blog with full of information. The example is nice, however, I think, providing example of the company which resists change and its effect can shows the clear vision of resistance and make the blog more perfect!!

  2. Your blog is interesting. I agree with you change is very important for organisation. Do you think if some companies still do not change you think they can survive in this age or not?

    1. It depends on the situation that they faced, if it is a monopoly business that is no need to change. Anyhow, changing is better because market is changing all the time

  3. youe point is really interesting espacially about the employee. i agree with you that the important factor for changing is employee. if the employees were not ready, the company could not move forward.

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