EFFECTIVE ORGANIZATIONAL CHANGE …

1 Serbian Serbian Journal of Management 3 (1) (2008) 119 - 125 Journal of Management Letter to Editor: EFFECTIVE ORGANIZATIONAL CHANGE MANAGEMENT. M. Radovi - Markovi . Institute of Economic Sciences Belgrade, Serbia (Received 14 September 2007; accepted 29 December 2007). Abstract The issue of managing ORGANIZATIONAL CHANGE is of key importance within management theory and practice. A number of cases have shown that attempts to 'manage' ORGANIZATIONAL CHANGE frequently failed . Therefore the objective of this paper is to find why does the failure almost occur? Additionally, this papers objective is to provide discussion and find reply on the following questions: Which specific aspects of CHANGE are currently impacting most on practicing managers? How do they react to CHANGE ? How are they dealing with them?

2 And how successful are their attempts? How do the problems identified and solutions described, relate to the theory and research on ORGANIZATIONAL CHANGE ?What kind of organizations are the most adopted to changes? The findings suggest that most companies' operational strategies and structures reflect past business realities making ORGANIZATIONAL inertia one of the most significant obstacles to CHANGE . However, it is noted that leadership and management skills, such as visioning, prioritizing, planning, providing feedback and rewarding success, are key factors in any successful CHANGE initiative. The paper culminates with conclusions, implications and suggestions for further research. Keywords: ORGANIZATIONAL CHANGE ,management ,managers, small business 1. INTRODUCTION markets. To stay competitive, companies must do away with work and processes that The increased pace of CHANGE over the don't add hypercompetition has past ten years has been dramatic invalidated the basic assumptions of.

3 Competition has heated up across the board. sustainable are few To succeed, the organization of the future companies that have escaped this shift in must serve customers better, create new competitiveness. Entry barriers,which once advantages and survive in bitterly contested exerted a stabilizing force on competition, * Corresponding author: 120 M. Radovi} -Markovi} / SJM 3 (1) (2008) 119 - 125. have fallen in the face of the rapid changes of How are they dealing with them? And how the information age. These forces have successful are their attempts? How do the challenged our capacity to cope with problems identified and solutions described, ORGANIZATIONAL life required. Managing relate to the theory and research on CHANGE effectively requires an understanding ORGANIZATIONAL CHANGE ? of the variables at play, and adequate time Mergers, acquisitions, new technology, must be allowed for implementation.

4 Restructuring and downsizing are all factors Therefore we shall discuss in this paper that contribute to a growing climate of about how to thrive in the chaotic world we uncertainty. The manager who moves live in. Additionbally ,we shall research straight into why the CHANGE is best for strategies that could contribute to everyone and how business is going to be successfully manage changes. conducted disregards the human nature element - the emotions that are normal and natural for anyone feeling threatened by 2. MANAGING ORGANIZATIONAL CHANGE to feel. At every step in the process of CHANGE implementing an ORGANIZATIONAL CHANGE , a good manager will ask him/herself How What Are ORGANIZATIONAL CHANGE and might I react to these changes ?As the ORGANIZATIONAL CHANGE Management? organization implements the changes CHANGE has several meanings, but for the though, the reality of the CHANGE becomes purposes of this paper, CHANGE or, more present and employees may either resist the precisely, ORGANIZATIONAL CHANGE will be changes or start to adjust to the changes defined this way: depending on the person.

5 The employee who ORGANIZATIONAL CHANGE is the continues to resist, remains angry and is implementation of new procedures or labeled as difficult is feeling more technologies intended to realign an threatened and may need some one-to-one organization with the changing demands of time with the manager to discuss the changes its business environment, or to capitalize on or at some point, may need clarification from business opportunities. In addition, the manager about performance expectations ORGANIZATIONAL CHANGE management is the in light of the changes. There are external process of recognizing, guiding, and and internal triggers for ORGANIZATIONAL managing these human emotions and CHANGE . reactions in a way that minimizes the External triggers include: developments inevitable drop in productivity that in technology; developments in new accompanies CHANGE .

6 Materials; changes in customers'. Organizations have to deal with new requirements and tastes; the activities and technology, and with upgrades for existing innovations of competitors; new legislation technology. They have to cope with and government policies; changing domestic reorganizations, process improvement and global economic and trading conditions;. initiatives, and mergers and acquisitions. shifts in local, national and international Which specific aspects of CHANGE are politics; changes in social and cultural currently impacting most on practicing values. managers? How do they react to CHANGE ? Internal triggers include: new product and M. Radovi} -Markovi} / SJM 3 (1) (2008) 119 - 125 121. service design innovations; low performance scope of objectives intended by the initiative. and morale, triggering job redesign; The outcomes of EFFECTIVE ORGANIZATIONAL appointment of a new senior manager or top CHANGE management can have positive, management team; inadequate skills and bottom-line impacts, as illustrated in the knowledge base, triggering training table 1.

7 Programmes; office and factory relocation, closer to suppliers and markets; recognition of problems, at triggering reallocation of 3. ORGANIZATIONS MOST ADOPTED. responsibilities; innovations in the TO CHANGES. manufacturing process; new ideas about how to deliver services to customers.. Top Many entrepreneurs are recognizing the management's actions are usually reactions opportunities that this process offers and to some outside force, such as stiffer gaining access to global markets has become competition, shifts in the marketplace or new a strategic instrument for their further technology. It is important to realize that development. Access to global markets for CHANGE is a key to surviving and growing in small businesses can offer a host of business today's global economy. Without CHANGE we opportunities, such as larger and new niche would run the risk of becoming stale and markets; possibilities to exploit scale and unresponsive.

8 The challenge we face is to technological advantages; upgrading of learn to move through this wave of transition technological capability; ways of spreading as easily and creatively as possible. The risk; lowering and sharing costs; and in many organizations that succeed at CHANGE do so cases, improving access to finance. Gaining by considering the people who are affected access to global markets can help by, will have to live with, and are often prospective high-growth firms realize their crucial to effecting the CHANGE in question. potential and are often an essential strategic Even better, not only does managing the move for SMEs with large investments in human aspects of an ORGANIZATIONAL CHANGE intellectual property. initiative help ensure the successful To prosper, SMEs need a conductive implementation and use of the technical business environment and regulations, solution, it sets the groundwork for adequate basic infrastructure services, access implementing future solutions.

9 As to short and long-term funding at reasonable organizations seek to implement new rates, equity and venture capital, advisory technology and take other actions to keep assistance, and knowledge about market themselves competitive in their chosen opportunities. In spite of many companies markets, they must ensure that the changes engender a desire to win, but people in high- they implement achieve the full scope of performance organizations know what their technical, financial, and human winning looks like. They know that objectives. This is the ultimate objective of companies need talented people with the the ORGANIZATIONAL CHANGE management global mindset, competencies and process: to ensure that tactics for addressing commitment to execute strategy both today human reactions to CHANGE are fully and in an increasingly unknown future.

10 Integrated with other aspects of the However, this economy relies on the need of implementation in order to achieve the full good informing and applying the best 122 M. Radovi} -Markovi} / SJM 3 (1) (2008) 119 - 125. Table 1. Outcomes of EFFECTIVE ORGANIZATIONAL CHANGE management (OCM)1. international managerial experiences, so Also, professor Vorbach claims that in small businesses more and more apply some cases the basic limiting factor for sophisticated management techniques, which transforming small businesses to large or are widely used in large businesses. Andrew medium is inability to serve large markets. In Vorbach2 , professor of University of other words, they perform well, but in small Technology in Sydney, especially point out volume. For small businesses, according to to changes regarding comparative this and other experts, the use of modern advantages in new economy.