Change Management Model and Philosophies

Question: Discuss about the Report for Change Management Model and Philosophies. Answer: Introduction Organizations implement changes in their business procedures and practices for improving their performance, maximize profits and gain a competitive advantage (Pieterse et al., 2012). In this context, the present essay emphasizes on the reasons for successful organizational changes in business environment. For this purpose, the essay has presented an evaluation of both successful and unsuccessful organization by supporting it with organizational change philosophies and models. Evaluation of Successful and Unsuccessful Organizational Changes The success attained by the businesses through implementation of organizational changes depends on its successful management. The main reasons responsible for successful organizational changes includes employee engagement, proper communication flow, identifying and removing the barriers and regular monitoring of the change process (Teece, 2010). The most renowned example for the successful organizational change comes from British Airways who implemented the organizational change of restructuring its entire business unit by reducing the workforce. The company was under the news of operating inefficiently due to large wastage of valuable resources. It appointed a new chairperson who implemented structural changes by creating proper knowledge among the employees regarding the layoffs. The company might have to face serve criticism for layoffs but honest communication by the chairperson regarding the necessity of its restructuring helped British Airways to manage it successfully (British Airways, 2009). On the contrary, a prominent example for unsuccessful organizational change comes from Wal-Mart. Wal-Mart follows a low pricing strategy for selling its food, electronics and apparels products. However, the company introduced higher-priced upscale products such as fashion apparels for attracting new customers. The implementation of such a change in its operational strategy proved to be unsuccessful as high-end customers were not attracted by its products and low-end customers switched off to other alternative cost-effective products. Thus, the company announced in 2012 to refocus its efforts on low prices products (The High Price of Low Cost, 2011). In this context, the contingency theory of organizational change supports the change management practices implemented by the British Airways. As per the theory, an organization must communicate adequately its legitimacy to the public that explains the need for adopting a particular organizational change (Battilana Casciaro, 2012). The contingency theory emphasizes that organizational managers in the long-term are forced to adjust their business practices and procedures to attain the best fit between the resources available and its effectiveness. The main reason for the organizations to implement a strategic change is to attain stability and control over their business processes. The reason for an organization to adopt a particular strategic change depends on internal and external stimuli and the best course of action is to adjust according to the circumstances. British Airways has successfully implemented the contingency model of organizational change by attaining best fit between i ts internal resources and the external situation (Battilana Casciaro, 2012). The airways adopted the strategic change of restructuring its business model to attain stability and control over its internal processes as stated by the contingency theory of organizational change. The main reason for the lack in performance of the airways was operational inefficiency due to internal resources constraints. As a result, the chairperson of the airways adopted the strategic change of reducing the workforce diversity by employees layoffs. The chairperson, however, in accordance with the contingency organizational change model created a bets fir between its internal resources and external situation through communicating properly about its legitimacy to the public (Battilana Casciaro, 2012). The reason for the unsuccessful organizational change experienced by Wal-Mart can be explained through the application of rational philosophy of change management. As per the rational theory, the organizational managers must attain an alignment between its composition, competencies and external environmental context (Graetz, Smith, 2010). The process of organizational change as per the theory is a linear process and business managers are the controlling agents of the overall change management process. The theory highlights the responsibility of business leaders in managing a change successfully through conducting an evaluation of the external environment. The main reason for the failure of organizational change adopted by Wal-Mart as per the rational theory is inefficiency of the business leaders to conduct a proper evaluation of the external environment. Evaluating the external environment would have proved beneficial for the company in gaining an appropriate understanding of the c ustomer needs and expectations. External environment analysis would provide a specific insight to the company about the needs of both high-end and low-end customers (Graetz, Smith, 2010). Conclusion Thus, it can be stated from the overall discussion held in the essay that the main reason behind the successful and unsuccessful organizational change is effective communication and appropriate evaluation of the external environment. This is necessary for an organization to create awareness among all its stakeholders about the need for incorporating a particular strategic change and also obtain an alignment with their needs and requirements with the adopted change effectively. References Battilana, J., Casciaro, T. (2012). Change Agents, Networks, and Institutions: A Contingency theory of organizational change. Academy of Management Journal, 55(2), 381-398. British Airways. (2009). Retrieved September 9, 2016, from https://www.britishairways.com/cms/global/microsites/ba_reports0809/pdfs/Workplace.pdf Graetz, F., Smith, A. C. T. (2010). Managing Organizational Change: A Philosophies of change approach. Journal of Change Management, 10(2), 135 154. Pieterse, J. H. et al. (2012). Professional discourses and resistance to change. Journal of Organizational Change Management, 25(6), 798-818. Teece, D. J. (2010). Business Models, Business Strategy and Innovation. Long Range Planning, 43, 172-194. The High Price of Low Cost. (2011). Retrieved September 9, 2016, from https://makingchangeatwalmart.org/files/2011/10/The-High-Price-of-Low-Cost.pdf