The study of organisational change theory delves into the intricate processes and patterns associated with the transformations that occur within a company's structure, culture, and operations.Approximately 50% of change initiatives fail, making change management vital for leaders (Miller, 2020). These changes usually result from a combination of both internal and external factors. Internally, shifts in leadership, the reassessment of values, or the identification of inefficiencies may trigger change. Externally, changes can be prompted by technological advancements, competitive pressures, regulatory shifts, or broader socio-economic transitions. It is vital for organisations to recognise and respond to these changes promptly and effectively to remain competitive and agile. By understanding the underlying causes of change, companies can plan and adapt better to the ever-evolving business landscape. A fundamental concept suggests that organisations are in a perpetual state of evolution, constantly adapting to maintain equilibrium with their surroundings. Lewin's classical model outlines three distinct stages of change: "Unfreeze" (preparing the organisation for change), "Change" (implementing the desired shift), and "Refreeze" (consolidating the new state of affairs) (Dijesh & Roseline, 2008). Change management is a strategic and systematic approach organisations use to implement changes in their operations. The primary aim of change management is to ensure a smooth transition from the current state to the desired future state, with minimal disruptions and maximum benefits.

To achieve this, several key components are involved, including stakeholder analysis and engagement, effective communication, equipping the team with the necessary skills and knowledge, continuous monitoring of progress, and feedback mechanisms.

Stakeholder analysis and engagement require identifying and engaging with individuals or groups who will be affected by the change. Understanding their concerns, needs, and potential resistance points is crucial. Effective communication is also essential, as it helps to build transparency and trust. Equipping the team with the skills and knowledge to navigate the new environment is important. Continuously monitoring the progress of the change initiative, identifying bottlenecks, and adjusting strategies as necessary is essential. Establishing channels for feedback is also necessary to ensure the process is iterative and responsive.

While organisational change theory examines the intricacies and drivers of alterations within an entity, change management provides the practical tools, strategies, and methodologies to guide and streamline these transitions. Given the dynamic global business environment, mastering these areas is crucial for sustained success and resilience.

1. Organisational Change:

Definition of Organisational Change:

Organisational change is a process that involves transitioning a company or institution from its current state to a desired future state. It is often a highly resisted process, even when individuals know it is necessary. Internal or external factors mainly drive it to improve performance, adapt to market shifts, or respond to strategic reorientations. Effective organisational change ensures strategic implementation succeeds.

Explanation:

Various disciplines have informed this definition, including organisational theory, systems thinking, and strategic management. The study of organisational change theory is a diverse area of expertise that delves into how organisations evolve and transform. Its aim is to discover optimal approaches for effectively guiding these changes through the complexities of adjusting structures, systems, cultures, and behaviours(Gould, 2023). The reference to "external or internal factors" is informed by systems thinking, recognising that organisations are intricately interconnected with their environment(Kuttappa, 2021). Current theoretical knowledge suggests that change within an organisation isn't spontaneous. Internal forces like a desire for increased efficiency or shifts in company culture and external forces such as technological advancements, market competition, or regulatory changes are the catalysts for change(Stowell, 2021). The literature on strategic management highlights the importance of aligning changes with broader objectives. This is based on the understanding that successfully implementing change requires people to recognise its necessity. By integrating changes with long-term goals, stakeholders are more likely to understand the purpose and benefits of the change, thereby increasing the chances of successful implementation(Bhandari, 2018). It is a well-established fact that change often meets with resistance. Such resistance can stem from various sources, including instinctual, emotional, or logical reasons. Individuals tend to favour stability over change, a phenomenon known in social psychology as the status quo bias. The prospect of change can trigger intense emotional responses and awaken deep-seated fears within people(Mar, 2013).

2. Forces for Change:

External and Internal Forces:

Business organisations must navigate a dynamic landscape as various factors impact their survival and growth. These factors are known as forces of organisational change, which can be categorised as either internal or external. Internal forces arise from within the organisation, whereas external forces originate from outside of it(Sujan, 2023).

External Forces: These are factors outside the organisation that necessitate change. These include:

Demographic characteristics, such as age, gender, educational qualifications, and location, play a crucial role in driving change. These factors determine whether an organisation can find the right people to sustain itself, grow, or even change the focus of its activities. For example, Europe's ageing population has led to an influx of workers from other countries, adding diversity and potentially impacting the culture of organisations, leading to organisational change(Sinding et al., 2014).

Technological advancements: considering the rapid pace of technological innovation, businesses must consistently review and update their processes, tools, and products to remain competitive. Keeping pace with the latest advancements is essential for companies to remain relevant and meet the ever-evolving demands of their clients. As such, it is imperative that companies stay up to date with the latest technological trends to remain at the forefront of their respective industries. An example of this could be when an organisation introduces a manufacturing process that uses automation and artificial intelligence because of an external change to the product it produces, this will require significant skill changes and change management(Sinding et al., 2014).

Market changes: The advent of the global economy has necessitated companies to overhaul their business models. As consumer demands become increasingly erratic, new participants enter the market, and market trends undergo shifts, businesses are compelled to adjust their strategies accordingly. Companies must remain agile and adaptable to preserve their competitive edge and long-term viability(Lupena, 2021).

Social and political pressures: It's not uncommon for alterations to laws or regulations to result in societal expectations that necessitate structural or procedural modifications. The textile industry provides a prime illustration of this, as it was subjected to intense scrutiny over substandard working conditions, leading to adverse public perceptions and revisions to labour policies(Sinding et al., 2014).

Economic changes (Crisis): During times of economic turbulence, companies may need to re-evaluate their strategies to adapt to changes in the market. The current cost of living crisis has resulted in elevated inflation rates, leaving consumers with reduced disposable income. As a result, businesses must adjust their pricing models to remain competitive and viable in the long term. This shift towards affordability will be crucial in ensuring their sustainability in the face of economic uncertainty(Lupena, 2021).

Internal Forces: these forces of change typically originate from within an organisation and are driven by factors such as goals, strategies, culture, or structure. Internal forces of change may include(Sinding et al., 2014).

Organisational culture (Motivation): If an organisation's current culture is hindering its performance or innovation, it may be necessary to make changes. Alterations in the organisation's values, norms, or culture can result in internal change that directly affects employee motivation. For example, transitioning towards a more innovative and collaborative culture may require adjusting processes and practices(Lupena, 2021).

Operational inefficiencies (Unproductive activities): Processes that are no longer effective or efficient may need to be revised. Additionally, performance issues or opportunities for improvement can create internal pressures for change. For instance, negative customer feedback or decreasing sales may signal the need for changes in products, services, or processes(Lupena, 2021).

Leadership changes (Structural Misfit): The advent of new leadership is often accompanied by the implementation of new strategic directions, which may necessitate changes to the organisational structure. Such changes may include mergers, acquisitions, or restructurings, all geared towards improving efficiency, streamlining processes, and aligning with novel business strategies. The end goal of these internal changes is to ensure that the organisation remains agile and responsive to market dynamics while enhancing its overall competitiveness(Sinding et al., 2014).

Employee demands (Performance gaps): As the needs and demographics of employees continue to evolve, companies must adapt their policies and working conditions to meet these changes. The COVID-19 pandemic has significantly transformed how people work and has sparked a growing desire for more flexibility regarding where and how employees work. Nowadays, many workers prefer the freedom to work remotely, necessitating organisations to restructure their internal operations accordingly(Sujan, 2023).

Size changes (Growth/Scope changes):Organisational changes in size often necessitate a corresponding need for change. This may be due to business growth or a reorganisation to improve profitability. To remain competitive and agile, organisations must remain responsive to these changes. Thus, recognising the need for change and adapting to it effectively is crucial for long-term success(Sinding et al., 2014).

3. Change Management Process:

Comparing Kotter's Eight Steps with Kurt Lewin's Force Field Model:

I will briefly overview the two models before comparing Kotter's eight steps with Kurt Lewin's Force Field Model. Organisations should carefully evaluate various change management models before implementing any of them. Different models may be more suitable for certain projects than others, and organisations can benefit from combining aspects of multiple models.

One popular model is Kurt Lewin's force-field model, which involves three steps that help leaders facilitate and understand organisational change. Another model is Kotter's change management process, which focuses on the stakeholders impacted by the change rather than the change itself and involves eight steps.

Several factors must be considered to determine a specific scenario's most effective change management model, including organisational culture, leadership, systems, resources, and clients. The extent of the change, its impact throughout the organisation, and potential sources of support or resistance must also be evaluated. Additionally, the time available to implement the change, the necessary resources, and the recommended approach for handling the aftermath of the change are all important factors to consider.

Kotter's Eight-Step Process for Leading Change:

Establishing a Sense of Urgency: It is important to identify reasons why change is necessary, and these reasons should be clear and memorable.

Creating the Guiding Coalition Create a team:It is important to form a team responsible for implementing the required changes. Each team member must be assigned specific responsibilities to ensure that the change is carried out successfully.

Developing a Vision and Strategy: Establishing a vision for the future and determining how things should be is critical. This includes developing a new work philosophy that can guide us towards achieving our goals. We should prioritise creating a positive work environment that encourages growth, collaboration, and innovation. Doing so can improve overall productivity and satisfaction in the workplace.

Communicating the Change Vision:Communicating your vision to others is important. Clearly explain the reasons why things should be done in a new way.

Encourage to Act:If you want people to cooperate with you, you must provide compelling reasons for them to change. Without good reasons, people are less likely to feel the need to change their behaviour or actions.

Generating Short-Term Wins:It is important to establish goals that can be realistically achieved. When people have achievable goals, it can provide them with the motivation they need to succeed.

Track the progress:When assessing any change, it is crucial to measure and evaluate its impact. It is advisable to rely on objective numerical data to make informed decisions rather than subjective observations.

Strengthen the Change:Integrating this change into the company culture will help ensure its longevity.

Kurt Lewin's Three-Stage Model of Change:

Unfreezing: Recognizing the need for change and preparing the organisation.

Changing (or transitioning): Plan and execute changes while supporting employee learning.

Refreezing: Stabilizing the change and making it the new norm.

The following outlines the key differences between the two models.

Granularity and Detail: Kotter's model presents a comprehensive and in-depth roadmap for change, complete with specific stages and strategies. In contrast, Lewin's model offers a conceptual framework that distils the change process into three phases. In my view, when working with newly formed teams who may have limited exposure to change management, I would opt for Kotter's model. Its detailed and easy-to-follow nature enables them to comprehend and implement the change process more clearly.

Focus: Lewin's model prioritises the psychological factors involved in the change process, emphasising the need to address equilibrium, transition, and stabilisation. One of the primary benefits of Lewin's model lies in its focus on the essential principles of human behaviour psychology, rendering it applicable to future generations. Conversely, Kotter's model emphasises leadership, strategy, communication, and the integration of changes into the organisational culture.

Temporal Dimension: Kotter emphasises short-term wins as an integral step, highlighting the importance of momentum. Lewin's model doesn't specify such milestones but concentrates on the bigger shifts from one state to another.

Cultural Integration: Kotter's change management model explicitly outlines the importance of anchoring changes into an organization's culture as the final step in the process. Conversely, Lewin's model incorporates this crucial element under the "refreezing" phase without providing specific steps to achieve this end. Instead, it leaves the individual to decide on the necessary actions and steps to take. It is worth noting that both models share a fundamental goal of ensuring that changes are fully integrated into an organization, and both provide useful frameworks for navigating this complex process.

I will try to elaborate on the applicability of both models.

Kotter's Model: Kotter's model is an invaluable tool for larger organizations or complex change initiatives that require strong leadership, strategic direction, and ongoing momentum. Its step-by-step approach is ideal for situations that demand a systematic and layered approach to change, helping to ensure that all components of an organization align with the change vision. This model is specifically tailored to tackle the unique challenges faced by larger organizations, enabling them to make changes in a more structured and efficient manner.

Lewin's Model: Kurt Lewin's model is particularly useful for organizations or situations where the main challenge is to change mindsets or behaviours. It is also helpful in situations where change needs to be communicated or understood in simple terms. This makes it a useful tool for both small-scale changes and more comprehensive organizational shifts if there is room for interpretation and customization. Its simplicity makes it an excellent choice for any organization or situation where the emphasis is on making change straightforward and easy to understand.

Conclusion

Change Management provides a comprehensive roadmap for organisational transformation. It offers invaluable frameworks, including Kotter's eight steps of change and Kurt Lewin's force field of change models, that can be applied to any change process. Change is not a simple matter of making operational adjustments but rather a journey of self-discovery that requires a complete reassessment of an organisation's values, behaviours, and norms. Organisations must adapt and adjust their strategies, structures, and processes while responding to internal and external forces for change to survive and thrive in a constantly changing world. Empathetic leadership and transparent communication are crucial to aligning stakeholders and cultivating a culture of trust. Change is a continuous journey that necessitates adaptability, systems thinking, and strategic foresight to guide organisations toward sustainable relevance, growth, and excellence. This theory has inspired me to focus more on how change will occur and what needs to be done to ensure the successful implementation of change initiatives.

Identify a company (company of your choice) and discuss change that had to take place in the organisation due to Covid-19 pandemic. Include the following in the discussion:

Introduction Provide information about the company that you will be discussing.

Provide information about the changes that had to take place due to the Covid-19 pandemic. (6)

Resistance to change Explain the resistance to change experienced in the organisation (10)

Causes for resistance to change Explain the causes for resistance to change (Why people resist change) (10)

Management of resistance to change Evaluate the management of the resistance to change during this period Strategies of resisting change mentioned in the theory should be used to evaluate strategies used in the workplace (10)

Alternative strategies to overcome resistance to change Identify and discuss alternatives strategies for overcoming resistance to change in the workplace that could be implemented in future (10)

Conclusion Briefly outline the most important findings/recommendations from the assignment (4)