Unit 36-LO4 Evaluate the relationship between organizational design and change management-BTEC-HND-Level 4 & 5

Course: Pearson BTEC Levels 4 and 5 Higher Nationals in Business

Organizations that are well designed for change typically have a lower need for transition support and tend to experience less resistance to change.

Organizations with an established culture of employee empowerment allow employees to adapt quickly as organizational needs or expectations change. Organizations where the power is concentrated result in a slower adaptation because it takes more time and effort to get consensus on top-down changes.

The relationship between organizational design and change management can be summarized as follows:

Well-designed organizations require less transition support during periods of high-volume or disruptive changes Organizational design often impacts individual performance requirements Many factors should be considered when designing an effective organization including staff capabilities, current limitations, governance models, HR effectiveness, stakeholder support, etc.

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Also Read: Evaluate the importance of organizational design to the delivery of sustainable performance

The changing environment:

How does this impact organizations to adapt?

Organizations need to make the shift from structured development programs set in a top-down hierarchical organization to agile, adaptive, and collaborative organizations where workers have autonomy.

Even then, employees are going to jump ship without any loyalty or company pride left. In order for organizations to cultivate their workforce’s intellectual capital, they must balance the roles of Top Management (they’re there for the big picture), HR with processes that create value for both ends of this spectrum, and a bottom-up leadership framework that focuses on cultivating professional growth and responsibility.

Do they take an incremental or radical approach? The decision will determine how the organization is designed and managed

Organizations that take a radical approach are designed and managed to be successful when faced with change and variability.

In contrast, incremental organizations are more likely to focus on preserving stability and the status quo. More recently, practices from each of these two models have begun borrowing from the other approach in order to achieve balance.

Change management:

Change management theories and theorists such as Lewin, Kotter, transformational change, or the psychology of change

Change is monumental in the lives of organizations, and it often gets a bad rap. However, change is necessary for growth and progress.

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The psychology of change (as well as the cultural beliefs about change) are major factors to understand when trying to implement change. The depth, breadth, and type of program needed will vary from organization to organization based on culture, readiness for search for new models or methods, and evaluation of the current environment.

There are three main categories that Lewin has identified which relate to the degree to which an individual participates in a change process: passive participants are those who hope that someone else will solve their problem (implements), active participants take responsibility for solving their own problems but don’t control its solution (refuses to be implemented), and the last participant type is one who takes full responsibility for solving their problems themselves (implementation from within). The more that each individual taking part in a change process can adopt an active participatory role, then the greater chance that they will be able to have influence over the outcome of their own environment.

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Effective change management is the ability to identify and impact current business strategies while maintaining appropriate laws, regulations, and ethical standards. Effective change management creates a positive environment that supports productivity and employee engagement by providing consistent messages, clear plans of action, feedback loops so teams can learn from their experiences.

Successful change management is an organizational process that takes place over time; it doesn’t happen in just one day or one year. To be successful at identifying differences between the old way of doing things with what we hope to achieve in the future would mean addressing previous work methods versus envisioning shifting positions more into alignment with new ones. If you’re not willing to put forth the effort for effective change management then you’ll end up paying in frustration and chaos.

Barriers to change:

Considering these at the organizational and individual level where it is accepted that people are the biggest barriers. Self-efficacy perceptions and the relationship to organizational change

It is acknowledged that people are the biggest barriers to change. Self-efficacy perceptions and relations with others are vital in motivating an individual. When we lack motivation, personal choice plays a big role in our actions because we no longer have the energy to behave on our own behalf; rather, external factors like social norms dictate our behavior.

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Since I have addressed both levels of analysis, I will move on to analyzing my solutions. My social norm solution is one in which individuals take personal responsibility for their choices and decide what type of healthcare providers they should use based on what types of care they would want for themselves if the situation was flipped. With this solution, there is no loss of personal responsibility or control over self-care as the emphasis is placed on the individual. The change in consciousness would be that individuals take responsibility for their own healthcare; this effect of this solution would be a dramatic shift in how patients think about seeking healthcare and seeing doctors.

Overcoming barriers to change:

Through communication, employee involvement, organizational re-design, and/or preparing employees for change

Re-designing organizational structures is a powerful way to make employees more committed, and also prepares them better for change in the future. It’s not about giving the company your life, it’s about how you can reach your long-term goals appropriately.

Organizations do not have to be built around hierarchical pyramids; instead, they can be organized into “flatter” structures that promote more horizontal communication.

Reinforcing higher levels of employee involvement in key decision-making processes such as hiring decisions and determining salaries will cause employees to feel more invested in an organization and challenged by their work (both factors that are essential for higher commitment).

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