In: Finance
Using Kurt Lewin's (3) three stage model for managing resistance, provide an example of an organizational change iniative. Use an example of a an organization you work for or conduct research and locate another company.
In the response list each step and provide the corresponding action made by the organization. Finally, give your overall impression as to how employees reacted at the end of the change process.
Kurt Lewin's three stage model is to develop change in processes in an organisation. These three steps are : Unfreezing, Changing and Refreezing. An organisation need change due to various external as well as internal factors affecting the process the organisation. Entity have to look at better prospective to make changes and that too in a favourable effect in future. Thus to give assurance to same model of three step has been developed to implement change. These are:
1. Unfreezing: Employees of an organisation are habitual to there daily routines and repetitive works. These habits are good for an organisation but they need to be changed when overall process of organisation need change. Employees are the foremost element which deny change as change leads to change of comfort zone, change of positions and so do responsibilities. So in the first step of unfreezing is to keep the employees in the favor that change is for growth of firm and at there individual level too. Top management have to revise the old thinking and behaviour of employees and overall environment of the entity through there skills and proving the positive effect of change they wish to implement. Every entity follow a hierarchy from top to bottom and to introduce the change most important thing is to have communication from top to bottom. Once a plan has been approved by the top management it become duty of lower management to implement it. So in case where plan was not clearly communicated to all than how can goals become common for all. For Example: A Company wish to implement new SAP model in the company so to get better interpretation of financial data from the organisation. So in order to make that change top management have to update the lower management who are handling day to day finance work. They Should be introduced with new model and should have been given a proper training. Unfreezing the employees from there earlier model is hard things and this is what model about.
2. Changing : Changing become next step after unfreezing. Now when staff has been unfreezed you can implement the change. This would have lead to loss of trust of employees or turnover of staff but that become part of change now. Here approved plan has been implemented in steps as per decided manual and each sub part of change is executed with all the precautions. A sudden change in process may lead to loss of data so change should always be executed in parts and step by step. During this process top management should ensure that all the involved staff is adopting the features and they should record there observations on same so that any desired and important changes notices by staff can be implemented along with the changing process, if possible or same can be recorded for future use. For Example: As from the above example, When SAP is to be introduced it have to be implemented step by step. If sudden change in recording of financial data, manufacturing process and order procurement is made than it will lead to lapse or total failure of system. As a Manufacturing company, a company cannot stop procurement of raw material and providing supply to orders taken. So each step of records booking should have been noted down and SAP process should be implemented on each step carefully.
3. Refreezing : Refreezing is to locking back the model as change has been implemented and it will work in the organisation for lock. Main logic behind this last step is to freeze the model implemented so that no employee should go back on old ways and start performing in old manners. Under this model, reliability of new model is judged and also effect of same are recorded. To make this process of change more fruitful, it will be good if refreezing carry a process of rewarding the staff who give more positive results from this change. Refreezing act like reinforcing of organisation to perform for single positive goals. As from Example: Once the SAP is implemented there should be lock on using the old tradition of record keeping. No staff should be allowed to record financial data in old ways and making procurement orders in old traditional ways. SAP implementation usually carry auto EOQ notifications to vendors. So change will give a positive results from same.
In conclusion, employees can give different opinions on change. As there would be employees who take it in positive sense that they have automated the work and new interpretation have been provided to top management to reach common goals of company in much better and rapid way. Although there can be negative too as some employees resist to change as they are happy in old ways and avoid shifting to new process because that would lead to more responsibilities or more accountability.