Change is one of the crucial facets in addressing some vital challenges affecting organizations. In most cases, organizational change is aimed at correcting past failures, bring about knowledge and enhancement (Heyden et al., 2017). The e-commerce skin and wellness products company has in place a hierarchical governance structure. In this paper, it is evident that the company requires four functional organizational changes to help it in realizing innovations, opportunities, missions, and a new vision.
Firstly, to realize its postulated goals, numerous alterations should be adapted in its organizational processes. According to Cao et al. (2000), a change in organization presumes the restructuring of the structural relations and the roles people play in the organization. As such, for the e-commerce company to fit in the most progressive culture, it should adopt new mechanisms in the organizational design, in the management span, organization departments, working schedules, among others. Dynamics in the distribution of power with interactions between differently ranked personnel in an organization should be modified to hasten their underlying relationship. Wholesomely, these changes will lead to the abandonment of the hierarchical structure of governance.
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Secondly, in addition to initiating changes in the control and co-ordination of an organizational process, fostering changes in its corporate design and functions also proves worthwhile (Greenwood & Hinning, 2017). This paper proposes that to forego the hierarchical structure of governance, the company should forego the frequently used horizontal and vertical structures of the organization. These changes include changing the mechanism of allocating recourses from being individually directed to collective and consensual and changing the criteria of recruiting, appraising, and compensating their staff.
Furthermore, the relationship between social practices and personal values, behavior, and beliefs also play an integral part in the success of an organization (Heyden et al., 2017). As such, this paper recommends the adoption of diversified cultural organizations that encourage flexibility in attributes of problem solving and innovativeness. However, this is not the case in a hierarchical governance structure.
Change Diagnosis
Regardless of the initiated changes in an organization, they involve letting go of old working habits and adjusting to different ones. According to, organizations change to respond to forces emanating from the changing societal views, politics, technological advancement, and changes in the economy. The e-commerce skin and wellness products company use a hierarchical structure of governance that has suffered significant fallbacks that have incited its change. This paper, however, proposes the adoption of an organizational structure that is rather all-inclusive as opposed to the hierarchical structures of governance. Studies presented by Magnúsdóttir (2018) attribute that hierarchies in an organization create feelings of isolation and obstructions and cause fights among workers in different regimes. The latter, however, seeks the abolishment of these hierarchies to assimilate a mutual sense of inclusion and equality among workmates despite belonging to different positions.
Nevertheless, in hierarchical structures, when departmental rivalry arises, individual departments may tend to make selfish decisions in their favor disadvantaging other departments. According to Magnúsdóttir (2018), the Gallup Corporate Survey (2022), only 13% of workforces felt involved in the business procedures of their organizations globally. The proposed governance structure, however, is all-inclusive and seeks to incorporate all workers in decision-making processes.
Change Urgency
Eliminating the hierarchical structure of governance could incur additional funds to the in procuring other infrastructure to cater to the abolished departments. Regardless of them forecasted advantages, implementation of the proposed changes should, therefore, be gradual to safeguard the organization's revenue by evading losses ( Magnúsdóttir, 2018). Furthermore, this paper needs to use a smaller portion of the organization as a test sample to analyze its operation and emerging issues thoroughly. When fully convinced of its success, the rest of the organization can then fully adopt the proposed approach.
The readiness of Organizational Members for change
Members of an organization play a central role in the implementation of an organizational change. Basing on the numerous disadvantages associated with a hierarchical organizational structure, most subordinate workers would readily support the assimilation of these changes in organizations. It is worthwhile to mention that employees, through the hierarchical levels, have suffered feelings of subordination from their supervisors (Magnúsdóttir, 2018). Another aspect that could prompt members of an organization to act with has in implementing changes is the selfish approach, adopted by departments facing rivalry, in decision making. The drastic development of technologies and changes in the market structures would also influence members of an organization to take changes hastily to allow them to fit in these changes.
Consequences of not Changings
If drastic changes are not enforced to eliminate the hierarchical status in organizations, an array of challenges may face the existing organizational structures that might, in turn, end up causing their failures. The hierarchical structure adopts an arrangement where the CEO is the most senior, and the rest are subordinate (Heyden et al., 2017). Its layout forms a pyramid comprises of different entities that descend downwards with staff level employees being the most junior. If not eliminated, employees will continue to harbor feelings of insubordination, and this could affect their output. Additionally, Heyden and colleagues argued that the different departments might continue making crucial decisions with a motive of selfish-gain and taking advantage of other departments that are not part of the process. Finally, with the traditional hierarchical structure, organizations could be denied access to the upcoming technologies, and they might equally suffer from the changing market structures by constantly losing their market shares.
Strategy for Change
The recent globalization of the economy has created diversified opportunities that have generally forced organizations to undergo substantial changes to cope with the changes. According to Magnúsdóttir (2018), organizations need to adopt transformations to adapt the new environments., John P. Kotter, a professor at Harvard Business School, in 1995, published his article "Leading Change: Why Transformation Efforts Fail," where he presented the 8-step procedure for executing changes in an organization. Each of the eight steps critically analyzes the crucial steps to be undertaken to realize a successful implementation in turn.
Creating a Sense of Urgency
According to Magnúsdóttir (2018), underestimations of managers when bringing people to implement changes have attributed to the failure of 50% of businesses in the first step. If the prevailing status quo of a company is tolerable, for instance, lack of a visible crisis and readily available resources, organizations can lack a sense of urgency to implement a change. This article, however, proposes the creation of an apparent artificial crisis as opposed to waiting for a real crisis ( Magnúsdóttir, 2018). Additionally, raising an organization's goals to levels that cannot be met in an ordinary status quo would also prove critical in manifesting a sense of urgency in an organization.
Creating Guiding Coalitions
The aspect of team playing is fundamental in realizing the anticipated changes in an organization. As postulated by Magnúsdóttir (2018), modern-day dynamics in business environments cannot be handled single-handedly. In this view, this article proposes the creation of strong coalitions that must have enough authority in the organization. The coalition leaders should further be powerful enough to propose changes that will not receive a rejection from other members. Moreover, these coalition groups should have adequate knowledge and an upper hand understanding of the structures of the organization. Further, these group members should have excellent interpersonal relations with other employees for their opinions to receive undisputed support (Magnúsdóttir, 2018).
Forming a Strategic Vision and Initiatives
Without a clear set vision, an intended change is doomed to fail . Magnúsdóttir (2018), argued that the primary role of an idea in a planned transition is clarifying the course of the change and further inspiring employees to act. Moreover, a transitional view can be summarized as a steering wheel to the proposed change. With that, this article suggests the careful selection of a clear vision that should inspire a sense of imagination, desire, viability, focus, flexibility, and communication. The proposed idea should further be presented in simple phrases that are easily understood and comprehended by all workers.
Enrolling a volunteer army
After properly formulating a vision, an immense challenge of communicating the idea to the target group arises. Magnúsdóttir (2018) further argues that communicating information verbally and using several platforms makes it easy to remember. Therefore, effective communication of the vision is fundamental in its acceptance process. This article postulates the use of repetition of the vision sentences to allow the employees in an organization to comprehend it continually. For instance, managers can emphasize a particular vision as they address employees in meetings. Managers should further acknowledge a two-way communication strategy with the employees regarding the set vision. In this case, managers should let employees give their opinions regarding the chosen concept.
Eliminating Obstacles to Enable Action
Depending on their nature, some changes can may longer than anticipated to implement due to pre-existing challenges in their implementation process. On the contrary, short-term achievements are seen, not ambiguous, and directly linked to the anticipated change ( Magnúsdóttir, 2018). He further explains that there are numerous advantages associated with a shorter period of accomplishment. For instance, it helps appreciate the sacrifices made by individual employees in the successful implementation. Therefore, this article proposes to propose that organizational managers should aim at creating changes that are achievable in a short period. Further, managers should carry out frequent checks on the initiated changes to access their progress and, in turn, reward the hard-working employees.
Sustain Speed up
The process of changing an organizational structure is detailed and may end up taking longer than expected. As such, Magnúsdóttir (2018) indicated that including short-termed achievements along the way helps to encourage employees to remain on-board until the entire changing process is accomplished. This article proposes that; managers should ensure that they keep hastening changes once they are manifested. As such, they should allow people lower in the organizational hierarchies to lead change process initiation to exclude interdependence.
Inaugurate Change
After successfully undergoing the steps mentioned above, and organizational change can thus be fixed in the culture of the organization. The role of managers in institutionalizing these changes is, however, very vital (Magnúsdóttir, 2018). As a proposal by this article, managers should confirm to other employees that the implemented change has initiated improvements in the organization's performance by narrating the achievements attributed to the implemented change. Besides, the leaders of the change effort should also continue supporting the transition by linking it to the organization's culture until it becomes a norm.
Challenges and Barriers Faced, and How to Overcome Them
Firstly, to uncover the underlying causes of the problem that needs change, a detailed diagnosis of an organization's structures is conducted. However, these processes consume much investment in terms of money, prompting organizations to opt for other measures to solve the underlying problems (Phuong et al., 2018). This creates a more profound problem since the conclusions might be made depending on pre-conceptions and not on the real causes. In turn, an organization continues to suffer due to improper diagnostic as the underlying problem remains unsolved. To combat such occurrences, organizations should invest handsomely in any idea deemed at improving its operations. Organizations could settle for loans to help fund their proposed changes. Change managers should adopt a strategy that teaches short-term achievements to keep their employees optimistic about the end term achievements.
Secondly, Phuong et al. (2018) stated that some organizational changes are complex and therefore calls for long term implementation processes that require a good deal of time to complete. Due to impatience, organizations may opt for rapid solutions by seeking quick fixes from experts in organizational structure issues. These fixes are, however, not readily accepted by corporate staff despite having clearly outlined recipes. When adopted, thorough education to the organization's staff to eliminate fallacies associated with the commercial plans and mobilize their acceptance. Finally, some organizations generally do not embrace change and opt to stick to their traditional ways. When faced with challenges that warrant a change in their organizational setup, they firmly believe that intervening in a small aspect of the organization will solve the underlying problem. Such organizations require adjustments in their entire structures to ensure that they all align correctly.
Benefits and First Step
Expected Results
Upon successful implementation of the plan, hierarchical governance structures will be abolished. Therefore, organizations will assimilate a rather all-inclusive approach to organizational structure (Cao et al., 2000). Additionally, all employees will be actively involved in deciding on the organization. As such, departmental segmentation will be done away with, and no individuals will have room to discriminate against others through decision making. Organizations will be able to adopt the changing technologies and changes in market structures. However, it means that organizations will not suffer losses emanating from the loss of their market shares.
Success Measures
Organizational performance
This aspect critically analyzes whether the change achieves the desired outcomes. It further assesses whether the initiatives delivered what it anticipated—elements of the acquired achievement and time of implementation form an integral part of this evaluation (Greenwood & Hinnings, 2017).
Individual Performance
Changes enacted in an organization directly affect a chosen group of individuals in their operation. Greenwood & Hinnings (2017) indicated that scrutinizing the progress of the said individual gives a clear indication of the extent of success or failure of the previously initiated change. Surveys, Questionnaires, observation, and performance evaluation are among the essential aspects of evaluating performance by individuals.
Management performance
Cao et al. (2000) further noted that the change management team is mandated with formulating and initiating organizational changes. Their primary role is to oversee the successful movement of a proposed amendment from formation to successful implementation. Additionally, qualities such as effective communication, time is taken for implementation, and the change in management activities according to the plan can be assessed to ascertain its success.
First Step Summary
In a nutshell, the initial step in initiating a change from the Kotter's eight steps is the creation of a sense of urgency in starting the plan (Magnúsdóttir, 2018). Even though the organization members may not see the necessity of implementing the change, the stakeholders in the change implementation should go overboard to ensure that they stimulate the change. As such, they are entitled to create an artificial crisis to prompt action from employees. They can also set the organization's goals higher than the obvious to encourage employees to work harder in attaining them.
Critical Analysis
Rapid technological changes and changes in market structures have led to an inevitable change in an organizational setup. Employees play a vital role in implementing any change in the organizational setup. Therefore, their considerations should be made to ascertain that employees are ready to implement the proposed amendment (Cunningham et al., 2002). These papers suggest the adoption of Kotter's eight steps process to fathom a change model in an organization's management. Firstly, organizations are obliged to create a quick response to the anticipated change by either creating an artificial urgency or raising the organization's goal above expected levels. Additionally, this paper proposes the creation of guiding teams with good leadership qualities and highly influential in formulating and implementing the proposed change.
Moreover, a vision is like a steering wheel to any change implementation. This paper proposes the selection of a laid-out vision statement that is readily contemplated by employees in an organization. It is also fundamental to ensure that the vision is communicated in the manner to the target group. As such, this paper proposes the selection of individuals with superb communication skills to inform other employees about the selected vision. This paper further offers a proposed elimination of obstacles that might, in turn, delay the change process by constantly educating employees on new habits and behavior. Generation of short term achievements is also important in keeping employees motivated towards the change (Greenwood & Hinnings, 2017). Finally, the change leaders are mandated to ensure sustained acceleration of the change and its implementation in the organization. As such, the article proposes that managers should encourage employees to continue with the planned change, and in the end, they should anchor the transition into the organizational culture.
References
Cao, G., Clarke, S., & Lehaney, B. (2000). A systemic view of organizational change and TQM. The TQM Magazine .
Cunningham, C. E., Woodward, C. A., Shannon, H. S., MacIntosh, J., Lendrum, B., Rosenbloom, D., & Brown, J. (2002). Readiness for organizational change: A longitudinal study of workplace, psychological, and behavioural correlates. Journal of Occupational and Organizational Psychology , 75 (4), 377-392.
Greenwood, R., & Hinings, C. R. (2017). Understanding strategic change: The contribution of archetypes. Academy of Management Journal .
Heyden, M. L., Fourné, S. P., Koene, B. A., Werkman, R., & Ansari, S. (2017). Rethinking 'top-down’ and 'bottom‐up' roles of top and middle managers in organizational change: Implications for employee support. Journal of Management Studies , 54 (7), 961-985.
Magnúsdóttir, H. K. (2018). Implementing Strategy Using the Kotter 8-Step Change Process: A Case Study in a Large Consultancy Firm in Iceland (Doctoral dissertation).
Phuong, L. T. H., Biesbroek, G. R., & Wals, A. E. (2018). Barriers and enablers to climate change adaptation in hierarchical governance systems: The case of Vietnam. Journal of environmental policy & planning , 20 (4), 518-532.