Page 190 - Managing Change in Organizations

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Introduction
Planning, implementing and coping with change has been, and seems likely to
remain, one of the main challenges facing managers, in both the private and pub-
lic sectors, today. In manufacturing, banking, education and healthcare change is
the norm. The merger and acquisition boom of recent times brings change on its
trail throughout industry and commerce. Frequently, for many, these changes must
be undertaken in testing circumstances. Sales and profitability may be falling rap-
idly. A merger bid may lead managers to review performance and strategic plans.
All this might form part of a defence against the merger. In any event, whether or
not the merger or takeover succeeds, change seems likely. Many organizations face
deregulation. Banking is a good example of this but not the only one. Transport
deregulation has had a dramatic impact in some European countries (e.g. the
Republic of Ireland). Central government spending decisions can create powerful
pressures on expenditure within public service organizations, often with dramatic
effects on the attitudes of staff and clients.
BMW bought Rover from British Aerospace because (among other reasons) it
believed that Rover had manufacturing facilities which operated more flexibly
and at lower cost than much of its own plant in Germany. Japanese companies
source units in Taiwan and Malaysia for much the same reasons. An international
consultancy firm identifies its Singapore operation as a centre of excellence in
software design. It project-manages design projects but utilizes the services of
designers in the USA and Europe, all linked by electronic means. Thus the
Singapore centre manages a design process which is going on 24 hours a day. No
one can dispute that the world of work and working is seeing dramatic changes.
Still less would anyone argue that the challenge of managing in a changing envi-
ronment is getting any easier.
Growing competition, privatization and deregulation across many parts of
industry, commerce and the public sector have led many organizations to try to
develop in their staff more commercial awareness and more concern for quality.
Managers are concerned with value for money, the development, launch and
marketing of new products and services, greater flexibility of design, manufacture
or service, and in less definable issues such as corporate image and identity.
Customers and clients are ever more vocal and critical. The main focus of man-

agement is switching from largely internal concerns to a more balanced focus on
internal and external concerns. This chapter is concerned with understanding
how managers can create more effective organization in a world of change. It
examines why and how approaches to management have been changing and sets
out practical guidelines for management action in today’s world.
For instance, when five long-established corps of the British Army were merged
to form a single Royal Logistics Corps, this presented substantial change issues.
As members of each corps struggled to position themselves in the new corps, a
number of important issues were faced. Not least important was what badges and
uniforms were to be used? How best to make such decisions? It was decided to
establish a working group of senior non-commissioned officers to resolve these
issues, partly because they were seen as less likely to fight ‘turf’ wars over the issue
but also because the army culture places senior non-commissioned officers as a
source of continuity within the regimental system. Thus the approach was seen
as even handed between the five corps about to be merged and defused what

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