Premium Essay

Advantages and Disadvantages of Organisational Change

In:

Submitted By kaili
Words 397
Pages 2
Advantages and disadvantages of organisational change

Change Might Not Equal Progress
Many companies emphasize a culture of continuous improvement. While never being satisfied with the status quo can drive excellence in your organization, there is some wisdom in the old adage, "If it ain't broke, don't fix it." Mistaking change for progress is similar to the common problem of mistaking activity for productivity. Every organization can be improved, no matter how well it is performing, but a manager should always ask the question, "How is this proposed change going to improve my organization's ability to achieve our key goals?"
Cost-to-Benefit Ratio
Change is never free. Changing the oil in your car takes time and materials, which cost money. Changing the phone system in your building costs time, money and training. Every change also has opportunity cost; spending your equipment budget on new computers means you have to wait to upgrade the phones. And there are intangible costs such as morale and customer satisfaction during the adjustment period. Determine whether the cost of a change is outweighed by the benefit that change will create.
Internal Resistance
According to an article by organizational change expert Garrison Wynn, the top two reasons people resist change are lack of knowledge about coming changes and fear of the unknown. You can expect some level of resistance to any change, no matter how small or how much benefit it might promise. The key tools for managing this problem are complete, honest, and timely communication with your work force, clear communication of the value of the change, and patience with your team as they go through an inevitable adjustment phase.
Choosing the Wrong Solution
Organizations often initiate change because they have a problem that needs to be solved. But it's dangerous to assume you know the root cause of a problem

Similar Documents

Premium Essay

Effect of Organisational Change

...6.0 Advantages and disadvantages of organisational change Organisational change is usually good for any organisation because it can bring the fresh idea for the organisation. However, it also can be a challenge in any organisation if the strategy is not implemented properly. It will bring either the positive or negative effect to any organisation if use the change. Next we will discuss some advantages and disadvantages that can affect an organization. 6.1 Advantages of organisational change 6.1.1 Improved organisational performance The first advantage is improved organisational performance. (D’Netto et al, 2000) It can help the organisation to perform better. It may become higher productivity through use the advance in technology, training and other else. Besides that, the employees have more knowledge and pool of information about how to use machine or efficient use of the resources. For the example, the Toyota Company implement a concept which is JIT (Just in Time) to reduce the cost and promote the benefit of product (Likert, 2004). It is also the oldest and first way by Toyota and still uses it now. After that, Toyota add automation concept into management. They realize that Toyota way is also the most important change in Toyota’s management. So, they implement TPS which is Toyota Production System become philosophy of production management. 6.1.2 Flexibility The second advantage is flexibility (Mullins, 2010). That is because change can be implemented without...

Words: 786 - Pages: 4

Premium Essay

Ghff Djjj D

...Power culture dimension Power-oriented culture is a dimension of the organisational culture model. In any given organisation there is a need to use power in order to exercise control and influence behaviour. Harrison and Stokes (1992, p 14) define power-oriented culture as “organisational culture that is based on inequality of access to resources”. Figure 2.1 of the organisational culture model indicates that a power-oriented culture organisation is characterised by high 18 centralisation and low formalisation modes of operation. Brown (1998, p 66) states that “a power culture has a single source of power from which rays of influence spread throughout the organisation”. This means that power is centralised and organisational members are connected to the centre by functional and specialist strings (Harrison, 1993). This type of organisational culture can also be regarded as being rule oriented in the sense that it focuses on respect of authority, rationality in procedures, division of work and normalisation (Hampden-Turner, 1990). The centre is formal authority and holds the power to control and influence activities within the organisation. In this type of organisational culture a dominant head sits in the centre surrounded by intimates and subordinates who are the dependants (Harrison, 1993). In this regard a personal, informal and power management style becomes valued. Normally the organisational structure is a web structure that is hierarchical in nature (Brown, 1998)....

Words: 2460 - Pages: 10

Premium Essay

Orga Culture

...CHAPTER 2 ORGANISATIONAL CULTURE Chapter 1 explored the background to and the motivation for this study, with specific reference to organisational culture and organisational commitment as the main constructs. In this chapter the concept “organisational culture” is explored in more detail. This chapter’s main focus areas include the following theoretical aspects of the concept organisational culture: background, definition, model, dimensions, development, change and management of culture. 2.1 THEORETICAL BACKGROUND TO THE CONCEPT ORGANISATIONAL CULTURE Social scientists have explored the notion of organisational culture as a perspective in organisational theory over the past decades. Brown (1998, p 2) states that “current interests in organisational culture stems from at least four different sources: climate research, national cultures, human resource management and from conviction approaches which emphasise the rational and structural nature of the organisation to be unable to offer a full explanation of organisational behaviour”. Research findings by means of organisational climate surveys that were conducted in the 1970s suggest that organisational culture seems to be a sophisticated approach to understand the beliefs and attitudes of individual members about their respective organisations (Brown, 1998). The origin of organisational culture from a national culture point of view is based, among others, on the work of Deal and Kennedy (1982). According to this view organisational culture...

Words: 6138 - Pages: 25

Premium Essay

Effect of Organisational Change

...6.0 Advantages and disadvantages of organisational change Organisational change is usually good for any organisation because it can bring the fresh idea for the organisation. However, it also can be a challenge in any organisation if the strategy is not implemented properly. It will bring either the positive or negative effect to any organisation if use the change. Next we will discuss some advantages and disadvantages that can affect an organization. 6.1 Advantages of organisational change 6.1.1 Improved organisational performance The first advantage is improved organisational performance. (D’Netto et al, 2000) It can help the organisation to perform better. It may become higher productivity through use the advance in technology, training and other else. Besides that, the employees have more knowledge and pool of information about how to use machine or efficient use of the resources. For the example, the Toyota Company implement a concept which is JIT (Just in Time) to reduce the cost and promote the benefit of product (Likert, 2004). It is also the oldest and first way by Toyota and still uses it now. After that, Toyota add automation concept into management. They realize that Toyota way is also the most important change in Toyota’s management. So, they implement TPS which is Toyota Production System become philosophy of production management. 6.1.2 Flexibility The second advantage is flexibility (Mullins, 2010). That is because change can be implemented without...

Words: 316 - Pages: 2

Premium Essay

Alpha Reminiscent Cars Expansion

... It seems that the expansion is currently the most urgent task for the company. At present, the company has two feasible approaches for expansion. One is the 12 team approach which doubled the workforce size of the original 6 teams. Another one is the assembly-line robotic approach which would introduce the computer-based robotics to the three worksites. Therefore, the purpose of this report is to analysis the advantages and disadvantages of the two approaches separately, especially the issues of 12 team approach related to ARC’s expansion and finally summarise which approach would be better for ARC to maintain or increase profit and also make its employees happy. Team Approach According to Mohrman & Quam (2000), ‘Teams are a common design fixture in today’s organisations.’ Organizations which are using teams to perform their core work and provide value to customers are called as the team-based organisation. A team-based organisational structure has autonomous work teams operating in parallel such that each team performs its specific duties in the organisational work process. The organisations see teams as a better way of doing business are based on the two main reasons that team can empower employees to more fully contribute and to...

Words: 2975 - Pages: 12

Premium Essay

Pepsi Co

...EXECUTIVE SUMMARY In the case study, PepsiCo is a producer of carbonated cola drink and was marketing its products in most countries around the world. PepsiCo’s competitor was Coca-Cola. PepsiCo made two acquisitions of Tropicana and Quaker and the view was that there was synergy and economies of scale to be gained. PepsiCo should have had an organisational structure that will enable the achievement of the organisational mission and objectives. The organisation reorganised their structure to a multidivisional structure in a move to exploit the full acquisition potential. A multidivisional structure is most suitable for an organisation that has not got a wide range of products like PepsiCo. The organisation did not experience benefits from the multidivisional structure because PepsiCo had a wide rage of products and different customers. The organisation was structured into divisions and each reporting to the headquarters and there was no synergies and economies of scale gained. PepsiCo revised the organisational structure to a matrix structure. It enabled the organisation to operate in its particular competitive situation at peak effectiveness. At Pepsi they discovered that it was essential to drive the various brands as part of one team. There was less conflict between employees because of the hierarchical setup of the organisation. PepsiCo Beverages became the No 1 liquid refreshment beverage company in measured channels. There was a strategic fit as its strengths in the...

Words: 2510 - Pages: 11

Premium Essay

Organisational Structures

...GSOE9820 – Engineering Project Management Corey Martin Week 4 Projects and Organisational structures Course Roadmap Organisational structure “An organisational structure defines how activities such as task allocation, coordination and supervision are directed towards the achievement of organizational aims”. Reference: Pugh, D. S., ed. (1990).Organization Theory: Selected Readings. Harmondsworth: Penguin To improve project success! Sources: http://www.pmi.org/ CHAOS summary report 2013 Common types of project management structures •  Functional •  Dedicated Project Teams •  Matrix Reference: Gray, C & Larson, E, Project Management, 5th Ed. McGraw-Hill Functional Organisation of projects •  Different segments of the project are delegated to respective functional units. •  Coordination is maintained through normal management channels. •  Used when the interest of one functional area dominates the project or one functional area has a dominant interest in the project’s success. Functional 1.  2.  3.  4.  Advantages No/little org. change Flexibility in use of staff In-Depth Expertise Easy Post-Project Transition 1.  2.  3.  4.  Disadvantages Lack of Focus for project Poor Integration across org. Typically slower to complete Lack of Ownership Dedicated Project Teams •  Teams operate as separate units under the leadership of a full-time project manager. •  In a projectised organization where projects...

Words: 600 - Pages: 3

Premium Essay

National Cultures

...10/17/2014 Org. Behaviour & Management: MBA_ 607 Lecture No.5 Organisational Culture Dr Kwasi Dartey-Baah 1 Overview  What is organisational culture? How does culture develop Impact of culture Work Applications    2 1 10/17/2014 What is Organisational Culture”  Organisational Culture: What is it?  Organisational culture is a system of shared values, assumptions, believes and norms that unite the members of the organisation.  Organisational culture is also referred to as Corporate Culture (Internal Environment). Culture is ‘how things are done around here’. It is what is typical of the organisation, the habits, the prevailing attitudes, the grownup pattern of accepted and expected behaviour (Drennan,1992).  3 Type of cultures /how culture develops   Types of organisational culture Charles Handy describes four types of cultures basing his work on the earlier ideas of Harrison. (i) Power culture: This is very political, revolving around a central power source found in small entrepreneurial organisations. Few rules or procedures. Emphasis on results rather than means. Advantages: ‘proud and strong organisations’ and has ability to react well to threats or danger. Disadvantages: Only as good as their leader/s. Have problems with increased organisational size and complexity and with management succession. 4 2 10/17/2014 Type of cultures /how culture develops (ii) Role culture: Bureaucratic with...

Words: 1779 - Pages: 8

Premium Essay

Organisational Behaviour

...ORGANISATIONAL BEHAVIOUR Assignment 1 This essay will deeply look at the organisational structure and culture and It will compare and contrast different organisational structures and culture analysing the relationship between an organisations’ structure and the consequences on business performances. Finally it will analyse the factors which influence individual behaviour at work. Organisational Structure First of all, an organisational structure refers to how an organisation has Hierarchical subordinates of persons concerned to achieve the same goal. The culture of an organisation can be described as the value, attitudes and beliefs of people within an organisation. The structure and the culture of the organisation reflects the aims and strategies to be accomplished. Formal and Informal organisation In order to have control of an organisation’s performance, an organisation would have some type of deliberate organisational structure. This is called a formal organisation; Structures are clearly organised by dividing departments, level of authority, responsibility and communication line. On the other hand, there are informal organisations. An Informal organisation does not have a specific structure or a planned division of responsibility and this type of organisations can be seen within formal organisations. Geographic Structure A structure with one head office who has the power to control all departments, and several regional or territorial departments where...

Words: 1569 - Pages: 7

Premium Essay

Organizational Behaviour

...Organisational Behaviour Organisational Behaviour By Natalie Hands-Siviter Tutor; Julian Billingham Course; HND Business November ‘15 Table of contents Page: Introduction ……………………………………………...................................................................3 Terms of reference …………………………………………………………………………………………………...3 Research methods ……………………………………………………………………………………………………4 Google’s background …………………………………………………………………………………………………5 Tesco’s background ……………………………………………………………………………………………………5 Analysis of organisational structure Google’s organisational structure ……………………………………………………………………………....6 Tesco’s organisational structure ………………………………………………………………………………….7 Comparison of Google’s and Tesco’s structure …………………………………………………….........8 Analysis of organisational culture Google’s organisational culture …………………………………………………………………………………..9 Tesco’s organisational culture ……………………………………………………………………………………..10 Comparison of Google’s and Tesco’s organisational culture ………………………………………..11 Organisational Theory’s ………………………………………………………………………………………………..12 Conclusion ……………………………………………………………………………………………………………………13 Bibliography …………………………………………………………………………………………………………………14 Introduction One of the biggest problems in today’s world for managers is managing the people. This is the reason many managers and owners need a good working organisational...

Words: 3731 - Pages: 15

Premium Essay

Business Structure

...Organisational Structure For an organisation to be successful it needs a strong organisational structure. How the organisation is set up will directly impact the success or failure of the company. They need to be structured and organised in a way that will meet their goals and needs. Even though the organisational structure is focus on the company’s goal it also dictates how to report priorities and strategies of upper management. The organisational structure is a hierarchy of people and its functions. The organisational structure tells you the character of an organisation and the values it believes in. Therefore, when you do business with an organisation or getting into a new job, it is always a great idea to get to know and understand their organisational structure. Depending on the organisational values and the nature of the business, organisations tend to adopt one of the following structures for management purposes. Although the organisation follows a particular structure, there can be departments and teams following some other organisational structure in exceptional cases. However, some organisations may also follow a combination of different organisational structures as well. Follow this, I will now refer some of the Organisation Structures used nowadays and explain how can they benefit or damage their business, referring their advantages and disadvantages. Flat Organisational Structures use a reduce number of levels, and a wide span of control, which means...

Words: 1120 - Pages: 5

Premium Essay

Customer Service Principles and Practices

...a comprehensive evaluation of its organisational structure and analyse the impact of their customer service principles and practices. The Business I have Chosen is a Family run Bar and Restaurant Called Teac Sean Ruas. This business is located in a seaside tourist resort in Bundoran Co. Donegal. In the summer months between June and September is the busiest time for the Bar/Restaurant with tourists coming from all over the world passing through and visiting Bundoran. This Business depends on the summer season as in the winter months until March it can be very quiet, relying on locals as the only trade. McGarrigles Restaurant services are Serving Food and Beverages and providing entertainment to the public. The Business Hours of The Bar are: Monday to Friday 10.30am – 11.30pm Saturday 10.30am – 12.30am Sunday 10.30am – 11.00pm Business Hours of The Restaurant are: Monday – Sunday 10.30am – 9.30pm Organisational Structure McGarrigles Restaurant has a flat shape organisational structure as it is a small business with a small amount of employees where work passes through fewer hands and with few levels of authority. Organisation Chart for McGarrigles Bar/Restaurant SEAN & ANN MCGARRIGLE OWNERS EAMON MUSTAFFA HEAD CHEF/KITCHEN MANAGER YVONNE MCGUINESS RESRAURANT/BAR MANAGER CHEFS CLAIRE ONEILL SUPERVISOR COMI CHEF/KITCHEN PORTER RESTAURANT/BAR STAFF DESCRIPTION OF ORGANISATIONAL CHART The Organisational structure of McGarrigles Bar/Restaurant...

Words: 1781 - Pages: 8

Premium Essay

Assignment 2 - Business Environment

...Organisational structure defines how activities such as task allocation, co-ordination and supervision are directed the achievement of organisational aims – shows the organisation hierarchy.   Organisational structure is important as it provides a guideline to employees by laying out the relationships that oversee the workflow of the organisation. This means that it establishes the effective lines of control and communication. (Ingram, 2015)  It is also important because it helps an organisation make decisions. Most businesses have either a tall or flat organisational structure that influences decisions being made. Larger businesses such as Sainsbury’s have a tall organisation structure because they are lots of different layers of management and many people who need to be organised. However, smaller business such as Huddersfield New College and a pub have a flat organisational structure because they are less layers of management and less people who need organising. Both tall and flat organisation structure have span of control which refer to the amount of people one person has to take responsibility for i.e. someone in a tall organisational structure has a narrower span of control then someone in a flat organisational structure because different managers for each group of worker.  The advantages of a tall organisational structure is that there is clear management structure. Another advantage of the tall organisational structure is that each layer is a clear and...

Words: 2215 - Pages: 9

Premium Essay

Remote Working

...2. Communication 3. Teamworking and Culture 4. Change Management 5. Conclusions 6. Recommendations 1. Background and Introduction This report is a result of a request from the Senior Management Team at Amica Solutions. It will consider the companies recent move to remote working. Twelve staff have been moved from their office base in Newport to remote working, and are now spread across South Wales. The report is sectioned into three key themes, communication, teamworking and change management. It was felt the existing office premises were too small for the expanding business, and that thanks to advances in technology, remote working would be a viable option. However, some staff have expressed concerns about the new way of working, and feel there was little consultation. Remote working is becoming an increasingly popular method of working. Essentially, it is working from home, connecting with the business through the internet and telephones. 2. Communication There are a number of advantages and disadvantages to remote working, and the effects it has on communication within the organisation. Advantages for the company include savings on office costs. Disadvantages can include staff taking advantage of their freedom to do as little work as possible, or their morale decreasing being left primarily alone. Similarly there are advantages and disadvantages for the workers themselves. Advantages can include being able to create their own work-life balance...

Words: 1924 - Pages: 8

Premium Essay

Amazon Flat Structure

...Amazon has a flat organisational structure. It has its own advantages and disadvantages. Advantages | Disadvantages | Faster decision, satisfied and happy customers | Job confusion, decreased customer loyalty | Communication is faster and effective since there are few layers | Workers may have more than one boss and their functions can become confused | Few levels of management means more flexibility in decision making .For eg. When the staff can make decisions quickly, they keep customers happy instead of forcing them to wait while they hunt down a manager. | When all the subordinates are reporting to a single executive, it's hard for the executives to be team leaders and keep their employees organized and productive. | Since manager compensation is typically more than other employees, fewer management levels means fewer managers to pay, which saves you money | Flat structure works well in small organizations but it becomes counterproductive in large organizations because the offices are too different and have troublesome. For eg. In Amazon, there have been instances where customers were given a discount on an item in one country. This does not promote good customer relations. | This structure focuses on highly qualified staff who are generally happier at work and less likely to quit their job or perform poorly. The longer the employees remain with the company, the less training you have to pay for and the more competent and productive they become. | But there...

Words: 408 - Pages: 2