Why Organizations Change
James De Gagne
MTG/380
November 22, 2011
Tammy Walker

Why Organizations Change
Organizations change for different reasons, external pressures, the change in the economy, new product line, global influence, or internal pressure, a new business strategy, a change in the vision, or mission statement, reorganization, or acquisitions. When an organization changes the people within the company must also transition. Transition means a person has to let go, say goodbye, and live outside his or her comfort zone. To illustrate an organizational change I choose Budget Panels and their employees as an example. Budget panels went through a series of eras. The final era was the acquirement in 1986 by Hon Industries. This acquisition brought many transformations in the company, for the employees as well as new pricing, products, and services. This paper will follow Budget Panels transitions; describe the change transition curve, and the influence of global and internal environments. First, a small summary of how Budget Panels was originated and the organizations transition into the final era.
Budget Panels was created by entrepreneur Gary White. Gary started Budget Panels in the garage of his home in the early 1980s. The company produced office partitions. The organization quickly grew and evolved from an entrepreneurial business to a professional management structure in a new location in Kent, Washington. The company also changed their name from Budget Panels to Budget Panels Incorporated also known as BPI. The next six years the company grew at an alarming rate, establishing two work shifts to meet customer needs. During this period there were numerous first order changes. The company was beginning to build its corporate identity, a vision and mission statement was established, and the company was transitioning from the neighborhood garage culture to a corporate business culture. The third era of Budget Panels Incorporated (BPI) was the acquisition.
In 1986 Budget Panels Incorporated was sold to Hon Industries. BPI was involved in a second-order transformational change that altered the organizations core. Hon Industries restructured the way BPI manufactured from the mass production (make it the customer will buy it) to the pull system of Just-n-Time. Hon Industries changed the business strategy, this included new pricing structures for dealers, and wholesalers, shorter lead-times on products, extended new product lines, purchasing procedures, and extended the level of service provided. The second-order change transformed the very nature of BPI. The employees also went through transitions. A few were laid off; many had new job assignments, new wage structures, and company policies changed. The BPI employees moved through this reorganization emotionally, the transition was a new adaptation, a loss, a disturbance to their normal lives. BPI employees went through the typical stages of the change transition curve.
Describing the stages of a change transition allows a person to see and interpret his or her emotions are, just normal emotions. Note not every person responds the same to change, so it is not unusual to skip stages of the curve. The first stage of the transition curve is shock. The acquisition of BPI by Hon Industries was known by the employees before it happened. The initial shock for the employees was the company’s restructure, and the loss of jobs. This had the tendency to make employees feel alienated that led many employees to the next stage denial. BPI employees thought this cannot be happening and believed after time everything would return to normal. Denial can turn into the next stage of the change curve that is playing down the seriousness of what happened. When the situation did not change a flood of emotions ran the course. BPI employees collectively after realizing the situation was not going to change went through a serious of emotions that Hon Industries change managers experienced. An example, BPI employees pursued the local union to represent them in a negotiation with Hon Industries. The negotiation never took place and the company remained non-union. The next step is depression and the following step is detachment. These two steps normally come after the emotions have faded. Depression flares up and then detachment. Detachment is the absolute low however this is good news once an individual arrives here he or she has normally transitioned through his or her loss of former life. Detachment is at the bottom of the transition curve and the only way for an individual to proceed is up. The last four stages of recovery were critical for both BPI and Hon Industries. The last four stages are exploring, experiment, choose, and integrate. Hon Industries experienced along with their employees the road to recovery from shock, denial, emotions, and then detachment. The experience strengthened the remaining employees who began to ask themselves the question what possibilities are there. After the employees finished exploring, and experimenting, change managers at Hon Industries began to see a difference in the employees. Employees began to choose to become part of the company integrating with the changing environment. The change turnaround enhanced the Budget Panels effectiveness. The last section will look at how change influences the internal environment of a company, and the global market.e

In today’s global business arena, both small and large companies find themselves challenged through competition around the globe. The world of business has never been as competitive as it is today. Business leaders both domestically and abroad strategically plan and consistently change, to maintain customer satisfaction, and a comparative advantage in the market. At Budget Panels the internal environment such as ethics; culture, continual improvement, employee empowerment, and the focus on customer satisfaction are an integrate part of the company’s vision and mission statement. The vision of Budget Panels Incorporated is working in partnership with employees and suppliers to lead the industry in the manufacturing of quality office furniture while protecting the environment.
In conclusion organizations change for different reasons the idea that every adaptation proceeds in the same way is subject to criticism, and rightly so no transition is the same. Some corporations change management is devastating; to others change increases market shares domestically and internationally. Budget Panel Incorporated endured a large scale transformation that led the employees through a transition curve. When the Budget Panels employees could see the transition curve and work through his or her adaption process the turnaround enhanced the organizations productivity.

References
Akin, G., Dunford, R., & Palmer, I. (2006). Managing Organizational Change: A Multiple Perspective Approach.(2nd ed.) New York: McGraw-Hill