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CHANGE IN BUSINESS

Garret Feucht

, 2015
BUS 352
Research Update
Change is a strange concept when it comes to the business world.

Many companies love the idea of change, yet are so timid when it comes

time to make these changes. There are different types of change along with

different ways to implement that change as well. Another part of change is

that not everyone likes it. There are multiple ways to change a business, but

none of them are fun, much less easy for the whole company.
What is change? To change something is to make something different

or the act of becoming different. Just as the earth changes and we change,

there are lots of reasons to change. Organizational change is just as

necessary as the natural change that happens. There are three main types of

organizational change. The three types of change are; Developmental

Change, Transitional Change, and Transformational Change. (Types of

Change, 2015) The first type of change, Developmental, is change that helps

to improve current business procedures. These kinds of changes are usually

smaller changes that do not necessarily require much effort to implement. In

order to successfully implement these kinds of changes, employees should

be informed and provided with the information and training they need, this

type of change should cause the least stress. Developmental change may be

the first step to making further changes to a business that will help meet the

demands of an industry. Examples of this kind of change would be things

such as updating billing methods or refocusing current marketing strategies.


The second type of change is called Transitional Change. Transitional

changes happen when replacing existing processes with new improved

processes. This is usually more challenging for companies than

developmental changes. This specific stage focuses on breaking down old

processes to implement new ones. With Transitional change, it is necessary

to take a couple steps first before things begin to take shape. First,

communicate the impact and result that is being sought after when making

changes. When this is done, everyone can see which direction the change is

being taken, and employees will be reassured that their jobs and futures at

the company are secure. Also, make sure to get the views and opinions of

staff when making changes. Others opinions are important, especially when

trying to change a whole company. Finally, make sure to keep employees up

to date on the steps the company is taking to help support them through the

change. Following these guidelines will help implement change in the

smoothest way possible.


The third and final type of change is Transformational change.

Transformational changes are changes that work to completely reshape

business strategies and processes. Transformational changes usually involve

both transitional and developmental changes. These changes, whether

desired or not, alter the culture of a workplace. Changes of this sort can also

produce different emotions such as fear, doubt, and feelings of insecurity. All
of these needs should be well managed and attended to in order to

successfully promote change. When making these changes make sure to

develop and communicate a well-defined strategy that explains the approach

and plan. Also, make sure to involve the organizations staff throughout all

phases of the change process. Doing this will help keep employees up to

date on the changes happening within their company.


After hearing how much work it takes to implement change into an

existing organization, one might wonder why an organization even needs to

change. There are many reasons an organization needs change. There is no

possible way that todays business giants stayed in business without making

changes. The first way change can help a business is by staying current.

(Joseph) If a business is able to stay current, they can keep up with industry

and market trends. An example of this would be if a phone case company

has made a reputation for themselves by selling certain cases, they have to

keep up with current trends so that cases can be made for the latest phones.

Without change, this case company would not be able to keep up with

market trends and new fads that come about each year.
Another way change is good for a business is the new opportunities

that it can bring. Being open to change brings new opportunities for both the

business as well as its employees. If outside teams see that a business is

open to change they might see that as an opportunity to try and introduce

another product, service, or a chance to try something new. An example of


this would be if a business implements a new system that requires another

department, and a supervisor sees one of their employee excelling in this

changing area. The supervisor might see the success with the change and

promote that employee that is doing well. Promoting or rewarding that

employee will lead to others doing the same.


The last reason to implement change is to increase efficiency and

improve attitudes. Every business wants to be more efficient, and change is

the perfect way to do just that. Increasing the efficiency of work processes

can make for more satisfied customers as well as employees. For example, if

a company is able to computerize just one step in the assembly process,

they are able to produce their product in less time while being more efficient.

Changing also helps improve attitudes by keeping things fresh. Some people

do not like change, whereas others tend to adapt to change better. An

example could be an old fashioned manager being replaced by a new, more

open, manager who will listen to employee ideas. This usually gives

employees the feeling that they have more input regarding their job

functions. These are just a few minor ways that change is not only good for

employees, but can be extremely helpful for the business itself.


In order to put a companys new found need for change into motion, it

is generally a good idea to have an action plan. (McNamara, Organizational

Change & Development) The first phase of this action plan would be the
start-up phase. Here companies figure out how they will start their change

process. Will someone from inside the company take on the title of change

agent, or will the company contract someone to come in and help change

the business? This first phase forms the foundation for successful

organizational change. This phase and how it is applied are usually a strong

indicator of how well the overall process will play out. (McNamara,

Organizational Change & Development) The startup phase is seen as one of

the most important phases in the change process.


The second phase in the change process is the discovery identity

phase. This is where the change agent, whether internal or external,

collaborates with the company in order to figure out the main priority of the

change effort and how it can be effectively addressed. Together, the agent

and the company analyze their findings and conclusions. After the two have

pooled their resources the next step is to make recommendations from the

information they gathered. This process can be relatively easy or more

difficult depending on the different methods, company size, and the decided

way of going about things. It all depends on company culture.


After conducting research, discovering organizational priorities, and

generating suggestions from feedback the third phase begins. The third of

four phases is the planning phases. In this phase, the company specifically

focuses on how to expand and reach goals that were previously stated from

the second phase. These plans are more often than not integrated into an
overall change plan. Therefore, certain ideas or change strategies may

overlap. Some strategies will work better for one company than they will for

another, part of this stage is finding the right plan for each different

company. No two companies are the same.


The fourth and final phase of this process is the management and

evaluation stage. With all change comes some sort of resistance, in one way

or another. This is where the fourth phase comes in. This phase gives an

organization a chance to address resistance or noncompliance that comes

from members of the business or organization. During the evaluation part of

this stage, companies should evaluate both the quality of the change plan,

as well as the progress the implemented plan has been making or not

making.
Now with all of these action and implementation plans in place, one

might wonder how does a company know if their change processes worked

or not? In order to figure this out companies need to be able to measure their

results. There are many different ways to measure change, it all depends on

what kind of change a company is trying to measure. The broadest and

general type of change that can be measured is results based. (Measuring

projects and change outcomes) Most people respond well to goals that they

are able to achieve, but everyone responds differently to different tasks.

Therefore, this way is not ideal in every situation. However, if a business is

able to give employees achievable change goals they will be more likely to
positively adapt to the change implemented. By measuring the results, a

company is able to get a quantitative outcome rather than a qualitative

outcome. Although the end results would ultimately depend on what kind of

organization and what kind of results are being measured.


Change in an organization is usually a good thing. However,

employees are usually hesitant to change for a number of reasons. The first

reason for resisting change is a fear of the unknown, or surprises that could

come from changes. (Quast, 2012) This happens when change is forced onto

people without giving them proper time to prepare. This can a push back

against the change due to their fear of the unknown. Companies should help

their employees through the process of change and help them understand

what the change will affect. Doing all of this can help relieve some of stress

that can come from change. Another reason that employees resist change is

because of mistrust. If a manager has not been in his position for long, or

has made questionable decisions in the past, his subordinates may not trust

him. Another reason for resistance against change is job loss. With change

usually come different jobs, or a lack thereof. No one likes uncertainty,

especially when it comes to a job.


The final reason that people resist change is simply the fact that they

dont like change. Some people are fine just where they are, and dont think

change is necessary. While this might be the case sometimes, it is certainly


not always the case. In order to be able to implement change with little

resistance a company should take into consideration these things; a

company should take the time to explain what the specific changes include

and who the changes will impact. A company should also know how it will

impact them, and why they might resist the changes.


Many companies love the idea of change, yet are hesitant when it

comes to making changes. There are numerous different types of changes

along with different ways to implement those changes. Another part of

change is, not everyone likes it. There are multiple ways to change a

business, but none of them are fun, much less easy for the whole company.

Although change is usually seen as a bad thing, in the end it is ultimately

good for the overall wellbeing of the company.


Bibliography
Joseph, C. (n.d.). What Are Positive Impacts of Change in Business? Retrieved
November 21, 2015, from Chron: http://smallbusiness.chron.com/positive-
impacts-change-business-559.html

McNamara, C. (n.d.). Organizational Change & Development. Retrieved November


24, 2015, from ManagementHelp:
http://managementhelp.org/organizationalchange/#anchor574384

McNamara, C. (n.d.). Organizational Change and Development. Retrieved


Novemeber 21, 2015, from Management Help:
http://managementhelp.org/organizationalchange/#anchor574384

Measuring projects and change outcomes . (n.d.). Retrieved November 21, 2015,
from Changing Hats:
http://www.changinghats.co.uk/index.php/articles/item/38-measuring-
projects-and-change-outcomes

Quast, L. (2012, November 26). Overcome The 5 Main Reasons People Resist
Change. Retrieved November 21, 2015, from Forbes:
http://www.forbes.com/sites/lisaquast/2012/11/26/overcome-the-5-main-
reasons-people-resist-change/

Types of Change. (2015, February 13). Retrieved November 21, 2015, from
Queensland Government:
https://www.business.qld.gov.au/business/employing/staff-
development/managing-people-through-change/types-change