Managing Change - Blog 4

Introduction

Due to the continual changes that occur and the uncertain environment, organizations are involved in change management. While leaders establish the organization's direction, those in middle management and on the front lines, as well as team leaders, play critical roles (Braley, 2021). Changes occur because of a firm experiencing a business expansion, relocation, slowdown, or new product trial. A company may also be through a merger and acquisition, which for small companies implies that a larger company will take over the business or that the company's industry position will be strengthened by folding its activities (Mahyew, 2022).

Although change is unavoidable, there is a tendency to resist it. Change creates potential workplace uncertainties, as well as personal losses in terms of authority, reputation, remuneration, and job quality (Lunenburg, 2010). People who resist change are more likely to avoid problems that occur because of the changes; they prefer to remain in their comfort zone since it is safer than facing new challenges.

Lewin’s Change Model

Figure 1. Lewin’s Change Management Template (Practical Psychology, 2022).

Kurt Lewin is considered the founder of change management. One of the popular theories of his “unfreeze-change-refreeze” method is widely regarded as the base outlook to change management (Cummings et al., 2015).

This theory predicts the outcome of changes by imposing constraints on collective and individual behavior. Employees are inspired and directed toward the future state by the driving factors. The restraining factors highlight potential opposition to change and are the primary barriers to changing practices (Sarayreh et al., 2013).

'Unfreezing,' or being motivated to change; This first stage stimulates the modification or elimination of existing factors to maintain the habit, and it suggests that this stage develops or eliminates current individual ideas, mindsets, and reflections, as well as understanding why the change was necessary. The second phase is 'change,' which is an activity that involves implementing the changes and evaluating the process through trial-and-error, examining the results, and adjusting attain efficiency. Finally, the 'refreezing' stage suggests that the new alterations become new habits, self-concepts, and identities for individuals working in the company, and that these changes will be implemented indefinitely (Wirth, 2004).

Benefits and Limitations

This change model can be used to analyze individual or organizational behavior and to determine what needs to change. Because the theory is straightforward, with three key steps to follow, this approach is simple to understand and apply in an organization. Aside from that, this model is intended to explain why people resist change and to investigate the factors that cause people to change their acceptance and support (Hussain et al., 2018).

However, individuals continue to believe that this model is too simplistic and lacks the details to accomplish meaningful change. Another point is that the model's form is rigid and does not reflect contemporary times; it only freezes behaviors that will need to be unfrozen soon owing to technological developments. Some think that Kurt Lewin's change theory is slightly out of date (Galli, 2018).

Real Life Example

Figure 2. Nissan CEO Carlos Ghosn (CNN, 2018).

Nissan Motor Company was on the verge of bankruptcy, with tremendous debt and a gradually declining market share. To alleviate its financial load, they created a strategic alliance with Carlos Ghosn, former CEO of Renault. Simultaneously, Renault wanted to boost its market-share. By making the transition from turning around enterprises to profit-making. He also develops efficient change management approaches to solve various organizational challenges, as well as increased employee engagement through effective communication and positive reinforcement. During the 'refreezing' stage, he implemented performance-based pay, encouraged employees to use modern approaches, and created an open feedback system to advise and help people in enhancing workplace adaptability (Havard Business Review, 2002).

Conclusion

In an organization, there will always be changes, which means that change is inevitable. Leaders must create the correct direction for employees to adapt for them to grasp and effectively execute changes in the business. However, individuals determine their ability to adapt to changes, which is why leaders must analyze and make such adjustments for them to be adaptive and finally attain the company's goals.

References

Braley, N. (2021). Why Change Management Is the Most Critical Leadership Skill. Forbes. https://www.forbes.com/sites/forbescommunicationscouncil/2021/11/19/why-change-management-is-the-most-critical-leadership-skill/?sh=5f42decb3f22

Cummings, S., Bridgman, T., & Brown, K. G. (2015). Unfreezing change as three steps: Rethinking Kurt Lewin’s Legacy for Change Management. Human Relations, 69(1), 33–60. https://doi.org/10.1177/0018726715577707

Havard Business Review. (2002). Savings The Business Without Losing The Company. Havard. https://hbr.org/2002/01/saving-the-business-without-losing-the-company

Hussain, S. T., Lei, S., Akram, T., Haider, M. J., Hussain, S. H., & Ali, M. (2018). Kurt Lewin's change model: A critical review of the role of leadership and employee involvement in organizational change. Journal of Innovation & Knowledge, 3(3), 123–127. https://doi.org/10.1016/j.jik.2016.07.002

Galli, J., B. (2018). Change management models: A comparative analysis and concerns. IEEE Engineering Management Review, 46(3), 124–132. https://doi.org/10.1109/emr.2018.2866860

Lunenburg, F. C. (2010, September). Forces for and resistance to organizational change. National forum of educational administration and supervision journal (Vol. 27, No. 4, pp. 1-10).

Mahyew, R. (2022). Change in Senior Leadership & Its Effect on Achieving Business Goals. Chron. https://smallbusiness.chron.com/reorganization-mean-corporation-60100.html

Sarayreh, B. H., Khudair, H., & Barakat, E. A. (2013). Comparative study: The Kurt Lewin of change management. International Journal of Computer and Information Technology, 2(4), 626-629.

Wirth, R. A. (2004). Lewin/Schein’s change theory. Iowa State University Journal. https://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.486.5728&rep=rep1&type=pdf