MGT540 - Management of Change Essay Example | Topics and Well Written Essays - 2000 words

MGT540 - Management of Change - Essay Example Change is an important and vital aspect of almost every company. To exists in the fast moving and ever changing world the companies have to bring change in its operations. For example with the invention of computer and information technology, almost every company has to incorporate the use of information technology to compete in the changing business situations. Change often makes the member of the company to shift from their comfort zone to adopt the change brought in the organization. This often makes the employees to resist the new change. Thus the change brought in the organization has to be managed in a proper way so that the change can be implemented in the organization by dealing with the resistance in a tactical and planned way. In this project the change management done by ICICI bank during 1997 and after the merger of Bank of Madura has been analyzed. Change management theory Change is a constant ingredient of the organization. Every organization passes through two types of change during its life time. One is the continuous change and the second one is the radical change. Continuous change faces very little resistance and is managed by the manager or the supervisors effectively. The major concern for the company is to manage the radical change which faces the maximum resistance. The organizations are quite complex, therefore the organizational problems related to the human factor is also quite difficult to handle. The first thing which the organization faces when any change is brought in the organization is the resistance created by the attitude, personalities and incompetency of the employees. More over if any transfer of power takes place due to the change brought in the organization, can cause the employees to resist the change (Bolman and Deal, 2011, n.d.). Therefore this change has to be managed in a planned way. Every organization has to bring change for some or the other reasons. There are various internal and external reasons which initiate ch ange in an organization like change in market conditions, change in technology, change in type of competition, change in organizational ideas etc (Kanawaty, 1991, p.4). Change in an organization can also be brought in an organization due to some internal factors which are solely related with the organization. These factors can range from change in the organizational strategy or the business to change in managers or change in employees profile or attitude or change in equipments used by the employees. Among all the internal changes, change in business strategy is a reason which gives a major domino effect. If the strategy of a business changes then to implement that strategy many changes has to be brought in the organization which may include change in equipments, change in managers, change in the number of employees or/ and change in profile of the employees. In the early 90s the change which was brought in the ICICI was due to change in strategy. Change in an organization can also be a result due to change in government policies and globalization. Globalization can affect the organization’s policy to a greater extent initiating a major change in the organizational strategies of the business. Suppose an organization has major market share in a country but due to the entrants of the foreign companies in the market the company has to deal and compete with those firms too therefore the company has