There is a real need for change in an organization when it’s employees can no longer perform to capacities that meet and exceed company guidelines. The reorganization efforts that will be put forth for Pegasus Co. will help to communicate responsibilities and needs for each team member while helping the company as a whole to run more efficiently and effectively.
Our change initiative includes five major steps. First, a diagnosis of the organization is concluded. To understand where we want to go, we will need to understand where we are. Next, a determination is made which should clarify where the organization wants to improve and progress to through this initiative. In the next stages, we implement and adjust actions to help facilitate the change process. Finally, action research and productive change is institutionalized (Jones, 2007, pp. 288-289).
There specific aspects we hope to achieve from this organizational restructuring and change are 1.) to cut costs and save money, 2.) to reorganize human resources more effectively and save time, 3.) to expand our creative ideas into modern day realities and maximize our market opportunities, 4.) to accurately measure change progress and allow employees to track their progress, and 5.) to sustain measurable and effective results (Durant, 1999).
Employees are naturally resistant to many changes and often times are anxious about a possible company restructuring. There are two main aspects that create anxiety amongst employees during a time of restructuring; downsizing and reengineering for a loss of authority. Pegasus is not restructuring the organization to downsize the staffing quota but rather to transfer employees from areas that are overstaffed to those that are understaffed. Additionally, management should not fear a loss of control over their staff as our efforts will cater to their needs for production and quota as we institute the change model (Jones, p. 286). Additional resistance factors, including separation and loss, guilt, and instability may present themselves once the change process is underway. The presence of these uneasy feeling are a large factor for needing this kind of structural change. To overcome instability we will need to make the structure within the company as strong and solid as possible (CTU, 2008).
While most employees enjoy their safe, secure, familiar responsibilities, it is important to recognize what contributions are being made and where progress can happen. We will need to first position the change as a positive action to lessen the anxiety employees will feel. Preparation helps the team to cope with sudden and drastic changes. Change cannot be imposed on organizations without the consent or understanding of those involved. Our change approach will look towards motivating employees to complete their responsibilities for the good of the organization in a timely manner. By providing a means for personal progress tracking, we will put the power of progress in the hands of each of our employees (Denison, 2001, pp. 131-135).
Finally, the success of the reorganization will not happen overnight. Our words and requests must be flexible and understanding towards this concept. If goals are unattainable, it does not produce a workforce that is productive. Pegasus Co. will seek the help of an external consultant to keep the approach clean and unbiased (CTU). To keep our employees calm and hard-working during this sensitive process, they will be incorporated in many steps for reassurance and insight.
CTU Online. (Ed.). (ca. 2008). Phase 1 Course Material [multimedia presentation]. Colorado Springs, CO: CTU Online. Retrieved October 13, 2008, from CTU Online, Virtual Campus, HRM620. Business Strategy: 0804A-02. Website: https://campus.ctuonline.edu/MainFrame.aspx?ContentFrame=/Classroom/course.aspx?Class=23719&tid=39
Denison, D. (2001) Managing Organizational Change in Transition Economies. The William Davidson Institute at the University of Michigan Business School.
Durant, M. (1999) ManagingOrganizational Change. Credit Research Foundation: Colubia, MD. Retrieved October 14, 2008, from www.dhh.louisiana.gov/offices/publications/pubs-305/OrganizationalChangeDurant.pdf
Jones, G. (2007) Organizational Theory, Design and Change. (5th ed.) Prentice-Hall: Upper Saddle River, NJ.