Today’s business world is highly competitive. To compete and grow in this competitive and constantly updating environment, organizations need to rapidly change according to it. Organizational change as thought by scholars such as Banks (2010), as stretching the goals and improving the way company conduct its operations. Dawson (2008) states that organizations grow by expanding into different competitive markets, gaining mix of knowledge and financial assets. Change is difficult to define because every company faces its own challenges, and therefore its own rationale for change (Banks, 2010). Businesses have different resources, their own unique culture and personal dynamics. But one thing remains the same and that is change is the only permanent thing a company has to adopt in order to survive and sustain. Change is a continuous process for growth and development of each and every organization. For successful change Implementation, understanding organizational dynamics is important. Companies undergo change, new technologies introduced and different issues emerge. According to Lewis (2004) change in an organization is a vibrant force of rapid developments and is an inevitable feature of business life. To accomplish the goal of a better and profit earning organization, companies have to change according to the latest requirements of the respective industry. Many scholars like Mohanty and Yadav (2010) believe that business environment is changing at a great and ever increasing pace which creates the need for quick response by the organization to the deep seated transformations outside as well as inside the companies. For organizations, change comes from all the directions. Tanner and Oakland (2007) suggest that the companies must understand that organizational change is quicker than ever. Rapid change has forced the researchers to search and quantify relationships between financial successes, customer loyalty and satisfaction as well as employee variables such as satisfaction, loyalty, commitment, and enthusiasm. Cummings and Worley (2008) emphasises that the company management must understand the nature of change and take a proactive role in communication before, during and after the change. McLean (2005) put forward many factors that initiate change in the organization. Organizational change is affected by economic climate; it increases in response to corporate downsizing and sometimes with a fluctuating marketplace. There are also many other frequent reasons for change in the organization. The stakeholders or the financial institution that has supported the company may seek improvements in the business performance (Green and Cameron, 2004). This prompts the organization to take actions to satisfy their needs. Change may also be implemented if there is a decline in revenue. Technological development, changing customer demands and competitions are important factors that force the company to start a change process (Cook and Macaulay, 2006). When an organization is taken over or the management buy-out takes place, this automatically initiates change. The business has to amend and modify organizational policies and procedures accordingly. Skills development may trigger change in an organization. New training methods have to be adapted and different employee development approaches can be applied (Banks, 2010). Sometimes to raise capital or to improve business practices or even to apply exit strategy, the management may decide that changes in the way the business is run is necessary. Should implementation of an improvement project be planned, but internal resources are not sufficient or capable of managing the change, the appointment on a fixed term contract of a consultant or interim manager may be a desirable option. Change can be implemented with less interruption on staff conducting their normal duties (Lewis, 2008).
Change is inevitable, so is resistance to change (Banks, 2010). The perceived threat stemming from a change may be real or imagined, intended or unintended direct or indirect, large or small, regardless of the nature of change. Certainly, not all changes are resisted; employees actively seek some, others are so terminal and resistive that resistance, if any, is too weak to be evident. People’s readiness to change is due to quite distinct forces, which act on them. These are the forces within the individuals themselves (Tanner and Oakland, 2007). Resistance to change can only be overcome through efforts of all the employees. When change affects the organization, it is the manager’s responsibility to demonstrate effective leadership skills. His role becomes critical in leading employees through the change process so that the organization can implement new ideas and maintain its customers while retaining and engaging talented employees (Green and Cameron, 2004). To be a successful leader, manager needs to first understand the dynamics of change and how uncertainty affects them. As leader he has to inspire a shared vision, a clear image of the future to take the people along. He needs to inspire trust and make people believe that they have their interest at the heart. He needs to arouse hopes in people about exciting possibilities the future would offer. There is always a risk in entering an unknown path. Therefore Risk taking and experimentation are necessary attributes for leading change (Lewis, 2004).
The company selected for this assignment is Mathura Financial Enterprise. Mathura Financial Enterprise is a limited liability company which is situated in the Capital region of Delhi, India. It provide basic financial services like issuing loan ranging from short term to long term, insurance services and recently started providing commercial banking services to customers. The enterprise was established in 1993 with few employees but gradually developed into a giant financial company. The recent decision by the company management to step into banking industry by providing commercial banking services directly to majority of the clients was a huge step. Although it had quite a good experience in financial sector, but dealing with customers face to face required professionalism. The company had to recruit educated, talented and professional employees along with providing training to the existing ones. It had to completely change the organizational structure and culture of the organization. Apart from internal factors there were external environmental factors that affected the decision of going through change process which included government rules and regulations, fierce competition from large multinationals and national banks. Customer satisfaction was by far the biggest aspect that the company had to dealt with. This is the reason employees were specifically trained in soft skills along with hard skills. The management emphasised greatly on the employees training and development as they consider employee training not as a desirable activity but important factor to implement change successfully. The management ensured that change program should be such a way that should made the employees feel more committed, more confident and more prepared to deal with change as a continuous experience. The change process was implemented after careful planning. Employees were involved in some decision makings and their suggestions were considered important. The company ensured to apply diagnostic approach for monitoring the change process at the micro level with the common aim of improving the organization’s effectiveness. The management tried to develop adaptability in the organizational variables so that the employees can better understand learn. In order to do this, management had to introduce work related changes in the organization, which were naturally resisted by the staff. The management had to make great efforts to overcome this resistance. Although the change is still being implemented, the company went through performance appraisal and training evaluation to find out whether they were on the right track. Constant feedback was provided to employees to keep them involved, improve their performance and remove any issue and problem. The change adapted by the company brought many benefits: The training equipped employees with necessary skills to deal with the customers directly. They feel highly motivated and confidant to deal with clients. Their morale increased and they work more effectively. Their coordination and cooperation among themselves improved as well as it affected their communication with managers and customers. Customers have also shown their satisfaction of the steps taken by the company…………
Bureaucratic organizations are standardized organisations with standard rules and regulations and normally a tall hierarchy (Dawson, 2008). These are often appropriate in stable environment and for routine tasks. Bureaucratic structures have clear, well-defined, centralized, vertical hierarchies of command, authority, and control. The strengths of bureaucratic organizations consists of organizational behaviour bounded by rules, uniformity of operations despite change in management, division of employees based upon functional specialization, rational allocation of tasks, impersonal orientation, promotion based on technical competence, employment based on merit, proscribed authority-legally defined and specific sphere of competence (Dawson, 2008). Its weaknesses include: lacks empathy, lacks rationality, limited authority, and revolves around persons, inflexible in decision making and most of all its inflexible to change.