1. Executive summary
Change will always be a part of any business operations. Change is done whenever there are flaws in how a company provides services to the clients. Change occurs in various sectors such as retail, banking, manufacturing, airline and others. One company that allowed change to transpire in their organization is Cathay Pacific. In implementing change, the company will have to make sure that the change will be managed well to prevent any complications. This paper will continue the discussion on the management of change. The paper will contain the prescription for change that includes the vision for renewed organization; direction and scope of change; and the speed of change. The paper will also contain the proposed actions that include leveraging change; renewing systems & structure; tailoring culture; overcoming resistance; leadership of change and communication change. Lastly the paper will contain a conclusion on the management of change.
2. Introduction
Over the last two decades of the twentieth century, theories of organizational changes have had a tremendous impact on business and not-for-profit companies. Many of the top corporations, have implemented one or other change program over the last twenty years, often at the cost of millions of dollars, and involving large-scale restructuring and extensive job losses (Mills 2003). At the end of the day, while it is generally agreed that certain change programs have become widely popular, there is considerable debate about the success or failure of the subsequent changes themselves. Business critics blame suggested failure on incorrect implementation (Mills 2003). Other business critics are less convinced, questioning the lack of evidence of a clear link between the implementation of selected change program and subsequent business success. It is argued that, within management thought and practice, the notion of organizational change has changed in significance over the last two decades, from one of many potential strategies of managing to a key influence on organizational effectiveness and survival (Mills 2003).
The focus has shifted from the strategic choice of the actor to one of incontrovertible external forces that managers need to anticipate, react to and manage. It is contended that organizational change as imperative has become an important management discourse that can be witnessed in the discursive practices of companies. Explaining the popularity of organizational change in sense making terms it can be argued that change has become a conventional management practice, developed and sustained through a powerful management discourse, whose on-going character influences the decision-making of large and small companies, profit and not-for-profit companies alike. Whether or not the adoption of a particular program of change is the right course of action for some companies doesn't seem to matter. Decisions to implement change programs are based on plausibility rather than accuracy (Mills 2003). Over time, the emphasis on change programs has switched focus from ways to improve employee satisfaction to a goal today of customer-driven corporate effectiveness (Mills 2003).
The notion of organizational change has taken on new meaning. Since the early 1980s, it has become an imperative rather than a technique to be considered at appropriate times, a holistic rather than a piecemeal approach to organizational effectiveness (Mills 2003).Organizational change is done by a company when it believes that the company is not adjusting to the new trends in its environment. To turn the division around the management must make sure that the changes will help the members of the organization to easily adjust. The management must also make sure that there are back up plans in case the changes that the company intends to make will fail. Changes in businesses are eminent, especially with different situation in the environment. As the strategies of organizations change, so thus the different policies and practices it has. Change cannot be completed if there will be no one guiding this kind of activity in the company.
3. Prescription for change
3.1 Vision for renewed organization
Cathay pacific wants to be the company that provides the best service in its industry. It wants to make sure that the change would create a better performance for the company. Cathay pacific wants to realize a different image and business processes for the company after the implementation of change. It wants to make use of a determinist approach to shape the future scenario in which the organization will operate. Cathay pacific believes that renewed vision evolved from the current vision through it looking for better means for the company to survive and be successful in its environment.
3.2 Direction and scope of change
The macro view towards the proposed change focuses more on the need for change and what the change can do for the company’s improvement. The Mc Kinsey model was used for determining the direction and scope of change.
3.2.1 Structure
The structure of the company is decentralized wherein decisions are not made by a single person. Each department has a say on decisions that will be made. Each department communicates with each other before making any kind of decision. This structure of the company helps it to make the best decisions that in turn will be vital so that the company can provide the best service that people will avail. This also makes sure that any conflicts within the company can be minimized.
3.2.2 Staff
Cathay Pacific makes sure that the employees they hire will be an asset to the company. They hire the best people for a specific job. This people are trained well by the company so that each employee will have an important role to play in the company. The company provides various financial and compensation packages to their employees. This ensures that for every effective service the employees do they are greatly rewarded. The company also recognizes and gives awards to employees who perform above standards and do things that exceed what is expected of them.
3.2.3 Skill
Cathay Pacific uses the personnel that have ideas on how service should be given and these personnel are the ones assigned to provide the best service. The company tests these personnel before letting them provide service to the clients. Cathay pacific makes sure that the personnel are skilled enough to make use of high tech materials that will provide service to their clients.
3.2.4 Style
Cathay Pacific has a culture of continuous learning. Managers and leaders of the company use a democratic style of leadership so that its culture can be maintained. Cathay Pacific makes sure that through its culture of continuous learning and the use of appropriate leadership styles can achieve the organization’s goals.
3.2.5. Strategy
Cathay Pacific through its leaders is trying hard to learn from its past mistakes so that they can be market savvy. The company tries to minimize committing its past mistakes. The company is trying to have closer relationship with customers so that they can provide services that people will purchase. The company also wants to invest in better equipments. The new and better equipments will be the source of the company providing the best service.
3.2.6 Systems
The different systems of the company were reconfigured to make sure that the system will positive changes to the way the services are given. The different systems are revised according to the different concerns and needs of the department using them. The systems have been altered depending on the needs of the company in that environment.
3.3 Speed of change
Cathay Pacific’s approach on change in terms of the speed for the process of proposed change program focuses on a step by step approach to make the change process be implemented gradually. This would enable the company to make gradual adjustments as the change process goes in the company’s system. The step by step approach would help the company make changes whenever problems are encountered during the implementation of the activities in the change process.
Field theory
Unfreezing
In this stage Cathay Pacific is in the process of overcoming its current inertia. The company has just realized that there is a need for change thus it slowly goes into the process of creating changes within the organization. In this stage the existing mind set is removed so that a new one can be used. With the desire for changes comes the need to replace old habits and culture that tend to cause distractions to the change process.
Moving
In this stage Cathay Pacific is still confused and it is still in the process of transition. Information technology helped Cathay pacific to introduce newer means for them to provide service to the clients; this helped the company to put itself in a position that has a distinct competitive advantage. Information technologies are something that is constantly evolving and being improved over the course of time.
Refreezing
In this stage the focus for Cathay Pacific is to integrate the new mindset into the company and return the comfort level into allowable positions. Change should not be forgotten after implementation, it is a continuing process and it needs maintenance. Cathay pacific needs to continuously adopt improvements to its systems so that the company will continuously achieve its benefits.
4. Proposed actions
4.1. Leveraging change
Force field analysis is another exceptional tool that provides managers with the opportunity to effect change. The technique, and the resulting tool, was developed by Kurt Lewin. Lewin's force field theory asserts that in any situation there are forces that struggle for equilibrium. This equilibrium is achieved through a balance of both driving and restraining forces (Gottlieb 2001). Driving forces are those forces affecting a situation that push the situation in a particular direction. They can be viewed as forces that promote change such as productivity or quality improvements, monetary and other incentives, and competitive forces. Restraining forces are acting to offset the pressure from the driving forces. Such things as lack of financial resources, apathy, and lack of or poor equipment might fall into this category (Gottlieb 2001). The next figure shows an analysis using force field model.
4.2 Renewing systems and culture
Internationalizing firms seem unlikely to change their key attributes and practices substantially unless the following conditions are met. First, foreign operations, assets, and profits constitute a large proportion of the total. Secondly, they are concentrated in a different kind of business system, which, thirdly, is more developed than the domestic one, and, fourthly, is more cohesive and linked to strong, more integrated institutions than the domestic one. Fifthly, they integrate foreign subsidiaries closely to domestic operations, and, finally, these attributes are not highly interdependent with strong domestic agencies and institutions. Because business-system change implies a reorganization of economic coordination and control relations, it involves the restructuring of interest groups outside as well as inside the firms concerned, and often a reshaping of sectoral strengths (Whitley 1999).
For internationalizing firms to affect such shifts in the organization of their domestic economy, then, they would have to be allied to powerful groups and interests (Whitley 1999).To renew the systems and culture the company should first take a look at the expenses it has to incur before changing the system and the culture. It should then take a look at the effect of renewing its systems and culture. In renewing the systems and culture there should be a step by step approach so that once problems are noticed it can be easily given solutions. Having a step by step approach will also help the company and its members in making adjustments to the change in culture and systems.
4.3 Tailoring culture
The cultural web
Stories
The stories in the company usually points to the different kind of people they encounter as they provide services to the clients. The stories revolve around some people who are approachable, some are irritable and some who are considered to be different from others. The company is not trying to create rumors about their clients, it is just being observant on the difference of personalities of each client that they provide service.
Rituals and routines
Cathay pacific has various routines that make sure that the clients will have a safe experience before, during and after availing of their services. The company’s daily behavior is providing service that comes from the heart. In such behavior the company wants to provide an authentic service to its clients. This routines and behavior determines what should be expected in certain situations.
Symbols
Cathay pacific has a brush wing logo which is installs into its airplanes and other facilities that need a logo. The company has clean and plush offices that give proper accommodation to their clients. The company also has formal dress codes that help in giving some respect to its clients. These symbols create a different identity for the company. It sets it apart from its competitors and gives it advantage over their rivals.
Organizational Structure
The company‘s top man is the Chairman Christopher Dale. The CEO of the company is Anthony Tyler. The finance director is Robert Atkinson. They are the ones that lead the company and the ones whose contributions are most valued; underneath them are department heads, sector managers and other personnel that work in different locations. This structure of the company intends to promote teamwork and camaraderie amongst the members of the organization.
Control systems
The control system can help in making sure that employees and their culture can be managed. The control system is also the one used to regulate employees and their culture. The company’s financial systems, quality systems and rewards is measured, controlled and distributed through the feedback system wherein the company checks for problems in the financial, quality and rewards system before it distribute such systems to different segments of the company.
Power structure
The people responsible for decisions on strategies and techniques the company intends to use include the Chairman and the CEO. They have the greatest amount of influence on the decisions, operations, and the strategic direction of the company.
4.4 Overcoming resistance
The next solution towards resistance is explaining the background of new scheme as well as its function and what will be the extent of the change process. This can help the staff to understand how these changes will not affect them greatly. It will also help in dispelling rumors. Lastly communicating with employees to assist them view the logic of a change can reduce the resistance. Good communication is not only reducing the resistance but also creates a harmonious relationship in the company.
4.5 Leadership of change
Organizations with the purpose of starting change need to have good leaders so that the learning process would be uninterrupted and cannot be influenced by outside forces. Good leaders can find sources of information that will be of great value to the change process. They can make decisions that can help the change process to run smoothly and be equipped with appropriate information beneficial to the process.
4.6. Communication change
With the change process being implemented the relationship between the leaders and their subordinates should improve. There should be more chance for the members of the organization to communicate more and share their thoughts on the change process, its strengths and the different problems it might bring to their company.
Conclusions
Companies are seeing the importance of change in their business. Organizational change is done by a company when it believes that the company is not adjusting to the new trends in its environment. The benefits that the company will acquire from the changes it has made may be present after some time. The changes can bring a better future for the company as long as it is gradually completed. After planning the change, the next thing done is implementing it wherein the goal is to make sure that change will give benefit to the company. Change should not be forgotten after implementation, it is a continuing process and it needs maintenance. The success or the failure of the change process should be reported to the upper management for them to decide whether the process should continue or not. Although other stakeholders and members of the organization should be informed about the result of the project , the first people that should know about what happened is the upper management since they are the ones that have to make management decisions. The different groups should receive various data and report on the process depending on their stature in the company and the importance of the information acquired.
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