ESSAY Prof. Dr. Malte Martensen Date of submission:

ESSAY

IUBH International University of Applied Sciences (Campus Berlin)
Change Management

Current issues and challenges in Change Management

Shivendra Kothandaraman
Student ID: 9160473
Rolandufer 13, D-10179 Berlin

Germany

Supervisor: Prof. Dr. Malte Martensen
Date of submission: January 15th

Current issues and challenges in change management page i

Table of Contents

Table of Contents

Table of Contents …………………………………………………………………………………………………….i

1.
2.

Introduction ……………………………………………………………………………………………………. 1

Theoretical Foundations …………………………………………………………………………………… 1
2.1. Basic Concepts ………………………………………………………………………………………… 2

2.1.1.  DEFINITION A ………………………………………………………………………………. 2

2.1.2.  DEFINITION B ………………………………………………………………………………. 2

2.2. Literature Review …………………………………………………………………………………….. 2

2.2.1.  Kurt Lewin’s Three Step Planned Change Model …………………………….. 2

2.2.2.  Kotter eight step Model……………………………………………………………………. 3

Methods …………………………………………………………………………………………………………. 3

Results …………………………………………………………………………………………………………… 4

Discussion and Outlook……………………………………………………………………………………. 4

5.1.  Theoretical Implications ……………………………………………………………………………. 4

5.2.  Managerial Implications ……………………………………………………………………………. 5

5.3.  Limitations and Future research …………………………………………………………………. 5

3.
4.
5.

References ……………………………………………………………………………………………………………vii
Declaration of Authenticity ……………………………………………………………………………………viii

Current issues and challenges in change management page 1

1. Introduction

In the present dynamic business world, when changes are not handled properly strains
the ability of entrepreneurs to improve the business of creating and maintaining competitive
advantage. Several organizations tend to adapt and change continuously to remain competitive
and effective. Latest statistics says that one out of three efforts towards organizational change
is successful by the leaders. Implementation of a successful change program is full of challenges
and the change management process remains highly difficult. change is considered an
opportunity to strengthen the business by aligning operations with strategy, take new risks and
advance careers. Change is not implemented in a single moment, and likewise the role of
business leaders in managing change should not be reduced to a single event. The manager’s
role in change must be active and visible in all phases of the change process. Theoretical models
of change management are the main aspects in implementing rapid change. The objective of
this essay is to discuss the challenges in the change management, which has become one of the
most important issues for HR managers in today’s world. The organization of the essay will
start with a discussion of the two change models and their challenges related to change
management. Finally, the essay will provide recommendations and suggestions that can be
helpful for management of change in the present business world.

Perspective

Organizational

Organizational

Individual
Individual

Table 1.1.: Research questions (own illustration)
1 How does organizational culture affect change management?

Research Questions
2 How is organizational structure a determinant in change management

process?

3  How does leadership affect change management

4  How do resources have effects on change management

2. Theoretical Foundations

Change management is a basic skill that most leaders and managers should be competent
and ready to accept. Moreover, managerial interest in the topic has been stimulated by the
comments of Peter Drucker as to whether one can manage change at all or merely lead or
facilitate its occurrence within an organization. Typically, the objective is to maximize the
collective efforts of all people involved in the change and minimize the risk of failure of
implementing the change. Change is not implemented in a single moment, and the role of
leaders managing change should not be reduced to an event. The manager’s role in change must
be active in all phases of the change process. There are four types of change that an organization
goes through with the possibility of overlap among each phase. Operational changes can affect
the way in which the business operations are conducted. Strategic changes occur when the
direction or the strategy in which the business performed is affected. Cultural changes affect
the organizational rules such as the way the business is conducted. Political changes occur
primarily due to changes that happen on top levels in the organization, those working on the
bottom level often notice the change at the top.

Current issues and challenges in change management page 2

2.1. Basic Concepts

2.1.1. DEFINITION A

Strategic management is a dynamic process of aligning strategies, performance and
business results. Effective combination of people, leadership, technology and processes along
with strategy and successful delivery makes a change successful. To survive and grow the
organization must define and grow internal competencies, develop and maintain some rules and
theories to create the future. The organization must grow along with the changes or fall without
adapting. The concept of strategic fit – how well the organization should be measured to meet
the requirements of the strategic change. This context has both external dimensions (political,
socio-economic, technological, cultural and competitive) and internal dynamics (organizational
structure, skills resources, systems and culture). Strategy gradually became how well an
organization could anticipate and react to change in its operating environment.

2.1.2. DEFINITION B

Strategic change is defined as “changes in the content of a firm’s strategy as defined by
its scope, resource deployments, competitive advantages, and synergy” Hofer and Schendel
1978. In simple form strategic change is a way of changing the objectives and vision of the
company to obtain greater success. It does not depend on the greatness of the strategy or how
useful the change may be for the organization, if you cannot make them understand to the
people it’s worthless. A strategic change must be good consideration about context
compatibility between the change and organization. It is obvious that changing something that
people used to do it for a long time is not easy.

2.2. Literature Review

2.2.1. Kurt Lewin’s Three Step Planned Change Model

Kurt Lewin proposed a three-stage theory of change commonly referred to as Unfreeze,
Change (or Transition), Freeze (or Refreeze). The first step being the unfreezing step include
determining what needs to change, create the need for change and getting ready to change.
Lewin was aware that change is a step by step process. This second stage is where we make the
changes that are needed. This stage is often the difficult as people are not aware whether the
change is going to be a success or a failure. The final of the three crucial steps is the re-freezing
step. Re-freezing suggests this stage is about implementing stability after the changes have been
done. Time plays a major role in implementing a change. This rigidity of strategic change does

Current issues and challenges in change management page 3

not fit with modern thinking of being continuous and it is a chaotic process in which great
flexibility is demanded. Lewin`s model is a logic model that shows the chain of transformations
that an organization must go through in a situation at a desired period.

2.2.2. Kotter eight step Model

Kotter (1998) developed a model which should be used at the strategic level of an
organization to change its vision and subsequently transform the organization. Each phase lasts
a certain amount of time and mistakes at any phase can impact the success of the change.
• Step 1: determine the urgency of change
• Step 2: form a strong nucleus, leading change
• Step 3: create a new vision
• Step 4: notify all new vision
• Step 5: empower others to act on the vision
• Step 6: create a short-term win
• Step 7: maintain state of emergency
• Step 8: anchoring changes in corporate culture (strengthen change)
Finally, to make any change stick, it should become part of the core of the organization. If you
lose the support of these people, you might end up back where you started.

3. Methods

According to McKinsey&Company research, 70% of organizational transformation
efforts fail significantly short of fulfilling their change vision. I have combined the key
learnings from various articles and stories from great organizations about the strategic change.
The present study is based on the secondary data. strategic change has dominated the theory
and practice of change management since Kurt Lewin`s work. In 2002 J.Kotter came up with
a new idea related to the change process, because they are available for analysis which
influences their thinking. Collection of data, analysis and presentation of data are important
elements in the process of change, but change behavior analysis is the one that pushes people
into a process to feel the change.

Current issues and challenges in change management page 4

4. Results

Lewin`s model is a relatively simple design and can be used to develop cu. The most
important goals in the process of change, are: create a sense of urgency, recruit powerful change
leaders, build a vision and effectively communicate it, remove obstacles, create quick wins, and
build on your momentum. If you do these things, you can help make the change part of your
organizational culture. That is how we declare that the change is successful. The elements in
Kotter – 8 steps model is extremely important, but the core issue is the behavior – what people
do and that is how they need to be changed significantly react. The above-mentioned models
Kurt Lewin`s – 3 stage model and John Kotter – 8 steps model are the important models that
serve to implement the change in an organization. Since all models are very specific, they are
all inaccurate to some extent. The most important aspect we need know whether they are useful
– whether they help us to improve and succeed.

5. Discussion and Outlook

The challenges faced in change management are:

Thechallengesandproblemsfacedbytheorganizationisrelatedtothecomplexityand

speed of change needed today.

Thereisnoclearmethodforchangemanagementandchangemanagementisnotalways

successful.

Strategic change management does not have a timeline during which the expected

changes are completed.

It is highly important that all members of an organization agree on the change

management and are willing to accept and work together for overcoming barriers.

Managementshouldmaintainregularcommunicationwiththeiremployeesandensure
that any new information or change implementation is done with all employees on

board.

Employee resistance is a bigger challenge for business organizations.

5.1. Theoretical Implications

After the discussion on the models and their results, it is important to consider how
strategic change is implemented in the real world. The example of Nokia which was one of the
leading makers of the mobile handsets few years ago and which now finds itself at the bottom
reminds us that the strategic drift occurs without anyone noticing it and by the time it gets

Current issues and challenges in change management page 5

noticed, it becomes too late. The collapse of once famous companies like Chrysler pointed to
the transformational change that was sudden and radical in nature.The main aspect about
strategic change is that it is difficult to predict and control. Thus, it is important to deal with it
by expecting the unexpected and be ready for anything. The companies need to embrace
change, they are likely to be fail unless companies prepare to deal with sudden, unpredictable,
discontinuous, and radical change.

5.2. Managerial Implications

As to the managerial implications of the study, we find that differences in professional
discourse should be made explicit and be a constant point of attention in teams. Managers
typically think that it is not their role to interfere in the details of change projects. Yet, by
adhering to this perspective, managers will use a specific discourse, specific kinds of speech
acts and certain negotiation styles, which might not be understood by other professional groups.
Thus, an explicit reflection on their own style and its effects on the interaction dynamics could
help managers to develop a broader view on the implementation of change and possible
resistance on the part of employees, thereby creating more and new options for action.

5.3. Limitations and Future research

The study findings could have been complete if all the targeted changes like
organizational were considered. It is recommended that a similar study be conducted with a
different change but with a larger sample. Large sample size will resolve part of the limitation
on this study and particularly that which relate to the number of articles studied.

Current issues and challenges in change management page vii
References

?  https://www.ijser.org/researchpaper/Strategic-Change-The-Influence-of-Managerial-
Characteristics.pdf

?  http://www.ipedr.com/vol4/108-F00035.pdf

?  http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.870.8573&rep=rep1&type=

pdf

?  http://feaa.ucv.ro/annals/v3_2010/0038v3-025.pdf

Current issues and Challenges in change management page viii
Declaration of Authenticity

Herewith I confirm that this thesis is my own work, which was written without unauthorized
assistance and that all references used are marked appropriately.

Berlin,15-01-2018 Shivendra kothandaraman
Place, Date Signature