Change Management: Crystel

CHANGE MANAGEMENT: CrysTel

Change Management: CrysTel Telecommunications

MBA 520: Transformational Leadership

Marsha K. Hardeman

January 29, 2007

Change Management: CrysTel Telecommunications

Introduction

Change is constant. Change in organizations is said to often be made in three areas: 1) structure, i.e. new services or programs; 2) technology, i.e. alteration in equipment and/or automation; and 3) people, i.e. selection, hiring, training, relationships, and attitudes. The book, Managing Change, states that, "Ð'...because organizations are interrelated systems, a change in one of these three areas is likely to involve a change in the other two areas as well" (NHSC, n.d.). The key to incorporating and managing change is to begin the process with preparation in the areas which will be affected. Preparing for employee resistance to the change process can give leaders and managers the upper-hand in trying to avoid the negative implications to organizational change.

Effective leadership can develop a "learning culture and promotion of innovation for organizations to help sustain change" (University, Building a culture for sustaining change, 2004). This change management plan for CrysTel Telecommunications will identify implications of change, potential resistance to change, monitoring progress of change, and recommendations for continued success as CrysTel implements change within the organization.

Implications of organizational change

CrysTel Telecommunications hired a consultant to determine the level of resistance to change within the organization. A communications company with 2500 employees and $200 million in annual revenue, CrysTel must prepare for impending and emerging changes in technology in order to increase products to consumers (University, Building a culture for sustaining change, 2004). Hiring a consultant to determine which departments have the greatest resistance to change will allow for CrysTel's leadership to address specific behavioral indicators in order to successfully implement organizational change as needed.

In Workplace Change: Managing Workplace Change, Becker, Tennessen, and Dahl state that some implications to organizational change are:

"Ð'...addressing concerns about job security and the workplace, increasing change acceptance, identifying the benefits of the change and create incentives for acceptance, perceive management commitment for satisfaction and commitment to the new workplace strategy, broadcast information through interactive dialogue, explain broad goals, and discuss personal implications" (1997).

These implications can result in both positive and negative effects within an organization depending on the way change is handled in an organization. Becker et al, also state that the most common question employees will have, when it comes to change, will be, "How does this affect me?" (Workplace Change: Managing Workplace Change, 1997). In order for employees to feel as if management has considered the implications of organizational change on employees, leaders and managers should avoid the following common mistakes when managing workplace change:

"Ð'...do not rely on formal presentations and written materials; do not assume that since you've "told them already," you don't need to tell them again; don't assume that change management starts with move-in and stops after it. It begins when the project begins and continues after occupancy; do not focus on the physical design and technology and short-circuit the cultural issues. Involving staff in the design process is not the same as involving them in a long-term cultural change process" (Workplace Change: Managing Workplace Change, 1997).

CrysTel's marketing and sales departments have been determined to have the weakest areas in employee and job satisfaction. The marketing department showed significant weakness in areas of employee and senior management communication, team empowerment, and employee mentoring. The sales department showed weakness in areas of leadership, risk taking, and abilities to resolve conflicts. These weak areas are responsible for employee absenteeism and turnover as well as lack of employee motivation. Through the initiation of employee satisfaction and climate surveys, management will be able to consider recommendations that target employee needs in order to successfully implement some measures to manage the resistance to change.

Managing resistance to change

Finding ways to reduce or eliminate the resistance to change is an important step in the change process that leaders and managers should not ignore. According to Kotter & Schlesinger, there are four reasons that people resist change. The four reasons are: 1) parochial self-interest; 2) misunderstanding; 3) low tolerance to change; and 4) different assessments of the situation (Six Change Approaches, 1979). It is important for management to determine which of these resistance factors must be addressed and what approaches to utilize in resisting change. As stated in the CrysTel simulation, "Ð'...resistance to change and lack of flexibility endanger the progress of an organization, limiting its powers leading to stagnation and decline" (University, Building a culture for sustaining change, 2004).

Involving employees in the change process is important because employees will feel as if they have a voice in the process, thus creating employee buy-in. Employee buy-in is important when trying to manage resistance to change because of its affects on morale and productivity. In order to effectively communicate change initiatives it is best to provide opportunities where employees can not only become informed of the change process, but also have the opportunities to express concerns and ask questions about the change process (Becker et al, Workplace Change: Managing Workplace Change, 1997).

Employees will need additional information and the opportunities to discuss change. They will need and want to know how change will affect their current positions and responsibilities. According to Becker et al, "Ð'...it is unrealistic to expect employees to be able to focus and prepare themselves for working in a new way, when they are uncertain as to whether or not they will have a job" (Workplace Change: Managing Workplace Change, 1997). " Information needs