Change Management

Change Management of Synergetic Solutions Inc.

Nowadays, business world change is an inevitable quality. It is necessary for all management of the companies to prepare for all upcoming technological advances, personnel and organizational changes. In order to minimize the impact of change, every employees need to brainstorm about what will be done tomorrow and the day after that.

Therefore, this assignment was made by using three main change management theories which are Theory of Lewin's, Theory of Catastrophe's, and Theory of Herzberg's.

There are many different forces that the organization faced from the change. Awareness of forces can assist managers to determine when an organization change should be implemented.

Internal Driver to Change

1. Stimulating the innovation. Synergetic Solution Inc. can lead to radical changes at the productivity--the combination of product, market and technology. Such innovations can provide the entry into new markets.

2. A sense of responsibility. Unusual or high-level of absenteeism and turnover represent forces for change (Kanter, 1991). Synergetic Solution Inc. must take the issues or working towards sustainable development into account since it can provide a strong incentive for implementation.

3. Cost Reduction/Profit Maximization. The strategy to minimize raw material consumption and energy usage in production and distribution should be applied to decrease costs.

External Drivers to Change

1. Synergetic Solution Inc. needs to improve product quality in terms of functionality, reliability, durability and repair-ability to address consumer concerns and enhance sales.

2. Need to improve skills level, knowledge level and competencies of employees by hiring specialists and training program.

3. Market Forces

-Market demand - Maximizing the market demand and customer needs.

-Competition - Select to be a competitor or an alliance.

Moreover, the leader should consider the following factors to help change-leaders overcome with resistance when they implement change.

1. Emotional reaction- employees react emotionally to the change.

The employees' initial appraisals of the relevance of the event elicit general emotional reactions, either positive or negative, towards implementing the change (Burnes, 2004). For example, the leader should communicate the change to employees before take action plan therefore all parties would understand the change in the same way.

2. Organizational environment (culture, climate, economic reality)

2.1 Organizational culture includes the procedures and routines of employees. When Synergetic Solutions Inc. improves operational efficiencies and production standards, there are two sides of employee reaction to change. Employees who disagree to change, like to maintain routine role patterns that make life more predictable and less troublesome while the employees who are ready to change will pay attention to the new ideas that will benefit the company.

2.2 Economic reality in organization

Financial Support should be considered in order to invest in new technologies and tools.

3. Skills and abilities of employees

The leader should consider skills and abilities of employees, since the successful change may depend on employees' knowledge and training (Porter&Lawler, 1968). For example, the leader of Synergetic Solutions Inc. recruits the specialists to provide training.

Employees resist change when they do not understand the changes that are taking place, they slight or no perceived benefit of doing things differently. Therefore, the leader should find the reasons for resistance and handle with resistance to change of employees. The following are the resistances that might be occurred.

1. Employees have no role models for the new activity

In Synergetic Solutions Inc, the leader wants to improve organization effectiveness and employee well-being, the leader develops action plan such as, redefine role and tasks, analyze Synergetic's work processes, and reengineer processes.

The employees uncomforted to change; they seem the changes might bring to a different life, experience or act. As a result, the leader should demonstrate how the new process could work, set up effective pilot programs strategy that model a change (Schuler, 2003), and work out the kinks before taking the innovation on the real change.

2. Employees afraid lacking of competences from change.

When new technologies and tools are applied, employees will admit fear to the change. When change in organizations changes in skills. It should focus on employee competencies including identify effective new training program, presenting the rationale and plan for change. As well as hiring specialists to provide training.

3. People fear of the unknown

When the leader announces to establish processed and documentation procedures, employees might worry about lacking the necessary skills or losing valued work arrangements after the transition. The leader's strategies should build a coalition to lead the change effort and provide opportunity to employees to involve in the new process. Since employee involvement creates a sense of ownership of the change process, it minimizes problems of saving face and fear of the unknown. For example, Richmond Savings Inc. was able to involve all its 400 employees to change the plan. Everyone at the session voted on the best of the action plans. This employee involvement process for organizational change was a success (McCallu, 2001).

4. Breaking routines.

When the leader improves operational efficiencies and production standards, some employees feel uncomfortable to abandon the routines and behavioral habits to improve operational and production standards (Schmidt, Simmons, 2004). In order to overcome this problem, the leader should motivate them by giving reward, and restructure compensation packages. Those will encourage employees to change since they perceive that when they change, they will get more benefits.

5. People feel overloaded and overwhelmed

When the leader improves project accountability and effectiveness, employees may perceive that change will result