Organizational change is inevitable for any firm that seeks to grow and expand. One factor is that ever-changing operational circumstances deem the need for an organization to evolve. It is also arguable that factors that affect organizational change be put into perspective to have an observable impact on the firm. Contrary to that, the organization will likely fail to achieve its goal, as it notes that most organizational initiatives tend to fail at a rate of 60-70% (Errida & Lofti, 2021). I have observed the impact that AC organizational change in an organization I have been working in for at least three years has had on the organization. Therefore, the paper evaluates the cultural shift that the company introduced a year ago and its impact on the organization regarding its artistic implementation, stakeholders, and staff members. It also discusses the theoretical background of the change proposal, initiation and performance, the barriers, and the resistance the company has experienced through time. Lastly, it proposes recommendations on alternatives that the company should consider to ensure that change is successful and directly impacts the organization.
Background
A year ago, the board of management resolved to introduce a new change in the cultural diversity of the racial distribution, mainly in the workforce and other cultural activities. To achieve the plan, the organization changed its hiring policies and determined to terminate some contracts in departments that failed to portray a culturally diverse workforce. The board also decided to introduce cultural activities to enhance cohesion among people from different social and cultural backgrounds. Cultural Day was introduced to be commemorated yearly to ensure that staff and people from different cultures can showcase their cultural heritage. These changes aimed to change the cultural norm of the organization of having only people from specific cultural and racial backgrounds.
Additionally, the change was aimed at evaluating the hiring process of new employees in which racial and cultural background was introduced as a criterion for hiring in addition to work experience. It would help to have a culturally diversified environment in as little as one year. There is an increase of up to 10% in Latin Americans employed in the organizations. Still, the company aims to achieve up to 25%, thus giving a significant portion of minority groups in the organization. According to Gibson and Barsade (2003), organizational culture holds the firm together by having a shared pattern of meaning. It focuses on the members’ and stakeholders’ values, beliefs and expectations. The changes ensured that the company achieved its new mission and vision as a measure of venturing into a culturally diversified new market in Latin America. The company needed to adjust its cultural perception, old norms, and enough diversification.
Models and theories
The proposed culture change in the organization can be evaluated using Lewin’s change management model and Bridge’s transition model;
Lewin’s model of change management: the theory is based on three steps involved in managing change, namely, unfreezing, change, and freezing. The first step consists in creating awareness of the need for change and thus changing the existing status quo in the organization. One must overcome the current resistance in a way that makes members of the organization embrace the proposed change (Deborah, 2018). One way of doing this is clearly communicating the change through official meetings on the current state and the impact it will have on the stakeholders. The second step is to introduce the change by implementing the new process. It involves changing the existing process, submitting new activities and behaviors, and providing adequate training and support to facilitate the transition process. Lastly, freezing stabilizes and reinforces the change so that people do not go back to the old state.
Bridge’s Transition Model: The model was proposed by William Bridge on the appropriate management of change in an organization. He argued that a change induced a psychological impact on the involved parties and may affect their emotional well-being and, thus, the likelihood of accepting and implementing the change (William Bridges Associates, 1988). It focuses on three steps of managing change: an end, a neutral state, and a new start. Through these states, it is possible to execute the transition process with adequate psychological assistance from the involved stakeholders.
Evaluation and critique
Based on Lewin’s and Bridge Transition models, cultural change can be evaluated. On one part, the board of directors held a meaning with all state stakeholders. It explained the reason behind the shift, enhancing cultural diversity as a measure needed to venture into the new market. It is common for clients and partners to evaluate the organization’s cultural diversity before getting involved. However, the management field explains and justifies the decision not to renew contracts for some employees to create room for new employees from other cultures. The decision was rapid and lacked a face to help the staff accept and see the need for the change. However, the company had regular training sessions on the different cultures and the importance of cultural diversity as a value for an organization that seeks to grow.
On the other hand, even though the company was willing to provide a service package to those who could not renew their contracts, it failed to provide psychological assistance to them as proposed by Bridge’s transition model. One way would have been to provide an alternative workplace, such as having referrals from them in other companies or moving them to its branches. As a result, the change induced significant racial discrimination and a loss of morale among the employees, making it hard to implement the change. No one could see why they should continue working when they are likely to have their contracts not renewed. Additionally, two of those who had their contracts terminated last month have been reported to be hospitalized because of depression and anxiety after losing their jobs. Therefore, the organization failed to provide adequate time and support to the staff members and gave them forehand information of their termination rather than having a random termination of contracts without the employee’s consent.
Organization’s communication, buy-in, and barriers
The organization’s primary means of communication was and still is public memos and emails to staff members. Additionally, two of those whose contracts were terminated were communicated through emails rather than face-to-face. The organization had a cultural diversity training program, but it could have improved as a few people were added to the session. On this account, only some people apart from the management and external stakeholders have embraced the initiative, allowing them to venture into the new market. On the contrary, the employees still object to the company’s plan of not transferring employees to other branches rather than terminating them.
The company is working on a plan to ensure that employees whose contracts are dew are moved to other branches. It may take longer than the rate at which the company is working to implement the change. This change is to be implemented later on in its branches as well. A proposed suggestion box on the issue has shown that the management must seek alternatives for those who lose their jobs. Although facing financial constraints, the proposed option has gained support among employees and department heads. The resistance to change will remain until the suggestion is put into action. The company’s idea of introducing cultural diversity is the best in this ever-changing world and will gain more support over time. However, it is vital that the organization consider reshuffling its employees to achieve cultural diversity and maintain competence among its employees. While only some may be willing to move to new branches, it’s an excellent opportunity for employees to decide between quitting their jobs and moving to a new branch. It, in turn, will remove the resistance currently observed.
Recommendations
- Have regular training sessions on the importance of cultural diversity. It will help involved stakeholders to see the need and thus find reasons to embrace it.
- The firm should Follow the new proposal of reshuffling employees in all its branches to achieve diversity rather than terminating contracts. This way, every employee will know they have an option and control of their work.
- Provide room for those who cannot move from their current working stations by considering the health and family needs of the employees during transfers.
References
Gibson, D.E. & Barsade, S.G. (2003). Managing Organizational Culture Change. The Case of Long-Term Care. Journal of Social Work in Long-Term Care,2(12),11- 31. DOI: 10.1300/J181v02n01_02
Errida, A. & Lofti, B. (2021). The Determinants of Organizational Change Management Success: Literature Review and Case Study. International Journal of Engineering Business Management, 13, 1-15. https://doi.org/10.1177/18479790211016273
Deborah, K.O. (2018). Lewin’s Theory of Change: Applicability of Its Principles in A Contemporary Organization. Journal of Strategic Management, 2(1),1-11. https://stratfordjournals.org/journals/index.php/journal-of-strategic-management/article/download/229/274#:~:text=Lewin’s%20theory%20of%20change%20is,it%20still%20holds%20to%20date.
William Bridges Associates. (1988). Bridges Transition Model. https://wmbridges.com/about/what-is-transition/#:~:text=The%20Bridges%20Transition%20Model%20helps,Zone%20and%20The%20New%20Beginning.
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