Importance of Change Management in Private Sector
Introduction
One significant aspect that distinguishes private sector organizations from public sector organizations is that there processes as well as practices do not remain static. They constantly keep on changing and evolving. Hence, change management has a crucial place in private sector. However, so far, very little research has been done on the importance of change management in private sector.
Rationale
The current paper therefore aims to fill in this gap. The rationale is that change management process is an essential component of private sector business activity. That is why it is important that managers adopt a change management technique which will make the entire process smooth and effective. It is often difficult to incorporate change in an organization, especially if done in a haphazard manner. Employees, in particular, are hesitant to adopt new practices (Piderit, 2000). Nevertheless, this process can become easier for the management as well as the employees if done systematically.
Discussion
According to Rune Todmen (2005), “Change management has been defined as the process of continually renewing an organization’s direction, structure, and capabilities to serve the ever-changing needs of external and internal customers” (p.369). Customers are given a high value in private sector organizations. Without satisfying the customers, these organizations cannot flourish. That is why change management plan has such an important role to play in the private sector.
Efficiency is one of the most important things for businesses operating in the private sector. Effective implementation of change management plan can help in increasing the efficiency of a business. If a change has been fully incorporated into the business practice, it will make the business more efficient. For instance, if a private sector organization has recently shifted to Oracle and all the relevant staff members learn to use it to perfection, then the efficiency of the business will increase. Resultantly, the business will be able to deliver better service to its customers.
One way in which change in business practices can easily be administered is by taking the employees in loop. Initially, the managers should brief the employees regarding the importance of the proposed change. The managers need to explain the employees that the proposed change will not only be beneficial for the organization but also for the employees themselves. Once the employees have been convinced regarding the importance of the proposed change, they will themselves willingly try to implement change. This will make the transition from older code of conduct to new code of conduct smooth and easy. Eventually, the organization will profit as lesser resources and time will be spent in implementing the change.
As Kerber & Buono (2005) rightly pointed out, “the most effective approach to organizational change appears to be dependent on key contingencies of the situation, focusing on (1) the socio-technical uncertainty of the task/problem and (2) the complexity of the business environment, along with (3) the change capacity of the organization and (4) the risks associated with either no or slow change” (p.13). When the business managers or directors are deciding which change management framework to adopt, they should take into consideration the factors pointed out by Kerber & Buono (2005). This will ensure that the organization’s change management strategy does not fail and yields a favorable outcome.
Apart from this, effective change management strategy helps an organization align its organizational values with its practices. Organizational values hold a very important place in a private sector organization. Employees are constantly told to abide by these values. By incorporating these values in a change management strategy, the organization conveys a very good message to its employees. It demonstrates that the organization not only expects its employees to abide by these values, but also does the same itself. This practice is likely to increase the job satisfaction as well as loyalty of the employees. Hence, eventually, the organization will benefit from it.
In a nutshell, change management is a tricky business, but has enormous benefits for organizations operating in the private sector. Therefore, it is highly recommended that private sector organizations adopt an effective change management strategy so that incorporating change becomes easier.
Conclusion
Private sector organizations are always looking out for ways to cut cost, increase profit, and improve the efficiency of their business. There is no better way to achieve all three of these things than to implement an effective change management strategy. It will help the business deliver projects more efficiently and maximize the Return On Investment (ROI). The speed of implementing new initiatives will become faster and it will become easier to achieve the organizational goals. Most importantly, a well-planned and well-executed change management will deter resistance from the employees. This is one of the biggest fears of the businesses that are looking forward to implement change.
Therefore, private organizations should carefully plan and execute change management in their organization, no matter whether the proposed change is big or small. The benefits of change management are enormous and likewise, if change management is not adopted, the cost can also be possibly too large to bear (Hwang & Low, 2012).
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References
Hwang, B. G., & Low, L. K. (2012). Construction project change management in Singapore: Status, importance and impact. International Journal of Project Management, 30(7), 817-826.
Kerber, K., & Buono, A. F. (2005). Rethinking organizational change: Reframing the challenge of change management. Organization Development Journal, 23(3), 23.
Piderit, S. K. (2000). Rethinking resistance and recognizing ambivalence: A multidimensional view of attitudes toward an organizational change. Academy of management review, 25(4), 783-794.
Todnem By, R. (2005). Organizational change management: A critical review. Journal of change management, 5(4), 369-380.
