Introduction
Organizations today frequently struggle to implement effective, long-term changes. Businesses always seek to adjust and adapt their operations to changing conditions in an increasingly complex and shifting commercial environment (Errida & Lotfi, 2021). According to Stouten et al. (2018), sophisticated technology, a changing workforce, competitive threats, and globalization are just a few drivers that motivate companies and their employees to participate in and execute change strategies. Managing change is a challenging and risky endeavor for organizations. Many businesses struggle with organizational transformation programs and fail to achieve the desired results. Errida and Lotfi (2021) claim that, according to several investigations, most organizational change programs fail, with an approximate failure rate of sixty-seventy percent. A high failure rate generates ongoing concern and interest in the elements that might reduce failure and promote organizational change effectiveness (Errida & Lotfi, 2021). Thus, the paper addresses internal and external forces’ impact on an organization’s culture, workforce, and management, investigates barriers to change, and explores change management models.
External Forces
External forces are changes in an organization’s general and business environment. According to Mews (2019), a firm may encounter a variety of external influences, including demographic, social, political, technological, and economic forces. A shifting workforce may need a culture change within the firm. Avon, for example, founded and expanded its business on door-to-door cosmetics selling, with stay-at-home wives and mothers serving as their key front-line employees (Mews, 2019). The company had to change directions and discover new ways to advertise its commodities in front of the customers as more women entered the workforce in nine to five employment. Additionally, emerging societal trends might put corporations under pressure to make adjustments. Consumers are becoming increasingly ecologically concerned, prompting fast food companies to switch from plastic to paper containers (Mews, 2019). When considering political forces, government constraints frequently push organizations to transform. For instance, companies must react to changes in the minimum pay for employees or policies and laws regulating competitive balance in business.
Whether new technology is introduced, industry-wide companies must evolve to accept emerging innovations or face the repercussions. Bright and Cortes (2019) contend that information technologies and digital media fueled by the Internet and utilized by sharing-economy businesses like Airbnb and Uber have decentralized and enhanced competition in various industries, including taxi services, real estate rentals, and hospitality. Companies in all industries must employ the Internet, social networks, and software applications in R&D, management, marketing, sales, and finance departments. Companies should adapt to new technologies and implement changes to handle and exploit big data in these functional areas.
In general, economic and environmental influences include characteristics of the economy, such as currency fluctuations and wages, employment numbers, and associated variables, such as inflation, downturns, and other harmful and positive disruptions (Bright & Cortes, 2019). Economic forces, defined as the growth of an interconnected global economy characterized by free trade, money flows, connectivity, and cheaper foreign labor markets, underpin the dynamics in the broad world economic context (Bright & Cortes, 2019). This dimension continues to provide possibilities and challenges to businesses operating locally and worldwide.
Internal Forces
Internal forces of change emerge from within the organization and are related to the organization’s internal operations. They might include poor performance, dissatisfaction, disagreement, or implementing a new objective or leadership (Mews, 2019). Sethuraman (2020) states that internal forces refer to the people and procedures that exist within a company. Furxhi (2021) agrees that employees, as well as organizational structure and processes, are internal forces that cause organizational change. For instance, the personnel bring about changes in companies and alter working techniques in order to be more productive or efficient in their jobs. Organizational structure is an internal source of organizational change that establishes a company’s power and hierarchy (Furxhi, 2021). Organizations must often rearrange their structures since existing structures do not allow for new concerns. Consequently, organizational processes are actions that generate results (Furxhi, 2021). These tasks must alter to achieve corporate objectives or customer demands that change over time.
Impact on Management
To prepare for and cope with organizational change, it is vital for the management to identify the change, explain why it is necessary, and gain support and assistance from colleagues. Stobierski (2020) recommends developing a roadmap that clearly articulates and assesses progress and describes how the company and its employees, clients, and stakeholders will be impacted. The organization should ensure that the process strategy corresponds with business objectives and specifies the execution and sustainability of the organizational transformation (Stobierski, 2020). Brown (2020) mentions that companies need to concentrate on involving people and motivating them to embrace the new tools and approaches to work required to adapt to change. By (2020) acknowledges that individual change agents, usual managers, enable successful organizational transformation. Hence, leaders should implement methods to assist staff in managing change more successfully. Middle managers are critical in including employees in the transition process (Brown, 2020). Moreover, senior and intermediate managers must lead by example, but advancement prospects and monetary rewards should also drive them. Thus, all of these initiatives should be part of a comprehensive change plan that is implemented at all levels.
Leadership’s responsibility in change management is not limited to encouraging personnel; managers must hold themselves accountable for change. Brown (2020) claims that the following tasks should be assigned to senior management. Firstly, they provide high-level direction on the essential behaviors for change and conduct strategic communications that convey the transformation. Secondly, senior managers should also set an excellent example, model the adjustments they want others to make, and integrate feedback to eliminate impediments to change. Brown (2020) argues that middle managers have the potential to connect with employees more in order to enhance employee participation. Nonetheless, senior and intermediate executives must remain in touch to ensure that possible problems that arise during daily operations are adequately addressed. Middle managers should be accountable for discussing the change’s implications with each team member (Brown, 2020). Additionally, they need to coach and advise employees during the transition, measure engagement, and supervise personnel to ensure the change persists.
Managers must possess unique qualities and skills to guide staff through transformation. For instance, chemical company BASF has implemented impact-based recruiting, focusing on work success outcomes rather than merely standard requirements and skills, to guarantee that they have managers who can guide employees through change (Brown, 2020). Although technical competence is required, the company also evaluates what effective performance in the post entails, as well as candidates’ transferrable experiences, accomplishments, and aspirations (Brown, 2020). This approach enables BASF to find candidates who can adapt, develop, and progress with the company.
Moreover, managers not only need to be supplied with resources and information, but they must also be comfortable guiding through change. Galbraith (2018) states that this role can be increasingly tricky when leaders face increased pressure to offer better responses and assist their staff. Nonetheless, how a company’s leadership responds to change will influence managers, who will impact staff and their involvement (Galbraith, 2018). Change management executives should assist leaders and managers in understanding the principles of change, such as how to be a competent manager during the transition, how individuals react to and handle change, and how to overcome barriers or areas of resistance.
Barriers or Resistance to Change
Change may take many shapes inside a firm; nonetheless, despite the pervasiveness of change, companies and individuals may be hesitant to confront it. Mews (2019) notes that organizational stagnation is the inclination of a company as a whole to oppose change and prefer to maintain matters in their current state. Organizations that struggle with inertia become rigid and unable to adjust to external or internal pressures for transformation. Internal power conflicts, inadequate decision-making procedures, and bureaucratic organizational structures indicate organizational stagnation.
Team members may be divided as a result of resistance to change. According to the Indeed Editorial Team (2022), division can make collaboration difficult and result in internal disputes or disrespectful behaviors. Unresolved workplace divisions may wreak havoc on efficiency, staff morale, and the efficacy of a company’s management (Indeed Editorial Team, 2022). To overcome workplace division, leaders should allow their staff to publicly discuss their issues to find meaningful solutions that all sides accept.
Employee resistance to change is a leading cause of change failure and must be effectively addressed by management (By, 2020). Kirk (2022) asserts that adapting to anything unfamiliar is usually complicated, yet change is not terrible, and resistance is not always negative. For instance, internal resistance within a company is beneficial since it frequently leads to the most incredible ideas and, when appropriately addressed, may help form a stronger team. Nevertheless, many employees, particularly older generations, prefer the security of the familiar to the unpredictability of the unknown, and this mindset can lead to unfavorable attitudes toward change (Murray et al., 2020). Additionally, those who have previously had a poor experience with transformation have a negative impression of change and become distrustful of those striving for transformation. Murray et al. (2020) argue that these employees fear that substantial change is not achievable without devastation. Consequently, stuff reactions are influenced partly by human skills like emotional and cognitive regulation but also by elements that change agents may influence, such as communication and participatory decision-making.
Impact on Organizational Culture & Workforce
Companies should consider the organization’s culture and diverse workforce when dealing with barriers and resistance to change. Vito and Sethi (2020) determine that globalization, shifting immigration trends, and rivalry for skilled labor have all led to a changing workforce regarding ethnicity, class, gender, and sexual orientation. Maximizing diverse employees’ human capital is crucial for success in a multicultural environment. Participative leadership, in which managers listen to all employees’ perspectives throughout the change, is essential to successfully managing organizational change and create a diverse and inclusive working environment (Vito & Sethi, 2020). Thus, the quality of leader-member exchanges, as well as diversity management strategies that encourage inclusion, are vital for workplace culture and have an impact on employee outcomes. Vito and Sethi (2020) argue that given the possible personnel confusion, reluctance, and anxiety resulting from a lack of engagement and judgment during the change process, leaders should genuinely include staff in all change management phases while avoiding a critical attitude. Inclusion and respect for diversity should thus be integrated into organizational change policies, including staff recruiting and training.
Employees should feel secure about a change in the organization owing to change management. Murray et al. (2020) state that they need to comprehend why a change is being implemented and that it will not negatively influence them. Because employee resistance is a primary barrier to successful change, addressing psychological barriers to change is fundamental (Murray et al., 2020). Sethuraman (2020) emphasizes that some employees will inevitably be reluctant to change. Being challenged to perform a task differently might elicit feelings of rage, irritation, melancholy, dread, and anxiety (Kogan, 2020). Hence, when employees are threatened by change, many find inventive methods to resist change and maintain the status quo. Sethuraman (2020) claims that managers should endeavor to understand their employees’ specific hesitations or motivations in these situations to overcome barriers and resistance. It is recommended to ask openly why the transition is difficult and what is generating concern (Sethuraman, 2020). Employees may be concerned that their employment is jeopardized or lack the necessary skill set.
A leader can grasp colleagues’ perspectives and explain how the change fits into their career aspirations if they take the time to talk to them. Some individuals may be unable to express their opposition and refuse to participate in the change processes (Sethuraman, 2020). In such cases, a manager should be patient and provide staff enough time to acquire new ways of thinking and functioning (Brown, 2020). It is critical to observe employees amid transition and provide constructive comments.
To summarize, team members’ resistance can make or break the change endeavor. Kogan (2020) suggests developing a strategy to lessen the impact of resistance and including three tactics to get started. The first step is to discover the fundamental reasons for resistance. Leaders can manage resistance by reacting to apparent signs such as staff complaints and decreasing meeting participation. It is critical to allow workers to share their opinions in a nonjudgmental setting and to listen to their concerns sincerely. The second technique is to invite top management since if they do not contribute to the change, employees may regard it as inconsequential and hence oppose it.
Finally, how leaders communicate the change is generally the most influential element in determining how much resistance to change occurs. The idea is to convey an engaging story in order to catch and exploit the change’s enthusiasm and positive feelings. Kogan (2020) suggests articulating the future state to motivate workers to embrace the company’s goal and to clarify how individual employees will fit into the new organization and how the shift will enhance their careers. Much of the resistance will disappear once employees fully realize the advantages of the change.
Change Management Models
Leaders should employ a change management model because it acts as a guide that can help or hinder change initiatives. According to Errida and Lotfi (2021), it may establish the particular procedures and measures to take by displaying the numerous elements impacting change or determining the levers utilized to succeed in the change management process. Murray et al. (2020) suggest that John Kotter created one of the most effective change management models. The following stages are included in Kotter’s 8 Step Change Model: 1) instill a feeling of urgency, 2) construct a core coalition, 3) design and establish a strategic vision, 4) communicate and discuss vision plans, and 5) empower workers to execute on the vision (Galli, 2018). Consequently, the sixth step is to achieve short-term victories, and the seventh solidifies gains and generates a significant difference. The final phase is to initiate and implement new changes.
Before the change occurs, the first five phases entail necessary arrangements that focus on stakeholder involvement and buy-in. Murray et al. (2020) explain that employees should realize why the change is necessary, observe that others are willing to make the shift, that there is an incentive associated with the change, and that they have the abilities required to accomplish it. Creating an engaging story, enhancing role modeling, and reinforcing processes are required for change (Murray et al., 2020). These processes drive employees by instilling a feeling of urgency, forming a powerful team, and removing obstacles. Steps six and seven lead directly to the change, executed only in the last step. Kotter’s 8-Step Change Model has various drawbacks, such as being a top-down model, which means that the company may skip possible prospects since not everyone participates in the vision’s co-creation (Kotter’s 8-step change model, 2021). If managers do not examine how employees respond to significant change, it can result in staff resistance and dissatisfaction. Furthermore, while the approach is excellent for beginning change, it is ineffective for maintaining transformation.
Furthermore, communication allows the employee to be included in the decision-making process. Murray et al. (2020) claim that people like being heard; contributing ideas and soliciting an employee’s feedback may produce a more positive response. Two-way communication engages personnel and reminds them that change is required (Murray et al., 2020). Worker support is critical for change leaders to obtain because employees’ attitudes toward and evaluations of the change significantly impact success. Furthermore, in a beneficial feedback loop, if an individual is pleased with the change, they are more likely to stay with the company (Murray et al., 2020). Employees may be more receptive to future changes due to organizational commitment.
In contrast to the preceding model, the ADKAR model emphasizes people’s adaptability to change. Galli (2018) indicates that the ADKAR lifecycle begins after detecting a change and is sequenced by how an individual perceives the transition. The acronym stands for five objectives that the model attempts to achieve: “awareness, desire, knowledge, ability, and reinforcement” (Galli, 2018, p. 127). When a company notifies its employees about the need for change, the significant difficulty is choosing the amount of change for a particular project. Employee and project team desire necessitates motivation to engage in the change and the ability to carry out the essential modifications. Workers must thus understand how to change and what the change involves. ADKAR continues to the next goal, namely ability, which relates to the daily skills needed to execute change. Finally, reinforcement is required to maintain and sustain organizational transformation.
The model acknowledges that it is ultimately people, not processes, that promote change. Nonetheless, the ADKAR model has significant shortcomings because it overlooks the complexity of change (ADKAR model of change, 2018). The method disregards the necessity for a goal and a long-term step-by-step strategy to achieve that vision, potentially spanning many years with course adjustments along the way (ADKAR model of change, 2018). Thus, it is more appropriate for smaller-scale transformation projects. Exclusively focusing on the people component will not lead to significant change.
The McKinsey 7-S Model examines a company’s organizational structure. The approach investigates seven components of an organization or project team, indicating the necessary changes. In detail, the model incorporates seven components: “strategy, structure, systems, skills, staff, style, and shared goals” (Galli, 2018, p. 127). For instance, strategy entails shifting the business from its existing position to the new position indicated by the targets. The structure establishes roles, duties, and responsibility connections (Galli, 2018). Consequently, systems are the organization’s or project team’s established processes. Management control, performance assessment, compensation, planning, budgeting, distribution of resources, and information systems are among them (Galli, 2018). Systems have an impact on behavior since they are the processes that alter the resources accessible to a specific entity. Workers’ abilities to accomplish the job of the company or project team are referred to as skills; the model aspect is that the workers have the necessary abilities. This component examines how the corporation employs and retains employees in the company. Finally, shared objectives are key organizational ideas and attitudes that assist employees in understanding the organization’s mission and how it will affect the internal and external surroundings.
The subjectivity around the idea of alignment concerning the seven essential aspects contributes to the model’s seeming complexity in implementation. CFI Team (2022) suggests that the McKinsey 7-S Model enables many components of a corporation to function in a consistent and coordinated manner. It is a long-standing philosophy, with various organizations adopting it throughout time. According to the CFI Team (2022), the main disadvantage is that this method is time-consuming. It needs to be seen how the model will adjust to the changing nature of enterprises (CFI Team, 2022). Furthermore, the model appears to depend on internal elements and procedures, which may be detrimental in scenarios where external events impact an organization.
Conclusion
Managing change is a complex and challenging task for businesses, necessitating a proper approach that addresses internal and external pressures and change barriers. Developments in an organization’s general and commercial environment, such as demographic, social, political, technical, and economic aspects, are examples of external pressures. Internal forces of change arise from inside the organization and are connected to the company’s internal operations. Employees and organizational structure and processes illustrate internal forces influencing organizational transformation. Management must recognize the change, communicate why it is essential, and gain assistance and support from coworkers to cope with organizational change. Employee resistance to change is a significant cause of transformation failure and needs to be handled successfully by management.
Businesses should examine their organization’s culture and varied workforce when dealing with impediments and resistance to change. Participatory leadership, in which managers listen to the viewpoints of all employees throughout the transformation, is vital to effectively managing organizational change and creating a diverse and inclusive working environment. The most potent factor in determining how much reluctance to change happens is how leaders communicate the change. The paper discussed Kotter’s 8-Step Change model, the ADKAR model, and the McKinsey 7-S model as change management models. Each strategy has advantages and disadvantages, and change management executives should choose one based on the nature of the change and organizational objectives.
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