What is the impact of change on business growth and productivity?

Answer 1

Change management has been around for a while, but has become extremely popular with organizations or corporations that would like to initiate significant change to processes that can include both work tasks and culture.

Change management can be defined as a set of processes that is employed to ensure that significant changes are implemented in an orderly, controlled, and systematic fashion to effect organizational change. One of the goals of change management is with regards to the human aspects of overcoming resistance to change in order for organizational members to buy into change and achieve the organization's goal of an orderly and effective

Change is unavoidable in modern businesses. Change within organizations and markets can be driven by a number of factors, such as technological innovation, a changing legal environment, or evolving consumer tastes. Small business owners must be aware of the pros and cons of change in business in order to maximize the effectiveness of their change management skills. Thus: the impact of change on on business growth and productivity can be measured by the following:

Productivity

The effect of change on a company's productivity is like a double-edged sword. On one hand, changes can bring about drastic improvements in employee productivity. Installing a new point-of-sale (POS) order entry terminal in a retail chain, for example, could help to reduce the time customers spend in line while cutting back on costly employee errors. On the other hand, serious work flow slowdowns or stoppages can occur if any problems arise during the implementation of a change. Employee productivity is likely to plummet for a time as employees involved in the change become accustomed to the ways in which their jobs are affected. While the new POS system in the earlier example may be designed to reduce line-time, lines are likely to be longer for a few weeks as employees familiarize themselves with the new technology.

Workforce Attitudes

According to topbits.com, it is important to garner buy-in from managers and front line employees in order to maximize the effectiveness of the change and the change process itself. Unfortunately this is not always easy to achieve. While some people in your organization are likely to welcome the change, most times there are at least a handful of key employees who will resist it. In this way, change can increase the productivity and satisfaction of some employees, while reducing the productivity and satisfaction of others. Change resistors can spread doubt and fear among other employees. Focus on discovering the true motivations and needs of this group and work with them, rather than against them, to help them realize the importance and benefits of the change.

Relationships

Some changes, such as the decision to outsource a department, can lead to damaged relationships between the company and its employees, and can ultimately have a negative effect on the company's reputation in the workforce. Others, such as promoting employees internally or adding new departments by hiring fresh talent, can strengthen and widen the company's relationships. At times it may be impossible to save a company without offending or severing ties with certain employee groups. Work closely with these groups to ensure that their difficult transition is as beneficial to them as possible.

In conclusion, the Success or Failure of Change initiatives are generally implemented for the good of a company, but the results of change can be unpredictable. While most organizational changes are brought about after considerable research and discussion, it is still possible for a company to be worse off after a change. Whether it is a change in business model, target market, organizational structure, or even leadership, the success of the business will be affected in one way or the other. Do not implement company-wide changes on a whim; perform extensive research and testing to be as certain as possible of a positive impact.

The five specific stages that must be realized in order for an organization or an individual to successfully change. Includes:

• Awareness - An individual or organization must know why a specific change or series of changes are needed.
• Desire - Either the individual or organizational members must have the motivation and desire to participate in the call for change or changes.
• Knowledge - Knowing why one must change is not enough. An individual or organization must know how to change.
• Ability - Every individual and organization that truly wants to change must implement new skills and behaviors to make the necessary changes happen.

Reinforcement - Individuals and organizations must be reinforced to sustain any changes. If not, an individual or organization will probably revert to their old transformation.

BY: PRINCE CHRIS ANDOH

AGONA RURAL BANK LTD

UNIVERSITY OF CAPE COAST

LICIESTER UNIVERSITY U.K

A.C.C.A

C.I.B

GRADUATE TRAINING INSTITUTE- G.T.I, LEGON