� Critically analyse the impact of organisational change management processes that might be
introduced in response to your chosen change driver.
� In formulating your Key Concept Exercise, consider the following questions:
o What impacts, if any, will those changes have on the value creation, modus operandi and value capture
elements of the firm�s existing business model?
o What individuals, groups or communities of interest will be affected by the changes you plan to make?
o What do you expect to be the nature of the general attitudes displayed by each of those stakeholders?
o What specific actions would you anticipate taking in order to ensure an appropriate and ethical
response to stakeholder concerns about the proposed changes?
Organisational Change Management Process
Introduction
` Does the current rate of fast paced technological advancement make organizational
change inevitable? The current industries’ market is characterized by tough competition, speedy
advancement of technologies which provide no other ways to industries but embrace new
technological advancement in their production of products and services. The paper seeks to
analyze the impact of organization change on investing in new technologies to ensure continued
survival.
Organisational Change Management Process3
Implementing the advice will have various impacts on the smooth running of the
company, adapting the new technology will require funds. This will have an impact on the
company financial position as lack of enough funds to implement the new technology will force
the company to consider debt or equity financing. The change will also affect the workforce as
the new technology will need employees with the relevant skills of using the new technology
(Graetz & Smith 2010).
Impact on the value creation, modus operandi and value capture elements.
Implementing the changes of investing in new technologies will have impact on the firm
value creation. New technology will help company produce quality products which will create
value to the customers. The changes will also have impact on the modus operandi of the firm; the
production of quality products will improve the company relationship with the distributors and
customers. Furthermore, the changes will also have impact on value capture element of the firm,
production of quality products will attract more demand from the market which will result to
higher profit margin to the firm (CAVALCANTE 2014).
Individuals, groups or communities of interest affected.
The changes of the firm will affect various stakeholders such as employees and
shareholder. Implementation of the new technology will have a negative effect on some
employees; the new technology will require employees with special skills which will render the
employees not possessing such skills redundant. The change will also affect the shareholders,
implementing the new technology will require funds where company will utilize the company
profits hence reducing the sum of dividends to be apportioned to shareholders. On the other
Organisational Change Management Process4
hand, the firm will opt to borrow loans from commercial banks which will reduce the
shareholder dividend earnings the whole period the firm is repaying the loan (Whellan – Berry
and Somerville 2010).
What do you expect to be the nature of the general attitudes displayed by each of those
stakeholders?
The change will have negative implications to employees and shareholders. As the new
technology will require special skills employees who do not possess such skills would oppose the
change as it would render them redundant. On the other hand shareholder would not buy the idea
as its implementation would have a toll on their dividend earnings.
What specific actions would you anticipate taking in order to ensure an appropriate and
ethical response to stakeholder concerns about the proposed changes?
Mayfield (2014) notes that when implementing a change stakeholder engagement and
management is vital. Employees who do not possess the required skills the change manager
should include training programs which will impart the employees the required skills needed in
the new technology.
On the other hand, the change manager should finance the new technology through
rights issue, right issue is where the company will raise the required capital through selling its
shares to existing shareholders. The rights issue will increase the shareholder stake in the
company which in the end will increase their dividends earnings (Brück et al. 2002).
Organisational Change Management Process5
Conclusion
With the fast paced technology advancement companies ought to implement changes to
ensure continued survival. However, the change should identify key stakeholders to be affected
and take into account their concerns. Addressing stakeholders concerns will aid in smooth
implementation of the firm changes.
References
Brück, H.-J., Karl, Scholz, A. and Myers, M. (2002) The impact of Organisational change
management on the success of a product Lifecycle management implementation – an
investigation into the electronics manufacturing industry.
CAVALCANTE, S.A. (2014) ‘DESIGNING BUSINESS MODEL CHANGE’, International
Journal of Innovation Management, 18(02), p. 1450018.
Graetz, F. & Smith, A.C.T. (2010) ‘Managing organizational change: a philosophies of change
approach’, Journal of Change Management, 10 (2), pp.135-154.
Organisational Change Management Process6
Mayfield, P. (2014) ‘Engaging with stakeholders is critical when leading change’, Industrial and
Commercial Training, 46(2), pp. 68–72.
Whelan-Berry, K.S. & Somerville, K.A. (2010) ‘Linking change drivers and the organizational
change process – a review and synthesis’, Journal of Change Management, 10 (2),
pp.175-193
