Управление изменениями в организации на примере ООО Леруа Мерлен Восток (1216289), страница 10

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Pressure on Top Management

Stage 2

Intermediation on the top level of management

Stage 3

Diagnostics of the problem area

Stage 4

Finding of the new decision

Stage 5

Experiment with the new decision

Stage 6

Confirmation based on the positive results

Motivation to action

Obligation to implement the new course

Refocusing on internal problems

Understanding the concrete problem

Identification of the results

Adoption of the new methods

Figure 4 – L. Greiner’s Model of successful organizational changes

Stage1. Pressure on the Top Management

The first step consists in the fact that management must recognize the need for change. This pressure can be exerted by external factors such as the increased competition, changes in economy, or the new legislation acts. Awareness of the need in changes may come from internal factors changes, such as decline in production, excessively increased costs, high turnover of employees, conflict, and a large number of workers’ complaints.

Step2. Intermediation on the top level of management

Responsible top managers must recognize the need for change and the real causes of this need therefore, it is necessary to be able to perceive the new views.

Step3. Diagnostics of the problem area

At this stage, management collects relevant information and determines the real causes of the problems that require a change in the status quo. Determining the scope of the problem leads to the realization of specific problems.

Stage4. Finding the new decisions and the commitment to implement it

Once recognized the existence of the problem, the management is looking for the way to resolve the situation.

Step5. The experiment with the new decision

The organization rarely takes the risk to make the major changes at a time because it will rather begin testing the planned changes and identifying the hidden problems than introducing innovations on a large scale. Through the experiment and identification of the adverse consequences, the management will be able to adjust their plans to achieve their higher efficiency.

Step6. Confirmation based on the positive results

At the last stage, it is necessary to motivate people to accept these changes.

3. The theory «E» and the theory about organizational changes

In addition to the models of organizational changes that offer managers a specific sequence of steps, the experts in the field of organizational change are developing approaches to change management describing the general philosophy of the change process in the organization.

In modern literature on the issue of managing the changes, the two polar concepts are distinguished, each of which defines the strategy for changes. The authors of these concepts (the theory «E» and the theory «G») are Michael Beer and Nitin Noria [25].

The theory «E» is based on the financial goals and focuses on their effective achievement taking into account the constant pressure of the company's shareholders.

The theory «О» considers the organization as a self-developing system and to a greater extent it is focused on the corporate culture, goals, and motives of the organization employees.

As a rule, the managers who prefer the theory «E» use the tough methods focusing on the changes from the top downward and focusing on the creation of a structure and systems.

The executives who prefer the theory «О» mainly focus on training and development of their employees, changes in the corporate culture, and implementation of the changes from bottom to top.

Table 2 shows the characteristics of these two theories.

Table 2 – Comparative characteristics «E» and «G» theories of organizational changes

Characteristics	theory «E»	About theory
Purpose of the changes	Increase in profits (economic goals)	Organizational possibility development
Leadership	From the top downward	Involving the employees in changes
Object of changes	Structure of the organization and its subsystems	Corporate culture, employees’ behavior and relationships in the group
Process of changes	Planning and execution	Experiments and development

Continuation of table 2

Based on the data in Table 2, it can be concluded that the rapid and painful changes that may be needed to improve the company economic efficiency are impossible to make by using the theory «О» because it requires a long-run and temporary costs. Moreover, the theorem cannot precede the theory «E».

Using the theory «О» of the organizational changes means creating an atmosphere of cooperation and trust. If after a long period of creating such an organization, the manager declares the switch of the goals primarily to the economic efficiency, the confidence and commitment on the formation of which were spent years can be easily destroyed. Therefore, one can claim that in case of the need for a «coherent approach», it makes sense first to realize the theory «E», then the theory «О», most of the companies are trying to combine these two approaches to management of the organizational changes.

The application of the «simultaneous approach» calls on the manager’s (management team) knowledge of the tools and management styles of both the «E» and «О» theories. Their synthesis requires the simultaneous and equal focus both on increasing profits and on the developing the organizational capabilities. It is obvious that a strong leader should manage the process of changes that is able to involve the employees in the change process. But it is also obvious that for a successful course of the process changes, it is necessary to attract another top manager making him a key member of the team who is managing changes. The second leader should be more flexible and focused on human relations while the first one - more overbearing and rigid and focused on achieving improvements in work.

The «simultaneous approach» is required in the practice of Russian companies in case if they cannot function without the management team involvement. It is extremely difficult to single-handedly have all the knowledge of the provisions and instruments of both theories; no company initiating process of the changes can do without the help of advisers. «The simultaneous approach» involves the consultants to support the process of changes, but not to manage changes. One cannot lay all the responsibility for the success of the changes upon the consultants. Success will depend entirely on the energy and knowledge managers themselves. Consultants are needed only at the early stages of the change process for carrying out an expertise in specific areas of management and for supporting the management team decisions. A necessary part of the consultants' work is to train managers to be able to work in a team. It is also important to remember that changes are a difficult process that always runs on rather seriously at any level. The «Simultaneous approach» allows avoiding many dangerous moments by creating a strong corporate culture focused on the interests of all the company's employees. It is necessary to create and develop an emotional commitment to the new strategies and structures otherwise the elements of the model will not work [19].

Summing up the results of the First Chapter, it was revealed that in the theoretical study of the essence of the concepts «control» and «changes» in the organization," both concepts come down to improving the positioning and functioning of the company as a whole, and also, the organizations will not achieve changes without the learning process because it is only thanks to the like-minded people, companies not only begin to do something new, but also expand the opportunities to act in a new format and learn how to be ready for the future changes. For organizations that are trying to adapt to the current environment, it is extremely important to understand the external and internal changes because it is not enough just to change strategy or structure; also, changes in thinking (consciousness) which would entail the creation of these new strategies and structures are required.

Further, having considered the 2 types of classification of organizational changes (R.M. Kanter’s classification and classification of organizational changes), we can conclude that the classification of organizational changes in the first two cases (changes in technology and in goods and services) is discussed in detail within the framework of innovation and production management. Changes in the strategy and structure are considered on the example of restructuring the company's management: the stages of organizational analysis, the strategy and structure connection, approaches to the management of the company restructuring are studied. The changes in the culture are considered on the examples of re-engineering and introducing the total quality management system and creating a learning organization.

These four types of changes are interdependent - a change in one leads to changes in the other. A new type of product may require changes in production technology and structural change – the new skills of employees.

ПРИЛОЖЕНИЕ 2

ОТЧЕТ О ПРИБЫЛЯХ И УБЫТКАХ МАГАЗИНА

ООО «ЛЕРУА МЕРЛЕН ВОСТОК»

Таблица 2.1 – Отчет о финансовых результатах магазина «Леруа Мерлен»

в г. Барнаул за 2015 г., тыс. руб.

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