Управление изменениями в организации на примере ООО Леруа Мерлен Восток (1216289), страница 9

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Considering the notion «changes in organization», the authors also adhere to the one main idea, but each of them interprets in his own way. For example: Kanke V.A. in the «Management Philosophy» believes that «changes in the organization» are considered as a set of measures for discovering the new object links and their management for the possibility of rapid adaptation to permanent changes in the external environment; Alekseenko N.A. in «Management Accounting in Anti-Crisis Management: Theory and Practice» believes that the notion "changes in organization" is a new idea that will help change the organization's habitual activity into something new; Goncharenko L.P in «Risk Management» considers that «changes in the organization» mean the company's ability to strive for the new while improving its properties, functions, and relationships; A. Klenin in «Secrets of Successful Enterprises» believes that "changes in organization" occur specifically because of the constantly changing external environment [13].

Larina Yu.S. in «Russian Entrepreneurship» considers that the notion «changes in the organization» means the transition of both the organization and its individual parts into new states due to the fact that the external and internal environments do not stand still but give a chance to change the set tasks in the organization and are directed to increase the efficiency of the company's performance in general.

Thus, having carried out the theoretical study of the essence of the notions of «managemen» and «changes in organization,» it became possible to identify that both concepts come down to improving the positioning and functioning of the company as a whole, but likewise, in my opinion (based on the analysis of the authors), organizations do not achieve changes without the learning process because only due to the like-minded company, «organization» not only begins to do something new, but also it increases the opportunities for acting in a new format and learning to be ready for the future. For organizations that are trying to adapt to the current conditions, it is extremely important to understand the external and internal changes because it is not enough to simply change the strategy or structure; the changes in thinking (consciousness) that will entail the creation of these new strategies and structures are also necessary.

1.2 Classification of organizational changes

To achieve a competitive advantage, managers and executives can focus on the four types of organizational change: Goods and Services; Strategy and Structure; Culture; Technology (Figure 1). Each company has its own unique and special set of products, services, strategies, structure, culture, and technologies that can be put together for the most effective and long-term competitive advantage.

Changes in technology

Changes in culture

Changes

Changes in goods and services

Changes in strategy and structure

Figure 1 – Classification of organizational changes

Changes in technology are changes in the production process, basic skills, and knowledge of workers in the organization which enable them to acquire a distinctive (specific to a particular company) distinctive competence (knowledge and experience). These changes are planned to bring production (quality) to a higher level or to increase the output of products. In addition, changes in technology include the ways of making goods or providing services. In this case, the methods of work, equipment, and the course of work are also taken into account [29].

Changes in products and services are related to the final results of the company's activities before it reaches the consumer in the form of goods or services. New products can represent a modernized old or a completely new product range. New products are developed to increase the market share that the company accounts for (including the development of the market, consumer groups or customers).

Changes in the organization's strategy and structure relate to the administrative sphere which includes management and control. Here, changes take place in the structure of the organization, strategic management, labor relations, the system of remuneration, politics, control and information, budget planning and the financial reporting system. Changes in structure and strategy usually occur from the top down, that is, on the orders of senior management (for example, changes in technology and products can go from bottom to top). For example: for a university, systemic changes from the top are more effective curriculum, but reducing the size of the company or restructuring are the examples of structural changes.

Changes in culture include the attitude to changes in the values, expectations, beliefs, attitudes, and behavior of the organization employees. Cultural changes involve mental (based on previous experience ideas) models, that is, changes in thinking compared to the changes in technology, structure, or product. Currently, it also includes reengineering business processes (radical redesign of business processes to achieve sharp improvements in the company's current performance indicators, such as quality, service and pace) and the introduction of a quality system in the organization.

A

Changes

ccording to Kanter R.M, «change management» occurs on three levels (Figure 2):

Project

Programs

Organizations-guides

Figure 2 – Classification of organizational changes (Kanter R. M.)

Change of projects is the focus on solving a specific problem or meeting the need through a certain sequence of actions. These actions can bring success in the short term, especially, if they are focused on the specific result and do not violate the company's traditions. But if they are autonomous projects, they will not have any long-term impact, the memory about them will disappear, and later generations will experience the same need again.

Programs of changes are interrelated projects developed to provide aggregate organizational impact. Here, success often depends rather on how each individual project is linked to other actions of the company than on the quality of the project or the methods of implementation. The programs of changes often fail because they are isolated from the current activity and contain too many provisions that do not fit together, or are performed by an elite group that expects everyone to give up everything and join the cult that they preach.

Organizations – guides of changes. The so-called companies that are able to continuously innovate, improve, and do it before external circumstances require it. These are the organizations that mobilize many people to make changes. Success depends on whether there are conditions required for the organization transformation together with changes that occur continuously and are perceived as natural progressive changes and radical (evolutionary and revolutionary, cumulative and discrete) changes [9].

Thus, having taken into account the 2 types of classification of organizational changes, it can be concluded that the classification of organizational changes in the first two cases (changes in technology and in goods and services) is considered 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 relationship between strategy and structure, and the approaches to restructuring a company management are studied. Changes in the culture are considered on the examples of reengineering and introducing the system of universal quality management and creating a learning organization.

These four types of changes are interdependent - changes in one lead to change in another. A new type of product may require changes in production technology and a change in structure - new skills from employees.

The classification of R.M Kanter demonstrates to us the changes in the organization at the three levels: change of projects, programs of changes, and organization-guides of changes. The connection of these three steps can be identified in the following order: 1. sequence of actions; 2. interrelation of projects; 3. continuous innovation.

Both in the first and second cases, the classifications indicate that the organization is an interdependent system, and the change of one part of it involves the others in the process of change.

1.3. Basic Models of Organizational Change

Among the many approaches to change management, the main models can be distinguished [18]:

1. K. Levine’s model of change

American sociologist Kurt Levin used the three-step approach to change management, which implies that understanding of changes involves understanding the notion of stability. He called the factors that «push» to the changes and the forces that are aimed at maintaining stability as «limiting» and «motivating» forces respectively. When these forces are equal, the organization maintains a stable position for existence.

Implementation of the change implies either increase in the value of the incentive factors, reduction in the limiting factors, or combination of interactions that lead to a disruption in their balance. Figure 3 shows the forces that support the equilibrium in the organization, which has recently undergone major changes.

Impelling forces

Limiting forces

- Reduction of sales volume; - Organizational culture does not

accept display of initiative;

- Decrease in flow of funds;

- Managers are not aware of

possible alternatives;

- Deterioration in product

quality;

- Workers do not have

motivation to inventiveness;

- Increase in costs.

- Top-managers

accroach powers of authority.

Figure 3 - Balance of factors for balance in an organization that faces serious problems

This model represents a sequence of the three stages in the change process [17]:

• «Defrosting»: it is necessary to do something to break the existing practice. Most organizations are extremely committed to the old ways of doing things and reject any attempts for changes therefore drastic steps are required whose purpose is to give the information to the organization members about the current situation that they ignored or disregarded; it is necessary to justify the need for change and give details of the proposed methods of reforms.

• «Motion»: at this stage, the planned activities are carried out to change the behavior of employees or departments.

• «Freeze»: the activities are performed that are aimed at the consolidating the new organizational practices; it is necessary to convince the organization staff in the effectiveness of the new methods by promoting the benefits of the new system.

A three-step approach to the change requires the investment of considerable resources, and based on the results of studies of conditions of knowledge that can facilitate the steps the «unfreezing» movement and the «freezing».

Levin’s Model offers the general scheme of studying the stages of the organization development, leaving the details to the discretion of individuals who are conducting changes. Despite its apparent simplicity, Levin’s model marked the emergence of a new trend in the theory of organizational change - the creation of change management models, each of which, one way or another, is based on the «classical» model.

2 L. Greiner’s Management Model [8].

Larry Greiner, who became famous as the author of the model of the organization life cycle, developed the model of successful management of organizational change. It is presented in Figure 4.

Stage 1

Характеристики

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