Managing Organizational Change by Graetz, F., Rimmer, M., Lawrence, A. and Smith, A.

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The relationship between strategic planning and strategic thinking in relation to the management of change

Strategic planning involves analysis, establishment, and formalization of procedures and systems. Strategic thinking synthesizes and encourages creativity and intuition across all organizational levels. It aims at innovating and imagining a better future that may cause an organization to redefine its major strategies and/or industry.

Strategic planning, on the other hand, aims at realizing and encouraging strategies initiated in the strategic thinking processes. Formulating and implementing strategic thinking is interactive, whereas strategic planning involves specialization. In strategic thinking, subordinate managers participate directly in strategy-making.

However, in strategic planning, senior managers gather information from subordinate managers and apply it in creating a plan that all managers use for implementation. Graetz’s study of the “Communications Co.” indicates that an organisation needs leaders with emotional intelligence to lead the way in strategic thinking. This is because the process requires full concentration on details.

The two thought processes maintain each other in order to promote effective strategic management. The sphere of strategic planning is deliberate, rational and analytical. Strategic thinking involves intuitive, creative, and emergent thinking. Good planning encompasses both strategies.

Balancing between the two helps in avoiding problems related to the adoption of either over-rationalistic, prescriptive schemes, or unrealistic designs, which have high chances of failure.

Differences between leadership and management in relation to management of change

Leadership triggers action that initiates change while management aims at making change operations effective. Change leadership focuses on aligning people to the vision of the organization.

Leadership is the ability to communicate, inspire, and influence employees to work toward the realization of the organization’s goals. Leadership in the 21^st Century seeks to understand and manage situational and follower attributes, rather than to divide and control them.

Change management involves a set of fundamental processes aimed at controlling any development effort. These processes weigh performance, staffing, budgeting, planning, and problem-solving in cases where the outcome is not as expected. Effective running of an organization requires proper balancing between leadership and management. The target-setting approach works well when there is good leadership.

Target-setting is useful in focusing attention on individual operations. Successful operations require organizations to demonstrate leadership by placing emphasis on the significance of the operation. Leaders should inspire employees by demonstrating the manner in which set targets contribute toward the organization’s aims.

Whereas leadership and management are different, the skills required in both concepts naturally overlap. Great managers are also leaders. A manager must also demonstrate great leadership skills when managing a team. Emotional intelligence is a key requirement for leaders in the contemporary business world.

Reward and performance management strategies that change employee behavior

There are different reward and performance management strategies that organizations use to leverage change in employee behavior. HRM strategies are a major function of human resource professionals and managers. The types of strategies applied determine the quality of employees for an organization and the degree of performance of work.

Performance management focuses on the processes designed to manage the performance of the organization, group, and individual against the objectives of the organization. The organization’s objectives should relate to departmental, team, and individual objectives.

Communication of the objectives in all levels of organizational change enables all employees to embrace change. The organization and employees need a chance to weigh the intended and actual impact of the objectives. Managers and leaders should take necessary steps to improve performance.

Reward management is about allocation of rewards such as promotion and pay for desired outputs. Human resource professionals and managers should ensure that appropriate benefits and rewards reinforce the desired behaviors and outcomes.

Rewards should focus on encouraging the business and change objectives and the desired culture of the organization. In addition, they should meet the concerns and needs of employees, including purchasing power, equity and need satisfaction in terms of influence, appreciation, recognition, and career development.

Change Tools

Lean production refers to operations management approach driven by three targets: zero waste, zero inventory, and zero defects. Zero waste and zero defects relate to consistent improvement designs that are dependent on multi-skilled teams. Zero inventory depends on timely supply chain management in which the order of operation sets off production.

Learning development tools include double-loop learning, single-loop learning, and haphazard learning. Double-loop learning concerns feeding staff input on learning to guide the objectives of performance. Single-loop learning goes in line with performance objectives. Haphazard learning lacks the process of reinforcing positive lessons.

The focus

Total Quality Management (TQM) is an established change technique. TQM focuses on the needs and concerns of customers. There are three approaches to quality: quality circles, quality assurance, and statistical quality control. TQM puts emphasis on team-work, communication, cultural factors, and group problem-solving techniques.

The condition of the environment

Best practice and partnership involve consistent improvement in delivery, quality, and cost. The organization develops closer links to clients and suppliers. The organization utilizes technology for strategic advantage. There are human resource policies that ensure consistent flexibility, participation, teamwork, and learning.

Strengths and weaknesses

Business Process Re-engineering (BPR) eliminates structures developed around narrow functional tasks. It recommends integrated business processes whereby new processes replace old processes.

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