MANAGING CHANGE THROUGH PERFORMANCE MANAGEMENT

Project code: MGT990383   |   Pages: 93   |   Words: 12,264   |   Characters: 74,122   |   Format: Word & PDF

ABSTRACT

Change is an inevitable part of human beings, the institution they established as well as their environment, climate, economy and politics. Interestingly however, most people are hardly ever ready for changes they know must occur. The research work has revealed that in spite of the inevitability of change, still some members of the organizations are insensitive. It was discovered that employees’ willingness to adopt change as well as their participation in the change process among others are some of the parameters that enhance effective management of change. With this in turn fear and mistrust is eliminated and resistance reduced to the minimum. It is therefore recommended that for any organization to remain in business it must anticipate change and in order to manage the change effectively, there must be strategies in place that will integrate the employees to the change process and reduce resistance to the barest minimum in order to achieve better and improved overall performance. It was conclusively deduced that managing change is a dynamic process. Which required being constantly tuned in to what is happening around and monitoring the process very carefully. On the basis of this determines the effectiveness of an executive and his ability to create and manage change.
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CHAPTER ONE: INTRODUCTION

1.0       BACKGROUND OF THE STUDY
Change is a re-occurring demand in our daily existence and takes place from time to time as innovations and inventions are introduced to meet up with current trends.
According to Stewart (1996) the future is uncertain and any particular or specific change will generate other changes. It is well known and widely accepted that organizations and business enterprises like banks, insurance companies, among others are in existence to produce, make profits and develop.
A change is any deviation from a normal situation and its management requires specific skills. There is nothing as certain as change.
Cardinal Newman once said “to live is to change, to live a long life is to change many times. We experience several changes in our course of development from childhood to adulthood. Such changes are accepted as challenges and opportunities.
According to Megginson et al (1989: 55) change is the term of the famous adage that nothing is certain but death and taxes. Everyday people experience significant change in their lives and careers. These changes may involve accepting a promotion at work, transferring to new office or even starting a new family. The way people react to change differs. One will likely welcome changes which provides one with options and resist changes that give you no choice.
Change and change management are concepts that have come to assume greater importance in the discussions of the executive of most companies. This is partly born out of the fact that the only thing certain in life is change. Mokikan (1996:96). In view of this it is importance that individuals, group and corporate bodies must consciously plan for managing change if the rewards from it are to be maximized. Since change is something, we have to live with, the better we are able to manage its introduction and consequences the better for all.
If an organization refused to change such organization will be changed, many organizations have collapsed because they refused to change or manage change when it occurred.
Forces of change are also known as change drivers or change initiators. They can either be external or internal. The external drivers are those forces that are outside the control of management has little control over the; they have a greater effect on organizational change. No organization can operate in vacuum. An organization must interact with its external environment if it’s to survive. The organization’s physical, financial and human resources are obtained from outside and the clients and customers for the organisation’s products and services are also there.
Internal change forces are pressures for change, which come from within the organization for which reasonable measure of control. These may include the appointment of new chief executive officer, new organization objectives, managerial policies, technologies, employee’s attitudes, operation start-ups, business relocation, mergers and acquisitions.
Both external and internal forces for change are not found in isolation. They are interrelated more often than not, external change drivers create internal change is important, the more important is its management, when change is properly managed, the result can be deadly because of the possibilities of resistance among people. To successfully manage change, one needs to understand basic concepts and strategies to build commitment and acceptance to change in all levels of the organization.
Roger plant in his work titled “managing change and making it stick” observed that there is a wide range of typical causes of resistance. These are rarely simple causes and effect situations, and resistance is usually a complex mix of historic, factual and emotional issues, which are not always easy to disentangle. He listed the following as some of those most frequently sources of resistance to change and unwillingness to engage in new behaviour.

  1. Fear of the unknown
  2. Lack of information
  3. Misinformation
  4. Historical factors
  5. Threat to core skills and competence
  6. Threat to power base
  7. No perceived benefits
  8. Low trust organizational climate
  9. Poor relationship
  10. Fear of failure
  11. Fear of looking stupid
  12. Reluctance to experiment
  13. Custom bound
  14. Reluctance to let go
  15. Strong peer group norms.

Managing change is a persistent challenge which must be met in order to promote progressive organizational performance. It is a personal management skill which involves the whole range of management task of planning, operating, controlling, management development, communicating, bargaining etc. change is a process and not a decision to act.
And since this is so, one of the key factors for successful management of change is preempting the problem one may have to monitor the market environment and that is doing environmental scanning. Competition can come from the areas you least expect. As one scans the environment there is need to analyze the consequences.

1.1       STATEMENT OF THE PROBLEM
Coping with shift in business condition is one of the most different tasks facing management many excellent companies have gone under, not because they ignored their customers, or the commandment of so-called excellent management, but because once conditions change the formula for success must inevitably change. Today’s organization operates in an environment, which is continually changing. According to Kubr (1990) the ability to adapt to changes in the environment has become a fundamental condition of small in business and in a growing number of cases, a condition of more survival.
Many executives at all levels of organization fail to understand the process of change this leading to poor management of change. No organization can stay the same forever, changes occur inside and outside, which force the organization to alter the ways its affairs are managed.
Change for an organization means change for the people in it. Some will welcome the change some feel bewildered and some threatened hence there is sometimes resistance.
The change of process is inevitable because of technological and social development, and one way whereby one can determine effectiveness of an executive is his ability to manage change process. The rational change process suggests certain steps in bringing about efficient change management. Sometime this may not work well in some organizations because organizational change involves people and its people who resist change. Knowing that much of the resistance to effecting a change is a response to the uncertainly that accompanies a change process. Organizational change effort has to energize people around something that they do not want to do. Hence the issue of how well is change managed in Nigerian business organizations needs to be investigated.

1.2       OBJECTIVES OF THE STUDY
The objectives of this research work among others are, to ascertain:

  1. What change is and the need for among through performance management.
  2. The process of change management in relation to overall performance of the business.
  3. The relevance of a good process to facilitate adaptation and acceptance and how well this can be maximized.
  4. The importance of change management organization and its relationship by the people. The study will consider the various stages (phases) in change management and how well they are carried out.
  5. Factors that aggravate change in organization.
  6. The constraints involved in change process and how to overcome them and;
  7. The resultant effect of not carrying out change at all, even when it is material to do so.

1.3       RESEARCH QUESTIONS
Change and its management are considered as the most important issues in business enterprises for the reasons of relating competitive edge, survival, growth etc. this study will help to verify and confirm how reactions to change affect the organization overall performance thereby exposing the problems and the challenges associated with managing change and how they can be tackled. In order to conduct this research effectively, answer to the following few questions must be established.

  1. How do employees perceive change in their various organizations?
  2. What is often the reaction of employees with regards to change?
  3. Where employees resist change, what modality or modalities does employers employ, in order to contain the situation?
  4. What approaches do employers employ in effecting change?
  5. What specific methods and techniques do the employers design to implement change in the organization?
  6. Does a good change process facilitate quick adaptation to the change?
  7. Does an employer maintain effective communication aimed at educating the employees on the rational of change?

1.4       RESEARCH HYPOTHESES
To provide answer to research questions the following hypothesis will tested.
H1:       An effective managing of change leads to better performance among business enterprises.
H2:       Employee’s participation in change enhances the effectiveness of programmes designed to manage change.
H3:       Need for change generates fear, mistrust and resistance among employees.
H4:       Organizations performance is strongly influenced by employees willingness to adopt change.
H5:       Good change process facilities quick adaptation of the change by the employees.
H6:       Poor approach to change management by chief executives affects their employees as well.
H7:       An effective communication to employees enhances adaptation in managing change.

1.5       SCOPE AND LIMITATION OF THE STUDY
1.         SCOPE
The scope of this research work is strictly to study how an organization manages change. It is agreed that change do occur in these organization in focus, but the techniques they employ in controlling or managing these changes through performance management is what the researches intends to research on and where possible proper recommendations to these organizations.

2.         LIMITATIONS
This research work intended to delve into the prospects and challenges of change disorganization but the aforementioned restriction and constraints made the findings of the research not to be generalized on the entire population. Most of the staff interviewed expressed fear that their views may be used against them in future hence their resentment to disclose the prospects and challenges so far encountered by the organization in this regard.
Other limitation of the study is time and financial constraint, which will restrict the researcher to studying a few selected organizations and drawing inferences on the larger sectors in the country.

1.6       DEFINITIONS OF TERMS
a)         Management may be defined as rational process of combining and mobilizing physical, financial and human resources effectively and efficiently with a view to achieving designated objectives.
b)         Performance management is an integrated set of techniques designed to improve employee’s performance through setting clear objectives for individual employees that link to strategies goals.
c)         Change is a recurring decimal in our daily existence and takes place from time to time as innovations and inventions are introduced to meet up with current trends e.g. new policies, behaviours, new ideas etc.
d)         Resistance means refusal to comply with new change. It is a negative attitude of workforce against a change process.
e)         Organization is a social unit, an independent entity formed to achieve specific and definite goals.

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