Change Management

LITERATURE REVIEW

INTRODUCTION

In today's business environment, organizational changes became an important means of survival for every organization (Carnall, 2003; Nadler & Tushman, 1995). As a result of the importance, the question of whether businesses are able to change successfully has been a controversial issue of debate for a long time. Change remains a dominant factor, the only constant or inevitable thing in life. At the dawn of new millennium, organizations need to evolve and regenerate, through innovation, globalization, costs control and increasing customers' expectations and remain competitive at marketplace in order to survive.

According to Handy (1985), a change is a way of life affecting every individual within the organization. As the degree of change increases, managers within the organization influence the change process and outcome (Cook, Macaulay & Coldicott, 2004). Their attitude towards change affects the individual commitments which determine the future success of the business. For organization to be highly competitive, it requires more skills and knowledge, thus companies enforcing workers to put more efforts to their job as well as adjusting to the change program (Pascale, Millemann & Gioja, 1997). This chapter provide some exciting literatures on the concept of change management in organization as well as the impact of change management implementation on Thistle city UK.

CONCEPT OF CHANGE MANAGEMENT

As the world is growing and changing every time correspond to the quick change most organizations experience. The rate at which the organization triumphs in their changing process determines the level of their survival (Carnall, 1982). Every business is familiar with the same concept of change management but how businesses implement and became successful at it varies depending on the nature, individual involvement, size and age of the business.

A change management from both organization and individual perspectives is the approach of dealing with change. Several researches show that, the concept of change management represents transformational change that occurs within a given business set up. It is a method for reducing and managing resistance to change when implementing process, technology or organizational change. Most researchers stated that the necessary component for any organizational performance improvement process to succeed is termed change management.

According to Burnes (2004), change in the work environment remains an ever present element that affects all organization and individual's adaptability (Pulakos, 2000; Eva, Ralf & Karlheinz, 2005). Although, Caldwell (2004) opined that, organizational changes intend to increase creativity and productivity as well as performance within the organization setting instead evoke negative reaction of the employees. According to Porras & Robertson (1983), more change efforts yield a less outcome, over 80% of managers are affected by the level of change (Worrall & Cooper, 2006), lead to low performance and increase mistrust due to lack of communication. Thus, only 6% of change efforts were successful (McKinsey, 2008).

According to Harris & Hartman (2001), organizational change is an internal and external or uncontrollable changes that take place in an organization, it could be a change in the leadership style, strategic, operational or technological changes to inhibits a successful re-engineering (Marie & Neal, 2006) of the organizational culture. The details on these factors would be discussed in this research with reference to Thistle city hotel, UK.

Organizational change influence individual's commitment and it level specifies the extent to which its affect individual's commitment to work (Donald, 2006). To achieve the goals and improve workers' commitment within the organization, Dennis (2006) argued that, people have to resist change irrespective of the personal benefits attached to the changes. From his observation, he realized that people do not necessarily resist the change phenomenon of the organization which drastically reduced commitment to work. According to Kotter & Schlesinger (1979) self interest, distrust, inadequate knowledge on the benefit of change and intolerance for change, are the major reasons people's resistance to change is highly inexplicable. They further explained that, organizations declined people resistance through negotiation and agreement of the team, providing adequate information through proper communication and involvement, manipulation and facilitation, and through explicit and implicit coercive.

Neal (2006) postulated that, communication, innovation and transparent change procedure play a vital role in change management process, as the determinant factors to how leaders operate within the organization, they must not be disdain instead ensure that people involved adjust or adapt with the change processing to achieve market creativity. While advancement helps to sustain complete growth and development, for actualization, changes such as technological advancement or restructuring the employment unit or leadership styles at workplace must take effect,

DEFINITION AND TYPES OF ORGANIZATIONAL CHANGE

The overall framework to improve performance of an organization is called an organizational change. This change occurs when organizations continually introduce significant changes over it business strategic in order to accomplish success by implementing standards at which it operates. For organization to succeed, they must undergo some significant changes at various levels thus, successful adaptation to change is a significant component of organizational change and employees must learn to adapt and adjust to the change (Pulakos, 2000).

Organizational change is regarded as the process of restructuring an organization's resources to increase value and effectiveness of the key players within the organization. This change could be human resource which is the greater assets of the company, technological, structural, strategy or developmental change etc. According to Ackerman (1997), there are three types of change that take place in every organization, these include; transitional, developmental and transformational. All these changes are relevant but the most important one that has its basis within organizations (Kanter, 1983 and Nadler & Tushman, 1989) and traceable to Lewis (1951) model is transitional change.

* Developmental change occurs when organization makes improvement on their current business state. Employees are likely to adjust because it causes no or little stress