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Essay: A fundamental weakness in many models of organizational change is their t

ID: 368965 • Letter: E

Question

Essay:

A fundamental weakness in many models of organizational change is their tendency to see growth solely as an outcome of Innovation (e.g., an assumption that “revolutionary change” is always best, or an insistence that only sweeping changes “really matter”), and disaster as an inevitable result of excess Adaption (e.g., “evolutionary change”, “incremental change).

In this brief Essay, introduce and present one example of an organization or industry that has demonstrated either a balanced view of change and/or one that has suffered the consequences that have arisen from a biased view of change.

Explanation / Answer

Sweeping organizational change per say cannot guarantee growth at the first instance, nor does it guarantee that the changes will result in motivation gain for fellow employees who are the main force behind any growth or profitability. Earlier, every 3 or 4 years the management decided to introduce a major change in the organization to boost profitability and embrace the company according to the industrial best practices but now the changes are more frequent and the employees need to adapt the changes sooner than later.

Organizations fail to embrace change due to some of the factors such as:

A. Loss of status or Job security: Changes results into adaptation and employees might not take it well and it might lead

B. Lack of adaption rewards: Employees despite inculcating change in their line of work to improve processes are not rewarded for their fast adaptability which lead to lack of interest in their work.

C. Fear of Failure: Changes undertaken might be susceptible to fail because of certain external and internal change and the entire change arrangement might result into a failure.

D. Poor Timing: Time is a key element in change management any discrepancy in this regard will be counter-productive for the entire process.

Santander a MNC bank from Spain wanted to fix itself strongly in the UK banking sector in 2008 through merger and acquisition with traditional UK based financial institutes. UK is by far the most important place for financial institutes venturing into the European market, thus it was also very important for Santander’s future in the banking industry. Group chairman Emilio Botin understood that traditional ways will not lead to growth of any capacity to conduct a successful business. The incoming UK ceo for Groupo Santander Antonio Horta-Osorio understood the value and need for embracing cultural change to adapt to the cultural change, and also involving systems, processes and people in different organizations.

The leadership took the change management process very diligently and every member of the staff who were going to effected by the change were completely briefed about risks and issues, the branch staff were also briefed about the new way of customer relationship management, even the staff who were not involved in the change were also communicated about the changes that were going to take place.

In 2010, Santander UK was launched based on the change management facilitation and by 2013 Santander UK was one of the leading retail bank in the UK.

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