MGT435 Organizational Change Week 4 Assignment
Imagine that you are an executive for XYZ, Inc., a high-end retail chain that sells luxury watches, jewelry, and hand bags. You’ve just been put in charge of the company’s first international expansion, opening a store in Shanghai, China. This will be a short-term, small-scale change for the organization. After one year, you will be expected to begin opening additional stores in Brazil, Russia, India, and China (also known as the B.R.I.C. countries). This will be a long-term, large-scale change.
In 3 – 5 pages, explain which change model you would follow for the short-term change and which you would follow for the long-term change. Provide rationale for your decision and discuss the effects that these changes would have on the employees, managers, and executives within the organization. Include at least three references and follow standard APA formatting for your paper.
Sample Answer – Short-Term, Small-Scale And Long-Term, Large-Scale Change Management At XYZ, Inc
Change models normally provide guidance to organizations that want to expand their operations. According to Biech (2007), change is common to all organizations, and it is mainly driven by technological improvements, new initiatives, and the will to stay ahead of competition. Whether the change is short-term or long-term, it is common to feel disturbed by the scale of change. By expanding a new store in Shanghai, China, XYZ, Inc. will have to undertake a small-scale change that is short-term. A long-term and large-scale change will however occur one year later when the company is expected to open additional stores in Brazil, Russia, India, and China. The scale of change determines the type of change model that an organization will have to implement at any given time (Biech, 2007).
The best model that XYZ, Inc. should implement for the short-term change is Kurt Lewin’s change model. Lewin’s change model requires leaders of organizations to approach change in three different stages namely; unfreeze, change, and refreeze. This change model mainly focuses on those factors that motivate people to change (Burnes, 2004). XYZ Inc. should follow Lewin’s change model for its short-term change because opening a new store in Shanghai, China require close collaboration among all stakeholders of the company. For the new store to be established, the employees, managers, executives, and customers must be prepared for the change. By following the three stages of Lewin’s change model, the company will be able to formulate objectives that can help it to achieve short-term goals (Burnes, 2004).
During unfreezing stage, the company must get ready for the change by first understanding that a change should occur. The more the company’s stakeholders understand that a change is necessary, the more encouraged they will become to make the change. Since Lewin’s change model is meant for short-term change, unfreezing will enable XYZ Inc. to set a closer deadline for the change to begin (Biech, 2007). The second stage is known as change or transition stage. This stage occurs as an organization makes the actual changes. During change or transition stage, XYZ Inc. will have to take actions that will ensure that the new store begins to operate in Shanghai, China. Transition is always for many people, but all stakeholders of the company need to be patient and take their time to understand to the new business environment (Biech, 2007). The final stage under Lewin’s change model is refreezing. Under refreezing stage, an organization is required to strive towards establishment of stability once the necessary changes have been made. It is during this stage the XYZ Inc. should establish stability in Shanghai, China and make activities in the new store part of its business operations (Burnes, 2004)..
The best change model that XYZ Inc. should follow for the long-term change is Kotter’s 8-step change model. Kotter’s change model uses eight steps to implement change in a company successfully and powerfully (Petrescu, 2010). XYZ, Inc. wants to open new stores in Brazil, Russia, India, and China in a year’s time. This means that the company is soon becoming a global company that requires a global culture to achieve success. The rationale for implementing Kotter’s change model is that, the model will ensure that the new changes become part of the organization and even be incorporated into its culture (Biech, 2007). Kotter’s 8-step change model will enable all stakeholders of XYZ Inc. to understand and work with the company as if it is an international company but not a local company. This way, the company will formulate objectives that will take it forward for a longer period than normal (Biech, 2007).
Kotter’s 8-step change model involves; creating urgency for change in order to get things moving, convincing stakeholders that a change is necessary, creating a clear vision for change, communicating the created vision to all stakeholders, removing any barriers to change, creating long-term goals coupled with short-term wins, building on the change, and making the changes part of the corporate culture (Biech, 2007). Step seven will assist the company to keep operations in its new stores running smoothly in all countries where they are located. Generally, Kotter’s change model will enable XYZ Inc. to use its strengths as well as opportunities available in other nations to improve on its weaknesses and take care of threats for achievement of long-term goals (Petrescu, 2010.
Following Lewin’s change model for the short-term change and Kotter’s change model for the long-term change will indeed affect employees, managers and executives within XYZ, Inc. The employees, managers, and executives within the company must participate fully in making all the stages of change in both instances work (Biech, 2007). Although employees, managers and executives will have to ensure success in implementation of all the stages, each and every stakeholder will have to play his or her distinct roles as stated in the company’s code of conduct. When XYZ Inc opens a new store in Shanghai, China, employees, managers and executives will perform their activities with the aim of fulfilling the short-term objectives. However, they will have to put in extra effort when the company opens new stores in Brazil, Russia, India, and China, in order to achieve the long-term objectives (Petrescu, 2010).