Assignment Sample on Organisational Change Development Plan
Task 1: Introduction
The primary focus of the report is on analysing organisational change using the case of Square pegs and a round hole at the National Health Organisation. They have faced various organisational issues and that impacted their services. Due to this, the organisation has adopted various organisational changes and tried to resolve the issues (Rosenbaum et. al. 2018). Their primary objective for adopting changes was to improve their patient and community-focused local health service. Other than that, they have also transformed their organisational structure from a traditional functional bureaucracy focusing on centralised decision-making team that has about 500 administrative employees segregated into various functions.
Furthermore, the report also aims at analysing the primary reason for adopting structural changes, and the government’s health secretary stated that General practitioners have the best idea and they can meet patient needs. They want to develop a new entrepreneurial spirit and enhance development for the front-line health care provision. Along with that, the report also discusses the various reason for adopting changes and the issues they have faced after adopting changes (Lumbers, 2018). The primary aim of using a diverse change approach is to reduce administrative duplication and enhance support activities in the organisation. Other than that, they have also developed centres of expertise that are capable of selling their services to internal customers. The benefits of using this approach for bringing change will be analysed in-depth.
The report will also monitor the change situation after highlighting social, organisational, and cultural dimensions. Culture plays an essential role in adopting change as it helps employees and workers to adopt changes effectively. Other than that, in adopting changes various factors are there that can affect change management like power, conflicts, and politics. There can be seen various leadership issues during change management and it can be estimated that leaders play a critical role in addressing changes effectively that will help workers and GP in adopting change easily and quickly (Al-Ali et. al. 2017). The role of employees while making and addressing changes will be analysed using diverse practices and concepts. In the last section of the report, the clear and justified conclusion will be proposed to highlight the findings of the entire report.
Task 2: Investigating the case scenario
National Health Service (NHS) has been observed various changes in recent years regarding the strategic focus and design so they can cope up with changes in Government terms of office. British Government has announced substantial changes in health services in England and because of this Primary Care Trusts was replaced by Clinical Commissioning Groups in the local health authorities. Public health was the responsibility of local health managers but because of this change, the role was given to local authorities. As per the case study, it has been observed that National Health Service has adopted changes so they can respond to government changes (World Health Organization, 2020). On the other hand, the department of health has observed that PCT was facing issues in regards to its large administrative presence and was not able to deliver value to their community and patient requirements.
The major objective of the Government for adopting the changes is that they can provide and develop better services that are highly community and patient-focused local health services. For this purpose, they were involving general practitioners in making decisions related to health-care and clinical spending. It is being achieved by taking input from various stakeholders including voluntary organisations, the public sector, the local community, specialist clinicians, and patients. Taking their feedback and opinions will be best for bring changes for providing better health-related services (Peckham et. al. 2017). Other than that, the Government health secretary declared that GPs can provide the best suggestions for meeting the patients and community needs. The approach would help develop entrepreneurial skills and enhance development from the front-line healthcare provision. Along with that, the new approach would be beneficial in terms of cost savings as £20 billion can be saved in the five years.
The issues that rose after forming proposals of this change were the clashes between opposition parties and the Government. The clashes between two parties can lead to increase disruptions and complications for the NHS (Mossialos et. al. 2018). It has been stated by a health service manager that NHS is suffering some chronic failure and if not addressed properly then they would suffer a decline in patient care and financial challenges.
Looking at the scenario, they have decided to bring transformation in their organisational structure by transforming their traditional functional bureaucracy. In this change, they have segregated their 500 administrative employees into diverse groups performing various functions. The groups were followed by the Clinical Commissioning group having 40 general practitioners, 15 managers in the governing body, and clinicians.
The formation of a new organisational structure was designed to ensure that CCG buy-in administration and central support service (CSS) can support services. It has been stated that if any dissatisfaction is faced by CCS then they can buy in services from other external service providers (Gee and Cooke, 2018). The new structure is typically based on Ulrich’s business partner model that aims at centralising the specialist and administrative support services offered for business operations. Other than that, the significant aims were to decline the administrative duplication and creating a center for expertise so they can sell their services to internal customers. The adopted changes will be beneficial for the organisation as it helps in saving costs, enhance the efficiencies and provide a better quality of internal service provision.
Furthermore, the change has come with its drawbacks as it can become a demotivating force for internal service providers are similar to CSS. Employees that are working in this design has to go through stress because selling services to internal customer will demand greater value for money and increased quality of service provision. Another problem being faced by the organisation after adopting this change is they will lose their market competitiveness. After adopting changes they have about 300 survivors that have already endured two rounds of redundancies (A Case of Square Pegs and Round Holes, 2018). The future of remaining employees is in danger because of the leadership issues as they are primarily focused on enhancing efficiencies and cost savings. The new relationship between CSS and CCG enhances the behavioural demands on both internal organisations. Other than that, the new arrangement pushes original administrative to behave as marketers and sell their services to CCG primarily.
Furthermore, CCG needs to put a positive impact on reducing issues like smoking-related illness, obesity, teenage pregnancies, and many more. For meeting these requirements, they need to collaborate with every stakeholder so they can provide qualitative services. After adopting changes, the 40 general practices consist of a small team of GPs, a practice manager, and one or two practice nurses. In this way, they have adopted changes and address their issues effectively.
Task 3: Analysing the change situation
Based on research, it has been observed that around 25-30% of business organisations have to shut down their business because they are not able to adopt business changes. From this observation, it can be declared that in the continuously developing world, an organisation must adopt changes continuously. Organisational change can be described as the change process that reorganises, innovate the process, method, technology, operation, and structure of the organisation (Rosenbaum et. al. 2018). Other than that, organisational change can be transformational, transitional, and developmental. In the current case study, organisational structure was changed and it was transformational. They are aiming at adopting organisational change so they can provide better services to the community and patients as per their needs. On the other hand, they have also replaced their Primary care trusts (PCT) with clinical commissioning groups (CCG).
Forces of Change
Furthermore, behind every change, there is a major reason for adopting change. These factors can be internal or external. Some external factors include economic, technological, social, cultural legal, or political. Other than that, internal factors comprised of staff performance, leadership, strategies, and leadership issues (Odor, 2018). It can be defined as the factors that arise because of issues in the organisation itself. It is the responsibility of management and leadership to analyse the factor that is the reason behind the adoption of change. For instance, some organisations are primarily focused on achieving their vision and because of that, they keep on bringing changes to meet the vision. Along with that, if an organisational system is being disturbed by some external or internal forces then change occurs frequently. Organizational changes are requisite to manage the equilibrium between external and internal forces for meeting organisational goals.
From the above image, it can be observed that changes in the business environment are also responsible for adopting changes. In the modern world, market competitiveness is constantly increasing and it is necessary to adopt changes so they can stay market competitive. To survive in the market it is must to stay competitive by providing services demanded by customers (Whitehead, 2018). As per the case study, it can be seen that the company was adopting changes in response to changes in government terms of office. The changes in laws and regulations of government force organisations to develop strategies so they can adopt changes. These changes will replace Primary Care Trusts with Clinical Commissioning Groups. So, it can be seen that external factor is responsible for bringing change in the organisation.
Furthermore, there can be seen poor administrative presence and PCT fails to deliver value to their patient and community needs. To address this internal issue of poor business operations was also the reason for adopting changes. The major aim of bringing this change is to develop an increased community and patient-focused local health services by involving General Practitioners in decision making and clinical spending. Other than that, the change would be beneficial in bringing entrepreneurial skills and enhance development from the front-line of health care provision (Nienaber and Spundflasch, 2020). After adopting changes there can be seen a disturbance in PCT in the South West of England as it experienced massive transformation in organisational structure. Looking at their changes it can be stated that the CCG primary objective is to enhance positive reputation among local community for being reactive to the needs of patient and community.
They are also aiming at maintaining a positive relationship with their internal and external stakeholders to address the changes effectively. Another objective is to develop diverse leadership qualities to provide diverse necessary capabilities to CCG. After transformation, they will focus on meeting strategic, cultural, and structural transformation to enhance good service and practice across GP practices. On the other hand, they have also developed organisational development plans so they can address the challenges adequately. They will develop a newsletter every month to keep their stakeholders aware of developments and updates (Shaw, 2017). The organisation will also implement some leadership programs to address the leadership issues.
Impact of organisational culture
Organisational culture puts a powerful impact on the organisation’s future. It can be observed that if the culture of an organisation is dynamic, vibrant and leadership encourages creativity then organisation accepts the change (Carvalho et. al. 2019). Organisational culture defines the goals and vision of the company adequately to employees. If goals are defined adequately then workers would adopt innovation and creativity to meet the lined up objectives as defined in the case study. CCG must address the community and patients’ needs before aiming at providing them better services. Other than that, organisational culture helps the workers in analysing and understanding the core values of the company and it would be helpful for the workers to bring changes keeping the values in mind. A strong organisational culture is beneficial for keeping the core values of organisation at the top priority in all aspects of daily operations.
Figure 3: Impacts of organisational culture.
(Source: Smith, 2018)
Furthermore, organisational culture has the power to transform employees into advocates. If they are constantly encouraged and influenced by appraisals they will promote organisational culture efficiently. Having an organisational culture will also help them in sharing their issues adequately and the leader’s needs to address them effectively. It can be observed in the case study that they are only aiming at cost-saving and improved efficiencies and not thinking about employees (Elsmore, 2017). They must adopt better culture so they can meet the demands of their employees and workers as well. Other than that, organisational culture also promotes the performance of employees and improves their work efficiency. It can be seen that while adopting changes there is the probability of rising conflicts between two parties. For instance, there are some clashes between the government and opposition parties because of further disruptions and complications for the NHS. In this way, it can be demonstrated that organisation culture is very crucial in improving the positive effects of bringing changes.
Task 4: Recommendations
Organisational change is must for achieving organisational success while keeping with the frequent market demands. The factors that are responsible for bringing organisational change are described above. Adopting organisational change is not only mandatory for business survival but it also helps in maintaining the market competitiveness (Waddell et. al. 2019). Based on research, it is observed that strong management change is beneficial for achieving 3.5 times more success than organisation that doesn’t adopt changes. Other than that, organisational change will successfully achieve constant growth if they navigate change effectively. The major key to successful change management is effective leadership. Other than that, various factors are essential for leading organisational change.
Clear vision: Before adopting any change it is essential to have proper visions so the objectives can be prepared appropriately. Having an adequate vision can be helpful for employees to plan strategically and meet the lined-up goals (Hofmann and Vermunt, 2021). It will be beneficial for achieving organisational success if employees plan effectively. Employees must have proper sight so they can address the reason for adopting changes because without clarity it will be hard for supporting and adopting the change.
Involvement of every stakeholder: It is mandatory to involve every stakeholder in organisational change as diversified opinions will help in achieving success. Business management needs to understand that every employee must be involved in the decision-making process to strengthen that. It has been recommended that understanding every people’s opinions and keeping them in mind will help in enhancing the probability of success. Leadership plays a critical role in involving every level of workers.
Effective communication: It is mandatory to have collaboration and communication with employees so they can implement changes as per market requirements. Effective communication helps make others understand their views and opinions. It will also help in making the process of decision-making effective (Rossetti and Wall, 2017). For instance, communicating before making change helps employees in understanding the need of change. Other than that, during the change process frequent communication can be beneficial for achieving progress and addressing milestones effectively.
Monitoring external and internal factors: Before adopting change it is must to analyse all the factors that can affect change management. Analysing all the drivers will help make changes as per market demands and requirements. Other than that, effective change can be managed if competitive market forces are monitored and bring innovations accordingly. There are diverse strategic management tools and techniques that can help the organisation in identifying external and internal factors effectively.
Furthermore, it has been seen that leadership plays a very essential role in coping up with change as they are capable of significantly adopting changes (Burnes et. al. 2018). From the case study scenario, it has been analysed that leaders are primarily focused on cost savings and efficiencies and the future of organisation is still not predictable. It is the responsibility of leaders to address the personal and professional development of the employees as well as the organisational development. It has been observed that the company is adopting changes responding to the changes in the government’s terms and rules. They have transformed their entire organisational structure from traditional bureaucracy. The massive change is primarily focused on cost savings, efficiency, and providing better services to patients and communities as per requirements.
They must address their issues by adopting the transformational and democratic style of leadership as they both are highly focused on encouraging and influencing employees. Transformational leadership allows employees to make future changes as per market demands. In this style of leadership, leaders will encourage the employee to analyse the future market demands and bring innovation (Ghasabeh and Provitera, 2017). Transformational leadership will help the company is thinking about the future of employees as it allows employees to think creatively and innovatively. It is being recommended that the company must address their organisational issues of poor employee management by adopting the transformational style of leadership.
Furthermore, the democratic style of leadership also allows leaders in involving employees in every decision-making process. It is effective for an organisation to adopt changes effectively using diverse opinions suggested by employees during discussions (İnce, 2018). In this leadership style, group members are encouraged to take part in discussions more actively and also known as the participative leadership style. It is the responsibility of leaders to influence employees to share their opinions and perceptions. It will be beneficial for organisations as it enables diverse options for adopting change effectively. In this way, leaders will be able to understand other opinions and by giving them the feedback they can develop their professional skills.
`Employee engagement: It has been estimated the engaged employee will help the organisation in adopting changes more adequately as compare to others. Every organisation needs to adopt practices so they can enhance the level of collaboration and engagement between employees. It enables the environment of diversity in the workplace. Every organisation comprises diverse employees possessing diverse skills and talents (Sun and Bunchapattanasakda, 2019). The diversified environment will help high-level employees in getting various suggestions regarding change. They have the opportunity to best options from the suggested ones. It is beneficial for the organisation to achieve success while adopting change and it will enhance the level of employee engagement. While discussing organisational change employees listening ability will be enhanced and they will also gain knowledge and skills from other perceptions.
Furthermore, if the change is implemented successfully then organisational success will be achieved. It will help the organisation in developing their customer base, brand loyalty, and customer satisfaction. Along with that, organisational development can be achieved if there is the active participation of every level of employee (Davidson and Peck, 2017). Organisational culture also impacts the process of developing organisations productivity. It has been opined that every organisation must analyse external and internal factors before adopting change so they can bring change as per market requirement. In this way, every business organisation will be capable of adopting changes effectively along with improved customer satisfaction.
Task 5: Conclusion
It has been concluded from the report that organisational change is must for staying market competitive. The case study of the National Health Service is being described and the organisational change they have adopted was analysed. It has been monitored that they have adopted organisational change because of changes in government terms and regulations. They were aiming at replacing Patient care trusts with Clinical commissioning groups within local authorities. For this purpose, they have to bring massive transformation in their organisational structure by eliminating traditional bureaucracy. Looking at this scenario, they have adopted change because of change in external factors. Other than that, the CCG also aims at providing better quality services along with meeting the patients and community needs.
Organisational culture also improves the probability of achieving success in implementing organisational change. The culture of organisation encourages employees to become a part of decision making and employees will follow the values of organisation while making any change. Other than that, vibrant organisational culture also influences employees to enhance their level of engagement and suggest options using a high level of creativity. The organisational culture of NHS focused on communicating with every level of stakeholders so they can improve their decision-making process. They will take decisions like clinical spending and improving healthcare services by taking inputs from every level of stakeholders.
Furthermore, the organisation has faced some leadership issues as their organisation leaders are not focused on the future of employees and it is still uncertain as they are primarily focused on enhancing cost savings and efficiencies. Looking at this scenario, recommendations are made for improving their leadership. The report suggests that the organisation must adopt the transformational and democratic style of leadership. Both the leadership encourages employees to take part in the decision making process and because of this their work efficiencies can be improved as well. Transformational leadership allows employees to adopt changes after analysing future needs and brings innovations. This would help increase the level of collaboration and engagement of employees. In this way, they will adopt changes effectively and enhance their organisational growth.
References
Books and Journals
Al-Ali, A.A., Singh, S.K., Al-Nahyan, M. and Sohal, A.S., (2017). Change management through leadership: the mediating role of organizational culture. International Journal of Organizational Analysis.
Burnes, B., Hughes, M. and By, R.T., (2018). Reimagining organisational change leadership. Leadership, 14(2), pp.141-158.
Carvalho, A.M., Sampaio, P., Rebentisch, E., Carvalho, J.Á. and Saraiva, P., (2019). Operational excellence, organisational culture and agility: the missing link?. Total Quality Management & Business Excellence, 30(13-14), pp.1495-1514.
Davidson, D. and Peck, E., (2017). Organisational development and the ‘repertoire’of healthcare leaders. In Organisational development in healthcare (pp. 43-59). CRC Press.
Elsmore, P., (2017). Organisational Culture: Organisational Change?: Organisational Change?. Routledge.
Gee, M. and Cooke, J., (2018). How do NHS organisations plan research capacity development? Strategies, strengths, and opportunities for improvement. BMC health services research, 18(1), pp.1-11.
Ghasabeh, M.S. and Provitera, M.J., (2017). Transformational leadership: Building an effective culture to manage organisational knowledge. The Journal of Values-Based Leadership, 10(2), p.7.
Hofmann, R. and Vermunt, J.D., (2021). Professional learning, organisational change and clinical leadership development outcomes. Medical Education, 55(2), pp.252-265.
İnce, F., (2018). The effect of democratic leadership on organizational cynicism: A study on public employees. İşletme Araştırmaları Dergisi, 10(2), pp.245-253.
Lumbers, M., (2018). Approaches to leadership and managing change in the NHS. British Journal of Nursing, 27(10), pp.554-558.
Mossialos, E., McGuire, A., Anderson, M., Pitchforth, E., James, A. and Horton, R., (2018). The future of the NHS: no longer the envy of the world?. The Lancet, 391(10125), pp.1001-1003.
Nienaber, A.M. and Spundflasch, S., (2020). Managing organisational change in local authorities. A Managers’ Manual.
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Peckham, S., Gadsby, E., Jenkins, L., Coleman, A., Bramwell, D. and Perkins, N., (2017). Views of public health leaders in English local authorities–changing perspectives following the transfer of responsibilities from the National Health Service to local government. Local Government Studies, 43(5), pp.842-863.
Rosenbaum, D., More, E. and Steane, P., (2018). Planned organisational change management: Forward to the past? An exploratory literature review. Journal of Organizational Change Management.
Rosenbaum, D., More, E. and Steane, P., (2018). Planned organisational change management: Forward to the past? An exploratory literature review. Journal of Organizational Change Management.
Rossetti, L. and Wall, T., (2017). The impact of story: measuring the impact of story for organisational change. Journal of Work-Applied Management.
Shaw, D., (2017). Managing people and learning in organisational change projects. Journal of Organizational Change Management.
Sun, L. and Bunchapattanasakda, C., (2019). Employee engagement: A literature review. International Journal of Human Resource Studies, 9(1), pp.63-80.
Waddell, D., Creed, A., Cummings, T.G. and Worley, C.G., (2019). Organisational change: Development and transformation. Cengage AU.
World Health Organization, (2020). Engaging the private health service delivery sector through governance in mixed health systems: strategy report of the WHO Advisory Group on the Governance of the Private Sector for Universal Health Coverage.
Online
Ansary. A. (2019). Transformational Leadership Characteristics. [Online]. [Accessed through]: <https://www.careercliff.com/transformational-leadership-characteristics/>
Smith. C. (2018). Importance of organisational culture. [Online]. [Accessed through]:<https://change.walkme.com/organizational-culture-change/>
Whitehead. A. (2018). Forces of organisational change. [Online]. [Accessed through]:<https://courses.lumenlearning.com/wm-organizationalbehavior/chapter/forces-of-change/>
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