Here is sample of BE460 Organisation and Leadership
Organizational change is a process through which a company changes its major components, strategies, products of business such as implementing technologies, culture, infrastructure to operate or its internal process. Organizational change refers to the total adoption of a new notion, behaviour or concept by the members of the organisation and it usually originates from any issues in the organisation (Odor, 2018).
In recent days the organisational change is highly needed due to boost introduction of technologies, taking competitive advantage among the market, enhancing the business, meeting the demand of the customer and many more. The organisational change is supported by stimulation of innovation and managing resistance of the organisation which provides both the opportunities as well as issues in the company (Nizharadze, 2020).
Netflix is a popular American company which is Production Company and it recently incorporates online streaming service which is a conspicuous organisational change and it effectively manages the organisational change effectively by providing subscription. In the modern digital era, the tech-savvy consumer base has become more dependent on online service and it effectively pushes the company to implement new changes.
In this essay, the noticeable organisational changes of Netflix will be discussed in a constructive manner to understand the effect of organisational change and the way it deals with the change.
Conceptualization of organizational change and change management approaches with theoretical aspects for organizational change of Netflix
Change management is an integral part of a company and it helps a company in transformation and modernization of operation of business and it includes four types of changes such as major movement in company goals, service offering, personnel, and operation. In addition to that, the company has to go through organizational change as the company has to perform according to the market demand and to retain the position in the market. For instance, in recent times, due to Covid-19 there are several companies which transform their business to accept the digital changes and it implements major changes in the company in terms of organisational change.
Digital transformation forces the company’s constant adoption of organisational designs, shifts from conventional business methods and implements strategic and organisational changes (Hanelt et al., 2021). The effective management of a company successfully deals with the organisational change and makes it productive and prosperous for the company which helps the company to take competitive advantage in the market. Strategic organisational change is one type of organisation change which includes change in mission, introducing new technology, providing training to the employees for new skills.
Another type of organisational change is people-centric change in organisation which includes new hiring, changes in roles and responsibilities; however, structural change refers to merger and acquisition, creation of new departments, transformation in organisational chart. On the other hand, remedial change includes coping with loss of talents, struggle with financial risks, customer communication risks and many more which implements a huge change within the organisation. Effective organization management helps a company to implement changes in a well structured company and helps to meet the demand of the contemporary consumer base to maintain its position (Hassan, 2018).
There are several theories regarding the organisational change and it includes Kurt Lewin’s theory on organisational change, framework change theory of Van de Ven and Poole which gives the reader more clarity on the organisational change. The theory of Kurt Lewin includes three effective steps such as changing, refreezing and unfreezing and it is a popular modern model of organisational change.
Changing refers to moving or transitioning and it is the hardest step with which a company struggles with the changing situation and it provides uncertainty and anxiety and people learn in the changing situation through behaviours, ways of thinking. Refreezing is the final step of the organizational change which helps a company to implement the stability after a radical change and the company or the people must accept the latest technologies or adoption instead of old technologies.
Unfreezing is the initial stage of the company and in this step the company has to pursue the employee about the importance of the upcoming changes and set the mind frame to accept the upcoming changes. Organisational change effectively helps the company to achieve a competitive advantage and the size of the business plays an important role between organisational change and the competitive advantage (ÇETİNKAYA and et al., 2019).
On the other hand, there are also some limitations of the theory such as the employees of the company becoming worried about the changed situation as they have felt nervous about the upcoming changes. Van De von and Poole proposed another popular theory in the strategic change process and the theory includes two dimensions such as unit of change and mode of change and mode of change differentiates between existing changed sequence and prescribed change sequence.
In contrast to that, the unit of change makes the difference between the development of single organization and interactions of more than one organisation and through these four theories have established such as teleological, life cycle, dialectical and evolution theory. Teleological theory effectively implements innovation in traditional organisational change through tip-down, strategic, rational and consensus directed interventions and enhances the process of organisational change (Van, 2021).
Netflix incorporates the changes in the service as it launches online streaming and it implements a huge change in the existing business for the company because of the rapid acceptance of digitalisation. Inter-organisational network change includes processes, outcomes, management which impacts on the management, public administration, technology studies and many more (Shumate and Gibson, 2021).
Issues behind organizational change
Netflix started its journey as a rental business of Digital Versatile Disk (DVD) by mail delivery services which is a floating the business model quite successfully in the last decade of twentieth century and gradually become obsolete with miss-perception of market trend and consumer behaviours. It addresses several issues for improving consumer satisfaction where initially the rental services are to be booked from the company website and it is usually mailed to customer location thereafter in initiating the subscription feature for the change of business strategy with protecting customer interest and flexibility with fixed price
. Today’s business correspondence of Netflix is largely due to transformation towards online streaming services which reflects the organizational change with streaming of videos in partnership with HBO max. It is blended with infinite capabilities of the internet and availability of portable computers to support the online video streaming across the world population. The product design with exclusive and original online content accompanied with popular actors and actresses in series and movies are exemplary and unique to gain consumer confidence in the global market through fierce market competition for revenue generation.
The issues of availability, accessibility and consumer preference, changing market trend and market competition are ensuring the change in the context of Netflix operation and market offerings with developing dynamic organizational capability (Rataul et al., 2018).
It engrossed rapid generation of profit as well as reputation with consumer confidence on the organization with the premium of streaming new and abstract movies, web-series and television soaps and serials and documentaries in a comprehensive way. It helps in garnering worldwide market recognition and profit from every corner of the society through companies mobile App with or without internet.
The organizational leadership has effectively bent the organizational directives and attitudes accompanied with change management of the organization. The market assumptions are helping the change management strategy of the organization through developing alternate resources such as video subscription and online streaming from anywhere on the earth with the blessings of World-Wide-Web and technological emergence. In the year 2011 the company almost fell 80 % stock price for differentiation online streaming service with dvd rental where consumers are growingly entangled with the requirements with technological interventions.
The comprehensive listening to consumer requirements has changed the business policy and strategy of the company with positive turn-around which is now effectively managing around 66 million subscribers around the globe.
Interpretation of change theories inclined towards organizational change management of Netflix
The business modification as in the line of change management is impressively deals with business tools, analytics, policy, strategy, structure, operation, culture and infrastructural change in the business process. Netflix has effectively adopted the force of market change with technology and global consumer perspectives to influence the cash flow operation through change management by leadership authentication and directives.
However the flat organizational structure of the company with ample of freedom for employees influenced for easy and quick decision making through ownership responsibility and decentralized organizational structure supporting career development of individual employee through performance management and 360 degree review (Todorova, 2020).
The competency based structure influences the conducive work culture to motivate for initiatives, creativity and innovation for organizational development theory. The organizational leadership has taken a significant measure to understand, plan, implement and communicate the change in the market dealings.
The change of assumptions critically helped the organization to specifically divert the business strategy as an online streaming service with the increase of smartphones and portable computers in the market. It made essential the collaborative market transaction with technology and creativity to satisfy the modern era folks and gain competitive advantage.
The plan for change is the most crucial for the change management whereas the leadership of the Netflix cooperated with several partners and technology to rebuild the organizational set up as a offering online streaming services with a secure and safe coordination to consumer privacy. Apart from that recently the organization has entered in online video gaming operations to grab the fluent share of the gaming market as consistent evolution of business process with time and market confidence.
Relevant aspects and concepts for Netflix change management case’s interpretations
The organizational change management aspects are quite informative through generalization of ideas, creativity and innovation in the organizational environment with the up-tide of technology for business resurrection through satisfying consumer interest. The periodical development and technological incorporation for change aspects are interpreted to calculate the organizational change management for leadership effectiveness and decision making (Mier and Kohli, 2021).
It is aligned perfectly to reflect the business opportunity in the market for competitiveness and unique application for support and regulating consumer interest through change in business strategy. High competition from several other brands with immutable features of online streaming service is quite old fashioned and relatively it developed the mobile application for accessing the streaming services through smartphone with high caching facility to continue watching videos without internet.
Concerns of consumer interest and requirements are briefly interpreted for the organizational change management of Netflix to accommodate the growing need of the consumer and essentially fulfil through specific products and services.
The organizational work culture is evolved with responsibility and freedom to effectively use the individual skills in the working sphere to enhance the organizational capability and reputation in the market operation through product differentiation and cost effectiveness. The implication of social strategy also interpreted the organizational development and social awareness through sensible perceptions and deductive management of concurrent flaws in the business transaction.
From the above all discussion, it may be concluded that, organizational change and change management are the practical steps to keep forward the organizational outlook and market competitiveness for surviving and sustainability practices. Many organizations have evaporated by lacking the organizational change management and leadership decision making where Netflix has actively supported the consumer needs through digital online streaming services, mobile application and other differentiation of product.
These changes are beneficial for business management and organizational business affairs for making positive earnings while letting employees contribute to the talent on behalf of organizational success (Zhu, 2022).
The change management policy through understanding, planning, implementing and communicating change is gradually developed through employee skills,agility for learning new skills and listening consumer preferences has clubbed together to positively reflect the business correspondence of Netflix. The company should focus on product differentiation as well as multi-channel communication with cost leadership strategy to prosper in the market competitiveness by improving consumer interaction and low price offering to gain superior edge on the business rivals.
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