This paper has examined the major alterations in an organisation that have opposition from its staff members in term of several micro and macro environment factors, as an illustration of Nokia which announced to work with Microsoft to be a “ strategic partnership ” on the smart phone system since 11th February 2011, but most of the Nokia stakeholders opposition to hold such alteration. ( The Wall Street Journal 2011 ) From the point of view of PESTEL, this paper would concentrate on look intoing the “ External forces ” – political force per unit areas, demographic features, societal factor, technological promotions and “ Internal forces ” – human resource job, managerial behaviour, to larn about the nature and what cause of staff opposition to alter, such as “ the fright of failure ” , “ animals of wont ” , “ no obvious demands ” , “ loss of control ” , “ concern about support system ” , “ closed head ” , etc.
In order to hold a more clear image of the opposition ground from staff, this study would besides discourse two major types of alterations among the concern viing market nowadays – “ unplanned alteration ” and “ planned alteration ” . And applies Lewin ‘s three-phase Change Model of behaviour alteration “ Unfreezing ‘ , ‘Movement ‘ and ‘Refreezing ” to explicate how organisation achieves change successfully. In this analysis which showed “ unsteadily ” is the biggest issue doing employee opposition to alter. “ Communication ” would be the recommended solution on pull offing such opposition.
All alteration attempts are result-oriented ; leaders implement alteration to recognize new, different and better consequence. Monitoring is peculiarly important during alteration procedure.
By and large, the key to hold an organisation alteration successfully is to “ remain in touch ” with their people.
Management and Organisational Behaviour “ Organization Change ”
Table of Content
1.1 Introductionaˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦ … 6
1.2 Background of Cathy Pacificaˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦.7
2.1 Discuss the strategic importance of cleavage, aiming and positioningaˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦9
2.1.1 Market Segmentation & A ; Market Targetingaˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦..9
2.1.2 Market Positioningaˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦10
2.1.3 Apply Market cleavage on Cathay Pacificaˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦ … ..12
3.1 Discuss client value, satisfaction, trueness and trade name equity of Cathay Pacificaˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦ … 14
3.2 Customer Value, Customer Satisfactionaˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦ … 14
3.3 Customer Loyaltyaˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦.16
3.4 Brand Equityaˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦.17
4.1 Examine how Cathay Pacific builds long-run relationships with its partnersaˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦18
Appendixs… aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦ … 28
Management and Organisational Behaviour “ Organization Change ”
With the purpose of examine the ground why “ staff opposition the organisation alteration ” , it is of import to calculate out, for what ground drives leaders to take action on organisation alteration.
Forces of Organization Change:
“ Organization Change ” normally takes topographic point while an intelligent leader making a passion for organisation development ( OD ) and organisation alteration. Rather than those rivals who do non travel for doing any alteration, in most instances the inaugural leader takes the violative would be the victor of the concern. ( Hooper & A ; Potter, 2001 )
The following “ external forces ” and “ internal forces ” give some thoughts about what force leaders to go to OD and organisation alteration.
Organization are unfastened system which consequence by different dimension of the environment alteration – globalisation, economic development, new engineering feat, societal civilization displacement and the political alteration, may do an organisation alteration, in order to keep its fight among the concern universe. ( Robbins, 1990 )
Capital Market Intervention
Under the influence of high natural stuff and labor cost presents, the concern operation cost supports increasing during these few old ages. This makes the importance of concern investor, such as bank-loan officers, investing bankers, venture capitalists ( VC ) been on the rise within the capital markets. These people decide whether the organisation is worthy for doing investing. Companies who seek for investing to run their concern have to supply concern public presentation betterments and to avoid any possible hazard to their investing. This gives an urge to the leaders to take action for holding organisation alteration so as to fulfill their investors ‘ acquiescence seting fund on their concern.
( Burke, 2010 )
The more diversely human resource presents causes a concern jussive mood to alter their direction system go workforce diverseness efficaciously, in order to maximise the part and committedness from supervising employees.
Technological promotion & A ; runing methods revised
Because of the rapid exploit engineering, a alteration in utilizing new equipment for modify work procedure involves both fabrication and service-oriental organisations. Internet use and computerise occupy big graduated table of the current concern universe ( ITU, 2010 ) , which affect the day-to-day lives and work procedures of the staff. ( Armstrong & A ; Stephens, 2005 )
All alterations revolve people, no affair how good the organisation alteration program it is, the best manner to convey success of the program is to derive support from people who will impact by the alteration.
Political force per unit area
Government policy normally drives the organisation have to be change consequently. The “ Minimum Wage Ordinance ” is a most recent policy illustration which extremely controversial in Hong Kong. ( Labour Department, 2011 )
Some alteration forces comes from the organisation indoors would go the internal alteration force, such as “ Human resources job ” – low morale or “ Managerial behaviour ” – low productiveness.
Human resources job & A ; deficit of available internal competent staff
For the intent of upgrade the monitoring construction or to carry through the rapid company growing, company may seek to better the skill-level of its staffs, for those company which non holding adequate internal endowment, may trip an assignment of an external senior executive who may hold successful experience tantrum to the range and would bring-in some new operation methods, thought or endeavor to the organisation alteration. ( Stamoulis, 2009 )
Inappropriate managerial behaviour
Conflict between direction squad and their subsidiaries may come from bossy control, inappropriate managerial determinations doing or unjust wages systems. That might be a mark for necessitating organisation alteration. For some instance, an bossy household concern may merely be changed through recognized that long term household predominate are undersigned until a good educated younger coevals household member becomes a modifier to impel a company into a growing stage and pull offing with new company civilization. ( Gersick, 1997 ) .
A Slump in gross revenues
Confronting great competition among the ain market sector, non able to catch up client outlooks, emerging new engineerings, improper selling publicity or uneffective merchandise development may do a great gross revenues cut down as a consequence. This might be the gas pedal for the leaders to do attack alteration onto their organisation. ( O ‘ Connell, A, 2009 )
Management Buyout ( MBO ) / Coup d’etat
The top direction squad comes from a company acquisition which buyout a big portion or the whole portion of the organisation. In general, this may follows a transformational alteration of the operation ownership, the new direction construction or a new appointed main executive officer may result. ( Armstrong & A ; Stephens, 2005 )
Business in these yearss is affected by figure of macro and micro environment factors. Therefore, many companies have to work harder to do certain they fit into the new concern environment. As per above influences, leaders should maintain their eyes on the concern, and it would be easier to be success if there is a good planned alteration with good managed and consistency with the aims of the organisation.
Degree of alteration
“ Change ” can be placing into four difference degree – cognition, attitude, single behaviour and group public presentation alteration.
As a most simple phase, “ Knowledge alteration ” can be happening after reading intelligence or acquisition from a transition. Furthermore, “ Attitude alteration ” can be mentioning to a positive or a negative emotional alteration which may comes from attended an informative talk. “ Individual alteration ” affects staff ‘s ain behaviour which derived from holding preparation, socialisation influence or holding guidance. For “ group public presentation alteration ” , leaders may treat audience, keeping some sensitiveness preparations or making sentiment study to its mark group in order to hold a deeper apprehension of their people. ( Hersey, P & A ; Blanchard, K. 1988 )
Two Major types of Changes
There are two major type of alteration – “ unplanned alteration ” and “ planned alteration ” . ( Robbins, 1990 )
“ Unplanned alteration ” merely comes of a sudden, unanticipated and unexpected, managing 2008 Global Economic Recession ( CNN, 2008 ) is an illustration of unplanned economic alteration which requires great flexibleness of the organisations.
“ Planned alteration ” normally comes from a carefully orchestrated attack and proactive direction squad which deliberately carried by some conventional and hierarchal construction company in order to transform to be the new company which facilitates for the self-managed squads.
( Knowles & A ; Saxberg, 2002 )
All in all, a capable leader demands to be good trained and should be able to manage both planned and unplanned alteration suitably.
Lewin three-phase Change Model:
These yearss, human resources take the most importance portion of an organisation. Any organisation alteration would merely be success under the support by the work force, such as construction alteration, new work procedure, inducement system every bit good as occupation design, all requires persons alteration.
In order to understand how organisation achieves change successfully it is possible to see the procedure of planned alteration by utilizing the Lewin ‘s three-phase theoretical account theory. ( Burnes, 2004 )
Measure 1 – “ Dissolving ‘ :
Human stableness behaviour causes the “ opposition ” to alter, with purpose at holding organisation alteration successfully, discard and “ dissolving ‘ the old behaviour would be the first and most of import stage of the alteration procedure. Leaderships may make motive to promote staffs follow new alteration.
Measure 2 – ‘Movement ‘
“ Change ” involves a support acquisition, repetition seeking and taking action enable staffs follow the new behaviour and new working procedure. The intent of “ Movement ” is to assist staffs larn from the new thought and familiar with the new mechanisms to speed up the alteration.
Measure 3 – ‘Refreezing ”
To procure the new behavior among the organisation alteration by holding “ Refreezing ” procedure, a successful alteration activity must be transporting out sustainable, in term of holding a new company policy, new organisation civilization or new patterns for every staffs. The support can be help by keeping frequence preparation or regular treatment forum. ( Burke et al. , 2008 )
Resistance to Change
Harmonizing to Zaltman & A ; Duncan, “ Resistance is any behavior that serves to keep the position quo in the face of force per unit area to change the position quo. ” ( Zaltman & A ; Duncan, 1977, pp. 63 ) “ Resistance ” normally occurs while staffs request to larn something new. In many cases, staffs are non defying with the benefits from the new alteration, but they are fear of the losing current position, cut downing bing salary pay, confronting uncertainly hereafter, particularly they are non certain of their ability able to get by with or might hold risking of failure. ( Ford & A ; D ‘ Amelio, 2008 )
Resistance to organisation alteration normally takes the signifier as “ work-to-rule ” , high turnover rate, low productiveness or antagonise against direction squad. ( Burke et al. , 2008 )
In today ‘s economic system, company recognizes “ alteration ” is the lone manner to last, but it is no easy to transport alteration in an organisation. The determination of Nokia to reconstitute its smart phone system by plants with Microsoft as a “ strategic partnership ” is an illustration of organisation alteration. ( The Wall Street Journal, 2011 ) Besides, McDonald fights back with the new wellness manner – “ Green Fingers ” reform plan is a noteworthy reform which is taking topographic point in the worldwide concern market. ( BBC Money Programme, 2005 ) However, these alterations are besides opposition by their stakeholder.
The major grounds people resistance alteration:
By and large, people desire non to lose any quo value, a misinterpretation of the alteration procedure, a loophole changing program or a low tolerance alteration manner normally derives the sense of “ opposition ” .
Fear of failure / Low tolerance for alteration:
Staffs resist organisation alteration because they fear of failure to develop new accomplishments which require following. It is normal for every people who are limit for certain grade in their ability to accept alteration ; company should non necessitate people excessively rapid alteration. ( John P. Kotter & A ; Leonard A. Schlesinger, 2008, “ Choosing Schemes for Change ” , Harvard Business Review, pp.130-137 )
Habits of staffs / Loss of control:
Staffs may cleaving to the old on the job manner, if it works good for a long history ; people believe it is more unafraid and predictable. This would be hard to hold people travel outside this comfy zone and larning new accomplishment which beyond their everyday mode. Routines work procedure develops a safety sense to staff as all follow the path. Bing asked to utilize a new manner would do them experiencing confuse and un-accommodated.
No obvious for alteration:
Staffs may merely aware the organisation alteration impact on their peculiar work, but do non seeing the entireness portion of the company. Therefore, they may merely happen the alteration disturb their normal on the job procedure but non be able to acknowledge the benefit of alteration for the whole company.
Concern about support system:
Changing organisation construction may do some staffs shift to the new section. Peoples may worry about working in the new status, work for the new foreman and fright of deficiency of old support squad.
Persons ‘ dogmatic characters are stiff and closed-mindedness, staffs who holding such character might non willing to alter into new state of affairss. ( Lau & A ; Woodman, 1995 ) Some types of cognitive rigidness would be implicated as to resistance alteration.
Unwilling to larn:
Some staffs particularly the senior employees, who do non willing to larn any new accomplishments and engineering. By utilizing the old accomplishment, they believe, they have all necessary capableness to run the work procedure good but there is hinder the organisation development and impede their self-learning.
Not assurance for the new system
Under the success history of the old on the job theoretical account, people may non involvement in any new methods and merely desire to remain the work procedure as usual. It is because they fear that alterations might non take to any betterment and might hold hazard of failure. Normally, they merely focus on their ain range of plants, but miss to recognize that alteration is needed for the whole company in order to keep it ‘s competitory.
Fear of unknown:
As a learned physiological reaction of the self-defense mechanism, staffs may merely resistance to all alterations which they are non familiar. Due to the limited cognition of the new alteration, people may say it as the worst instance. Their supposed “ fright ” would barricade the procedure of organisation alteration.
Fear of personal impact / parochial opportunism:
On history of parochial opportunism, while being asked to do alteration, people by and large view from their ain stand-point and merely see if the alteration could be able to profit them. In instance staffs found the new alteration would give them more work load or even needs to larn anything new, “ opposition to alter ” would by and large as a consequence.
In short, “ unsteadily ” seem to be the biggest issue doing employee opposition to transport organisation alteration. While necessitating to holding alteration, staffs may worry about their ability to run into with the new demand, worry about their occupation security, nervous of the new on the job construction or merely merely closed head and non willing to go to any alteration.
How to pull off “ opposition to alter ” :
It is of import for leaders to larn how to pull off “ opposition of alteration ” from their staffs because the failure on transporting organisation alteration are dearly-won, such as higher turnover rate, decreased staff morale, lowered chance, antagonise against direction squad which would be a immense waste of company cost and its resources. The most serious is trouble in repairing the failed alterations attempt. ( Burke et al. , 2008 )