Economics report writing study on: Managing change in Australian Government
Q? Write a report on Managing change in Australian Government??
Report frames:
Executive Summary
In this report, it is observed that many of the companies undergo a significant change when they faced with a global financial crisis, rather than implementing a change for continuous improvement. It has been analyzed that global financial crisis and government reaction to it are an instance of unplanned change (Mary, 2010).The various reasons have also been identified why the people and the organization are resistant to change after the global financial crisis and subsequent economic downturn. It can be seen that people are resistant to change because they think their financial security and relationship with their colleagues would be affected. In last, it has been discussed that global financial crisis and Australia Government reaction to it are examples of Transformational change. It can be seen that, the government of Australia was ready to take quick measures for rescue of Australian economy and quick measures comes under the category of transformational change.
Q.1) It is observed that changes can be defined as either a threat or an opportunity. It is very clear that many of the organizations undergo a major change when they faced with a global crisis, as compared to implement change as an instrument for constant improvement & originality. Most of the times managers faced with a problem when talented employees leave the organization and situation of absenteeism and grievances arise. It is analyzed that when the organization is not able to recognize crisis mode of behavior then they are usually faced with enhanced stress, reduction in the morale of employees, belief and participation. It is necessary for the organization to conduct in depth analysis and a reliable and sound plan for implementation of positive change. It is very clear that when change is not planned by the manager then the organization may finish up in a defensive cycle. Most of the employees in the organization take change as a hazard & become protective reacting with a group of behavior from blaming to justification. There are two types of change such as unplanned and planned change. Unplanned change is the change where condition and situation are posed on the company which is unforeseen. Great adaptability & flexibility is required in order to manage the unplanned change. Planned change is a change which requires constant, deliberate & mutual effort to enhance the operation of the system. This change requires some type of efforts & intentional decisions to change the department. Planned change is a change which involves preparation of future and creation of resources for the future. Organization is an open system which is dependant on the environment. In recent time, organizations have undergone a change to start planned change. Planned change is a change which is deliberately changed by the member of the company. The main objective of the planned change is to maintain organizations updated and viable. The global financial crisis and government &organizational reactions to it are examples of unplanned change because crisis may take place anytime without intimation to anyone. At the time of the crisis government and organizations were required to take actions on the spot because they did not have time to design strategies and actions for the implementation of any change (Mary, 2010). Unplanned change is the change where condition and situation are posed on the company which is unforeseen. It can be said that global financial crisis is also an unforeseen event which can not be expected by anyone. For e.g. Global financial crisis in USA was not expected by anyone throughout the world because it occurred suddenly and made panic other countries and most effected country was Australia. It is very clear that global financial crisis is not a planned change because it affected many countries without any intimation to them. It is very clear effect of the crisis is not only limited to the United States but it effected other countries including China and Australia. In response to the crisis, Australia the Rudd government had taken quick measures and this clearly shows it’s an example of unplanned change. Within a month the Rudd government had raised a number of bank deposits and thousand and millions of dollars into the economy of the Australia. The government of Australia was ready to implement any type of change for recovery of the economy. It is observed that many of the organizations during global crisis announced policies to reduce thousands of job that’s was seriously not expected by the employees of the company. It is analyzed that actions taken by the government of Australia was quick and random to rescue the economy of the Australia and these type of changes falls under the category of unplanned change. It can be seen that unprecedented steps have been taken by the government of the US like injection of US $ 700 in the United States to maintain other type of things such as to make financial institutions creative & active. This kind of unprecedented step taken by the government of United States comes under the category of the unplanned change. It can be seen that global financial crisis is an example of planned change because prices of the houses fell in the US unexpectedly and assets related to mortgages lost their value and because of that banks poses restriction on sanction of credit. Due to global crisis the stock market of Australia lost its value approximately by 43% and this kind of unplanned change was not expected by investors of Australia (Robbins, 1983)
Q.2.) There are various reasons which would lead to people or organization resisting change caused by the global financial crisis and subsequent economic downturn. It can be observed that recent global financial crisis started in the financial and economic sector of developed countries, increasing at a quick pace to the actual sectors in number of developing countries. It can be seen that the growth and speed of global financial crisis could be seen as the bad crisis after the occurrence of Great Depression in 1930.It is very clear that exchange of goods, money and people due to globalization have made development and as well as demolition of the global economy. It can be seen that changes in climate, destruction of the environment and the global financial crisis these all require a regulatory framework where causes and solutions can be designed. In the recent global financial crisis it is very significant for organizations, that they should spend more time in the examination of approaches to change, organizational cultures, leadership and growth. It is analyzed that strategic planning designed by organizations do not take into account various factors like change, leadership & growth and they focus on cost savings & profits which create the organization vulnerable to failure. It can be seen that simplest type of change may have a quick and influential impact on the culture of the organization which permits individuals and organizations to face failures and remain to be leaders of the industry. Rising energy costs and mortgage crisis are massive challenges faced by the recent global economy. It has been analyzed that change is a kind of something that each and every organization has faced. Many of the organizations fail to understand the value of the required change and because that time and money are wasted (Robbins, 1983)
According to the researcher successful change may take place when employees in the organization are ready to perform actions that create the change real. Due to global financial crisis in 2008 employees of the huge companies were feeling insecure about their jobs and promotion. It can be seen that many of the employees are not comfortable with the change because they need specific set of skills and knowledge in response to change. Employees may feel the loss of monitor & control & disruption. Reasons are there why people become resistant to change caused by the global financial crisis such as first; people think their upcoming security would be threatened, second people think they shall be financially impacted, third people think that work relationships with their colleagues would be affected, fourth changes are created to their stages of responsibility, fifth the curve of learning for the another rule is too vertical and steep. There are various stages that people undergo whenever they think that they trap in a change. Below mentioned are the stages of negative response which prevails due to changes take place in the organization (Wagner, 1995)
Stability this stage refers to the condition after the announcement of any change the current state, the position quo.
Immobilization Shock and upset are considered the beginning reaction which ranges from transient dilemma to complete perplexity. The supposed change becomes unable for people to think what is taking place.
Denial It can be seen that people during this stage are featured by the incapability to incorporate innovative information into the recent phase of reference, and the response is considered as one of ignorance.
Anger Annoyance & feeling hurt arrive at this stage and these are created due to indiscrimination lashing & irrational approach.
Bargaining It can be observed that people try to negotiate to respond to the negative situation. It is very clear that people cannot run away with the reality. It can be seen that earlier stages involve distinct types of denial but this stage shows the initiation of acceptance.
Depression It can be seen that people undergo another stage of emotion, generally expressed in the type of resignation to breakdown, insufficient physical & emotional energy and non engagement from their work. Depression not only shows the negative impact but it also reflects the positive aspects in the process of acceptance.
Testing This stage refers to the investigation of innovative ways in response to the new condition and to start up with the new rules & regulation. This stage helps in regaining of control and from the situation of depression (Wagner, 1995)
Acceptance In this stage people become more receptive in comparison to the previous phases in the new situation (Fisher, 1995)
It can be seen that people usually don’t like adjustments that have taken place from uncertainties; employees of the organization are reluctant to change. Now, the time has come to decide the company vision & mission and its operating procedures & methods. At last it can be seen that people are reluctant to change because they feel insecure about their jobs and they think they would be financially impacted. It can be seen that due to the economic downturn companies usually go under mergers & acquisitions. In simple terms, it can be say that companies go under transitional change which is transformed by something innovative and new like reorganizations, initiation of new products & services & mergers & acquisitions. There are various threats and opportunities due to mergers& acquisitions present to employees such as stress among employees, fear of job loss and competitiveness among employees. These all threats create insecurity among employees of job fear and they try to search other options at different companies. Generally, mergers and acquisitions are not successful and create insecurity among employees due to a different organization culture and customs. These all are the reasons which shows that employees are reluctant to change which can be in any form like transitional and transformational due to economic downturn and global financial crisis.
3.) It is observed that Transformational change is a change in which new state arises from the rest of the old. This change is called as a radical change and designing of organization mission, values, cultures & leadership. In simple words, transformational change is a change that is not an improvement and extension over the ancient, but a radical change. This radical change can be organizational & personal. The transformational changes are convincing & bold not merely a better form of earlier business. This type of change forms a new stage of innovation, fearlessness & collaboration. It is very clear this type of change excites employees of the company and creates their zeal and creativity. After this change employees can say that the organization would have more improvement and completely different organization is formed. This radical change and expand the limited mindset of employees in which the organization works. This type of mindset includes rationales, attitudes and logic and perception of employees how they deal with problems & opportunities .It is very clear that global financial crisis and the Australian government’s reaction to it fit with transformational change. It can be seen that Australian government has undertaken a number of quick measures in order to rescue an Australian economy. The Australian government was ready to implement any kind of change for rescue of Australian economy. In general, a number of quick measures come under the category of transformational change because these measures had taken by the government of Australia on the spot without taking into consideration of any factors. The government of the Australia had injected a bailout packages for the safeguard of the economy and planned to inject some funds for ABC children care centres. These all decisions had taken by the government of Australia on the spot to improve and transform the situation of the economy as compared to earlier. Global financial crisis is also an example of transformational change because it shocked the whole world and nobody had expected a massive loss and destruction of manpower from the crisis. It can be seen that global financial crisis not only affected the United States but the other countries also throughout the world. The most affected country was the Australia due to global financial crisis of United States. It can be seen that at the time of recession many multinational corporations like Rio Tinto & Alcoa announced policies to cut jobs that was really unexpected for employees and it comes under the category of transformational change (Fisher, 1995)
Conclusion
It can be observed that confront of managing change is the challenge of managing tension & paradox. It is observed that finding of readiness & excitement resistance creates a positive chance and provides an opportunity to the organization that takes change as a challenge. In this report various factors have been identified why people & the organization are resistant to change. The various stages have been mentioned when people think that they trap in the change. These stages include denial, Immobilization, stability, Anger, Bargaining, Depression, testing & Acceptance. In general there are three types of change such as Developmental change, transitional change & Transformational change. It is very clear that when companies go under mergers & acquisitions and reorganizations it comes under the category of Transitional change. It can be seen that global financial crisis & Australia government reaction to it comes under the category of transformational change.
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