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Managing Change

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Introduction

International University College Dobrich Change Management Assignment Prepared by: Asen Minkov Program: International Business and Management (IBM), 3rd year Faculty number: INTRODUCTION The report presents a review of the "National Bank of Ostia" case study and my personal recommendations on how to undertake structural change, and improve the organizational design, and overall organizational performance. It provides detailed analysis and evaluation of the current situation in the organization, and possible solutions to the existing problems. It is structured in three main paragraphs as follows: structure of the bank, where we will be examining structural changes and the effect they have on employee relations, moral, on organizational culture, and we will be discussing methods for avoiding change resistance; the impact of change on culture, in terms of training and development, recruitment strategy, retention, and costs; performance management schemes, where we will be considering appraisal systems, reward schemes, and other ways to improve general performance. RECOMMENDATIONS The following lines present my personal analysis, evaluations, and recommendations on how to improve the structure, culture and the overall performance of the National Bank of Ostia. 1. Structure of the bank The first step NBO should undertake is changing the organizational structure. After analyzing and evaluating the organizational structure of NBO I have come to several conclusions. The Operations, Finance, and Technology departments need no restructuring or/and improvements. They are already functioning in the most efficient way. ...read more.

Middle

Geert Hofstede once said: "Studying culture is looking for trouble." However, the organizational culture by nature consists of the beliefs and values held by its members. And one should aim at shaping a strong culture, where implicit and explicit assumptions are in harmony, because culture is what drives the organization. Not all change is warmly accepted by members of an organization. The implementation of a new idea or technique often results in resistance by those who will be affected most. Resistance, however, is common and it is important for managers to understand it and overcome it. Explaining the need for and logic of the change is an effective strategy for reducing resistance. NBO top management should present the change as something necessary but at the same time something good, useful and beneficial for the organization and all of its members. They should emphasize on the benefits and advantages change will bring along on both the short and long-term run. 2. Impact of changes on culture Changing the organizational structure is just the first step of the entire process. Once the structure has been improved, management should start considering the impact of change on the organizational culture and various ways to further enhance it. According to K. N. Wexley and G. P. Latham (1981) training and development of employees has many advantages for the organization, referring to both the short-term and long-term orientation of the company: "Training helps the firm meet its immediate human resource needs. ...read more.

Conclusion

In addition, a review of the salary and incentives budget should be conducted. Improvements in salary and incentives management will result in reductions of costs in the financial books. Reward schemes have great potential to improve an organization. Properly implemented reward schemes and incentives will definitely improve staff retention rates, ease staff recruitment, keep staff motivated, and attract new costumers. In addition, reward schemes can not only improve performance and motivation but may also be tax-efficient for the business so it's a no lose situation. Rewarding within an organization may be monetary, or may provide additional benefits to an individual, or it may be moral. Moral appraisal has proven to be extremely motivational, resulting in greater productivity. When dealing with performance management and reward, it is recommended to set objectives and goals based upon a mix of hard and soft targets. Hard targets are based on measurable criteria and can be related to business performance, while soft targets are based on attitudes and behaviors, and the observation of how the job is done. They should respectively equal 75% and 25% when decision making is related to setting objectives and goals. Effective change management requires continual assessment of the internal and external environment. Naturally, no change management program goes completely according to the plan, as people tend to react in unexpected ways, areas of anticipated resistance may fall away, and the external environment may shift. However, supported by solid decision-making processes and using the up-to-date information from the field, the NBO change leaders should be able to make the adjustments necessary to maintain momentum and drive overall business results. ...read more.

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