Automation is a technological change that replaces people with machines. It began in the Industrial Revolution and continues as a change option today. Examples of automation are the introduction of automatic mail sorters by Australia Post and robots on car assembly lines.
Probably the most visible technological chance has been expanding computerisation. Many organisations now have sophisticated management information system. Large supermarkets have converted their cash registers into input terminals and linked them to computers to provide instant inventory data. The workplace of today is dramatically different from its counterpart of 20 years ago because of computerisation. This is typified by desktop microcomputers, which can run hundreds of business software packages, and network systems that allow these computers to communicate with one another. The Internet is also beginning to rapidly change the operations of many businesses.
Competitive factors or innovations within an industry often require change agents to introduce new equipment, tools or operating methods. For example, many aluminium businesses have significantly modernised their plant in recent years to compete more effectively. More efficient handling equipments have been installed to reduce the cost of manufacturing a tonne of aluminium.
As mentioned in Organizational longevity and technological change (by Terence C. Krell), technological change transforms the nature of marketplace. The rapid technological change creates a less labour intensive work environment through automation. As such, it resulted in a change in the organizational structure.
TECHNICAL PROCESS
The technical process converts an organization’s inputs (material, human, monetary) into its outputs. The process may be mechanical as in manufacturing organizations, or it can be a service to clients as in banks, hospitals, or insurance companies. The process also can be largely mental as in organizations that solve problems or create new ideas, products, and services. Research and development organizations, advertising agencies, and software development companies are examples of the latter.
The design of the technical process can predetermine much of the behaviour of the people who work in the process. Technical processes vary in work pace, worker control, complexity, degree of routine, predictability, and degree of interdependence within the process, or it can involve thinking and analytical activities. The technical process decides both what is done and the pace, which it is done.
Organisational Structure can be seen to influence:
Organisation capability to cope with uncertainty
Fear for the unknown often arises from changes. Changes will replace ambiguity and uncertainty for the known. Employees in organisation dislike for uncertainty. In addition, groups of people with such fears often find comfort in sharing their fears with each other, thus making the change process more difficult as now it has become a "group" fear". Employees who participate in implementing change are more likely to be supportive and reduce fear for the unknown and lead to commitment. Employees are much more likely to support a new set of ideas which they have had a key role in shaping. When a senior manager approaches the group or organization from the members' perspective, he or she will be able to design interventions that don't immediately trigger defence mechanisms.
Motivation and commitment/ alienation
With fear instilled in the mind of the employees, the motivation and commitment of the employees will not be able to maximize. As they are constantly living in fear, their mind will not be able to concentrate on their work. Fear for the unknown also caused alienation of employees with the management. Employees are uncertain of their future and with the management’s policy. The employees do not understand what is happening and the reason for changes within the organisation. To reduce the low motivation and commitment in employees during such restructuring, management should let the employees know where they stand and the details of what is going on. Employee participation should be encouraged to give everyone a sense of ownership during change. As confidence is being infused into the people, the barrier of alienation will be removed.
In Facilitating change and empowering employees, Journal of Change Management, Jun 2002 (by Joffe M.; Glynn S.), it was describes how one organisation involved all its employees in recognising and prioritising issues needing attention to improve productivity and retention, and to make their organisation a great place to work'. It coincided with the introduction of a new technology that enabled scientists to define more efficient, and cost effective ways to translate genetic information into targets that facilitate the development of medicines. This technology fundamentally affected the role of the scientist and their motivation. The change initiative was borne from discussion of quality circles and continuous improvement, and a desire to involve employees in their workplace culture. It continued to evolve as the team became more experienced and enjoyed the responsibility of empowerment. A team of employees led the initiative — they designed and analysed quarterly web surveys that collected views and tracked changes each quarter, and suggested and often led change implementation activities. Results show changes in a positive direction and the Centre facing issues it previously either ignored or did not know were impacting morale and productivity. Almost 90 per cent of the Centre is actively involved in the initiative either through participating in the survey and or contributing to the development of the survey and solutions.
The scope for and nature of employee involvement and performance
During restructuring of the organisation, many routines and habits will be disrupted. People are creatures of habit, and replied on the routines and habits as a form of programmed responses to cope with the daily life’s complexity. People will be feeling upset when the old ways of doing things cannot be followed thus performance will be affected. Employees will then suffer from a loss of confidence and feel incapable of performing well under the new way of doing thing. Usually with restructuring, employees are given a wider job scope. As such, they may be unable to handle the change physically and mentally. To counter, management should use non-directive counselling. Non-threatening discussion can help to facilitate voluntary acceptance of the change. Managers can also reward employees who contributed to the successful introduction of change. People trust their leaders' actions, not their words. If words and actions are consistent, then a manager's credibility will be high. Rewarding can thus be used as reinforcement for any significant movement in the right direction.
In The impact of change on performance, Journal of Change Management, Dec 2001 (by Rieley J.B.; Clarkson I.), it was mentioned that Organisations today are under siege from a variety of areas, but perhaps the one that has created the largest impact is the need to improve performance. When all organisations are faced with absorbing change at an ever-increasing rate, the ability to improve performance while undergoing change is critical to long-term success. In order to increase one's ability to be effective in this effort, an organisation needs to look at several interrelated dynamics, including: How employees make the connection between what they do, and how they do it; the clarity of understanding around principles and organisational values; understanding the fact that structure drives behaviour; and planning by outcomes. This paper outlines how these dynamics interrelate, as well as how to help ensure that your organisation can realise its performance potential while undergoing change.
The nature of and channels for communication
When the purpose of the change is not made clear, resistance due to poor communication may develop. Those affected by change must know why a change is being made and how they will be affected. Rumours develop around inadequately explained changes. It is also easier for those already resisting the change to concoct or spread disinformation, especially when there are no concrete facts circulated to counter rumours and disinformation. Similarly, the management should communicate openly and honestly to the employees in order to gain the trust. They should give advance notice for the change and provide suffice details regarding the change. Research shows that communication can help to reduce fear for the unknown
Change is constant in business. It is increasingly recognised that internal communication plays a role in helping employees deal with change. But how effective is it? The evidence available to date suggests that internal communication has a dismal track record. It was argued that this is because most internal communication does not get measured and so does not get done. Case studies are used to show that where measurement has been part of the plan, the effectiveness of internal communications in change management can be proven (Measuring the effectiveness of change — The role of internal communication in change management by Harkness J.)
Formal and informal relationships/ Power and Status
During a change, there will be redistribution of decision-making authority, which can threaten long-established power relationship within the organization. The introduction of participative decision-making or autonomous work teams is the kind of change that is often seen as threatening to supervisors and middle managers. When the change threatens to modify established patterns of working relationships between people, they will resist the change. Management, if possible, should try to guarantees that employees will not be disadvantaged. For example, an organization may guarantee employees the same pay, benefit or status quo if not better after the change.
Reference
Stephen P. Robbin, Bruce Millet, Ron Cacioppe, Terry Waters Marsh (1998) Organisational Behaviour 2nd Edition Prentice Hall
Jeffrey N. Lowenthal (1994) Re-engineering the Organisation ASQC Quality Press
Joseph E. Champoux (2000) Organisational Behaviour South Western College Publishing
Adrian Thornhill, Phil Lewis, Mike Millmore, Mark Saunders (2000) Managing Change Prentice Hall
Raymond J. Stone (2002) Human Resource Management 4th Edition John Wiley & Sons Australia Ltd.
