Managing Change in Small Organisations

Managing vary in Sm al angiotensin converting enzyme Organisations1.0 IntroductionThe phenomenon of guard to diversity is the bane of all in all Algerian bakeries that convey ideas for variegate. For the similar angiotensin converting enzyme who proposed the pitch, the unsusceptibilitys atomic number 18 usually synonymous with hostility, intrigue deadlines, polarization, conflict, and impatience, some problems which argon believably to frustrate and undermine the success of his bakery.Basically, safeguard to swap is built up from mevery sources internal and external. Overcoming immunity to inter interpolate requires scratch the identification of those sources. Therefore, the proprietor of the bakery El-Bahdja is prospecting for an expert or lord advice in the field to suffice managing interpolate effectively. Hence, as this crownworkic is begin of the international business and focvictimization studies, the possessor asked me to do some re anticipate on this matter.Ultimately, this research is divided into ii study chapters, outset the literature collapse that discusses the prime(prenominal) topic theoretically, it starts off by mentioning the general sources that fuels the shield to tilt, then it goes on with hofdstedes point of view on justification of lurch based on cultural disagreeences and it concludes by describing the smells of managing vary effectively and it concludes with.The second major chapter is the abbreviation of the determinations from the primary entropy that forfeit been stack a delegacy through interviews with owners and employees from the bakery El-Bahdja and owners from other(a) bakeries.Finally this paper is closed by recommendations for the owner of the bakery El-Bahdja on how to everywherecome exemption to variety show and how to cope limiting.1.1 research objectiveMany companies in North Africa particularly in Algeria argon reservation loss and could non meliorate the quality of their business due to the wont of fol baseborning common procedures and the high consideration of sunk cost invested in the lieu quo and fear of b are-assed ideas. pretermit of adequate information fuels rumors and gossip and adds to anxiety generally associated with interpolate. This fear creates resistance to deviate in the Algerian bakery industryTherefore, this research focuses on finding the elements that fuel the resistance to replace in the Algerian bakeries and unique(predicate)ally the bakery El Bahdja that make ups and delivers all kind of bread and former(prenominal)ries. The owner of the Algerian Bakery El-Bahdja is an experient man and has been in the business since 1967. The owner is facing the closing down due to occupy of managing deepen skills in the bakery and the high resistance from the employees to diverseness.The primary(prenominal) objective of this research is to provide the owner of the bakery El-Bahdja with guidance to effectively managing counter smorgasbord when it is in the process of the fulfillation.1.2 Research questionsTo provide guidance on how to manage varietys for the owner of the bakery El-Bahdja it is all important(p) outgrowth to find answers to the by-line research questions.Does Algerian culture welcome qualifyingswhy most Algerian employers and employees resist changing?What are the external factors that prevent Algerian employers and employees from changing?How do Algerian employers and employees manage change when applying the tender ideas?1.3 MethodologyThis study is based on twain primary and secondary data that help in determineing the causes of resistance to change from both the Algerian owners and their employeesSecondary data collection this method studies the previous cases that get down al set been written approximately and find the similarities between the cases. This method is very helpful in collection data from polar cultures that share the same fact which is fear of new ide as that admit propose effect on their traditional way of doing business. Therefore, the resources of the secondary data collection are mainly from books, journals, and internet. patriarchal data a very authoritative data and plays a big determination in reservation final finish. The primary data which is disclose called direct communication or field research, on other word facing hoi polloi and provoke them interviewed. The objective of this method is to collect factual data that helps in answering the research questions of this study and this after(prenominal) interviewing great deal from the same field on the main topic.Reflection on the research methodology the methods followed for collecting data are linked together. The secondary data helps understand the theoretical c one and only(a) timepts that have been concluded from previous cases and compare them to the new facts. In this method the 7s model of McKinsey, the system versus the authentic world by Jeff Hiatt a nd Arab personal identity by Halim Barakat are used as starting point for facing g all overnmental change in Algeria.The primary data is basically the tangible proof for decision springrs, observing and interviewing deal are the major withalls to be used in collecting data for this study. dependableness and validity of data are the essential axes of this method. Therefore, the interviews take place specifically with owners of bakeries and their employees in Algeria and in the Netherlands for comparison to see whether culture differences is a matter for resisting changing.2.1 Why managing change? Change is believed to happenChanges are fact and every person is subject to these changes. pack nervuss changes regularly in their life or in their workplace, part of them wangle with these changes successfull and the other part fail to adjust to change. In the life, for instance a family with children parents believe that children are subject to changes and may change to better o r to the opposite that parents plan for them, all the same these changes would not affect the family as a whole but the person himself.Neverthe little, in a business changes on that point are two ways and no third, successfully manage change or failure. In cardinal law whether you are an executive, supervisor, coach, consultant, project team leader or manager of any type where your line of business is to manage people, you likely have sufferd resistance to change from employees. However you may not recognize the role that you stern play in preventing that resistance and leading change. Many managers do not make this connection until they have personally experience failure in an important change project (Jeff Hiat, herds grass J. Creasey 2003)When asking people after this failure what would you do differently if you had the chance to do it again? The common rejoinder would be using an effective and plan change focussing program. The question to be risen here is whether thi s program is sufficient enough to prevent resistance to change from casualty in the scratch place and deal with people emotions and pursue them to change.The real barrier to success is a indigence of change concern and not management program. Some people do not lack of vision or an understanding of the marketplace but they feel simply light when managing the people side of change. In other words, things did not go exactly as planned. The un evaluate happened. Not managing the people side of change impacts the success and introduces riskiness into the business (Jeff Hiat, herds grass J. Creasey 2003)Change management skills have shown that is not solo mitigates these business risks, but also female genitalia avoid them entirely. Business leaders have change management skills to not only manage resistance once it appears, but to prevent it from occurring.2.2 Change and the managerChange pauperisms to be portrayed in positively charged terms, a requirement to ensure long t erm survival (Robert A Poton, James McCalman, 2008) arrangements and their managers essential recognize change, in itself, is not of necessity a problem. The problem to a greater extent a great deal than not is a less than competent management o the change moorage (Rob Paton, James McCalman, 2008).Managers must(prenominal) urinate that one cannot separate strategic change management from organisational scheme both must work in tandem. The importance of the human side of change cannot be underestimated, one must draw and manage the potential sources and causes of potential resistance and ensure that motivators are built into new processes and structures (Forlaron, 2005).i) Change competency Change is part of the businesss philosophyThe successful organization is the organization that understand change leave occur, expect it and subscribe to the change during work throughation (Jeff Hiat, 2003)An organization that faces constant demands to change and uses effective manageme nt over and over with each new initiative may experience a fundamental shift in its operations and the deportment of its employees. Sponsors begin to repeat activities that made determination change successful. Managers develop skills to support employees through the change. Employees see part of their job as navigating these new changes. Each aim in the organization will have internalized its role in change and developed the skills and acquaintance necessary to react to constant change. The organization has become ready and able to embrace change it has developed change competency (Jeff Hiat, Timothy J. Creasey, 2003). However, building change competency is not paved with goers it requires a belief that change is now an ever-present feature of organisational life (Burnes, 2004).Change competency is similar to change management, but in that location are several hear distinction. First, change management is ultimately the use of specific activities like communication, coachin g, sponsorship and training to realize successful outcomes with business changes. Change competency is not a specific application it is an organizations ability to react to change over and over againSecond, while change management can be taught and learned, change competency requires a fundamental shift in culture and values. It must be simply part of periodic operations and cannot be simply demonstrated in training or instructional material.Third, change competency must penetrate every facet and level of the organization. This distinction especially relates to the front-line employee. An organization may have expertise in change management in its sponsors, consultants and change management. However, the front-line employees are the ones whose day-to-day activities are changing.To build change competency into the organization, you can take the eldest amount by ensuring that solid change management practices are applied consistently for each change initiative. The second step is to begin building the following competencies into your organization (Jeff Hiat, Timothy J. Creasey, 2003)ii) Change and Human Resourceengineering has played a major role in ensuring that a coherent business approach and managerial cognitive process can be maintained from a reduce resource base. The key success in such moves has been the mobilization of the human resource (Pettigrew and Whipp, 1993).2.3 Managing resistance once it appearsBelieving in changes to be happening is a key principle to reducing resistance to changePeople are often afraid of new ideas. They may feel threatened by new ideas and fear that they will not be able to cope with a change in running(a) patterns that is demanded of them or that they will not understand how to use a new technology example of that many older people are afraid of materials that they are not able to handle and may make them calling the technician every moment (Tony proctor 2005).The fear of new ideas is a natural feeling people live wit h this fear and it not a bad manner. Fear of new ideas becomes negative when is surrounded with sources that increase the tension of fear that leads to high level of resistance and consequently aggravation of the failure of any project.Change more often than not produces suspicions and resistance. To many it implies a move from familiar ways-mastered over long periods of time- to an noncitizen and threatening environment. In order to deal effectively with resistance to change, people must understand its causes (Jack Rabin, Marcia B. Steinhauer, 1988). Lawrence and Greiner 1970, expose the main sources that track down the resistance of change. Fear of the unknown, lack of information, threats of status, fear of failure, and lack of perceived trues.Regarding the first group of sources of resistance, change starts with the perception of its need, so a wrong initial perception is the first barrier to change. This first group is called distorted perception, interpretation barriers a nd hidden strategic priorities (Pardo del Val, Manuela Martnez Fuentes). It includes(a) Inability of the company to look into the future with clarity (Barr et al., 1992 Krger, 1996 Rumelt, 1995)(b) Denial or refusal to acquit any information that is not expected or sought after (Barr et al., 1992 Rumelt, 1995 Starbuck et al., 1978)(c) Perpetuation of ideas, subject matter the movement to go on with the present thoughts although the situation has changed (Barr et al., 1992 Krger, 1996 Rumelt, 1995 Zeffane, 1996)(d) unspoken assumptions, which are not discussed due to its unstated character and therefore distort reality (Starbuck, Greve and Hedberg, 1978)(e) Communication barriers, that leads to information distortion or misinterpretations (Hutt et al., 1995)(f) Organizational silence, which limits the information flow with individuals who do not express their thoughts, meaning that decisions are made without all the necessary information (Morrison and Milliken, 2000 Nemeth, 1 997).The second main group of sources of resistance deals with a low motivation for change. Five fundamental sources(a) condition costs of change (Rumelt, 1995)(b) cannibalization costs, that is to say, change that brings success to a crossing but at the same time brings losses to others, so it requires some sort of sacrifice (Rumelt, 1995)(c) Cross subsidy comforts, because the need for a change is compensated through the high rents obtained without change with another different factor, so that there is no real motivation for change (Rumelt, 1995)(d) Past failures, which leave a pessimistic image for future changes (Lorenzo, 2000) and(e) Different interests among employees and management, or lack of motivation of employees who value change results less than managers value them (Waddell and Sohal, 1998).The lack of a creative response is the third set of sources of resistance. There are three main reasons that diminish the creativeness in the search for appropriate change strateg ies(a) Fast and complex environmental changes, which do not allow a proper situation analysis (Ansoff, 1990 Rumelt, 1995)b) Reactive mind-set, resignation, or tendency to believe that obstacles are inevitable (Rumelt, 1995) and(c) Inadequate strategic vision or lack of clear committal of top management to changes (Rumelt, 1995 Waddell and Sohal, 1998).Taking into consideration all those sources of resistance mentioned above can reverse the situation into preventing resistance in the first place.Cultural web Cultures differ from each other in their resistance to change. The strongest resistance to change characterizes of high power distance, low individualism, and high indefinitety avoidance. Among these cultures are most Latin American countries, Portugal and Korea, followed by Japan, France, Spain, Greece, Turkey, and Arab countries.Cultures with low levels of resistance to change are low on power distance, high on individualism, and low on uncertainty avoidance. This category in cludes the Anglo countries, Nordic countries, and the Netherlands, followed by Singapore, Hong Kong, and South Africa (Harzig and Hofdestede, 19962.4 Making sense impression of change management 7S model of McKinseyThe Mckinsey 7S model defines the seven components that encompass an organization and that by changing any one of the S components there is impact on the other S components. This model is such a conceptual aid by acting as good checklist for those setting out to make organisational change, laying out which parts of the system need to adapt, and the effects of these changes in other parts of the system ( mike Green, 2007)The 7s categories areStaff important categories of people at bottom the organization, the mix, the diversity, retention, the development and the maximizing of their potential. This component helps to determine how committed resources to make it all work?Skills distinctive capabilities, knowledge and experience of key people. The role of this component is to identify how ready and competent are the supply based on where the organization is heading?Systems processes, IT systems, HR systems, knowledge management systems. In other words, what are the desirable systems to be used to support the transition?Style management style and culture. How we are getting from here to there?Shared values guiding principles that make the organization what it is.Strategy organizational goals and plan, use of resources. Briefly is where are we transitioning to?Structure the organization chart and how roles, responsibilities and accountabilities are distributed in furtherance of the outline.The Mckinsey 7S model provides an effective mannequin for analyzing an organization and its activities that determine whether an organization is strong enough to adjust to any changes.Furthermore, this model helps in avoiding some of the sources that feed resistance to change in the first place2.5 Five steps for effective change process (Thomas and Christ opher, 2008)Step 1Motivating change miserable from the known to the unknownOrganizational change involves locomote from the known to the unknown. The future is uncertain and may adversely affect peoples competencies, worth, and coping abilities. Organization members generally do not support change unless get reasons convince them to do so. A key issue in planning for action is how to motivate inscription to organizational change. This requires attention to two related tasks creating cooking for change and overcoming resistance to change.Creating Readiness for change peoples readiness for change depends on creating a felt need for change. This involves making people so dissatisfied with the status quo that they are motivated to try new work processes, technologies, or ways of behaving. Generally people and organization need to experience deep levels of hurt sooner they will seriously undertake meaningful change. The following three methods can help generate sufficient dissatisf action to produce changeSensitize organizations to pressures for change. Modern organizations face unprecedented environmental pressures to change themselves, including heavy foreign competition, rapidly changing technology, and the draw of global markets. Internal pressures to change include new leadership, poor product quality, high production costs, and excessive employee absenteeism and turnover.Organizations can make themselves more sensitive to pressures for change by encouraging leadership to surround themselves with devils advocate for instance by cultivating external networks that comprise people or organizations with different perspectives and views by visiting other organizations to gain exposure to new ideas and methods.Reveal discrepancies between current and in demand(p) states. Significant discrepancies between actual and ideal states can motivate organization members to initiate corrective changes, particularly when members are committed to achieving those ideas. A major diagnosing is to provide members with feedback around current organizational functioning so that the information can be compared with goals or desire future states.Convey credible positive expectations for the change. When organization members expect success, they are likely to develop greater commitment to the change process and to direct more energy into the constructive behaviors needed to implement it. The key success to achieving these positive effects if to communicate realistic, positive expectations about the organizational changes*.Research suggests that information about why the change is occurring, how it will benefit the organization, and how people will be involved in the design and implementation of the change was most helpful.*Overcoming oppositeness to change At the organization level, resistance to change can come from three sources. Technical resistance comes from the habit of following common procedures and the consideration of sunk costs invested in th e status quo. Political resistance can arise when organizational changes threaten right on stakeholders, such as top executive or staff personnel, or call into question the past decisions of leaders. Finally, culture resistance takes the form of systems and procedures that reinforce the status quo, promoting conformity to existing values, norms, and assumptions about how things should operate.Empathy and support. A first step in overcoming resistance is learning how people are experiencing change. This strategy identifies people who are having trouble accepting the changes, the nature of their resistance, and possible ways to repress it.Communication. People resist change when they are uncertain about its consequences. Lack of adequate information fuels rumors and gossip and adds to anxiety generally associated with change. good communication about changes and their likely results can reduce this speculation and slack unfounded fears.Participation and innovation. Involvement in planning the change increases the likelihood that members interests and needs will be accounted for during the intervention. Consequently, participants will be committed to implementing the changes. They also can identify pitfalls and barriers to implementations.STEP 2 CREATING A VISIONThe second activity in leading and managing change involves creating a vision of what members want the organization to look like or become. Generally, a vision describes the core values and purpose that guide the organization as headspring as an envisioned future toward which change is directed. It provides a valued direction for designing, implementing, and assessing organizational changes. The vision also can energize commitment to change by providing members with a common goal and a compelling rationale for why change is necessary and worth the effort.Research suggests that compelling visions are composed of two parts (1) a comparatively inactive core ideology that describes the organizations cor e values and purpose, and (2) an envisioned future with bold goals and a vivid description of the desired future state that reflects the specific change under considerationStep 3 DEVELOPING POLITICAL SUPPORTManaging the political dynamics of change includes the following activitiesAssessing Change Agent Power. Greiner and Schein 1988, indentified three key sources of personal power in organizations (in addition to ones formal position) knowledge, personality, and others support. Knowledge bases of power include having expertise that is valued by others and controlling important information. For example, leaders in organizational units under way out change can call on their informal networks for resources and support, and encourage subordinates to exercise power in support of the change.Identifying Key Stakeholders. This can start with elementary question. who stands to gain or to lose from the changes? erstwhile stakeholders are identified, creating a map of their influence may be useful. Consequently, provides change agents with information about which people groups need to be influenced to accept and support the changes.Influencing Stakeholders. There are three major strategies for using power to influence others in organization developmentFirst strategy is playing straight this strategy involves determining of particular stakeholders and presenting information about how the changes can benefit them. The success of this strategy relies heavily on the change agents knowledge base. He or she must have the expertise and information to persuade stakeholders that the changes are a logical way to meet their needs.The second strategy is using friendly network in this strategy change agents attempt to use their social relationships to gain support for changes. This social networking might include, for example, meeting with other powerful groups and forming alliances to support specific changes. This strategy also might include using informal contacts to discover key roadblocks to change and to gain access to major decision makers who need to sanction the changes.The third strategy is going around the formal system the change agents charisma, reputations, or maestro credibility lend legitimacy to going around the system and can reduce the likelihood of negative reprisals. For example, managers with reputations as winners often can bend the rules to implement organizational changes. However, this power strategy is relatively easy to abuse. Therefore the OD practitioners should consider carefully the ethical issues and possible unintended consequences of circumventing formal policies and practices.Step 4 MANAGING THE TRANSITIONImplementing organizational change involves moving from the existing organization state to the desired future state. There are three major activities and structure to facilitate organizational transition activity planning, commitment planning, and change-management structures.Activity PlanningThis involves making a roa d map for change, citing specific activities and events that must occur if the transition is to be successful. Activity planning should clearly identify, temporally orient, and integrate discrete change tasks and should link these tasks to the organizations change goals and priorities.Commitment planningthis activity involves identifying key people and groups whose commitment is needed for change to occur and formulating a strategy for gaining their support.Change- circumspection StructuresBecause organizational transitions tend to be ambiguous and to need direction, special structures for managing the change process need to be created. These management structures should include people who have the power to mobilize resources to promote change, the respect of the existing leadership and change advocates, and the interpersonal and political skills to guide the change process.Step 5 SUSTAINING MOMENTUMOnce organization changes are under way, explicit attention must be directed to ama zeing energy and commitment for implementing them. A strong tendency exists always among organization members to return to old behaviors and well-known processes unless they receive sustained support and reinforcement for carrying the changes through to completion.The following five activities can help to sustain momentum for carrying change through to completionProviding resources for change. Additional financial and human resources are required for implementing organization change, particularly if the organization continues day-to-day operations while trying to change itself. Extra sources are always helpful to provide a buffer as performance drops during the transition period. grammatical construction a support system for change agents. Organization change can be difficult and filled with tension, not only for participants but for change agents as well. A support system typically consists of a network of people with whom the change agent has close personal relationships people w ho can give wound up support, serve as sounding get on for ideas and problems, and challenge untested assumptions.Developing new competencies and skills, reinforcing new behaviors, and staying the course. In organizations people generally do things that bring them rewards. Consequently, one of the most effective ways to sustain momentum for change is to reinforce the kinds of behaviors needed to implement the changes through for instance informal recognition, encouragement, and praise.Staying the course. If the organization changes again too quickly or abandons the changes before it is fully implemented, the desired results may never materialize. There are two primary reasons that managers do not keep a steady focus on change implementation. First, many managers fail to anticipate the decline in performance, productivity, or satisfaction as change is implemented. Organization members need time to practice, develop, and learn new behaviors they do not abandon old ways of doing thin gs and adopt a new set of behaviors overnight.Second, many managers do not keep focused on a change because they want to implement the next big idea that comes along. Successful organizational change requires persistent leadership that does not waver unnecessarily.ReferencesBooks and articlesAnsoff, I.H. (1990), Implanting Strategic Management Prentice Hall International, Ltd. LondonCynthia D. Scott, Dennis T. Jaffe. (2003), Managing change at work leading people through organizational transitions, bring down 3Greiner, L.E. (1972), Evolution and revolution as organizations grow Harvard Business Review, pp. 37-46.Greiner, L E and Schein, V E. (1988), Power and Organization Development Mobilizing power to change, Reading, MA Addison WesleyHalim Barakat. (1993), The Arab world society, culture, and state Berkeley, Calif. University of California Press,Hutt, M.D., Walker, B.A. and Frankwick, G.L. (1995) hurdle the Cross-Functional Barriers to Strategic Change Sloan Management Review, 36 (3), pp. 22-30.Jack Rabin, Marcia B. Steinhauer. (1988), Handbook on human services administration open Administration and Public Policy/34, pp. 305Krger, W. (1996), Implementation The Core Task of Change Management CEMS Business Review, 1, pp. 77-96.Lawrence, P.R. (1954), How to Deal with Resistance to Change Harvard Business Review, (May/June), pp. 49-57.Mike Green. (2007), Change management masterclass a step by step guide to successful change.Tony Proctor. (2005), Creative problem solving for managers developing skills for decision making. Edition 2, pp. 241Pardo Del Val, Manuela Martnez Fuentes RESISTANCE TO change A LITERATURE REVIEW AND EMPIRICAL, p. 5-7Rob Paton, James McCalman. (2008), Change Management A Guide to Effective Implementation, edition 3, pp. 39-54Rumelt, R.P. (1995), Inertia and variety, in Montgomery, C.A., Resource-Based and Evolutionary Theories of the Firm, Kluwer Academic Publishers, Massachusetts, pp. 101-132.Rusell Tobin. (1999), Overcoming resista nce to change, Second Edition, pp. 142Starbuck, W., Greve, A. and Hedberg, B.L.T. (1978) Responding to crisis, Journal of Business Administration, 9 (2), pp. 111-137.Thomas G. Cummings, Christopher G. Worley. (2008), Organization development change, Edition 9, pp. 165-182Waddell, D. and Sohal, A.S. (1998), Resistance a constructive tool for change management, Management Decision, 36 (8), pp. 543-548.Zeffane, R. (1996), Dynamics of strategic change faultfinding issues in fostering positive organizational change, Leadership Organization Development Journal, 17, pp. 36-43.Websites http//www.explorehr.org/articles/OrgaManaging Change in Small OrganisationsManaging Change in Small Organisations1.0 IntroductionThe phenomenon of resistance to change is the bane of all Algerian bakeries that convey ideas for change. For the same one who proposed the change, the resistances are usually synonymous with hostility, intrigue deadlines, polarization, conflict, and impatience, many problems whi ch are likely to frustrate and undermine the success of his bakery.Basically, resistance to change is built up from many sources internal and external. Overcoming resistance to change requires first the identification of those sources. Therefore, the owner of the bakery El-Bahdja is looking for an expert or professional advice in the field to help managing change effectively. Hence, as this topic is part of the international business and management studies, the owner asked me to do some research on this matter.Ultimately, this research is divided into two major chapters, first the literature part that discusses the main topic theoretically, it starts off by mentioning the general sources that fuels the resistance to change, then it goes on with hofdstedes point of view on resistance of change based on cultural differences and it concludes by describing the steps of managing change effectively and it concludes with.The second major chapter is the analysis of the findings from the pri mary data that have been collected through interviews with owners and employees from the bakery El-Bahdja and owners from other bakeries.Finally this paper is closed by recommendations for the owner of the bakery El-Bahdja on how to overcome resistance to change and how to manage change.1.1 Research objectiveMany companies in North Africa particularly in Algeria are making loss and could not improve the quality of their business due to the habit of following common procedures and the high consideration of sunk costs invested in the status quo and fear of new ideas. Lack of adequate information fuels rumors and gossip and adds to anxiety generally associated with change. This fear creates resistance to change in the Algerian bakery industryTherefore, this research focuses on finding the elements that fuel the resistance to change in the Algerian bakeries and specifically the bakery El Bahdja that produces and delivers all kind of bread and pastries. The owner of the Algerian Bakery E l-Bahdja is an old man and has been in the business since 1967. The owner is facing the closing down due to lack of managing change skills in the bakery and the high resistance from the employees to change.The main objective of this research is to provide the owner of the bakery El-Bahdja with guidance to effectively managing change when it is in the process of the implementation.1.2 Research questionsTo provide guidance on how to manage changes for the owner of the bakery El-Bahdja it is essential first to find answers to the following research questions.Does Algerian culture welcome changesWhy most Algerian employers and employees resist changing?What are the external factors that prevent Algerian employers and employees from changing?How do Algerian employers and employees manage change when applying the new ideas?1.3 MethodologyThis study is based on both primary and secondary data that help in understanding the causes of resistance to change from both the Algerian owners and th eir employeesSecondary data collection this method studies the previous cases that have already been written about and find the similarities between the cases. This method is very helpful in collection data from different cultures that share the same fact which is fear of new ideas that have direct effect on their traditional way of doing business. Therefore, the resources of the secondary data collection are mainly from books, journals, and internet.Primary data a very crucial data and plays a big role in making final decision. The primary data which is better called direct communication or field research, on other word facing people and have them interviewed. The objective of this method is to collect factual data that helps in answering the research questions of this study and this after interviewing people from the same field on the main topic.Reflection on the research methodology the methods followed for collecting data are linked together. The secondary data helps understand the theoretical concepts that have been concluded from previous cases and compare them to the new facts. In this method the 7s model of McKinsey, the theory versus the real world by Jeff Hiatt and Arab identity by Halim Barakat are used as starting point for facing organizational change in Algeria.The primary data is basically the tangible evidence for decision makers, observing and interviewing people are the major tools to be used in collecting data for this study. Reliability and validity of data are the essential axes of this method. Therefore, the interviews take place specifically with owners of bakeries and their employees in Algeria and in the Netherlands for comparison to see whether culture differences is a matter for resisting changing.2.1 Why managing change? Change is believed to happenChanges are fact and every person is subject to these changes. People faces changes regularly in their life or in their workplace, part of them deal with these changes successfully and th e other part fail to adjust to change. In the life, for instance a family with children parents believe that children are subject to changes and may change to better or to the opposite that parents plan for them, however these changes would not affect the family as a whole but the person himself.Nevertheless, in a business changes there are two ways and no third, successfully manage change or failure. In organization whether you are an executive, supervisor, coach, consultant, project team leader or manager of any type where your job is to manage people, you likely have experienced resistance to change from employees. However you may not recognize the role that you can play in preventing that resistance and leading change. Many managers do not make this connection until they have personally experience failure in an important change project (Jeff Hiat, Timothy J. Creasey 2003)When asking people after this failure what would you do differently if you had the chance to do it again? The common response would be using an effective and planned change management program. The question to be risen here is whether this program is sufficient enough to prevent resistance to change from happening in the first place and deal with people emotions and pursue them to change.The real barrier to success is a lack of change management and not management program. Some people do not lack of vision or an understanding of the marketplace but they feel simply short when managing the people side of change. In other words, things did not go exactly as planned. The unexpected happened. Not managing the people side of change impacts the success and introduces risk into the business (Jeff Hiat, Timothy J. Creasey 2003)Change management skills have shown that is not only mitigates these business risks, but also can avoid them entirely. Business leaders have change management skills to not only manage resistance once it appears, but to prevent it from occurring.2.2 Change and the managerChan ge needs to be portrayed in positive terms, a necessity to ensure long term survival (Robert A Poton, James McCalman, 2008)Organizations and their managers must recognize change, in itself, is not necessarily a problem. The problem more often than not is a less than competent management o the change situation (Rob Paton, James McCalman, 2008).Managers must realize that one cannot separate strategic change management from organizational strategy both must work in tandem. The importance of the human side of change cannot be underestimated, one must identify and manage the potential sources and causes of potential resistance and ensure that motivators are built into new processes and structures (Forlaron, 2005).i) Change competency Change is part of the businesss philosophyThe successful organization is the organization that understand change will occur, expect it and support the change during implementation (Jeff Hiat, 2003)An organization that faces constant demands to change and use s effective management over and over with each new initiative may experience a fundamental shift in its operations and the behavior of its employees. Sponsors begin to repeat activities that made last change successful. Managers develop skills to support employees through the change. Employees see part of their job as navigating these new changes. Each level in the organization will have internalized its role in change and developed the skills and knowledge necessary to react to constant change. The organization has become ready and able to embrace change it has developed change competency (Jeff Hiat, Timothy J. Creasey, 2003). However, building change competency is not paved with flowers it requires a belief that change is now an ever-present feature of organizational life (Burnes, 2004).Change competency is similar to change management, but there are several key distinction. First, change management is ultimately the use of specific activities like communication, coaching, sponsor ship and training to realize successful outcomes with business changes. Change competency is not a specific activity it is an organizations ability to react to change over and over againSecond, while change management can be taught and learned, change competency requires a fundamental shift in culture and values. It must be simply part of day-to-day operations and cannot be simply demonstrated in training or instructional material.Third, change competency must penetrate every facet and level of the organization. This distinction especially relates to the front-line employee. An organization may have expertise in change management in its sponsors, consultants and change management. However, the front-line employees are the ones whose day-to-day activities are changing.To build change competency into the organization, you can take the first step by ensuring that solid change management practices are applied consistently for each change initiative. The second step is to begin building the following competencies into your organization (Jeff Hiat, Timothy J. Creasey, 2003)ii) Change and Human ResourceTechnology has played a major role in ensuring that a coherent business approach and managerial performance can be maintained from a reduce resource base. The key success in such moves has been the mobilization of the human resource (Pettigrew and Whipp, 1993).2.3 Managing resistance once it appearsBelieving in changes to be happening is a key principle to reducing resistance to changePeople are often afraid of new ideas. They may feel threatened by new ideas and fear that they will not be able to cope with a change in working patterns that is demanded of them or that they will not understand how to use a new technology example of that many older people are afraid of materials that they are not able to handle and may make them calling the technician every moment (Tony proctor 2005).The fear of new ideas is a natural feeling people live with this fear and it not a bad m anner. Fear of new ideas becomes negative when is surrounded with sources that increase the tension of fear that leads to high level of resistance and consequently aggravation of the failure of any project.Change more often than not produces suspicions and resistance. To many it implies a move from familiar ways-mastered over long periods of time- to an unknown and threatening environment. In order to deal effectively with resistance to change, people must understand its causes (Jack Rabin, Marcia B. Steinhauer, 1988). Lawrence and Greiner 1970, identify the main sources that feed the resistance of change. Fear of the unknown, lack of information, threats of status, fear of failure, and lack of perceived benefits.Regarding the first group of sources of resistance, change starts with the perception of its need, so a wrong initial perception is the first barrier to change. This first group is called distorted perception, interpretation barriers and vague strategic priorities (Pardo de l Val, Manuela Martnez Fuentes). It includes(a) Inability of the company to look into the future with clarity (Barr et al., 1992 Krger, 1996 Rumelt, 1995)(b) Denial or refusal to accept any information that is not expected or desired (Barr et al., 1992 Rumelt, 1995 Starbuck et al., 1978)(c) Perpetuation of ideas, meaning the tendency to go on with the present thoughts although the situation has changed (Barr et al., 1992 Krger, 1996 Rumelt, 1995 Zeffane, 1996)(d) Implicit assumptions, which are not discussed due to its implicit character and therefore distort reality (Starbuck, Greve and Hedberg, 1978)(e) Communication barriers, that leads to information distortion or misinterpretations (Hutt et al., 1995)(f) Organizational silence, which limits the information flow with individuals who do not express their thoughts, meaning that decisions are made without all the necessary information (Morrison and Milliken, 2000 Nemeth, 1997).The second main group of sources of resistance deals w ith a low motivation for change. Five fundamental sources(a) Direct costs of change (Rumelt, 1995)(b) cannibalization costs, that is to say, change that brings success to a product but at the same time brings losses to others, so it requires some sort of sacrifice (Rumelt, 1995)(c) Cross subsidy comforts, because the need for a change is compensated through the high rents obtained without change with another different factor, so that there is no real motivation for change (Rumelt, 1995)(d) Past failures, which leave a pessimistic image for future changes (Lorenzo, 2000) and(e) Different interests among employees and management, or lack of motivation of employees who value change results less than managers value them (Waddell and Sohal, 1998).The lack of a creative response is the third set of sources of resistance. There are three main reasons that diminish the creativeness in the search for appropriate change strategies(a) Fast and complex environmental changes, which do not allow a proper situation analysis (Ansoff, 1990 Rumelt, 1995)b) Reactive mind-set, resignation, or tendency to believe that obstacles are inevitable (Rumelt, 1995) and(c) Inadequate strategic vision or lack of clear commitment of top management to changes (Rumelt, 1995 Waddell and Sohal, 1998).Taking into consideration all those sources of resistance mentioned above can reverse the situation into preventing resistance in the first place.Cultural web Cultures differ from each other in their resistance to change. The strongest resistance to change characterizes of high power distance, low individualism, and high uncertainty avoidance. Among these cultures are most Latin American countries, Portugal and Korea, followed by Japan, France, Spain, Greece, Turkey, and Arab countries.Cultures with low levels of resistance to change are low on power distance, high on individualism, and low on uncertainty avoidance. This category includes the Anglo countries, Nordic countries, and the Netherlands, f ollowed by Singapore, Hong Kong, and South Africa (Harzig and Hofdestede, 19962.4 Making sense of change management 7S model of McKinseyThe Mckinsey 7S model defines the seven components that encompass an organization and that by changing any one of the S components there is impact on the other S components. This model is such a conceptual aid by acting as good checklist for those setting out to make organizational change, laying out which parts of the system need to adapt, and the effects of these changes in other parts of the system (Mike Green, 2007)The 7s categories areStaff important categories of people within the organization, the mix, the diversity, retention, the development and the maximizing of their potential. This component helps to determine how committed resources to make it all work?Skills distinctive capabilities, knowledge and experience of key people. The role of this component is to identify how ready and competent are the staff based on where the organization is heading?Systems processes, IT systems, HR systems, knowledge management systems. In other words, what are the suitable systems to be used to support the transition?Style management style and culture. How we are getting from here to there?Shared values guiding principles that make the organization what it is.Strategy organizational goals and plan, use of resources. Briefly is where are we transitioning to?Structure the organization chart and how roles, responsibilities and accountabilities are distributed in furtherance of the strategy.The Mckinsey 7S model provides an effective framework for analyzing an organization and its activities that determine whether an organization is strong enough to adjust to any changes.Furthermore, this model helps in avoiding some of the sources that feed resistance to change in the first place2.5 Five steps for effective change process (Thomas and Christopher, 2008)Step 1Motivating change Moving from the known to the unknownOrganizational chan ge involves moving from the known to the unknown. The future is uncertain and may adversely affect peoples competencies, worth, and coping abilities. Organization members generally do not support change unless compelling reasons convince them to do so. A key issue in planning for action is how to motivate commitment to organizational change. This requires attention to two related tasks creating readiness for change and overcoming resistance to change.Creating Readiness for change peoples readiness for change depends on creating a felt need for change. This involves making people so dissatisfied with the status quo that they are motivated to try new work processes, technologies, or ways of behaving. Generally people and organization need to experience deep levels of hurt before they will seriously undertake meaningful change. The following three methods can help generate sufficient dissatisfaction to produce changeSensitize organizations to pressures for change. Modern organizations face unprecedented environmental pressures to change themselves, including heavy foreign competition, rapidly changing technology, and the draw of global markets. Internal pressures to change include new leadership, poor product quality, high production costs, and excessive employee absenteeism and turnover.Organizations can make themselves more sensitive to pressures for change by encouraging leadership to surround themselves with devils advocate for instance by cultivating external networks that comprise people or organizations with different perspectives and views by visiting other organizations to gain exposure to new ideas and methods.Reveal discrepancies between current and desired states. Significant discrepancies between actual and ideal states can motivate organization members to initiate corrective changes, particularly when members are committed to achieving those ideas. A major diagnosis is to provide members with feedback about current organizational functioning so that the information can be compared with goals or desired future states.Convey credible positive expectations for the change. When organization members expect success, they are likely to develop greater commitment to the change process and to direct more energy into the constructive behaviors needed to implement it. The key success to achieving these positive effects if to communicate realistic, positive expectations about the organizational changes*.Research suggests that information about why the change is occurring, how it will benefit the organization, and how people will be involved in the design and implementation of the change was most helpful.*Overcoming Resistance to change At the organization level, resistance to change can come from three sources. Technical resistance comes from the habit of following common procedures and the consideration of sunk costs invested in the status quo. Political resistance can arise when organizational changes threaten powerful stakeholders, suc h as top executive or staff personnel, or call into question the past decisions of leaders. Finally, culture resistance takes the form of systems and procedures that reinforce the status quo, promoting conformity to existing values, norms, and assumptions about how things should operate.Empathy and support. A first step in overcoming resistance is learning how people are experiencing change. This strategy identifies people who are having trouble accepting the changes, the nature of their resistance, and possible ways to overcome it.Communication. People resist change when they are uncertain about its consequences. Lack of adequate information fuels rumors and gossip and adds to anxiety generally associated with change. Effective communication about changes and their likely results can reduce this speculation and allay unfounded fears.Participation and innovation. Involvement in planning the change increases the likelihood that members interests and needs will be accounted for during the intervention. Consequently, participants will be committed to implementing the changes. They also can identify pitfalls and barriers to implementations.STEP 2 CREATING A VISIONThe second activity in leading and managing change involves creating a vision of what members want the organization to look like or become. Generally, a vision describes the core values and purpose that guide the organization as well as an envisioned future toward which change is directed. It provides a valued direction for designing, implementing, and assessing organizational changes. The vision also can energize commitment to change by providing members with a common goal and a compelling rationale for why change is necessary and worth the effort.Research suggests that compelling visions are composed of two parts (1) a relatively stable core ideology that describes the organizations core values and purpose, and (2) an envisioned future with bold goals and a vivid description of the desired future state that reflects the specific change under considerationStep 3 DEVELOPING POLITICAL SUPPORTManaging the political dynamics of change includes the following activitiesAssessing Change Agent Power. Greiner and Schein 1988, indentified three key sources of personal power in organizations (in addition to ones formal position) knowledge, personality, and others support. Knowledge bases of power include having expertise that is valued by others and controlling important information. For example, leaders in organizational units undergoing change can call on their informal networks for resources and support, and encourage subordinates to exercise power in support of the change.Identifying Key Stakeholders. This can start with simple question. who stands to gain or to lose from the changes? Once stakeholders are identified, creating a map of their influence may be useful. Consequently, provides change agents with information about which people groups need to be influenced to accept and support the changes.Influencing Stakeholders. There are three major strategies for using power to influence others in organization developmentFirst strategy is playing straight this strategy involves determining of particular stakeholders and presenting information about how the changes can benefit them. The success of this strategy relies heavily on the change agents knowledge base. He or she must have the expertise and information to persuade stakeholders that the changes are a logical way to meet their needs.The second strategy is using social network in this strategy change agents attempt to use their social relationships to gain support for changes. This social networking might include, for example, meeting with other powerful groups and forming alliances to support specific changes. This strategy also might include using informal contacts to discover key roadblocks to change and to gain access to major decision makers who need to sanction the changes.The third strategy is going around the formal system the change agents charisma, reputations, or professional credibility lend legitimacy to going around the system and can reduce the likelihood of negative reprisals. For example, managers with reputations as winners often can bend the rules to implement organizational changes. However, this power strategy is relatively easy to abuse. Therefore the OD practitioners should consider carefully the ethical issues and possible unintended consequences of circumventing formal policies and practices.Step 4 MANAGING THE TRANSITIONImplementing organizational change involves moving from the existing organization state to the desired future state. There are three major activities and structure to facilitate organizational transition activity planning, commitment planning, and change-management structures.Activity PlanningThis involves making a road map for change, citing specific activities and events that must occur if the transition is to be successful. Activity planning shou ld clearly identify, temporally orient, and integrate discrete change tasks and should link these tasks to the organizations change goals and priorities.Commitment planningthis activity involves identifying key people and groups whose commitment is needed for change to occur and formulating a strategy for gaining their support.Change-Management StructuresBecause organizational transitions tend to be ambiguous and to need direction, special structures for managing the change process need to be created. These management structures should include people who have the power to mobilize resources to promote change, the respect of the existing leadership and change advocates, and the interpersonal and political skills to guide the change process.Step 5 SUSTAINING MOMENTUMOnce organization changes are under way, explicit attention must be directed to sustaining energy and commitment for implementing them. A strong tendency exists always among organization members to return to old behaviors and well-known processes unless they receive sustained support and reinforcement for carrying the changes through to completion.The following five activities can help to sustain momentum for carrying change through to completionProviding resources for change. Additional financial and human resources are required for implementing organization change, particularly if the organization continues day-to-day operations while trying to change itself. Extra sources are always helpful to provide a buffer as performance drops during the transition period.Building a support system for change agents. Organization change can be difficult and filled with tension, not only for participants but for change agents as well. A support system typically consists of a network of people with whom the change agent has close personal relationships people who can give emotional support, serve as sounding board for ideas and problems, and challenge untested assumptions.Developing new competencies and skills, reinforcing new behaviors, and staying the course. In organizations people generally do things that bring them rewards. Consequently, one of the most effective ways to sustain momentum for change is to reinforce the kinds of behaviors needed to implement the changes through for instance informal recognition, encouragement, and praise.Staying the course. If the organization changes again too quickly or abandons the changes before it is fully implemented, the desired results may never materialize. There are two primary reasons that managers do not keep a steady focus on change implementation. First, many managers fail to anticipate the decline in performance, productivity, or satisfaction as change is implemented. Organization members need time to practice, develop, and learn new behaviors they do not abandon old ways of doing things and adopt a new set of behaviors overnight.Second, many managers do not keep focused on a change because they want to implement the next big idea that co mes along. Successful organizational change requires persistent leadership that does not waver unnecessarily.ReferencesBooks and articlesAnsoff, I.H. (1990), Implanting Strategic Management Prentice Hall International, Ltd. LondonCynthia D. Scott, Dennis T. Jaffe. (2003), Managing change at work leading people through organizational transitions, edit 3Greiner, L.E. (1972), Evolution and revolution as organizations grow Harvard Business Review, pp. 37-46.Greiner, L E and Schein, V E. (1988), Power and Organization Development Mobilizing power to change, Reading, MA Addison WesleyHalim Barakat. 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