The impact of organizational change on stakeholders


Change is inevitable in any organization and it can arise voluntarily or involuntarily. An organization can be forced to undertake change due to the external environment. Additionally, an organization can decide to undertake change to improve resource allocation, re-engineer business processes, tighten budgets or re-structure in order to reduce costs (Campbell, 2014). For organizational change to occur and become effective, it is important for the change agent to challenge a status quo by coming up with a different perspective of the business environment. This paper, therefore, discusses the principles of ethical organizational change. The principles regarding corporate social responsibility when undertaking corporate social responsibility is discussed in this report. The practical application of corporate social responsibility principles to organizational change. The key aspects that are regarded as key organizational change agents are discussed in this paper.

Ethics in organizational change

Ethics in organizational change can be defined as a model of change which emphasizes on organizations undertaking change without causing harm and while adhering to ethical principles. The difference between the traditional change management models and the ethical models of change is that the other models do not consider how ethical the change interventions are. Change is a very complex process which may bring instability to an organization in case it is not managed accordingly. Aaa defines change as occurring when the organizational system is disturbed by an internal or external element. Ethical change management is the process in which an organization continuously adapts in order to align with the rapidly changing environment. The ethics model is built on the principles of doing what is right. The following are some of the important principles of ethical change in an organization.
Mindset and persistent patterns of human value is a vital principle in ethical change management. Socially responsible organizations are more ethical and have strong moral principles. It is therefore critical for organizations to focus on the respect for human dignity and doing good all the time.

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Influencing the behavior of stakeholders

Another important principle is influencing the behavior of stakeholders to be in line with a set of virtues. Virtues are acquired in the same way as culture and they grow and develop within a person with time. The virtues which are critical in change management include; courage, self-control, generosity, magnificence, magnanimity and as well as justice.
Good communication and building of trust. It is important that the person leading change in an organization adopts effective methods of communication which will ensure effective dissemination of information, it is therefore crucial that employees ay different levels are involved in the change process. Communicating with different stakeholders inspires confidence in them and they feel that they are valued within the organization.

Impact of change

Another principle of ethical change management is that managers must consider the short and long-term impact of the change on all stakeholders. This will ensure that some stakeholders are not affected negatively by the change and hence ensuring harmony.

According to Aguinis & Glavis(2012), corporate social responsibility is defined as the context that is specific to the actions and policies of an organization which considers the stakeholders’ expectations and the impact on the economic, social and environmental performance of the organization. Maon & Swaen (2009) describe Corporate social responsibility as a stakeholder-oriented concept which extends beyond the boundaries of the organization and it is powered by the ethical understanding of the riles and responsibilities of the organization (Tompa, Culyer & Dolinschi, 2018). The following are the CSR principles that are important in during organizational change.
Corporate discipline-corporate discipline is the ability of stakeholders of the organization to stick to the set guidelines, rules as well the organizational culture. Corporate discipline ensures that the team within an organization work with a common mission while strictly following the established rules and guidelines.
Transparency is another principle that is critical during organizational change. Members of the organization should be open in all their dealings and activities when undertaking organizational change. Employees and management should also be open to scrutiny when carrying out corporate social responsibility.
Independence. The team charged with the responsibility of achieving change within the organization should act independently and should not be influenced by outside forces. All decisions should be made without undue external influence.
Accountability-the organization should ensure that every stakeholder is responsible for their own action or inaction. This ensures that people perform to their level best and they are answerable for their deeds.
Responsibility-all stakeholders need to have a duty and a role to fulfill within the organization. Everyone should, therefore, ensure that they fulfill their role during the organizational change process including their role in corporate social responsibility(Koirala, 2015).
The fairness-an organization should promote the habit of treatment of people in an impartial manner. There should be no favoritism or discrimination towards any person within or outside the organization.
Social responsibility- Individuals and teams within an organization should be responsible for fulfilling their civic duty to society. An organization undertaking change should engage in activities that promote the welfare of the society in which it is operating.

Burnes empowerment model is critical in the change process of any organization. The Barnes models focus on motivating and empowering individuals within an organization to push in order to achieve change. Burnes field theory argues that there are a variety of forces which act on individual and they can support change or hinder change(Little, 2014). The model can be applied at the contracting stage of the change process by carrying out research to identify both internal and external factors which could impact the change process. The dispute resolution between the client and the contractor should be established before signing the contract. The empowerment model also encourages all those involved in the change process to make decisions without being manipulated or coerced. At the contracting phase, an organization should only be supported by neutral facilitators to understand behavior and the motivation of employees(Jabri, 2017).
Diagnosis stage involves collecting and analyzing information with the aim of identifying the cause of a particular problem that needs to be solved. The diagnosis process seeks to answer questions such as;
What are the specific issues that need to be solved?

What is the underlying cause of the problem and what needs to be changed in order to achieve the general objective?
The Burnes approach can be used at the diagnostics stage of the change process. The unfreezing stage is where an organization should involve identifying possible obstacles the intended change may face. During the diagnostics stage, after identifying the issues to be solved, an organization goes ahead and identifies what challenges may be faced when resolving the problem (Mattingly, 2018). The theory can be applied at the diagnostics stage since when identifying the potential solutions to the identified problem since the model focuses on being objective and avoiding manipulation when diagnosing the problem.

Von Tonder(2006) designed five principles of corporate social responsibility which are relevant in managing organizational change. These principles can be applied in the entry and contracting stage as follows;
During the entry phase, OD professionals should ensure that they practice corporate discipline. The professional should collect adequate information about the client organization and ensure that the consulting work offered matches their skills and philosophical approach (Burke, Clarke & Cooper, 2012). If this is not the case, the practitioner should decline the work.
During this stage, it is important that the practitioner is transparent to the client. The OD practitioner should reveal all the necessary and sufficient information to the client whether or not they could influence the client’s decision negatively.
When entering into a contract with the client, the practitioner should understand that they are accountable to the client. The practioner answers to the client and they have to fulfill the contract fully and satisfy the needs of the customer.
OD practitioners need to be fair during the entry and contracting process. The terms offered to the client should not be biased and hence should balance the interests of the organization and personal interests.

Van Tonder principles can also be applied at the diagnostics stage. At the diagnostics stage, an organization should consider the social impact of the identified problem and hence find a solution to minimize the impact of the problem to the society (Skyberg, 2011).
The principle of independence is also relevant in the diagnosis stage because, when making an assessment of the root cause of the problem, it is critical to ensure that the process is undertaken without undue influence or coercion.

Organizational development is defined as the use of planned approaches of behavioral science in the work environment to improve the functioning of the organization and achieve personal development(Borovnik, 2011). Change agent is players who are used in triggering and influencing change in an organization. According to Warrick(2009), there are two types of change agents. They include internal change agents and external change agents. Internal change agents are change agents who are already within the organization. They include; leader, line manager, HR manager or member of the management team. A leader is a person within a small team who is tasked with the repsonsibility of leading the team in accomplishing specific tasks (Mattiske, 2011). Leaders are very important to change agents in an organization because they work with small teams and hence they can easily drive a message of change in the team and hence greatly contribute towards the entire organization embracing the change. The line manager also has a great influence on the people working under him and hence has a huge influence on them. The external change agents are players in the change process who are not part of the organization. External change agents are mainly consultants.
The following are the roles of change agents according to Kanter, stein, and Jick(1995):
Change strategist-a change agent is expected to come up with methods and tactics of undertaking change. They are expected to design a plan a timeframe within which each activity should take place (Ribeiro, 2014).
Change implementor- the change agent plays a very important role in implementing the strategy that they have designed. A change agent is expected to influence team members and other people that they lead in practicing the changes so that they can become routine over time.
The characteristics of a change agent include;
Ability to sense needs and opportunities
Ability to stimulate breakthrough ideas
Setting them and communicating inspiring visions to the team
Building coalitions and enlisting backers and supporters
Nurturing the talent in the team
Persistence and perseverance
Celebrating achievements and recognizing individuals and teams

During this course, the aspect of the course which has influenced me most is the change agents skills. Kanter(2005) describes the basic skills and characteristics that should be possessed by a change agent. One of the basic characteristics is that the change agent must be a leader in any capacity. A change agent should possess the ability to sense gaps, needs, and opportunities and take the necessary action. According to Kanter(2005), a change should posses Kaleidoscope thinking and posses the ability to communicate inspiring visions and ideas. I was also able to learn that as a change agent, I need the charm and the ability to create coalitions and attract support. A change agent should also motivate the team by recognizing and rewarding exemplary performance.

Borovnik, M. (2011). Occupational health and safety of merchant seafarers from Kiribati and Tuvalu. Asia Pacific Viewpoint, 52(3), 333-346. doi: 10.1111/j.1467-8373.2011.01459.x
Burke, R. J., Clarke, S., & Cooper, C. L. (2012). Occupational Health and Safety. Gower Publishing, Ltd.
Campbell, H. (2014). Managing Organizational Change: A Practical Toolkit for Leaders. London: Kogan Page.
Jabri, M. (2017). Managing Organizational Change: Process, Social Construction and Dialogue.
Koirala, J. (2015). Importance of Managing Employee’s Attitudes for Organizational Change and Development. SSRN Electronic Journal. doi: 10.2139/ssrn.2601710
Little, J. (2014). Lean change management: Innovative practices for managing organizational change.
Mattiske, C. (2011). Managing organizational change: Tools to help your team through change.
Mattingly, L. C. (2018). Managing Organizational Change: The Measurable Benefits of Applied iOCM. New York: Business Expert Press.
Ribeiro, M. G. (2014). Frontiers in Occupational Health and Safety. Sharjah: Bentham Science Publishers.
Skyberg, K. (2011). Congratulations on the new occupational health journal. International Journal Of Occupational Safety And Health, 1(1). doi: 10.3126/ijosh.v1i1.5225
Tompa, E., Culyer, A. J., & Dolinschi, R. (2018). Economic evaluation of interventions for occupational health and safety: Developing good practice. Oxford: Oxford University Press.

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