Running head: ORGANIZATIONAL CHANGE 1

Organizational Change

Name

Course

Institution
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ORGANIZATIONAL CHANGE

The business atmosphere is not as it was several years back. Today, it is becoming more

and more vigorous and very tentative and for businesses to continue to experiencing the success

they are used to experience and also expand to foreign regions, they should persistently adapt to

the changing conditions (Jabri, 2012). To get a grasp on change, there are various perspectives that

propel change. One is organizational culture and the other is organizational learning.

Question 1: Theoretical perspectives

Organizational culture

The culture is defined as the values and behaviors that make up the social and the

psychological environment of the organization. A culture defines the business and it the culture

that makes the organization members inclined to embrace change (Amagoh, 2008). The culture

outlines how willing the stakeholders are open to change and also it determines the setbacks likely

to inhibit performance. There are various dimensions that are in place to measure the culture:

Ability to influence, this outlines the magnitude to which the members of the organization

are predisposed to influence the direction the decision making process takes. Comfort with

ambiguity, represents the extent to which organizations stakeholders are comfy with uncertain

conditions and taking risks (Bridges, 2003). Achievement orientation, this is the extent as to how

the members of the organization are directed towards achieving the outlined goals. Individualism

or collectivism, this represents the loyalty that exists among the organizational members; that is

whether it is group oriented or individual oriented.

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Egalitarianism, it determines whether or not there exists equal opportunities to move

forward. Time and space orientation, this is merely how the organization is fixated on the values

either from the past, in the present or the future and also if the physical layout of the organization

is public, private or an assortment of both.

Organizational learning

Organizational learning on the other hand is the procedure that involves the establishment,

preservation and the relocation of knowledge in the organization. To measure organizational

learning is done by use of the learning curve which is a means to outline the relationship that results

to the production process (Sahadath, 2013). In relation to organizational change it merely the

experience an organization gains during its lifetime that offers it an avenue to sustain its

competitive advantage in a dynamic environment. It is predisposed to enhance efficiency, accuracy

and business profits.

Discussion

Organizational change can be defined as the process through which an organization goes

through transformation by altering its strategies and departments. However, by combining the two

perspectives, a redefined definition would be that organizational change is the process by which

the organization analyses both its internal and external environment to establish the best course of

action to take in ensuring they meet their goals and objectives and at the same time maintaining or

enhancing their competitive advantage in the industry.

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The organizational culture represents the internal environment and organizational learning

represents the external environment and by studying both of them the stakeholders will be in a

position to establish how their environments either inhibits or encourage achievement of their short

term and long term goals and at the same time ensuring the organizations perpetual life by making

it stand out from its competitors.

Question 2: Case study

It is impossible to think of education publishing and not think of Pearson Education.

Pearson education is a British owned education publishing company started in the year 1998 after

Pearson PLC purchased Simon & Schuster education division from Viacom and merged it with its

own (Pearson, 2016). In 2011 it was rebranded to Pearson and then split into two divisions; the

international and the North American division. Pearson International has its headquarters in

London and offices spread across Europe, Asia and South America. Pearson North America on the

other hand has its headquarters in New York city after it relocated from Upper Saddle River in

New Jersey.

Currently it is the largest education company offering a source of livelihood to more than

35000 employees spread over approximately 70 countries. It has a wide assortment of education

products and services that work together to ensure that people acquire a universal approach to

education (Pearson, 2016). This is by embracing research to pinpoint the sort of learning that works

best and then bringing organizations and people together to develop ideas and then measure the

products outcomes.
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Towards the end of 2012, the company undertook a very big change project dubbed the

Global Education Strategy. It was spearheaded by John Fallon after he took over from the then

CEO Marjorie Scardino (Pearson, 2016). As opposed to steering the company the way it operated

before he introduced a new strategy where he reorganized the company by grouping it into six

independent business units. Before, the company was profit motivated by in Fallons era he made

Pearson more inclined towards efficacy. This is by hiring people inclined towards efficacy and

establishing a global research network that will report how learners benefited from their products

and making the whole process transparent to third party audit by the year 2018.

Fallon has achieved this change by redefining the entire company focus to support the new

plan instead of supplementing the exitent strategy. Additionally, he used the top down approach

where he used the companys intranet to inform the employees about the change procedure and

what he expected to be done (Strauss, 2013). By embracing transparency and communication the

employees were consulted and they felt more involved hence facilitating the change process.

Although it is argued that previously the company was more oriented on making profits, the new

strategy also is in line with the previous strategy since an inclination on efficacy and transparency

will make it more credible among its competitors hence resulting in an increased profit margin.

Fallon embraced both organizational culture and learning to establish organizational

change required. When he was given the role to serve Pearson education in the capacity of a CEO

he did not add on his strategy to the existent one but instead he undertook a complete organization

overhaul to remove the barriers within the organization that would have hampered the change

process (Strauss, 2013). Additionally, he upheld organizational communication to make sure that

the employees were involved in the change process. Therefore, he authored the culture to align it

with the change he wanted to enact.

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Additionally, he had studied the market and he saw the need to view the learners as

stakeholders in the business. This redefined the operations of the company in terms of its

relationship with its consumers who form the most important part of its external environment

(Strauss, 2013). This depicts an aspect of organizational learning where Fallon was in charge of

establishing the external factors that affected their operations and hence came up with a way that

will deal with them hence standing out from its competitors hence translating to overall company

success. In a nutshell, Fallon was able to enact change as the incoming CEO since he studied the

culture and the external environment and came up with a strategic plan and he realigned the culture

to adapt to the dynamism of the industry.

Question 3: Strategic Management

This can be defined as an assemblage managerial decisions and actions that play a role in

outlining the long term productivity of an organization. SWOT analysis is among the tools that are

used for strategic management (Saylor, 2014). From the analysis, and organization can ascertain

the issues that will play a role in the companys objectives and goals and hence aid in planning.

SWOT is an acronym that stands for Strengths, Weaknesses, Opportunities and Threats. Below is

a SWOT analysis for Pearson Education.

Strengths Weaknesses

1. Strong brand name. 1. Highly focuses on English publications.

2. Strong e-presence. 2. Overdependence on the North American

3. Effective target marketing. market.

4. Subsidized publications in developing 3. Most publications are educational.

countries.
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Opportunities Threats

1. Strategic acquisitions and mergers. 1. Insufficient protection of intellectual

2. Publications other than the English property.

language. 2. Competition from nonprofit

3. Expansion to Asia Pacific countries. organizations.

3. Foreign currency rates fluctuations.

4. Adaptability of the digital distribution

channels.

5. Increased online resources.

6. Cannibalism from its eBook collection.

Analysis

Since inception Pearson PLC enjoyed control of a large market share in North America

and it expanded to the European market to increase its global footprint. This in turn made it a well-

recognized brand hence attracting many authors for publications. With the enhancement of

technology, it introduced the podcasting electronic platform for audio study guides (Patel, 2009).

It has also enacted a very effective market segmentation technique to aid in enhanced target of

consumers. Since its inception it has used mergers and acquisitions to expand and control a large

market share. This has worked well for them but the market is highly competitive and also the

threat of new entrants is very high especially with the enhanced technology and more specifically

the internet.
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This has led to development of search engines and E-publications such as Google, and J-

STOR that serve the same market Pearson is serving but with more convenience and at a relatively

cheaper cost. With the new threats that were not existent during early times it has to redefine how

it relates with its consumers to spark loyalty (Patel, 2009). Additionally, with new technology

invention the company had to adapt by having an e-presence for audio study guides and rolling

out its e-book platform, Think Tank. Therefore, with the emerging threats and existent

opportunities, John Fallon had to redefine the organization is structured and its relationships with

all stake holders, employees and learners included and also adapt to the new ways to satisfying

their consumer needs to enhance their service delivery and sustain their brand amidst its

competitors.

Benefits of SWOT analysis

Wide application the analysis is not tied to any business process but depending on what

is being analyzed, either a business unit or process. It can be used to identify the internal and

external factors that determine the objectives of the project in question.

Multi-level analysis a project is extensively assessed on four fronts to identify its chances

of success and failure. This is used to identify how workable it is and respond to the drawbacks

that may affect the projects success.

Enhanced decision making- the analysis collects both qualitative and quantitative

information from various sources. The amount of data collected from the diverse sources provides

a wide selection of information that can be used in decision making.

Simplicity carrying out a SWOT analysis does not require any technical skill or training

just knowledge of the business and the industry it operates in.

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Drawbacks of SWOT analysis

No valuing factors the analysis results to four distinct lists but it provides no means to

rank a factor against another in the same list. Therefore, the impact of a specific factor cannot be

accurately established.

Obscurity it comes up with a one dimensional model that groups a specific factor into

one of the group. Therefore, a certain factor is seen to have one influence to the problem being

analyzed while it can fall in both groups.

Individual analysis in order to exert an impact on a companys performance, decisions

should be made relying of relevant and comparable data. However, data collected on a SWOT

analysis is biased to the individual collecting the data and therefore the data may be irrelevant

quickly.

Due to the dynamism of the business industry and the day to day developments in the

technological sphere. New ways of satisfying human wants and needs are discovered and new

entrants join the industry every day to manipulate a market niche cited. Therefore, organizational

change is paramount because of the changes in the business industry and advancements made in

the industry when it comes to service and goods delivery. Additionally, it fortifies the business

position among its competitors and also it aligns the company to utilize new factors of production.

This introduces better economies of scale and hence enhancing the profit margin which works

towards ensuring the business perpetual life and overall productivity.

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Question 4: Enabling change in an organization.

Change is a very cumbersome milestone to arrive at during an organizations lifespan.

Kotter having identified how managers stumble when it comes to change introduced a change

model encapsulating eight steps to use. However, a common factor in all the steps is that the

organization will require an individual to aid the organization in transformation that ensures its

effectiveness and development (Kotter, 1996). This individual is known as a change agent and

according to Kotters model he or she is in charge of leading the organization through the steps,

this is by sparking change and guiding the organization through all important steps to ensure

change is achieved.

Characteristics of a change agent

According to Malcom Gladwell change is not a process that can be instigated by virtually

anyone. Change calls for people with a special set of social gifts. He outlines that change is reliant

on the agents skills but an agent cannot work in an environment that is not enabling, therefore an

organizational culture plays a key role in creating an enabling environment. That being said, there

are several characteristics that are existent in change agents.

Clear vision a change agent is not blinded by short term successes or short term goals but

he or she is more fixated on the long term success. In addition to this they are usually positioned

to effectively communicate this vision to the others members of staff.

Patient and persistent change takes a certain amount of time to be actualized.

Additionally, in enacting change a few obstacles will be experienced along the way. For this

reasons, the agent must be patient throughout the entire process and also align the organization at

every step to embrace change.

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Credibility although it is not necessary for agents to be leaders in the organization, they

are required to have all facts as to what they are vouching for. By showing immense understanding

towards the change they want they will be properly positioned to spark loyalty from the other

members of staff.

Relationship enhancer a change agent is usually approachable even if they are in a place

of authority in the organization. Usually, they are individuals who will go out of their way to

connect with the other individual hence establishing a strong relationship.

Role of a change agent

Understand organizations culture a change agent identifies how an organization

functions and the hierarchy to observer. By understanding the culture, they can align the project to

how the organization is structured or suggest changes to the culture that will aid in embracing

change.

Understand why change is needed by having a clear understanding of the organization,

they can identify avenues where change is necessary and the transformation it will bring to the

organization.

Overall effect of the change change has both positive and negative impacts. Therefore,

an agent should foresee all the impacts that the change will induce in an organization. This will

aid in mitigating the distractions to the normal running of processes in the business as allocations

will be made earlier.

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Champion the change in the entire organization the change agent is the one who is more

informed when it comes to the change to be enacted. Therefore, the agent should work in the

capacity to spearhead the change they have suggested and oversee that each step is given the

attention it deserves.

John Fallon as a change agent

In Pearson Education, John Fallon came as the change agent the company required. When

he was hired as the new CEO he noted a new way in which the organization will fortify their brand

dominance in the publishing sector. This was by focusing on efficacy of their publications to ensure

the user gets the best quality of reading material there is. To address this change he first had to

understand the organizational structure which he deemed it was not fit to pioneer the needed

change.

Therefore, he restructured the organization to accommodate the change. After all this, he

spearheaded the change process where he communicated what he needed from the other members

of staff and how he would like it to be carried out. To Fallon this change was crucial since it

outlined a way to rebrand Pearson to stay afloat amidst the developments in the publishing sector

and the new entrants who were perceived more convenient to a certain extent.
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Question 5: Approaches to change

There are two major approaches to organizational change namely the problem centric and

the dialogic approach. The problem centric approach focuses on the drawbacks the organization is

facing at the moment. During an organizations day to day operations, it faces setbacks that warrant

it to adapt to the setbacks. Following the drawbacks experienced, the business will change its

operations or processes in the best suited way to adapt to the scenario (Unknown, 2014). Basically,

it involves several individuals who deliberate on pertinent issues and then try to device change

using the top down approach. The decision is filtered to the lower level staff who should implement

the change and in the process be monitored to ascertain their effectiveness. This reactive approach

to change is what is referred to as problem centric as it is setback that forces the organization to

change how it approaches such scenarios.

The dialogic approach on the other hand aims at transforming an individuals mindset that

results to change in their behavior in response to the change of attitude. It will demonstrate that

the traditional way of carrying out tasks is no longer effective hence stimulating workers to look

for a solution. If the members of staff want the change they will embrace it once it is implemented.

The way the approach works can be broken down into three distinct processes. The first one is

breaking down the status quo. Here, it is not the leaders or a group of individuals who diagnose a

problem and implement change using the top down approach.

By dismantling the status quo, the other members of staff will be in a position to see that

traditional ways are not working and hence change is needed, this loops everyone in on the decision

making process (Bushe & Marshak, 2014). The following process would be the change of several

core narratives. This transforms the attitude of the workers to align them to embracing the change

because if the organizational attitude stays the same then change will be difficult to achieve. At
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this level, employees have been availed to a platform to understand and accept why the change is

warranted. Finally, is presenting the change to the stakeholders together with the new way of

thinking and behaving.

As outlined earlier, organizational change is achieved by either aligning the change

together with the culture or aligning the culture with the change and also combining the adaptation

of the organization to respond to its environment (Bushe & Marshak, 2014). That being said,

organizational learning is more inclined towards the problem centered approach since it is merely

reacting to its environment and the leader will enact change depending on the facts collected from

its environment. Restructuring the culture on the other hand is more of a dialogic approach because

this way the employees are involved and they will understand the role the change will play when

it is implemented.

Comparatively, the dialogic approach is better because it does not impose on the employees

who will reluctantly accept the change simply because it has been rolled out by the top

management. However, it is likely to waste a lot of time as employees will have to be looped into

the decision making process and also because they have to understand why the change is necessary

and hence change behavior and attitude. This is also very dependent on the workforce in question

depending on how comfortable they are at risk taking since the change is a risk and also how open

minded they are (Bushe & Marshak, 2014). The problem centric approach however is very efficient

and fast because it has a smaller decision making chain hence making the process much quicker.

The only fallback is that the employees will see the change as an order and will not really

understand it and for that reason the rate or openness to the change will be hampered.
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At Pearson Education, the dialogic approach will be more fruitful because of the product

being delivered. Educational material should be of high quality and this should be specified in the

organizational culture. To ensure high quality the organization should be restructured to provide

an avenue for that to be established, that is by having a research team to collect all the necessary

data, editors to confirm authenticity and now those in charge of refining it into a product for the

learners for the different medias available (Jabri, 2012). By using the dialogic approach, the

employees will be in a position to understand what it is they face if the change is not enacted.

Having this understanding is key because it will rebrand the organizational culture where efficacy

will be imprinted in their behavior and general attitude therefore making the process of change

smoother. This is because, there will be minimal supervision but the transformation of the mindset

efficiency and overall productivity will be guaranteed.