“A dynamic competitive environment prompts organizational leaders to alter or transform their strategies. The process of Strategic renewal place new expectations on employees at all levels” (Spector, 2010, ch2p. 1). In order to be successful in business, the ability to adapt to change is a great asset. If an organization does not adapt to the changes it lead to crisis. Similar crisis and downturn were faced by Concord Bookshop. The store is a 64-year-old independent store and regarded as one of the best in New England.
It was a successful business both financially and reputation vise. It was the unity and excellent coordination between the various members of the bookstore that earned Concord a distinct position from its counterparts and provided it leverage over others. The bookstore that was once used a store house of knowledge was plunged in a fierce clash of interests between the management and the employees of the bookstore (Mehegan, 2003). The precipitating factor that leads to volatile twist between the group of directors of the bookstore and employees was the hiring of new General Manager.
No one was laid off nor was the salary of any employee cut. Yet many employees expressed their displeasure that organization is carrying out this decision in such economic crisis. Majority of the writers and customers of concord believed that measures taken by the management are not according to timely requirements. These included historian like David Herbert Donald and authors like Alice Hoffman. Phases in the organizational changes process The three phases of organizational change are: Turnaround, tools and techniques, and transformational behavioral change 1.
Turnaround: It aims at financial improvement. All the large and small companies need to keep a sharp focus on matters such as profits, earning and return of investment. Failure to do so results into loss of investor confidence and increased difficulty in raising needed capital. It even erodes employees’ sense of efficacy and worth, therefore undermining motivation. 2. Tools and techniques: It deals with the improvement of internal efficiencies. 3. Transformation: It means to transformation of employees behavior and ultimately enhancing human capabilities.
Phases Organizational changes that were not implemented at the Concord Bookshop that leads to change failure: 1. The management did not implement transformation phase of organizational change. They decided to hire a new general manager without seeking any dialogue from the employees who were to be affected by the changes. These decisions made many employees feel side-lined and ignored hence the resulting objections. Their hearts were broken. Many of the people attributed the success of the bookshop to the employees of the company and ignoring them would not have done any justice to them. (David, 2003).
This crisis could have been avoided if the employees were provided proper opportunity to voice their woes and recommendations before the decision was finalized. 2. Management even did not follow the phase of turnaround. in the time of economic crisis when all the businesses were recording bottoming profits, concord should have acknowledged a strategy through which a financial model could have been experimented. With the labour in hand and no retrenchment taking place in an organization, it was easier to start a new model of generating income rather than challenging the existence of prevalent set up.
In the time of recession creditable organizations have the responsibility of satisfying their employees so that their sustainability in such circumstances is ensured. Conclusion: Change is an element of business that is constant. In order to be successful in business, the ability to adapt to a change is often a great asset. it is even important to understand that a change is a slow process and cannot happen within few seconds. Change if brought abruptly may spark an unprecedented response among the employees as it happened in case of concord bookshop’s case.