Contents

1. INTRODUCTION .......................................................................................................................... 2 1.1 Background ................................................................................................................................... 2 1.2 Methodology ................................................................................................................................. 3 1.3 Assumptions and limitations ......................................................................................................... 3 1.4 Plan ............................................................................................................................................... 3 2. What is change management? ......................................................................................................... 3 2.1 What is change .............................................................................................................................. 4 3. Classify the different types of change in organisational context. ................................................... 5 3.1 Developmental change .................................................................................................................. 5 3.2 Transitional Change ...................................................................................................................... 5 3.3 Transformational Change .............................................................................................................. 6 4. Discuss two change management processes. .................................................................................. 6 4.1 Lewins change model .................................................................................................................. 6 4.2 Action research model .................................................................................................................. 7 5. How can change management contribute to organisational and management success? ................. 8 5.1 Cost Savings.................................................................................................................................. 9 5.2 Organisational Structure ............................................................................................................... 9 5.3 Corporate relationships ................................................................................................................. 9 6. 7. 8. The value of transformational leadership for successful change management ............................... 9 Conclusion .................................................................................................................................... 10 Reference ...................................................................................................................................... 11

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Prerequisites and factors to make the management process successful in a continuous changing environment - Change management

1. INTRODUCTION The world as we know it has undergone numerous changes and as a result there has been need to find and establish ways to counteract these changes brought about by aspects such as globalisation. Successful adaption is crucial within an organisation as it is in the natural world. The more effectively one deals with change, the more likely they are to thrive. Adaptation might involve establishing a structured methodology for responding to changes in the business environment (such as a fluctuation in the economy, or a threat from a competitor) or establishing coping mechanisms for responding to changes in the workplace (such as new policies, or technologies).It can be argued that the successful management of change is crucial to any setting in order to survive and succeed in the present highly competitive and continuously evolving business environment (Rei, 2012). This report aims to elaborate on the factors that have made the management process successful in a continuous environment. 1.1 Background British Airways is an airline industry that can be traced back to its origins back to the birth of civil aviation, the pioneering days following World War I. BA is an airline that has been operating for the last 90 years that have passed since the world's first schedule air service on 25 August 1919(British Airways, 2012).British Airways was formed in 1972 when BOAC and BEA's management came under the new governmental organization, the British Airways Board. The airlines merged operations and rebranded under British Airways in 1974.Since then air travel has changed beyond all recognition. Each decade saw new developments and challenges, which shaped the path for the future of the British Airways (British Airways, 2012). During the late 1990s, British Airlines moved to make it-self competitive by introducing the "Oneworld" alliance. The airline remained profitable during the new millennium, branding itself as a major full-service carrier. On 12 November 2009, British Airways confirmed the merge, a preliminary agreement with Liberia (British Airways, 2012).As an organization British Airways has been developing it has had to adapt to the drastic changes that have been occurring within its environment. This adaptation has allowed the organization to operate well within its market. British Airways is currently the largest
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airline in the UK based on the fleet size, international flights and international destinations and second largest measured by passengers carried, behind Easy-Jet( British Airways, 2012). 1.2 Methodology For the purpose of this report online annual reports and other relevant and reliable online company documents are used. Journals and textbooks have also been used to compile this report. 1.3 Assumptions and limitations As a researcher one has had to rely on the information accessed online and this is what has been used for the purpose of this report with no confirmation of the reliability of the information. There is need to be content with the annual reports assuming that the information disclosed is true and reliable. 1.4 Plan This report will look at what change management is and how British Airways has adopted this within its organization for survival. The different types of change will also be discussed considering the different levels that can be affected with the adoption of change within the organisation. Identification of the type change that the organisation has adopted for its survival is also discussed looking at the changes that have been adopted by British Airways were applicable over the 90 years it has been running. The processes of change will also be considered taking into consideration the advantages that come with following these processes well and also considering the impact that comes with not implementing the processes well. The report is rounded up with a discussion on the importance of change management and how it contributes to the success of an organisation.

2. What is change management? Change management is a systematic approach to dealing with change, both from the perspective of an organization, teams and on the individual level (Paton, Paton & McCalman, 2008). This is an area that business and professionals have found interest in. Change management incorporates the organizational tools that can be utilized to help individuals make successful personal transitions resulting in the adoption and realization of change (Paton, Paton & McCalman, 2008). Change management has at least three different aspects which include adapting to change, controlling change and effecting change. For an
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organization like British Airways which has been operating for years they have management to execute change management well. As an organisation they have managed to define and implement procedures or technologies to deal with changes in the business environment and to profit from changing opportunities. They have even managed to perfect their operations and hence being one of the best airlines offering exquisite services (British Airways, 2012). One such change management system that was implemented by British Airways was their strategy of using IT to drive business change. This enabled the airline to implement new business processes to improve operational efficiency and an enhanced service to customer (Anonymous, 2007). 2.1 What is change Change has been defined as a new state of things different from the old state of things. According to (Anderson and Anderson, 2010) now in the twenty first century, change and how to lead it successfully has become a critical change on the minds of organisational leaders. (Anderson and Anderson, 2010) states that change is happening everywhere, its speed and complexity increasing and the future success of our organisations depends on how successful leaders are at leading that change. This change can be planned or unplanned and is said to take place at three levels which are the individual, the group or team and the organisation (Waddell, Cummings & Worley, 2011). In todays marketplace it is important t o have a competent change leader with most coveted executive skills. There is need for a leader who takes time to understand the changes that are encountered at different levels within the environment they operate in. On the organisational level change affects all the sectors of an enterprise. The change spectrum for organisational change ranges from the changes in strategies, human resources, technologies and systems, and cultures. In addition to these varieties managed, change social entities and individuals are subject to emergent change such as business cycles, global warming, natural disasters, seasons and lifestyles (Rei, 2012). According to (Anderson and Anderson, 2010) external disturbances were seen as the main precipitating factor of these strategic changes back in the day however now he believes that these are not the sole causes of, or explanations of change. The other targets at which change can take place include the individual and the group levels. On the individual level change happens to the individuals expatriate assignments, promotion, burn-out, and mid life crisis. On the group level changes

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take place as a global integration, automation, demographic changes in the age structure, change in values and attitudes.

3. Classify the different types of change in organisational context.

There are different types of change in organisational contexts however before implementing a strategy there is need for the change team to understand the nature of change that they wish to effect and the context in which they are working. There are three types of change that organisations can adopt and use for change within their respective organisations which are developmental, transitional and transformational. 3.1 Developmental change Developmental change is when a new state new state is prescribed as an enhancement of the old state (Waddell, Cummings & Worley, 2011). What this means is that in the case that British Airways is to decide to improve their performance or standards this would be considered as a developmental change. British Airways has had to continuously process developmental change as this enables them to stay competitive in this hyper-turbulent environment. Such developmental changes are said to succeed if the employees are clearly educated on the new techniques. For example in British Airways adoption of IT, they hoped this would improve customer service. However the success of this system relied solely on the employees and the knowledge they are taught about this system. 3.2 Transitional Change Transitional change is more intrusive than developmental change as it replaces existing processes or procedures with something that is completely new to the company. The period when the old process is being dismantled and the new process is being implemented is called the transitional phase. A corporate reorganization, merger, acquisition, creating new products or services, and implementing new technology are examples of transitional change. British Airways adopted transitional change twice during since it was formed in 1972. The first transitional change was when British Overseas Airways Corporation (BOAC) and British European Airways (BEA) management came under the new governmental organization, the British Airways Board The airlines merged operations and rebranded under British Airways in 1974(British Airways, 2012). British Airways also underwent another merger with Iberia in 2012. Both mergers came with changes in air travel and higher competitive advantage for

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BA (British Airways, 2012). Transitional change may not require a significant shift in culture or behaviour but it is more challenging to implement than developmental change (Rei, 2012). The draw back on this change method is that the future of the organization is unknown when the transformation begins which can add a level of discomfort to employees. However by engaging the employees and helping them deal with personal adjustments that they will be forced to make reduces their resistance to change. 3.3 Transformational Change Transformational change occurs after the transition period. Transformational change may involve both developmental and transitional change. It is common for transitional and transformation change to occur in a cycle. Transformational change requires a shift in assumptions made by the organisation and its members (Oreg, 2006:75). When companies are faced with the emergence of radically different technologies or other major shifts in how they do business, developmental or transitional change may not offer the company the solution they need to stay competitive. Instead of methodically implementing new processes, the company may be forced to drastically transform themselves (Anderson and Anderson, 2010).British Airways as we know it is a high class airline however when airlines such as the Northwest Airlines started operating in the same routes as British Airways they were forced to transform part of their operations to off non-frill airlines in order to maintain their market share and their customer(British Airways, 2012).

4. Discuss two change management processes. The change management process is the sequence of steps or procedures that a change management team follow to apply change. These processes are followed by the change management team to reduce and manage any resistance to change when implementing process, technology or organisational change. According to (Latta, 2009: 20) all process models bear homage to Lewins (1947) classic theory stage model of change. 4.1 Lewins change model The Lewins change model is one of the early fundamental models of planed change. Lewins change model regards change as moment in time when two forces work against each other one striving to maintain the status quo and the other pushing for change. When these forces are both stable Lewin defines this state as quasi-stationary equilibrium. To change the state at any one state requires change in any of the forces. However Lewin also suggested that
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modifying those forces that maintain the status quo produces less tension and resistance than increasing forces for change and consequently is a more effective strategy for change (Waddell, Cummings & Worley, 2011: 22). Lewin change process denotes the essential progressions through phases of unfreeze, change and refreeze. The unfreezing stage is the stage where by orgaisations recognises the need for change. At this stage there is reduction of the forces that maintain the organisations behaviour at the present moment. Many organisations also try to combat any resistance to change that may want to arise. The change stage is a stage in the change model where transformation occurs within the organisation. It involves the development of new behaviours, values and attitudes through changes in organisational structures and processes (Waddell, Cummings & Worley, 2011: 22). The refreezing stage on the other hand is a step that stabilises the organisation at a new state of equilibrium. The change team can assess the results of the action and make any needed modifications that can reinforce the new state organisational state. British airways tried to adopt the Lewins model between the years of 1996 2000. It was called the British airways: Flying into storm. This is a case of failed management in British Airways where from posting its highest ever profit margin it slipped to its lowest ever share price. They failed to follow the sequence of the Lewins models and this resulted in a flop of the whole process. 4.2 Action research model The action research method focuses on a planned change as a recurring course of action whereby the initial research about the organisation provides information to guide subsequent actions. This iterative cycle unlike the Lewins model involves considerable collaboration between the organisational members and an organisational development practitioner. This is a process that places heavy emphasis on data gathering and diagnosis prior to action planning and implementation, as well as careful evaluation of the results after action has been taken (Waddell, Cummings & Worley, 2011: 23). There are 8 steps that are considered when carries out the action research process. a. Problem identification this is the problem identification stage whereby a key executive in the organisation senses a need within the organisation and they then seek an OD practitioner to step in and assist them. b. Consultation with the expert this is a stage whereby the organisation which in this case is the client gets together with the OD practitioner and they get to discuss and

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identify the problem. Basically it a change for all parties involved to get onto the same page. c. Data gathering an preliminary diagnosis this is a stage whereby the OD practitioner gathers appropriate information and this they use to determine the source of the problem within the organisation. d. Feedback to key client or group at this stage the OD practitioners presents the data they have collected to the client for evaluation. e. Joint diagnosis - this is a stage whereby the client and the OD practitioner discuss the findings of the practitioner and together they reach an agreement depending on whether the client agree or feels that the finding of the practitioners finding are indeed the source of their problem and they can find a way to solve the problem. f. Joint action planning this is a stage whereby the client and the practitioner find a way forward together. Compared to Lewins method this is the change or moving method. The organisation decides on the best ways to reach the quasi- stationery equilibrium. g. Action this stage involves the change from one organisational state to another. This involves the new state or rather the product of what they have both agreed upon. Actions are not usually implemented immediately; a transition period is required to ensure that the desired outcome is achieved. h. Data gathering after action- after the action has been taken there is need to collect data and asses the progress of their decision, giving the results back to the organisation (client).

5. How can change management contribute to organisational and management success? Change management can be a challenge in any organisation as this requires getting the organisation to accept the change, understanding the elements of the change and properly executing the change. However according to (Trkman, 2010:134) once change management is understood there is no doubt that the organisation is bound to yield positive results. (Paton, Paton & McCalman, 2008) insinuates that once change management is adopted well it can contribute the success of any organisation. Three aspects comprise of his research which are cost savings, organisational structure and corporate relationships.

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5.1 Cost Savings When implementing change organisations are said to run the risk of disrupting productivity and costing the company money. However if change management is properly managed incidents like these are reduced. When employees are managed well through the change process this instils confidence and employee performance increases when staff feel supported and understand the change process. By breeding confidence in the organization's ability to effect change, you can control the costs of change significantly and the time needed to implement change. 5.2 Organisational Structure Introducing change within an organisation allows leaders to test the strength of their organisational structure and allows the organisation to test the overall impact of the change. Organisational effectiveness and efficiency is maintained or even improved due to the assessment of the strength of the organisational structure. Aspects such as the response time to customers can be improved. 5.3 Corporate relationships Changes not only affect the organisation implementing the changes, organisations within the same business are affected by these changes. Change needs to be done as efficiently and possible to help preserve important relationships. If change is managed well and relationships are kept intact through the change this helps in maintaining the revenue stream and strengthens the confidence of the customers.

6. The value of transformational leadership for successful change management Transformational leadership can be seen when leaders and followers make each other to advance to a higher level of moral and motivation. Through the strength of their vision and personality, transformational leaders are able to inspire followers to change expectations, perceptions and motivations to work towards common goals. (Tichy & Devanna, 2006)Transformation leaders are leaders that have the ability to get people to want to change, to improve, and to be led. It involves assessing associates' motives, satisfying their needs, and valuing them. Therefore, a transformational leader could make the company more successful by valuing its associates (Anderson and Anderson, 2010:). Transformational leaders take time to understand the changes that are encountered at different levels within the environment they operate in.
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Transformational leaders are important for the successful change management because they stimulate interest among colleges and followers to view their work from a new perspective. Due to their abilities they can generate awareness of the mission and vision of the organisation. This inspirational motivation encourages team spirit to reach goals of increased revenue and market growth of the organisation (Anderson and Anderson, 2010). Transformational leaders have a way of stimulating their colleagues intellectual capabilities. They encourage innovation and creativity by challenging the normal beliefs and thereby allowing critical thinking and problem solving within the organisation making the organisation better. Transformational leaders also have an idealized influence in the idea that the serve as role models for followers. Followers trust and respect the leader; they emulate this individual and internalize his or her ideals. In a way these leader act as coaches and advisors to their associate and goals are met and this benefits both the individual and the organisation (Bass & Avolio, 2004).

7. Conclusion Change management has become a very important aspect to many organizations. This aspect determines the success of an organisation once change is introduced within an organisation or the environment in which it operates. There is need however to have leaders who can drive the organisation to the desired goal and in many case transformational leaders are ideal as they take time to understand the situation and their associates. These leaders can find ways of communicating in the event of change to all the levels within the organisation that can be affected by this change which are the individual, group and organisation. These people have special abilities which if adopted by the organisation can result in positive results for the organisation. In the event that there is a problem within the organization there is need for leaders combat the problem in its early stages and adopt one of the change processes. The Lewins model is a model that has been there for years and can be adopted by the organisation at any time. However the action research model allows for an external person to come and asses the problem and helps the organisation deal with a problem at hand. This has proved to be more effective as this eradicates bias within the organisation.

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8. Reference Anderson,D. & Anderson,L.A. (2010). Beyond change management: Advanced strategies for today's transformational leadersPfeiffer. Anonymous. (2007) BA goes live with the change management system. from:

ComputerWeekly.com.

Accessed

http://www.computerweekly.com/news/2240083260/BA-goes-live-with-changemanagement-system on 15 August 2012. Bass,B.M. & Avolio,B.J. (2004). Improving organizational effectiveness through transformational leadership sage publications, Inc. British Airways. (2012). British Airways PLC History. Accessed from on

http://www.fundinguniverse.com/company-histories/british-airways-plc-history/ 15August 2012. British Airways. (2012). History and heritage. Accessed

from

http://www.britishairways.com/travel/history-and-heritage/public/en_gb on 14 August 2012. Gail ,F. L, (2009). A Process Model of Organizational Change in Cultural Context (OC3 Model):The Impact of Organizational Culture on Leading Change. Journal of Leadership & Organizational Studies 16(1),19-37.

Oreg. S. (2006). Personality, context, and resistance to organisational change. European Jouranal of work and organisational psychology. 15(1), 73-101.

Paton,R.A., Paton,R. & McCalman,J. (2008). Change management: A guide to effective implementationSage Publications Ltd. Rei,M. (2012). Change ManagementBoDBooks on Demand. Tichy, N. & Devanna, M. (2006). Transformational leadership. NewYork: John willy and sons, inc, .

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Trkman, P. (2010). The critical success factors of business process management. International journal of information management, 30(2):125-134. Waddell, D., Cummings, T. and Worley, C. (2011). Organisation Change : Development and Transformation, Asia Pacific (4th ed.). Cengage Learning: Sth. Melbourne, Australia

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