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The need for change through performance management.

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CHAPTER ONE

INTRODUCTION

1.1    BACKGROUND OF THE STUDY

Change is a re-occurring demand in our daily existence and takes place from time to time as innovations and inventions are introduced to meet up with current trends.

According to Stewart (1996) the future is uncertain and any particular or specific change will generate other changes. It is well known and widely accepted that organizations and business enterprises like banks, insurance companies, among others are in existence to produce, make profits and develop.

A change is any deviation from a normal situation and its management requires specific skills. There is nothing as certain as change.

Cardinal Newman once said “to live is to change, to live a long life is to change many times”. We experience several changes in or course of development from childhood to adulthood. Such changes are accepted as challenges and opportunities.

According to Megginson et al (1989:55) change is the third term of the famous adage that nothing is certain but death and taxes.

Everyday people experience significant change in their lives and careers. These changes may involve accepting a promotion at work, transferring to new office or even starting a new family. The way people react to a change differs. One will likely welcome changes which provides one with options and resist changes that give you no choice.

Change and change management are concepts that have come to assume greater importance in the discussions of the executive of most companies. This is partly born out of the fact that the only thing certain in life is change. Mokikan (1996:96). In the view of this it is important that individuals, groups and corporate bodies must consciously plan for managing change if the rewards from it are to be maximized. Since change is something we have to live with, the better we are able to manage its introduction and consequences the better for all.

If an organisation refused change such organisation will be changed, many organisation have collapsed because they refused to change or manage change when it occurred.

Forces of change are also known as change drivers or change initiators. They can either be external or internal. The external drivers are those forces that are outside the control of management has little control over them; they have a greater effect on organizational change. No organization can operate in vacuum. An organization must interact with its external environment if it’s to survive. The organization’s physical, financial and human resources are obtained from outside and the clients and customers for the organization’s products and services are also there.

Internal change forces are pressures for change, which come from within the organization for which are reasonable measure of control.

These may include the appointment of new chief executive officer, new organization objectives, managerial policies, technologies, employees’ attitudes, operation start ups, business relocation, mergers and acquisitions.

Both external and internal forces for change are not found in isolation. They are interrelated more often than not; external change drivers create internal change drivers, which lead to organisation change. If change is important, the more important is its management, when change is properly managed, the result can be deadly because of the possibilities of resistance among people. To successful manage change one needs to understand basic concepts and strategies to build commitment and acceptance to change in all levels of the organization.

Roger plant in his work titled “managing change and making it stick” observed that there is a wide range of typical causes of resistance. These are rarely simple causes and effect situations, and resistance is usually a complex mix of historic, factual and emotional issues, which are not always easy to disentangle. He listed the following as some of those most frequent sources of resistance to change and unwillingness to engage in new behaviour.

  1. Fear of the unknown
  2. Lack of information
  3. Misinformation
  4. Historical factors
  5. Threat to core skills and competence
  6. Threat to power base
  7. No perceived benefits
  8. Low trust organizational climate
  9. Poor relationship
  10. Fear of failure
  11. Fear of looking stupid
  12. Reluctance to experiment
  13. Custom bound
  14. Reluctance to let go
  15. Strong peer group norms.

 

Managing change is a persistent challenge which must be met in order to promote progressive organizational performance. It is a personal management skill which involves the whole range of management task of planning, operating, controlling, management development, communicating, bargaining etc. change is a process and not a decision to act.

 

And since this is so, one of the key factors for successful management of change is preempting the problem one may have to monitor the market environment and that is doing environmental scanning. Competition can come from the areas you least expect. As one scans the environment there is need to analyze the consequences.

1.2    STATEMENT OF THE PROBLEM

Coping with shift in business condition is one of the most different tasks facing management many excellent companies have gone wider, not because they ignored their customers, or the commandment of so called excellent management, but because once conditions changes the formula for success must inevitably change. Today’s organization operates in an environment, which is continually changing. According to Kubr (1990) the ability to adapt to changes in the environment has become a fundamental condition of small in business and in a growing number of cases, a condition of more survival.

Many executives at all levels of organization fail to understand the process of change this leading to poor management of change. No organization can stay the same forever, changes occur inside and outside, which force the organization to alter the ways its affairs are managed.

Change for an organization means change for the people in it. Some will welcome the change, some feel bewildered and some threatened hence there is sometimes resistance.

The change of process is inevitable because of technological and social development, and one way whereby one can determine effectiveness of an executive is his ability to manage change process. The rational change process suggests certain steps in bringing about efficient change management. Sometime this may not work well in some organizations because organizational change involves people and its people who resist change, knowing that much of the resistance to effecting a change is a response to the uncertainty that accompanies a change process. Organizational change effort has to energize people around something that they do not want to do. Hence the issue of how well is change managed in Nigerian business organizations needs to be investigated.

1.3    OBJECTIVES OF THE STUDY

The objectives of this research work among others are, to ascertain;

  • What change is and the need for change through performance management.
  • The process of change management in relation to overall performance of the business.
  • The relevance of a good process to facilitate adaptation and acceptance and how well this can be maximized.
  • The importance of change management organization and its relationship to adaptation by the people.

The study will consider the various stages (phases) in change management and how well they are carried out.

  • Factors that aggravate change in organization.
  • The constraints involved in change process and how to overcome them and;
  • The resultant effect of not carrying out change at all, even when it is material to do so.

1.4    RESEARCH QUESTIONS

Change and its management are considered as the most important issues in business enterprises for the reasons of retaining competitive edge, survival, growth etc. This study will help to verify and confirm how reactions to change affect the organization overall performance thereby exposing the problems and the challenges associated with managing change and how they can be tackled. In order to conduct this research effectively, answer to the following few questions must be established.

  1. a) How do employees perceive change in their various organizations?
  2. b) What is often the reaction of employees with regards to change?
  3. c) Where employees resist change, what modality or modalities does employers employ, in order to contain the situation?
  4. d) What approaches do employers employ in effecting change?
  5. What specific methods and techniques do the employers design to implement change in the organization?
  6. Does a good change process facilitate quick adaptation to the change?
  7. Does an employer maintain effective communication aimed at educating the employees on the rational of change?

 

1.5    STATEMENT OF HYPOTHESIS

Hypothesis is very important because it pinpoints the problem area, helps to establish the relevant factors. Serves as a means of providing explanations, provides a framework for conclusion, stimulate further research. It also provides

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