Tuesday, March 5, 2019
Organisational Change Essay
Organizational multifariousness is withal cognize as organisational transformation and it may involves organisational neuter in mission, introducing bleak technology, restructuring operations, introducing new programmes, mergers, re-engineering and having new major collaborations. (Bridges 1991) Organizational changes argon aimed at achieving almost set organizational goals and objectives which need to be a attained inside a given period of meter.In umteen cases changes in the organizational atomic number 18 provoked by almost outside forces which includes taking boot of new markets, substantial cut in finding, need for increase in service and productivity among others. There are many approaches that managers intentions to introduce change in the organization, some are excogitationned, explicit and structured bandage others are more unf venerableing, implicit and organic. Managers goes for the approaches that ordain be supported by both the employees and those that wi ll enable the organization to maximize the profit margin as they achieve the set goals and objectives inwardly the set time frame.Some approaches whole kit from the future to the present where by the managers uses the organizations vision to plan all the organizational morselivities aiming at achieving the vision while other approaches deeds from the present to the future which may include pointing out the currents call for of the betoken clients and then making the necessary changes towards achieving those inescapably. This is the best approach since the clients and other stakeh darkeneders are the backbone of any organization and they determine the success of the any art (Easterby 1999).Identifying their needs should be a continuous exercise which should be followed by implementing the necessary changes which will facilitate in satisfying their needs thereof building a good and strong guest relationship which will lead to increased gross revenue hence change magnitude t he Organizational profitableness (Dent 1999).Aegon UKis a member of the AEGON Group which is among the worlds largest support policy and premium community. The club is the owner of varied life insurance, pensions, adviser and guidance businesses in the UK (Folger 1999).The company has 27,000 employees and a total of over 25 meg customers worldwide with its main markets being in Netherlands and the United States. Factors That break down To Change One of the major hindrance for decision making is a clear understanding of the peeing environment where the decisions made will be operated. (Brewster 2004) Proper understanding of the working environment improves the decision making and it minimizes uncertainty.In the UK where life expectancy has risen in the past few years, wad are expected to retire for a presbyopicer period of time hence the need to think ahead and save for retirement, an idea that many tidy sum find knotty to comprehend. (Kotter 1979) Many people do not pr operly plan about their retirement hence they suffer during the old age since they do not be submit enough money for survival and on the other hand the government is besides accentuation on reduced dependency on the state in old age.This resulted to many insurance companies coming up with new cheap pension schemes who also emphasized on employee pension (Hultman 1995). The Industry Aegon operates in the life insurance and pension perseverance which for the past few years had a poor reputation. Some organisations in the industry has been blamed of mis-selling where by they do not give the customers quality products that satisfy their needs. (Johnston e 2004) The Financial work Authority (FSA) introduced some regulations in the industry which were aimed at avoiding such situations from accident again in the future.The industry has been faced with intense competition where by AEGON is competing with other organisations that are well known in the UK and they specialise in selling directly to the customers (Kirkman 2000). The company normally distributes its run and products to customers through and through financial advisers. For AEGON to remain competitive it had to take care of all the problems that the industry was facing. Reasons For Change Historically AEGON had been very successful and profitable but some times back the government introduced some regulations that reduced the organisations profitability.Comparing the company with its competitors, AEGON was not well known though it had very good services and products and it also had good relationship with the distributors. (Strebel 1996) For consumers to brace the confidence of confideing in a long term product, they have to know more about the organisation they are planning to invest with by learning more about the brands that are being offered by the organisation and by understanding the value of each brand. As AEGON offered divers(prenominal) brands it was hard for the financial advisers and the c onsumers to identify and understand the different depth and fullness of the brands.Facilitators of Change AEGON company appointed a new (CEO) Chief executive director Officer who entered into the office with new strategies for the company and the first thing that he implemented was to bring AEGON into a husking phase which would help him in achieving the goals he had for AEGON. The CEOs goal was to develop the best long term savings and protection business in the UK while the discovery phase was aimed at finding ways of achieving those goals. (Kegan 2001) Another aspect that take consideration was the companys brands and how they could be audited.The company was examined both internally and outerly to find its position in the market. The process of auditing was aimed at giving more protestation about the company which assisted AEGON in making more informed decisions which were needed to start the process of change. Creating a New Culture Culture refers to the attitude and the personality of an organization and it is also involves the shared determine, behavior and beliefs of the employees and other stakeholders (Morgan 1997).It acts as a key disrupt in the change process since it dictates the way in which the organisation and the stakeholders knead problems and makes decision. By developing a new enculturation, AEGON was able to provide services and products that were required in the market hence they were able to remain competitive. A Behavior Framework In order to support the new culture, AEGON came up with a behavior framework which was aimed at strengthening the brand values.It was designed in such a way that it could influence how all the employees in the organisation could work and make decisions where by the behavior emphasized the values of AEGON. (Coetsee 1999) The company also introduced a Management Development Programme which accentuate on eight main behaviors which are, think customer, embrace change, encourage excellence, act with inte grity, decisive actions, work together, learn and grow and finally relate and top (Piderit 2000). Implementing The Change The organisation has tensenessed on the customers needs which determines the decisions, behaviour and it also informs actions.The senior mangers keeps the customers needs at the heart of all the operations in AEGON while the other managers and professionals innovates with the needs of the customers in mind so that they come up with products and services that domiciliate satisfy the needs of the customers. AEGON brand have been extensively promoted alongside Scots Equitable or other brands are traded under it. Association with AEGON is stronger where by the Scottish Equitable is currently AEGON Scottish Equitable which reflects the local cognition and the global power.Currently all the brands has a new look that is common, different and refreshing. Impacts Of The Changes Implementing change in AEGON affected it both externally and internally. Internally the ch anges influenced how the people behaved and communicated while the organisational operations has been focused on satisfying the needs of the customers. coarse emphasis has been on making information clearer so that the customers can be in a position to understand the company well so that they can do business with them.The company has intensively done external promotional campaigns and it has managed to launch new innovative products aimed at satisfying the customers needs. This changes has worked very well for AEGON since the company has been able to maximise its profit. Currently AGEON brand is in a position that it influences the financial services in the industry. Challenges The main challenge that AEGON is facing is that the competition is growing at a very fast rate in an increasingly difficult market.This has forced the government to implement some regulations to govern the industry. To fight competition, AEGON should arrest two way communication channel which should be tur n out and they should emphasis on getting feedback from all the stakeholders. This feedback is very important since the stakeholders can inform the organisation where they might be going wrong and can nonetheless give some recommendations which can work very well for the company hence being ahead of the competitors which leads to maximising the profit margins of the company.The stakeholders can also help the company in identifying the needs of the customers hence enabling the company to provide what is needed in the market . Also when there is open communication between the management and the employees it is normally very easy to hamper conflicts since the employees will be free to air their grivances hence cultivating a culture of good working relationships in AEGON which will even motivate the workers to work even harder thus enabling the company to realize the set goals and objectives within the set time frame.Conclusion Organisational change is continuous and the process of ch ange is like a journey which will be faced by external factors that can affect the operations of the organisation. AEGON respond to the external factors was by clarifying, simplifying and strengthening its brand in the UK. As the organisation changes, its culture and pattern of behavior develops which is a cycle which requires the business to use the knowledge it has to learn from the experiences.This has enabled AEGON to move towards achieving its goals through realizing its full potential while they remain competitive in the market. Taking care of the needs of the customers increases the sales of the company since many customers will be interested in the products or services that are being provided by the company hence increasing sales which in turn increases the profit margin of the company.