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External and internal pressures arising from dynamically evolving business environments inevitably and continuously create unsustainable tension between the desire for stability and the need for change within organizations (Graetz & Smith, 2010). Organizations respond to these tensions by engaging in processes of strategic renewal through the implementation of “planned change” (Spector, 2010). Planned change, according to Cummings and Worley (2009), fundamentally concerns the process of changing organizational behaviors. More specifically, new behaviors must replace old ones or be adapted to or integrated with existing behaviors to enable successful change (Palmer, Dunford, & Akin, 2009; Schein, 1993, 2004). This paper outlines the three stages of Lewin’s model of planned change – unfreezing, movement, and refreezing – and discusses the importance of each relative to changing employee behaviors.
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The idea that renewal strategies, like redundancy and restructuring, are necessary to achieve organisational goals comes from a supply and demand analysis of the job market. Today’s working environment is seen to be excessively using these strategies in order to accomplish short term goals, resulting in businesses not looking towards their long term futures. This essay will address this issue by looking at the significance and implications redundancy and restructuring raise, that of reduced morale, satisfaction, motivation, and retention of the future workforce. It will also outline the many perspectives on the issue, that of a resource, industry and company based view, as well as display the veracity of these views. It will demonstrate that although redundancy and restructuring is a viable change method to achieve organisational goals, they should only be used as a last resort, due to the many significant costs it raises for businesses long-term success.
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