Change Management in Large and Small Firms: Response Recommendation

Typically, changes in organizations are sparked by external forces, such as a budgetary crisis, the need to establish new markets or clients, or the need for dramatic increases in productivity and services (McNamara, 1997). The types of changes sparked by these events are usually reactive, although a new chief executive might want to be proactive and institute an organization-wide change to set a new tone for his or her leadership. Also, an organization with a philosophy of Total Quality Management (TQM) stresses continuous improvement, and is thus focused on the need for constantly changing and reassessing organizational processes to eliminate the least productive elements of the organization.

Large firms may find change management strategies useful in eliminating wasteful processes or departments, to meet the needs of a new marketplace. Reallocation of a wide array of organizational resources is also critical to constantly streamline, keep budgets tight, and to make sure the organization is responsive to the new market environment. The team approach stretched in change management is also useful to create a more cohesive organization, even if the organization is quite large and diffuse.

Smaller firms can use change management concepts to assess the current economic and environment and find a unique niche that they can fill, and become a first mover in a new marketplace. Strategies for dealing with change resistance are often important in large organizations with many different employee subcultures, but a small firm may also be resistant because of its 'homey' atmosphere that can cause resistance to change. A smaller organization with more limited resources can likewise benefit from the constant housecleaning of inefficient ideas and processes of change management. In both small and large organizations, change only happens through people, and the people-focused strategy of managing change and making changes work rather than hinder the organization is useful to all organizations, regardless of size ("Thirteen Tips for Managing Change," 2006, North Central Regional Educational Laboratory).

Works Cited

McNamara, Carter. (1997). "Basic Context for Organizational Change." Management

Help. Retrieved 6 Mar 2007 at http://www.managementhelp.org/mgmnt/orgchnge.htm

Thirteen Tips for Managing Change." (2006). North Central Regional Educational

Laboratory. Retrieved 6 Mar 2007 http://www.ncrel.org/sdrs/areas/issues/educatrs/leadrshp/le5spark.htm