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Organizational Change Management
Managers are often times faced with the challenging task of having to compare different project alternatives so as to choose those that best utilize organizational resources. Trend analysis is a common comparison technique that compares alternatives in terms of either costs or revenues over multiple time periods.
In this text, we compare two project proposals (J.P Technologies Inc. And IT USA Inc.) to determine the option that realizes higher cost savings over a three-year implementation period. The costs and common sizing information of the three items included in the package -- hardware and software maintenance, regular and ongoing maintenance, and training and education -- for each alternative, have been presented in the attached spreadsheet.
Trend analysis reveals that the cost of the J.P Technologies alternative would decrease by a cumulative total of 54% of start-up cost over the implementation period (47% over year 2 and 7% over year 3); whereas that of IT USA would decrease by a cumulative total of 45% (39% over year 2 and 6% over year 3). Towards this end, cost savings realized...
Technologies alternative; and $3,672,309 (45% of 8,160,687) for the IT USA alternative. The manager, in this regard, ought to select the J.P. Technologies proposal as it would realize higher cost savings.
The Manager's Role in the Change Process
The manager has three fundamental roles to play in the organizational change process. In this case, for instance, they have to develop a transformation plan, in which they lay out the objectives that the change is intended to achieve, and define the specific responsibilities of the key people involved in the change process. Such a plan creates a sense of direction and provides a basis for evaluating the success/failure of the change process. Secondly, the manager needs to provide the support needed by employees in the transition. Without the necessary support in the form of reward systems, employee initiatives, and training facilities; the change process is likely to be unsuccessful. Towards this end, there is need for management to provide an enabling environment for employees to adapt to the…
References
Hornstein, H. (2008). Using a Change Management Approach to Implement IT Programs. Ivey Business Journal. Retrieved 27 September 2014 from http://iveybusinessjournal.com/topics/strategy/using-a-change-management-approach-to-implement-it-programs#.VCaEmIE-G1s
Ministry of Business, Innovation, and Employment -- New Zealand. (2014). Developing a Training Plan for Your Employees. The Government of New Zealand. Retrieved 27 September 2014 from http://www.business.govt.nz/staff-and-hr/managing-staff/training-and-support-services/developing-a-training-plan-for-your-employees
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