Omnicare Inc. is a specialized pharmacy that provides medication to long term care facilities and nursing homes (Omnicare, n.d.). I currently work for Omnicare, Inc. and we have been going through transformational changes over the last several months. One of the changes is offshoring, or outsourcing overseas or outside the company. Offshoring and outsourcing can be risky, but it is used to minimize costs and increase profits within an organization. The reason there is a risk is because quality and service could be impacted with the change. Some internal stakeholders were affected by the offshoring because there were layoffs, but other external stakeholders were not affected in a negative way. Due to the changes and offshoring, profit was higher; therefore more money could be made (Worley, 2012).
The reason there was these changes within the organization was because of extremely poor management choices and money not being used wisely. It was a risk that executives were willing to make to attempt to lower overhead costs and increase profit margins. Before offshoring there was no clear path and no one person in charge of specific departments. The left hand did not know what the right hand was doing and we were on the verge of a complete collapse because of such poor choices. There was also a lot of conflict within certain departments and they felt it would limit the conflicts as well.
In my opinion, it was a terrible choice and impacted customers greatly. The quality of service was impacted and wait times were much longer to speak with someone to be assisted. It also impacted many families who were laid off and no longer had a job. I think there were other ways to curb the costs then offshoring and outsourcing. It left many employees feeling no security as so many changes were being made. There was also a lot more work that was left on remaining workers which then lowered the morale.
Transformational Change
Transformational change is driven by organizations needing to reinvent and create new visions and implement new structures in assisting with the company’s overall goals and objectives. This could be a new system for streamlining, change of goals, or other new technology. These are all considered transformational changes because it is an internal process that will impact the entire organization and allow the company to reposition themselves within the market. A firm cannot just keep doing what it has been doing because other competitors will end up passing them with new improvements and changes and the firm could lose customers and even go under because they are not willing to adapt to the changes in the market (Carter, 2014).
A managers role in transformational change is very simple, influence, inspire, and lead. Managers need to be able to influence their associates by setting a great example and being a positive role model during the change. They should also be able to inspire and motivate their associates so that they can commit to the changes within the organization and see the value of the changes, rather than being negative about the changes. Leading associates to success and surround them with positive feedback and show them that you value them will help with the transformational change too. The more an associate feels valued, the more they will see the vision and go along with changes within an organization (Penava, Šehic, D, 2014).
In my opinion, I think transformational changes are the easiest alternative in accomplishing the goal of staying competitive. I believe that all success starts within the company, not outside. If you have a company that can run and function together well on the inside, then in return you will have better success on the outside, especially from a customer service standpoint. Employees are the face of the company, and I truly think that all employees should be valued and have the skills and tools needed for success. Transformational change can help the company and their associates grow and together they can create the overall vision that the company stands for (Penava, Šehic, D, 2014).
Theories of Change Management
There are several theories of change management; a few of them are the Kotter, Lewin, and Nadler models. Each model is different and they all have advantages and disadvantages. The Kotter model consists of eight steps including creating urgency, form a powerful coalition, create a vision of change, communicate the vision, remove obstacles, create short term wins, build on the change, and anchor the changes in corporate culture. The advantages of the Kotter model is that it is a clear step by step process, it fits well into different cultures and lines of business, and that it focuses on preparing to accept change instead of the actual change. The disadvantages to this model are that steps are not allowed to be skipped, and because of that the model can take up a lot of time. It may also lead to frustration with employees (Betters-Reed, Nitkin, & Sampson, 2008).
Another model is the Lewin model which is just three simple steps; unfreezing, change or transition, and freezing or refreezing. The advantages to the Lewin model are that it can provide a visual summary of all of the factors that support a specific idea, including all data that has been gathered and consolidated into a single graph. A disadvantage is that this model requires full participation from everyone that would be involved in order to have an effective analysis; and the analysis may not result in an overall consensus with the group (Bond, 2013).
Nadler is another model which is also known as Congruence Model. This model also has a simple three step process like the Lewin model; analyze each key element separately, analyze how these elements interrelate in your organization, and plan to create and maintain congruence. The advantages of the Nadler model are that it provides the framework for analyzing complex problems within an organization. It helps companies think about the impact the change may have the organization and how it interacts and performs. The disadvantage to this model is that it could be a very long and expensive process, especially for a larger scale company with hundreds and thousands of employees (Bezboruah, 2008).
In my opinion, the best way to implement an organizational change within an organization is to thoroughly think about the change you want to implement and think about how that change will impact the employees and the company. The key is to motivate everyone for the upcoming changes and have all employees be on the same page and willing to change. Communicate to all employees why the change is necessary and important for the company so that employees can see the reasons for the change and have a better understanding of the new changes. I feel based on my own work history, that communication is key. When you communicate to employees they are more loyal to follow through with these types of changes, when you do not communicate there is a lack of cooperation and that makes implementing the changes harder.
Communication Plan
Discuss what stakeholders require communication and how that communication will be communicated to them and who the information will be coming from such as management. Also discuss the means of the communication such as email, fax, or letter.
Implementation Plan
Discuss steps to implement the plan and the criteria for success, including engaging employees with the changes and purpose.
References
Betters-Reed, B. L., Nitkin, M. R., & Sampson, S. D. (2008). An assurance of learning success model: toward closing the feedback loop. Organization Management Journal (Palgrave Macmillan Ltd.), 5(4), 224-240. doi:10.1057/omj.2008.26
Bezboruah, K. C. (2008). Applying the congruence model of organizational change in explaining the change in the Indian economic policies. Journal Of Organizational Transformation & Social Change, 5(2), 129-140. doi:10.1386/jots.5.2.129_1
Bond, M. H. (2013). Refining Lewin's formula: A general model for explaining situational influence on individual social behavior. Asian Journal Of Social Psychology, 16(1), 1- 15. doi:10.1111/ajsp.12012
Carter, M. Z., Self, D. R., Bandow, D. F., Wheatley, R. L., Thompson, W. F., Wright, D. N., & Junting, L. (2014). Unit-Focused and Individual-Focused Transformational Leadership: The Role of MiddleLeaders in the Midst of Incremental Organizational Change. Journal Of Management Policy & Practice, 15(5), 44-53.
Omnicare. (n.d.). About Us. Retrieved on May 25, 2015 from http://www.omnicare.com
Penava, S., & Šehic, D. (2014). THE RELEVANCE OF TRANSFORMATIONAL LEADERSHIP IN SHAPING EMPLOYEE ATTITUDES TOWARDS ORGANISATIONAL CHANGE. Ekonomski Anali / Economic Annals, 59(200), 131- 162. doi:10.2298/EKA1400131P
Robertson, C., Lamin, A., & Livanis, G. (2010). Stakeholder Perceptions of Offshoring and Outsourcing: The Role of Embedded Issues. Journal Of Business Ethics, 95(2), 167- 189. doi:10.1007/s10551-009-0353-0
Worley, L. (2012). Outsourcing, Offshoring, Nearshoring, Onshoring – What's Going On?. Legal Information Management, 12(1), 9-11. doi:10.1017/S1472669612000072
0
Introductio
n
Omnicare
Inc.
is
a
sp
ecialized
pharmacy
that
provides
medication
to
long
term
care
facilities
and
nursing
homes
(Omnicare,
n.d.).
I
currently
work
for
Omnicare,
Inc.
and
we
have
been
going
through
transformational
changes
over
the
last
several
months.
One
of
the
changes
is
off
shoring,
or
outsourcing
overseas
or
outside
the
company.
Offshoring
and
outsourcing
can
be
risky,
but
it
is
used
to
minimize
costs
and
increase
profits
within
an
organization.
The
reason
there
is
a
risk
is
because
quality
and
service
could
be
impacted
with
the
change.
Some
internal
stakeholders
were
affected
by
the
offshoring
because
there
were
layoffs,
but
other
external
stakeholders
were
not
affected
in
a
negative
way.
Due
to
the
changes
and
offshoring,
profit
was
higher;
therefore
more
money
could
be
mad
e
(Worley,
2012)
.
The
reason
there
was
these
changes
within
the
organization
was
because
of
extremely
poor
management
choices
and
money
not
being
used
wisely.
It
was
a
risk
that
executives
were
willing
to
make
to
attempt
to
lower
overhead
costs
and
increas
e
profit
margins.
Before
offshoring
there
was
no
clear
path
and
no
one
person
in
charge
of
specific
departments.
The
left
hand
did
not
know
what
the
right
hand
was
doing
and
we
were
on
the
verge
of
a
complete
collapse
because
of
such
poor
choices.
There
wa
s
also
a
lot
of
conflict
within
certain
departments
and
they
felt
it
would
limit
the
conflicts
as
well.
In
my
opinion,
it
was
a
terrible
choice
and
impacted
customers
greatly.
The
quality
of
service
was
impacted
and
wait
times
were
much
longer
to
speak
with
someone
to
be
assisted.
It
also
impacted
many
families
who
were
laid
off
and
no
longer
had
a
job.
I
think
there
were
other
ways
to
curb
the
costs
then
offshoring
and
outsourcing.
It
left
many
employees
feeling
no
security
as
so
many
changes
were
being
made.
There
was
also
a
lot
more
work
that
was
left
on
remaining
workers
which
then
lowered
the
morale.
Transformational
Chang
e
Transformational
change
is
driven
by
organizations
needing
to
reinvent
and
create
new
visions
and
implement
new
structure
s
in
assisting
with
the
company’s
overall
goals
and
objectives.
This
could
be
a
new
system
for
streamlining,
change
of
goals,
or
other
new
technology.
These
are
all
considered
transformational
changes
because
it
is
an
internal
process
that
will
impact
the
entire
organization
and
allow
the
company
to
reposition
themselves
within
the
market.
A
firm
cannot
just
keep
doing
what
it
has
been
doing
because
other
competitors
will
end
up
passing
them
with
new
improvements
and
changes
and
the
firm
could
lose
customer
s
and
even
go
under
because
they
are
not
willing
to
adapt
to
the
changes
in
the
market
(Carter,
2014)
.
A
managers
role
in
transformational
change
is
very
simple,
influence,
inspire,
and
lead.
Managers
need
to
be
able
to
influence
their
associates
by
settin
g
a
great
example
and
being
a
positive
role
model
during
the
change.
They
should
also
be
able
to
inspire
and
motivate
their
associates
so
that
they
can
commit
to
the
changes
within
the
organization
and
see
the
value
of
the
changes,
rather
than
being
negati
ve
about
the
changes.
Leading
associates
to
success
and
surround
them
with
positive
feedback
and
show
them
that
you
value
them
will
help
with
the
transformational
change
too.
The
more
an
associate
feels
valued,
the
more
they
will
see
the
vision
and
go
alon
g
with
changes
within
an
organization
(Penava,
Šehic,
D,
2014)
.
Introduction
Omnicare Inc. is a specialized pharmacy that provides medication to long term care facilities and
nursing homes (Omnicare, n.d.). I currently work for Omnicare, Inc. and we have been going
through transformational changes over the last several months. One of the changes is offshoring,
or outsourcing overseas or outside the company. Offshoring and outsourcing can be risky, but it
is used to minimize costs and increase profits within an organization. The reason there is a risk is
because quality and service could be impacted with the change. Some internal stakeholders were
affected by the offshoring because there were layoffs, but other external stakeholders were not
affected in a negative way. Due to the changes and offshoring, profit was higher; therefore more
money could be made (Worley, 2012).
The reason there was these changes within the organization was because of extremely poor
management choices and money not being used wisely. It was a risk that executives were willing
to make to attempt to lower overhead costs and increase profit margins. Before offshoring there
was no clear path and no one person in charge of specific departments. The left hand did not
know what the right hand was doing and we were on the verge of a complete collapse because of
such poor choices. There was also a lot of conflict within certain departments and they felt it
would limit the conflicts as well.
In my opinion, it was a terrible choice and impacted customers greatly. The quality of service
was impacted and wait times were much longer to speak with someone to be assisted. It also
impacted many families who were laid off and no longer had a job. I think there were other ways
to curb the costs then offshoring and outsourcing. It left many employees feeling no security as
so many changes were being made. There was also a lot more work that was left on remaining
workers which then lowered the morale.
Transformational Change
Transformational change is driven by organizations needing to reinvent and create new visions
and implement new structures in assisting with the company’s overall goals and objectives. This
could be a new system for streamlining, change of goals, or other new technology. These are all
considered transformational changes because it is an internal process that will impact the entire
organization and allow the company to reposition themselves within the market. A firm cannot
just keep doing what it has been doing because other competitors will end up passing them with
new improvements and changes and the firm could lose customers and even go under because
they are not willing to adapt to the changes in the market (Carter, 2014).
A managers role in transformational change is very simple, influence, inspire, and lead.
Managers need to be able to influence their associates by setting a great example and being a
positive role model during the change. They should also be able to inspire and motivate their
associates so that they can commit to the changes within the organization and see the value of the
changes, rather than being negative about the changes. Leading associates to success and
surround them with positive feedback and show them that you value them will help with the
transformational change too. The more an associate feels valued, the more they will see the
vision and go along with changes within an organization (Penava, Šehic, D, 2014).
thompson
managing_organizational_change_project_example.docx
0
