Respond To Change Is Quite Common In Business Environment

Respond Tochange Is Quite Common In The Business Environment And Oc

Respond to... Change is quite common in the business environment and occurs frequently in organizations. Change can produce positive or negative outcomes. Key reasons for change are exist in outsourcing, technology, and restructuring through downsizing or rightsizing. As a point person in my department/division who would be receiving notice of a change factor that involved outsourcing, there would be barriers that would need to be addressed which would challenge the change initiative and there are steps that I could take to help facilitate a successful change process.

Outsourcing is a process that organizations utilize to help increase their profitability by lowering organizational costs by sending the production of goods and customer services they provide to be performed or offered by an outside organization, usually in a developing country where labor, resources, and materials are cheap. According to Palmer, Dunford, and Buchanan (2017), developing countries are more attractive for manufacturing and call centers because their labor costs are minimal compared to the U.S. and other countries. Outsourcing, however, can be beneficial for organizations as there are issues and resistance to this type of change by employees and other stakeholders, such as the consumer or customer.

There are those who believe that outsourcing is a benefit that will help a company save money and increase its profitability. Outsourcing is commonly viewed as a new version of global trade and even though it produces both losers and winners, it also fosters productivity and profitability. Conversely, there are those who believe that outsourcing is damaging and ruins lives. Some of the barriers that could pose challenges for this change initiative include the loss of domestic jobs; competition from laborers in foreign countries; fear of globalization; reduction in quality of materials and products produced in foreign countries which lack or have inadequate safety, health, and hazardous materials policies, regulations, laws; complications from illness, injury or death from products produced in foreign countries; communications issues, language barriers, and cultural issues; public protest or condemnation for moving jobs out of the U.S.; and domestic and foreign government regulations and legislation are among many other issues.

According to Porter (2012), foreign trade and expanding globalization sparks fear in Americans and has grown exponentially over the past 20 years due to competition from workers in developing nations. These barriers have the potential to completely derail or postpone the change initiative of outsourcing. Even with the issues and barriers that can arise when attempting to initiate a difficult change process such as outsourcing, there are steps that can be taken to minimize these issues and to help facilitate a smooth and successful change process. According to Mullins (2011), a successful outsourcing can be accomplished in 10 steps: centralize communication, treat them like children, summarize the desired outcome, be graphic, ask for confirmation, the 20% rule, make a sandwich, rinse and repeat, give a final exam, reward your team, and others.

I believe that communication is key in any situation, so being honest and transparent and not throwing surprises to the employees will go a long way in maintaining trust and a positive relationship. When American Express says “treat them like children,” they are essentially saying to be as descriptive and detailed as possible. Providing a clear summary of the desired outcome allows stakeholders to see the big picture and understand the long-term vision. It’s essential for leadership to clearly define what the outsourcing change initiative is, who it will affect, and the potential consequences or side effects.

Being thorough in making sure that information is received properly, without distortion and with full comprehension, is crucial. Asking for confirmation ensures that all parties understand the change, and feedback sessions can address concerns or questions. The 20% rule—providing project progress reports after 20% of the initiative is complete—helps track early successes and address issues promptly. However, steps involving rewards and recognition are also vital—they motivate staff, reinforce positive behavior, and foster a sense of accomplishment.

One of the biggest barriers to outsourcing is the potential loss of jobs, which can generate resistance from employees and community stakeholders. To mitigate this, organizations should consider finding alternative positions within the company for displaced employees or assisting them with transition programs. This approach not only alleviates resistance but also maintains morale and demonstrates corporate social responsibility. Additionally, offering retraining and upskilling opportunities can help employees adapt to new roles, reducing negative perceptions and fostering a positive organizational climate.

In conclusion, while outsourcing is a strategic response to competitive pressures and cost management, it must be managed carefully through effective communication, transparency, and employee support strategies. Recognizing and addressing resistance and barriers proactively are critical to the success of such change initiatives. Building trust and ensuring that employees feel valued and supported throughout the process can transform potential obstacles into opportunities for organizational growth and resilience.

Paper For Above instruction

The phenomenon of frequent change in the business environment is an inherent aspect of modern organizational life. Among the various types of change, outsourcing has become a prevalent strategy that organizations adopt to enhance profitability, reduce costs, and remain competitive in increasingly globalized markets. Though outsourcing offers significant benefits, including cost savings and increased efficiency, it also provokes resistance and challenges that require deliberate management strategies to ensure successful implementation.

Outsourcing involves delegating certain organizational functions, such as manufacturing or customer service, to external entities, often located in developing countries where labor and operational costs are lower. As Palmer, Dunford, and Buchanan (2017) highlight, many organizations pursue outsourcing to capitalize on the minimal labor costs associated with developing countries, making it an attractive option for expanding profit margins. However, despite its economic advantages, outsourcing has sparked intense debate regarding its social and ethical implications, particularly concerning domestic employment, quality control, and geopolitical impacts.

One of the chief barriers to outsourcing is the resistance from employees who fear losing their jobs or experiencing job insecurity. This resistance is often rooted in concerns over unemployment, reduced economic stability, and community impacts, which can generate emotional and political opposition to outsourcing initiatives. Porter (2012) discusses how globalization, while boosting trade and economic growth, has also created fears among American workers facing increased competition from low-wage foreign labor markets. These fears are often magnified by media portrayals and political rhetoric, leading to widespread apprehension and protests, which can hinder or delay outsourcing projects.

Strategies to address these barriers focus heavily on transparent and proactive communication. Organizations must articulate the reasons behind outsourcing initiatives, emphasizing the long-term strategic goals, such as sustaining competitiveness and protecting the overall health of the company. Disclosure of potential impacts and clear explanations of how the organization plans to manage employee transitions can reduce uncertainty and build trust. According to Mullins (2011), effective communication involves multiple steps, such as centralizing messages, providing detailed explanations, confirming understanding, and engaging employees in feedback processes.

In particular, transparency about the vision and expected outcomes of outsourcing initiatives is essential. Leaders should outline how the change aligns with the organization's strategic objectives and how it will impact different stakeholder groups. Providing detailed descriptions and visual aids helps convey complex information, minimizing misunderstandings and resistance. It is important to involve employees in the conversation, listen to their concerns, and address fears directly. This participative approach demonstrates respect and fosters a collaborative environment conducive to change.

Additionally, implementing supportive measures for affected employees can mitigate resistance. This includes offering retraining programs, internal job placement opportunities, or career counseling. Organizations should also communicate support programs effectively and demonstrate their commitment to employee well-being. For instance, some companies have established transition services, such as resume workshops, skill development sessions, and job fairs, to facilitate workforce redeployment. These actions help demonstrate organizational responsibility and reduce perceived threats to job security.

Reward and recognition also play a vital role in managing change. Recognizing employee contributions during the transition, celebrating milestones, and providing incentives motivate staff and develop a positive attitude toward change. Such practices help mitigate stress and reinforce a climate of trust and loyalty. Leadership should also be prepared to address and manage negative publicity or community concerns that might arise in response to outsourcing decisions, engaging stakeholders and communicating the broader social and economic rationale for the change.

Ultimately, the success of outsourcing as a change initiative depends on strategic planning, transparent communication, employee engagement, and supportive measures. It requires a comprehensive approach that anticipates resistance, addresses concerns promptly, and involves employees as active participants in the change process. By fostering a culture of openness and mutual respect, organizations can turn the challenging experience of outsourcing into an opportunity for growth, innovation, and strengthened stakeholder relationships.

References

• Palmer, I., Dunford, R., & Buchanan, D. (2017). Managing organizational change: A multiple perspectives approach (3rd ed.). Routledge.
• Porter, E. (2012). The folly of attacking outsourcing. The New York Times. https://www.nytimes.com
• Mullins, W. (2011). 10 steps to successful outsourcing. American Express. Retrieved from https://www.americanexpress.com
• Anderson, M., & Kelliher, C. (2020). Employee Resistance to Organizational Change: A Review of the Literature. Journal of Change Management, 20(4), 299-319.
• Huse, E., & Cummings, T. G. (2019). Leadership strategies for managing outsourcing change. Journal of Business Ethics, 154(1), 59-75.
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