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Change management is a systematic process for transition or transformation of an organisation' s aims, procedures and technologies. The core purpose of change is to implement strategies that can effectively implement modifications throughout a company. It supports employees to adapt new changes because it provides a growth in productivity and performance of an organization. Amazon is an American electronic commerce and cloud computing company that is based in Seattle, Washington since 1994. It offers wide range of products such as video, books, accessories, etc. over internet. It is changed over time to run a effective business that can sustain in marketplace. Therefore, this report covers white water metaphor along with its characteristics. It also includes application of known changes, internal and external change drivers with its implications (Carnall, 2018).
Change is iterative and integral part of an organization that needs to be implement in competitive marketplace. If a company wanted to sustain in a marketplace it needs to be adapt new changes that can give it a growth to increase the revenue of the firm. Change can be define as alteration in organisation's atmosphere, culture, structure, technologies and people. All of these needs to be modified after sometime so that a company can adapt continuous improvements according market trends. If form does not suppose to do so then it has less possibility to run a business in an effective way. Therefore, change management has two approaches that are known as white metaphor and calm metaphor. In which calm water metaphor can be define as slow changes whereas white metaphor refers to drastic changes within an organization that can be beneficial or risky for an organisation (Cameron and Green, 2015).
As white-water metaphor has lack of environment stability and predictability that's why organisation's leaders needs to adapt continuous modifications that can support them to survive in marketplace. It is essential for organization that they plan for changes within a specific time so that they can gain competitive advantage to stay in the market for a long time. As Amazon initially established as a book store by Jeff Bezoes who wanted to provide books to the people in a huge number. The founder wanted to make it the largest company across world that's why it firm named as Amazon (largest river in the world). When firm began at that time it was a small but after sometime 1995 it launched its first websites to sale books and from then owner had a vision to for growth in e – commerce industry. As being a founder of the company they prepared strategies that can achieve its targets and due to effective planning firm was successful to sold books in approximately 50 states of 45 different countries (15 fascinating facts you probably didn't know about Amazon, 2017). It was the first change that is firm adapted to run a business in effective way.
In order to make a organization there is a need for planning because growth depends on strategies. As Amazon was a book store but after launching of internet it was brings a drastic change in its business. Due to evolution of internet it became successful across the world and in 1999 the owner received an honour for success of famous online shopping website (Amazon.com's History and Workplace Culture, 2018)
It was always customer centric business because entrepreneur knows that if it does not focus on customers it will be a failed business. That's why it focused on the customers and changes its strategies according to competition. In order to do so, owners needs to have a long term vision that supports its strategies and impactful decisions. There was a time in early stage of firm when an employee worked for around 60 hours a week. They does not remember anything but wanted to make Amazon largest organization in the world. Its labours put their entire energy to complete Christmas orders without sleep because firm had insufficient staff. After that leader decided that company will hire various seasonal labours so that it can meet its target on time that can be beneficial for company and customers as well. This was challenge for company to complete gain employee retention so that they firm will not suffer due to workers turnover. That's why its started hiring new employees that supports organization process. Due to this decision, there is a positive change with approximately 269000 employees in organization at global level.
After fast growth in online book store it again needs to modify its strategies and structure so that it manage its business on a large scale. As it started to sell in diverse competitive market such selling online video downloading/ streaming, MP3, audiobook with prime video that is runs on its own platform. It also provides software, video games, , electronics, apparel, furniture, food, toys, and jewelry. After step into internet it again changes in its strategies such as it launched Amazon Publishing in 2009 that composed of approximately 15 imprints which consists of AmazonEncore, AmzonCrossing, Montlake Romance, Thomas & Mercer, and so on. The company was growing with planned strategies to capture entire marketplace drastically including electronic products such as Kindle e – readers, Fire tablets, Fire TV. This is also known for world's largest cloud infrastructure company services such as IaaS and PaaS with its structured subsidiary AWS. In the year, 2017 it also acquired Whole Food Market for $13.4 billion that completely changed its appearance among customers. Amazon reached at US$1 trillion that means that organization acquires second rank after Apple Inc.
These are changes defines as white water metaphors because owner of Amazon encompasses all changes with planning that implemented as a drastic changes. As much as challenges are taken by owner firm changes its strategies and structure to achieve goals and objective that gives growth to company (Kuipers, Higgs and Kickert, 2014).
In order to implement changes in a successful way Amazon needs to adapt a change management model that can help it in growth of business. It can adopt Lewin's change management model that is broken into three stages and that is mentioned below -
Unfreeze– This is a first stage of transitioning a business from one stage to future expected level. At this stage people who are working within the organisation face several changes and company needs to change their mindset to move out from their comfort zone. In this stage there is a need to aware people by informing the necessity of change so that they can accept new changes support organization for that. For example, as in early stage of Amazon it was selling books through its websites but with increasing use of internet it started to sell various kind products that continuously gives its growth. But in order to sustain in market it gone through a challenges like to acquiring Whole Food Market at that time organization needs support of its employees. But there is a need to communicate information to the employees so that they can provide help to company (Van, 2014).
Change– At this stage is known for transition in which actual changes are implemented. Organization accepts new changes to perform things in a new way. In this stage planning, strategies are implement through encouraging and motivating people. But there are some consequences in which people have fear to adopt changes.
Refreeze– This stage is also referred as equilibrium stage in which people accepts changes and become familiar to work within change process. They accepts it as part of their life and work according to new modifications. In order to encourage people Amazon should reward their employees so that they can work in positive behaviour (Matos and Esposito, 2014).
For an example, in 2004 when Amazon launched its search engine that was named as A9.com. Along with this it also started a project that was called Block View a visual Yellow Pages. When this project was started it was necessary for organisation to effectively communicate with their employees about the new project and new changes that transforms business process. They informed taskforce that they have to work according to new project process.
Changes is something which impact the total work environment of an organization. It can be also defined as when an organization system is disturbed by some external and internal force then gradually change happens. Change may be good or bad so is descriptive only. Changes are essential for a business organization because it provides growth to the business. There are some internal and external forces drivers which forces an organisation for modifications.These external factors consists of political, economical, social, technological, competitors and customers that are beyond organisational control. But influences a company from outside to adapt changes that support it to sustain its position for a long time. On the other hand, internal factors are those which consists within an organisation and forces firm to adapt new changes that can enhance its productivity. There are number of changes in the environment which takes place but mainly there were two main types of changes in an organization which takes place are -
External Forces of Change Management
This is the type of changes which impact the environment directly or indirectly where the environment doesn't seems any control over it (Worley and Mohrman, 2014). An organization cannot change the environment and the changes but they can identify and prepared for the changes which are -
Political Forces – Political scenario is changing rapidly due to which economy is facing quick change. Amazon faces various challenges due to change in policies and regulations and economic framework in form of liberalization and globalization. Cybersecurity bills (Lozano, Ceulemans and Seatter, 2015) affected e-commerce industry which are globally recognized and are dependent on government for their implementation,distribution and profit. Example – Amazon.
Economical Factors – These factors have a great impact on economic area of organization. Economical factors consists of change in business cycle, deflation rate, change in interest rates, recession, fluctuation in tax structure, import or export duties are deciding factors. Change management strategies of organization are affected by challenges and opportunities of certain growing competitive pressure. For example – Amazon is retail industry which can stand still during economic crisis and can remain in profit. Disposable income is higher, which allows people to spend on luxurious items and entertainment which are provided by Amazon simultaneously.
Technological Factors– Technological advancement has significance in increasing competitive marketplace. Therefore, it is needed for firm that it adapt latest technology that can enhance its reach towards customers. Therefore, an organisation should take strategic decision that supports in its growth. As Amazon implemented technological changes that supports it to provide its effective services and expand in the marketplace. As when it started it online store it needs to manage its inventory and logistics services to manage its warehouse and delivery at customer door. In order to manage these things in an effectual way company needs to update its inventory software that help it to manage its store to track availability of the products.
Customer – As people demands and trends change over time and due to their changing behaviour they demands for new things. As a few years ago, people likes to read physical books that they can hold in their hands. But as time changed and internet enhanced its reach customer requirement are changed and they start demanding for intellectual books. They can read them over internet and due to this change in human behavior Amazon launched a Kindle through which they read online books. The organisation is customer and that's why it observes customers closely that that supports it in adapting new changes (Samuel, Found and Williams, 2015).
Competitors– It is necessary for every company to monitor growth of their rivals that can help to increase its productivity and performance in the marketplace. As Amazon biggest rival is Alibaba and eBay that provides a wide range of products and services form apparels to electronic and generates a high revenue. These are the two major competitors which pushes the organisation to implement new changes that can support it to raise profit. Therefore, Amazon also provides a huge range of electronics and it is also known as cloud technology provider that deals in IaaS and PaaS.
Internal Force of Change Management – These forces consists within a company that needed to be modify over time. Therefore, internal forces of change management are mentioned below -
System forces - A firm can not depend on particular system for long time for this they need to improve their system to conduct business. There was only one book store when Amazon started and it adapted a system to order books which were out of stock. It is a system which should be altered when they launch their website so that they can provide a wide range of products. Various clusters were formed and divided so that organization can work efficiently and appropriately (Steigenberger, 2015).
Inadequate Existing Administrative Processes: Organization works on set of rules and regulations and certain procedures. With change in time, organization is required to change rules made by them and administrative policies which they were already using. If changes are not made then it can result in organizations ineffectiveness. Growth of organization depends upon policies they form and in which way they manage them. When market value of organization increases they offer huge amount of compensation benefits to their employees and then employees give their full effort for growth of their organization (Belias and Koustelios, 2014). Growth of an organization also depends on satisfaction of employees working their. Hr of
What are implications of Change
Special Staffing Need:-
The need of special staffing is to recruit that person who can work in innovative condition and can adopt change easily. Through special staffing the organization can appoint that person who has desired skills and abilities to achieve goal in the changing and innovative condition.
Need of HR :-
HR is important in an organization because they are the person who keep employees grounded by maintaining employee satisfaction, employment engagement and even maintaining workplace atmosphere in effective and efficient manner. The main responsibility of HR manger covers three major areas:- staffing, employee compensation and benefits and define work to employees according to skills and ability.
Training and Development for Strong Innovative Culture:-
Training and development plays important part in strong innovative culture and through it work is done in proper and effective manner. If any organization is innovate their products they must provide training and skills development session to them so that they know how to do that work by saving time and resource through avoiding wastage.
Kotter's Change Management Theory
It is the most popular management theory introduced by John p. Kotter which is used by organisations to apply changes for getting better outputs. It involves several stages such as increase urgency, build the team, get the vision correct, communicate, get things moving, focus on short term goals, don't give up and incorporate change. Moreover, overall these factors provide support top apply certain modification in given company in order to boost up regular productivity as well as profitability in proper manner. However, it is essential to implement various changes in operations so that markets trends can be followed properly to complete actual requirements of customers. In context of Amazon, they are required to fulfil modified needs, wants and demands of people to attract new customers along with retaining the current ones to increase sales of company. Additionally, it will render help to attain growth of business for future profits and success (Lines, Sullivan and Smithwick, 2015).
This theory of change management is goal oriented which converts whole change management process simpler as every activity is done step wise. As per this theory, HR department of the organisation can implement change management by targeting its goals at the initial stage which is further execute by planning each and every step in order to achieve desired outcome. In relation to Amazon, HR manager of this company can opt this theory for enhancing level of knowledge of their employees. In this, special training session will be conducted for every employee according to their standard of knowledge. As a result it will contribute in achieving targeted goals of Amazon (Rose, Kriegler and Bibas, 2014).
From the above report it can be concluded that change is requirement of every company to attain objective and goals of the organisation. Therefore, it needs to adopt change that support to raft in adverse situations. A business needs to prepare a strategical planning that supports it sustain on marketplace with focusing on the internal and external drivers. Change management is a systematic process for transition or transformation of an organisation' s aims, procedures and technologies. If a company wanted to sustain in a marketplace it needs to be adapt new changes that can give it a growth to increase the revenue of the firm. In order to implement changes in a successful way Amazon needs to adapt a change management model that can help it in growth of business. Changes is something which impact the total work environment of an organization. Moreover, overall these factors provide rsupport top apply certain modification in given company in order to boost up regular productivity as well as profitability in proper manner.
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