Ill winds must blow somebody good

PAUL has been a senior manager with a large multi-national corporation for the past 15 years

PAUL has been a senior manager with a large multi-national corporation for the past 15 years. Based in Europe, he was vice president of one of its largest manufacturing subsidiaries. Just over a year ago his organisation began a major review of its worldwide operations. It decided to sell off its non-core subsidiaries and Paul's division was earmarked for sale.

"I had been working very closely with the CEO of our parent company building up our business in Europe and we had won a number of important new contracts," he says. "We were breaking into new markets very successfully and I was stunned when I heard the company was to be sold. The news literally came out of the blue, there had been no smoke signals to suggest that this was how they were thinking.

"It was very difficult to keep the show on the road knowing that the business was being sold and relationships became very strained. There was minimal communication about what was happening and when my people asked me should they stay or look for new jobs I had to advise them to go because I had no idea how things would work out," he says.

At the time of writing Paul is continuing to run the business as before. But his future is unclear. I have made numerous unsuccessful efforts to clarify my position," he says. "It has been my job to integrate our business into that of our new owners and that has been absorbing all my time. But when I let myself think about how things have worked out, I feel let down and disillusioned about the way in which the changes were handled."

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One of the main problems with organisational change is that it tends to run contrary to the needs of individuals. Organisations often need to change for reasons of economic viability. But for individuals a sense of security is essential. As a result there is often a strong conflict between an organisation's need for change and an individual's need for security.

This conflict becomes clear when changes are mooted and the way in which change is managed can be critical to the long-term success of an organisation.

If people are angry or frustrated about how change has been introduced they are unlikely to be feeling happy, positive or willing to continue giving of their best," says Dr David Coughlan who specialises in organisational behaviour and is based at Trinity College Dublin.

He also points out that the way in which change is introduced greatly influences the attitudes of those involved. Pushing changes through with a minimum of information can create unnecessary apprehension among employees while not setting enough time aside to allow people to react to proposed changes is likely to generate an equally negative reaction.

"The success or failure of efforts to implement change often come down to how things are presented," he says. "If change is seen as coercive then problems with motivation and good will are likely to follow. Where change is handled well, an organisation can be energised by the positive reaction of its employees. There is a tendency to see change as something negative. But it can also be a good opportunity for self reassessment.

According to Ruth Handy, senior management specialist with the IMI, "good communication is critical to the smooth introduction of change within an organisation.

"The doors need to be kept open at all times and people need to be kept well informed. It is better to suffer from information overload than from its opposite. People also need to be given some control over what is happening through participation and involvement in the change process. Otherwise they feel swamped and are unlikely to be willing or cooperative partners in the change process.

"At the outset, I think organisations need to be clear about why they are changing and what part the proposed changes will play in their overall vision," she continues.

"Change needs to be thought about and reasoned. It should not be something reactive. It also affects both those who go and those who stay. Those who stay may be perceived as having got the better deal but in reality they too suffer feelings of loss, isolation and often face an increased work load."

Olive Keogh

Olive Keogh

Olive Keogh is a contributor to The Irish Times specialising in business