Organisational Change Essay
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Organizational alter is also referred to as organizational alteration and it may involves organisational change in mission, introducing new technology, restructuring businesses, introducing fresh programmes, mergers, re-engineering and having new major aide. (Bridges 1991) Organizational improvements are directed at achieving a lot of set organizational goals and objectives which need to be a attained in a given time period. In many cases modifications in our organizational are provoked simply by some outside forces which include taking care of fresh markets, considerable cut in locating, need for increase in services and productivity and others.
There are many techniques that managers uses to introduce difference in the organization, many are planned, direct and organised while others are more unfolding, acted and organic and natural. Managers applies to the methods that will be supported by all the employees and those that will enable the corporation to maximize the money margin because they achieve the set goals and objectives in the set period of time.
Some approaches works through the future to the current where by the managers uses the organization’s vision to plan all the organizational actions aiming at reaching the vision when other strategies works from your present to the future which may contain pointing out the currents requirements of the goal clients and then making the required changes to achieving individuals needs. This is the best strategy since the consumers and other stakeholders are the central source of virtually any organization and in addition they determine the success of the virtually any business (Easterby 1999).
Identifying their needs can be a continuous physical exercise which should be accompanied by implementing the essential changes that may facilitate in satisfying the requirements hence building a good and strong consumer relationship that can lead to increased sales hence raising the Company profitability (Dent 1999). Aegon UK is a part of the AEGON Group which can be among the world’s largest life insurance and pension plan company. The company is the owner of several life insurance, retirement benefits, adviser and management businesses in the UK (Folger 1999).
The company has twenty-seven, 000 workers and an overall total of above 25 million customers around the world with it’s main markets being in Netherlands and the United States. Factors That Lead To Change One of the major burden for decision making is a obvious understanding of the working environment the place that the decisions built will be managed. (Brewster 2004) Proper comprehension of the working environment improves the choice making and it minimizes uncertainty.
In the UK where life expectancy has gone up in the past few years, people are expected to cease working for a much longer period of time hence the need to believe ahead and save intended for retirement, an idea that many people find challenging to comprehend. (Kotter 1979) A large number of people usually do not properly plan about their pension hence they will suffer throughout the old age simply because they do not be have enough money for survival and on the furthermore the government is additionally emphasizing in reduced habbit on the state in retirement years. This resulted to many insurance firms coming up with fresh cheap pension check schemes whom also highlighted on employee pension (Hultman 1995).
The Industry Aegon operates in the life span insurance and pension market which within the past few years a new poor reputation. Some organisations in the industry has become blamed of mis-selling where by they do not supply the customers quality products that satisfy their needs. (Johnston elizabeth 2004) The Financial Services Expert (FSA) introduced some polices in the industry which were aimed at keeping away from such circumstances from happening again in the foreseeable future. The industry has been facing intense competition where by AEGON is rivalling with other organisations that are recognized in the UK and they specialise in offering directly to the customers (Kirkman 2000).
The company normally distributes it’s services and products to customers through financial advisors. For AEGON to remain competitive it had to address all the problems that the industry was facing. Reasons For Modify Historically AEGON had been incredibly successful and profitable but some times again the government launched some rules that decreased the organisation’s profitability.
Comparing the company with it’s rivals, AEGON was not well known even though it had very good products and services and it also had good romantic relationship with the marketers. (Strebel 1996) For customers to have the confidence of investing in a long term product, they have to know more about the organisation they are about to invest with by learning more regarding the brands that are being proposed by the organisation and by comprehending the value of every brand. As AEGON presented different brands it was hard for the financial agents and the buyers to identify and understand the diverse depth and breadth of the brands.
Facilitators of Modify AEGON organization appointed a new (CEO) Chief Executive Officer who entered into the office with new approaches for the company as well as the first thing that he executed was to bring AEGON into a discovery period which could help him in achieving the goals he previously for AEGON. The CEO’s goal was to develop the very best long term personal savings and safeguard business in the united kingdom while the breakthrough phase was aimed at obtaining ways of achieving those desired goals. (Kegan 2001) Another factor that necessary consideration was the company’s brands and how they are often audited. The corporation was evaluated both inside and outwardly to find it’s position on the market.
The process of auditing was targeted at giving more information about the corporation which assisted AEGON to make more knowledgeable decisions that have been needed to start the process of change. Creating a Fresh Culture Culture refers to the attitude and the personality of your organization and it is also consists of the distributed values, tendencies and values of the workers and other stakeholders (Morgan 1997). It acts being a key part in the modify process as it dictates the way in which the business and the stakeholders solve concerns and makes decision.
By making a new culture, AEGON surely could provide services and products that were needed in the market hence they were capable to remain competitive. A Behavior Framework In order to support the new culture, AEGON came up with a behavior construction which was targeted at strengthening the rand name values.
It was designed in this sort of a way it could influence how all the employees inside the organisation could work and make decisions where by the behavior emphasized the values of AEGON. (Coetsee 1999) The organization also released a Administration Development Program which emphasised on 8-10 main behaviors which are, believe customer, adopt change, inspire excellence, work with honesty, decisive activities, work together, study and increase and finally associate and communicate (Piderit 2000). Implementing The Change The business has emphasised on the customer’s needs which usually determines the decisions, actions and it also informs actions.
The senior mangers keeps the customer’s needs at the heart of all operations in AEGON even though the other managers and professionals innovates with the needs from the customers at heart so that they come up with products and services that may satisfy the demands of the buyers. AEGON brand have been extensively promoted together with Scottish Fair or others are exchanged under that. Association with AEGON is definitely stronger whereby the Scottish Equitable is currently AEGON Scottish Equitable which will reflects the area knowledge as well as the global power. Currently every one of the brands has a new look that is common, different and rejuvenating.
Impacts Of The Changes Applying change in AEGON affected this both externally and in house. Internally the alterations influenced how a people socialized and disseminated while the organisational operations has become focused on satisfying the demands of the customers. Great emphasis has been about making details clearer so the customers could be in a position to be familiar with company well so that they can buy from them.
The corporation has intensively done exterior promotional advertisments and it includes managed to start new innovative products geared towards satisfying the customer’s demands. This alterations has worked very well for AEGON since the business has been in a position to maximise it’s profit. Currently AGEON brand is in a posture that it affects the finance in the industry. Issues The main problem that AEGON is facing is that the competition is growing in a very fast rate within an increasingly difficult market. It has forced the government to implement some polices to govern the sector.
To battle competition, AEGON should maintain two approach communication channel which should be open and they ought to emphasis on receiving feedback from all the stakeholders. This reviews is very important considering that the stakeholders can easily inform the organisation wherever they might be not on track and can even give some recommendations which can work very well intended for the company consequently being in front of the competitors leading to maximising the profit margins of the business. The stakeholders can also help the company in identifying the needs with the customers hence enabling the corporation to provide what is needed available in the market.
Also once there is available communication between management plus the employees it really is normally quite simple to prevent disputes since the personnel will be liberated to air all their grivances therefore cultivating a culture great working human relationships in AEGON which will also motivate the employees to job even harder thus allowing the company to appreciate the set goals and goals within the established time frame. Summary Organisational alter is continuous and the procedure for change is like a journey which will be encountered by exterior factors that may affect the procedures of the business. AEGON interact to the external factors was by clarifying, simplifying and strengthening it’s brand in the united kingdom.
As the organisation adjustments, it’s traditions and style of patterns develops the industry cycle which requires the company to use the ability it has to study from the experiences. This has enabled AEGON to move toward achieving their goals through realizing it is full potential while they will remain competitive in the market. Caring for the demands of the clients increases the revenue of the business since many consumers will be thinking about the products or perhaps services that are being provided by the business hence increasing sales which increases the earnings margin from the company.