Professional Documents
Culture Documents
IMPORTANCE OF COMMUNICATION
DISSERTATION SUBMITTED BY
Student Name
Submitted to:
Supervisor Name
DecS 401 Business Research
University Name
Hertfordshire University
Abstract
The present study examines the theory and practice of change management in the
SMEs of the UK and looks at the role played by the communication in change
management in SMEs by reviewing scholarly literature on the subject and by
conducting secondary research case studies on two important SMEs from the ITindustry of the UK, namely Softcat and ANS group plc. These two SMEs are at the
top in the list of The Sunday Times top 100 SMEs to work for. The secondary data
published on the two SMEs was selected on the basis of its relevance with the
subject and was analysed using generic inductive analysis. The analysis of the
secondary data on Softcat and ANS Group confirmed the importance of change
management in SMEs as was found in the literature on the subject. It was also
found that communication can play a significant role in employee engagement,
strategy implementation and consequently in change management. The study also
produced some other important findings regarding the SMEs of the UK and made
important recommendation for the SMEs as well as for the future studies on the
subject.
Keywords: Small and Medium Sized Enterprises, Change management,
Communication in change management, ANS Group, Softcat.
Table of Content
Abstract.......................................................................................................2
Chapter 1: INTRODUCTION.............................................................................5
1.1. Study Background................................................................................5
1.2. Research Statement.............................................................................7
1.3. Research Questions:.............................................................................7
1.4. Study Rationale....................................................................................7
1.5. Research Methodology..........................................................................8
Chapter 2: LITERATURE REVIEW......................................................................9
2.1. Introduction........................................................................................9
2.2. Change Management............................................................................9
2.2.1. What is Change Management............................................................9
2.2.3. Importance of Change Management.................................................13
2.3. Change Management in SMEs...............................................................14
2.3.1. The culture of change in SMEs.........................................................14
2.3.2. How to manage change in SMEs.......................................................16
2.4. Communication in Change Management.................................................17
Chapter 3: RESEARCH METHODS...................................................................19
3.1. Introduction.......................................................................................19
3.2. Research Method................................................................................19
3.3. Research Strategy..............................................................................20
3.4. Introduction to case studies.................................................................22
3.4.1. Softcat.........................................................................................22
3.4.2. ANS Group....................................................................................24
Chapter 1: INTRODUCTION
Winch and McDonald (1999) were very right in their assentation that SMEs,
thoughimportant contributors of GDP, often lack the managerial skills needed to
improve the competitive advantage of a firm (Tilley and Tonge, 2003). However, it
seems untrue that their experience of change is limited as compared to larger
firms. As they are less formal, they have less structural resistance to change and
therefore they are expected to be more agile (Macri, Tagliaventi, & Bertolotti,
2002). Nevertheless, it is important for them to use these changes for improving
the competitive advantage and this is the area where the problem lies. Due to lack
of managerial and technological skills, they often fail to properly plan and
implement changes in the organization (Tilley & Tonge, 2003). In simple words,
SMEs welcomes changes but fails to manage them.
Change management is SMEs is not a very new phenomenon and a number
of studies have been conducted on it in past few years (e.g. Winch & McDonald,
1999; Raymond, et al., 2009). Studies have outlined the hurdles faced by SMEs in
the implementation of change management programmes (Macri, Tagliaventi, &
Bertolotti, 2002; Panizzolo, 1998) and have suggested the methods to deal with
these hurdles (Winch & McDonald, 1999). Several studies have also been conducted
on the appropriate approaches and methods of change management for SMEs (e.g.
McAdam, Stevenson & Armstong, 2000; Raymond et al. 2009). However, no study
was found to particularly investigate the importance of communication in the
implementation of change management in SMEs.
In 2006, McKinsey conducted a global survey, in which executives from all
over the world were asked to access a transformation they had been involved in
(Vinson, Pung, & Gonzlez-Blanch, 2006). The purpose of the survey was to provide
an insight into the change management practices. The results of the survey
revealed that communication is the key to the success of any transformation within
the organization and is an important part of change management (Vinson, Pung, &
Gonzlez-Blanch,
2006).
The
importance
of
communication
for
change
management has also been acknowledged by other experts in the field like Lautner
(1999), Kitchen & Daly (2002), and Proctor & Doukakis (2003).
The purpose of the current study is to examine the theory and practices of
change
management
in
SMEs
and
to
look
at
the
emphasis
given
to
for
decades.
Managers
and
scholars
have
acknowledged
the
2.
3.
business environment?
How is change management being practiced in the SMEs of the UK?
Is communication an essential tool for effective change management in
4.
SMEs?
To what extent, do SMEs of the UK use communication in change
management practices?
2.1. Introduction
The aim of the present study is to examine the theory and practice of change
management in SMEs and to look at the importance given to the communication as
a change management tool in these organizations. To achieve this purpose, the
researcher critically reviewed the relevant scholarly literature on the subject. The
chapter presents that literature review which assisted the researcher in conceptual
and theoretical understanding of the subject together with setting the direction of
the study in line with the direction provided in the previous studies.
The
chapter
begins
with
the
conceptual
understanding
of
change
management
encompasses
strategies
to
implement
changes
Strategy
Rational-Empirical
Focus
The change strategy is based on
appealing to human self-interest through
offering incentives.
Normative-Reeducative
This strategy has the tenet that people
tend to adhere to social and cultural
normalities, and therefore if these are
re-defined, commitment to the new
values can be achieved through
communication and education
Power-Coercive
Here, the approach accepts that people
will do as they are told, so the change
strategy is based on the exercise of
authority with, where necessary, the
imposition of penalties for failure to
comply.
Environmental-Adaptive
People are adaptable. This approach is
based on a gradual transference from an
old environment/organisation to a new
one.
Table 2.1: Strategies to change management and their focus (Mackenzie-Robb,
2004, p. 8)
Lorenzi (2005) introduced a five-stage model for the process of change
management. He had tested the model with Mantel and Riley in another study and
found the model to be efficient in dealing with resistance to technological change
(Lorenzi, Mantel, & Riley, 1990). The first stage of the model is assessment which
ideally begins prior to the implementation of change. This stage is completed in two
steps; in the first step all the peoples who are expected to get affected from the
change are informed, in writing, about the impending change followed by the
second step of collecting relevant and reliable information from the involved people.
The next phase is named as Feedback and Options during which a manger
analyses, integrates and organised the collected information so that the collected
information can be presented to decision makers. The phase is important to have
the understanding of the current scenario and the vision held by staff. The staffs
vision can be used to review the vision of an organization which can help in
strategic planning and implementation process (Lorenzi, 2005).
from
an
organizational
perspective.
The
fourth
stage
of
change
determining the need of change while the design stage looks at the desire of the
staff to bring the change. The next stage so knowledge is concerned with
determining the strategies and programs to change followed by the stage of ability
resistance to change, most often coming from the people within the organizations
(Turbit, 2000).
Hiam (1997) claimed that organizations that have the ability to implement
better changes in lesser period of time can easily gain competitive advantage.
However he also pointed out that the faster and better implementation and
management of change is not a simple task and is one of the most challenging jobs
of management.
2.3. Change Management in SMEs
2.3.1. The culture of change in SMEs
Organizational change has been a popular topic of management studies since
the twentieth century (Raukko, 2009). It is a broad area of research and a number
of studies have been conducted on this subject in the last century (Lewin, 1947;
McNulty, 1962; Zeffane, 1996). A bulk of literature is also published on the
organizational changes in SMEs, though the interest in this area of research is quite
recent (Wiesner, Banham & Poole, 2004). Here, the purpose of the review of this
literature is to examine the trend of organizational change in SMEs in past few
years and to look at the hurdles faced by SMEs in implementing such change.
Palmer and Andrews (1997) has called SMEs the fastest growing section of
business population which is evident from the fact that in 1996, there were 3.7
million SMEs in the UK (Department of Trade and Industry, 1996) and in 2009, the
figure raised to 4.9 million (Department for Business Innovation and Skills, 2009).
Their contributed to the economy of the UK is a well-documented fact (Ghobadian
and Gallear, 1996). Therefore, their economic survival is critically important for the
economic development of the country and for this, they need to change themselves
with the changes in industry and market (McAdam, Stevenson & Armstrong, 2000).
Like larger organizations of the country, SMEs are also working in the
dynamic environment and are trying to change themselves with the changes in the
business environment. Important organizational changes in the SMEs, as identified
by the previous studies, are merger and acquisition (Raukko, 2009);web presence
(Fernando & Guy, 2005); e-procurement (Meehan & Muir, 2008); and extended
suggested five key elements that should be part of the message communicated to
employees by change mangers. These are explaining the gap between current and
desired state of organisation; justifying the appropriateness of the change in
bridging the gap; expressing the confidence on organizations capability to
successfully implement the desired change; demonstrating the seriousness of the
management in implementing the desired change; and showing the personal
benefit an employee can gain from the implementation of desired change.
The importance of communication is well illustrated in the Lorenzis model of
change management which is the theoretical model of the present study. From
assessment till re-assessment the importance of communication cannot be
overlooked. In the first stage, the model asks for informing the involved people
about the impending change as well as collecting information from them through
communication. This communication is important as it enhances the mangers
understanding of current situation in the second phase of change management
process. In the third phase the manger communicate with decision makers and in
the last phase the manger again communicate with the involved people to get
information regarding the acceptance and sustainability of change (Lorenzi, 2005).
In SMEs the flow of communication is easier and more effective due to their
simple structure and smaller size (Banham, 2006). This can help managers in
effective management of change. In SMEs managers often follow the traditional
managerial techniques with lesser involvement of people in change process. In the
recent changing environment such traditional managerial techniques are inefficient
and managers of SME ought to act as leader and should pay attention to the
interpersonal dimensions of management (Goleman, 1998).
3.1. Introduction
This chapter is on the research methods of the present study which include
the details of the paradigm, approach, method, strategy and instrument selected
for the research study together with the justification to select them. Selection of
appropriate research methods is very important because it decides the quality of
study findings. Experts in the field are of the opinion that the selection should be
made with consideration to aim of the study, research questions and available
resources (Easterby-Smith, Thorpe, & Lowe, 2002). In the present study, all the
factors have been given proper consideration.
The chapter begins from the explanation of the difference between
qualitative and quantitative research methods along with the reason for selecting
qualitative research method for the present study. It is followed by the detailed
description of case study as the research strategy of present study. Then, the
chapter provides details of data collection procedure including the sources and the
nature of collected data. The chapter ends at the explanation of how the collected
data was analysed. Each section contains detailed information which is expected to
be useful for future studies on the subject.
3.2. Research Method
Decision regarding the selection of research instrument, the nature of
collected data and the analysis of collection are based on the research method used
in a study. For the purpose of the present study, qualitative research method has
been selected because it supports in-depth enquiry of the research problem and
allows collection of data derived from human perception and opinions (EasterbySmith, Thorpe and Lowe, 2002). In qualitative studies, data is collected through
instruments like interviews, focus group discussions, and observation which take
time but allow detailed understanding of reported information as well as the context
of the information (Amaratunga et al., 2002).
Qualitative research is more suitable for the present study because the
research questions which the study seeks to answer requires detailed enquiry of
the SMEs of the UK. The researcher wanted to look at both the structural and
behavioural changes implemented in the selected SMEs and the how the
implemented changes are being managed. The study also required the analysis of
the use of communication in the selected organizations. Phenomenological
paradigm and inductive research approach also favours the use of qualitative
research methods (Amaratunga et al., 2002)
3.3. Research Strategy
Research strategy is the element through which data is collected in a study.
Keeping in view the research paradigm and method of the present study which
clearly favours exploratory research and research purpose which asks for the
contextual understanding of behavioural and structural change process in a SME,
the researcher has decided to adopt case study research strategy. As described by
Saunders, Lewis and Thornhill (2009), case study involves in-depth investigation of
a particular phenomenon in its real life context. Blaxter, Hughes, and Tight (2002)
suggested that case study ought to be used in the study where the phenomenon
under-study is closely linked with the context in which it occurs. Since a number of
external and internal forces influence the change management process in an
organization, case study approach is the most suitable approach for studies on
change management. In addition, majority of the studies reviewed during the
literature review has used the case study strategy which underpins the selection of
this strategy (e.g. Palmer & Andrews, 1997; Brca, Fynes, & Marshall, 2005;
Raukko, 2009) for the present research.
Despite the strengths of case study which make is suitable for the present
research, it ought to be noted that some issues inherent in the case study strategy
has raised the mind of some scholars to question its credibility. Bryman (2001), for
instance, questions the role of human objectivity in such studies when selecting
evidence to support or refute, or when choosing a particular explanation for the
evidence found, a fact. One of the implications of this influence is that content
analysis will often be invoked to convert qualitative data into quantitative, which
can lead to losing the uniqueness and contextuality of the case being studied.
However, phenomenological paradigm used in the present study assisted the
researcher in dealing with this problem by allowing the researcher to be more
focussed on the contextual exploration of the phenomenon under study instead of
trying to separate itself from the subject being observed for the sake of objectivity
(Saunders, Lewis, & Thornhill, 2009).
More so, Collis and Hussey (2003) noted that case studies are time
consuming and result in a massive deluge of information which most often is
impossible to be analysed, thereby increasing the tendency to selectivity and
biasness. Nevertheless, it is important to note that considering the nature of the
research under enquiry and the research philosophy adopted, there is no or less
doubt that case study strategy amidst other research strategies stands more
appropriate in shedding light to the issue under investigation. It allows in-depth
understanding and can provide anecdotal evidence which can be generalised using
inductive approach (Saunders, Lewis, & Thorhill, 2009).
While adopting the case study strategy for the present study, the researcher
has two purposes in his mind. The first purpose of using case study, as described
above, was to thoroughly analyse the change management process as practiced in
the SMEs of the UK and to understand the value given to communication in these
organizations. However, the researcher was also interested in examining how
change in the degree of importance given to communication can impact the change
management process in an organization. This purpose can only be achieved either
by longitudinal case study of a single SME before and after the use of
communication as change management tool or by cross sectional case study of two
or more organizations with different approach toward communication and change
management. The researcher chose the second option. However, for avoiding the
collection of massive deluge of information, as identified by Collis and Hussey
(2003) as an important weakness of case study strategy, the researcher conducted
a cross-sectional case study on two SMEs only.
The unit of analysis in this case study is the organization i.e. the two selected
SMEs from the IT industry of the UK. These two SMEs are among the Sunday times
top 100 SMEs of the UK and are the top most SMEs of IT-industry of the country
(The Sunday Times, 2010). The first SME Softcat is a privately-owned SME
working in IT-solution sector (Softcat, n.d., who we are). According to the
information placed in its website, it currently employees over 300 people and cares
passionately about the satisfaction of these employees (Softcat, n.d., who we
are). The second SME ANS Group is at 9 th rank in the list of top 100 SME and at
2nd rank in the list of SMEs from IT-industry (The Sunday Times, 2010). It is located
in two important cities of UK: Manchester and London and has 120 employees (ANS
Group, 2011). Both companies are quite new, the former was established in 1993
and the latter in 1997. They are providing almost similar IT-services Softcat is the
provider of software licensing, hardware and security while ANS group claims to
offers services related to infrastructure 3.0; networking and security and unified
comms and collaboration.These similarities in the two companies make them a
good choice for comparison in the present study.
The researcher will collect secondary data published on these organization
and will analyse the collected data deductively to examine how the change
management is being conducted in these two organizations and what role is played
by communication in this regard. The findings obtained from the two organizations
will be compared and contrasted with each other to provide a more general output.
3.4. Introduction to case studies
Two SMEs were selected for the present case study. The reason for using
two case studies instead of one has already been discussed. Here, the detailed
introduction of the two SMEs will be provided to justify the selection of Softcat and
ANS Group for the present study. This introduction can also aid in understanding
the context in which the two organization functions which can facilitate in
associating the change management process and the role of communication in the
two organization with the background information about the two SMEs. Such a
contextual based learning is very important requirement of qualitative analysis.
3.4.1. Softcat
Softcat was founded in 1993 by Peter Kelly who is still the chairmen and the
major shareholder of the company (Softcat, n.d. a). Besides, some 90 employees
out of the total 300 employees of the company are shareholder or option holder of
the company (Softcat, n.d. b). The company claimed to have strong financial
position with turnover in excess of 146 million in 2010 (Softcat, n.d. a). The graph
below presents the revenue growth of the company from the financial year 2001-02
to 2009-10 which clearly shows the consistent progress of the company since its
inception (Softcat, n.d., b).
Software
Asset
Management
(Softcat,
n.d.
d).
The
hardware
Infrastructure 3.0
increased from 12.1 million in 2009 to 13.3 million in 2010 (Malthouse, 2010).
The company has recently announced the opening of 20 jobs across (ANS Group to
create 20 jobs, 2011) and has found to have a plan of growing the size of their
organization even further (Malthouse, 2010).
The company was at the 9th place in the Sunday Times top 100 SMEs to work
for and at the 2 nd position in the SMEs related to IT-industry (The Sunday Times,
2010a). The company claimed to respect the corporate social responsibility and has
the policy to make the environment clean through recycling and reducing carbon
footprint as well as to prove education, job opportunities and sponsorship for young
local people (ANS Group, 2010b).
The
company
acknowledged
the
value
of
change
and
has
recently
implemented two new changes: one in its communication structure and the other in
its investment policy (Gee, 2009; Malthouse 2010). The company has been found
to acknowledge the importance of placing a well-planned change management
process before making any change in the change in the enterprise (Gee, 2009).
This acknowledgement makes the company a suitable choice for current study as
the purpose of the current study is to look at the process of change management as
practiced in SMEs of the UK.
3.5. Research Instrument Secondary Data
Research instrument is the tool or technique used in a research to collect
data and is considered as very fundamental in research process (Saunders, Lewis,
& Thornhill, 2009). The research instrument select in a study ought to support the
research aim and should be based on the pre-selected research paradigm and
methods. In the present study, the aim as well as the paradigm and method of the
research asks for the selection of an instrument that can collect adequate data
related to the structure and function of selected organization using organizations as
unit of analysis. Thus, the study requires detailed inquiry of all forces working
inside and outside the SMEs to support or hinder the change process as well as the
importance given to communication by these organizations. Such a detailed enquiry
was only possible through the secondary research. Though primary research
instruments like interview and focus group discussion can provide in-depth enquiry
of the problem it can deviate the unit of analysis from organization to individual.
Furthermore, it was very difficult to get access to relevant information through
primary research instruments.
Another reason for using secondary data as research instrument, instead of
using any primary research instrument, is that the researcher cannot access the
managers of the two selected SMEs. If the researcher could access those managers,
the researcher would conduct both primary and secondary research on the subject
and will use the findings obtained from the primary and secondary research to
complement each other.
The secondary data used as the instrument in the present study include the
publications of the two selected organizations as well as the information placed in
their official website. Furthermore, news articles published in the popular
newspapers and magazines of UK will also be analysed.
3.6. Data Collection
The data needed for the present study was collected in two steps. First, the
researcher collected the scholarly data on the subject understudy for theoretical
understanding of change management and the role played by communication in the
change management of SMEs. It was followed by a subsequent collection of
secondary data on Softcat and ANS Group to examine the practice of change
management and communication in the SMEs of the UK. The main source of data
collection was internet, however, the researcher also taken help from the libraries
providing printed literature on the subject.
For the first phase of data collection, the researcher registered himself in
important databases of management studies like Emerald and Ebsco Host. The
research articles were usually taken from the renowned journals of management
and SMEs like Journal of Managerial Issues, The Journal of Enterprise Information,
the basis of the dominance of the themes in the secondary data and on the basis of
the information obtained from the literature review.
4.1. Introduction
The chapter presents the findings of the secondary case study research
conducted on Softcat and ANS Group two important SMEs from IT-industry of the
UK. The chapter begins with the presentationof the key and core categories
obtained from close reading of the collected text published on Softcat. The
researcher read the text in detail and after getting familiar with the content,
identified and defined the key categories. The general categories were derived from
the research questions while the specific categories were derived from the multiple
reading of text. All the key categories are shown and explained in this chapter
followed by the presentation of core categories which are the categories obtained
from refinement of the key categories. These core categories provides the answers
to research questions as well as some new information on the subject on which
future studies can be conducted. The key and core categories of two case studies
have been shown separately and the core categories for the two have been
compared keeping in consideration their contextual information to obtain final
context-specific findings. Finally, the chapter ends with the discussion of the
findings obtained from the present research.
4.2. Study Findings
A large number of webpages, publications and news articles were collected
for the analysis out of which the researcher selected the ones relevant to the
subject under study. Details of the secondary data reviewed for the present
research is shown in appendix (For details of the secondary data on Softcat see
Appendix A and for details of secondary data on ANS Group see Appendix B). The
selected secondary data for both organizations was closely read and categorised.
Further refining of the key categories led to the formation of core categories. The
obtained categories as well as the comparison of the categories for the two case
studies are provided below.
The me, me, me mentality that traditionally typifies sales jobs, where
prima donnas win the day and the commission is conspicuously
absent at Softcat. Here it is all about the team (The Sunday Times,
2010b).
Another change implemented by the company is that the companys
chairperson did not follow the common practice of SMEs in the UK of ownermanagers dominance. Instead, he chose to act as a leader, took responsibility of
the decision but allows the companys staff to being part of the decisions making:
Kelly by his own admission a "weird and eccentric entrepreneur"
entrenched a democratic ethic at the company's outset. While running
the 17th mile of a marathon and pondering how to organise his newly
expanding workforce, he had a light bulb moment: let them decide
which team to join, rather than tell them where to go. It worked. And
ever since, staff have had a vote on company-wide decisions. (Softcat,
n.d. g)
The core category of change clearly shows that the company not only
recognises the importance of change in the current rapidly changing environment
but has also implemented a number of changes and will welcome the changes in
future.
The second category of change management provides answers to the second
research questions. It explains in detail how change is being managed in Softcat.
The key categories provide an insight to the important steps and processes involved
in change management, as practiced by Softcat. The first key category taking
input from employee before implementing change refers to an important step of
change management practiced by Softcat. While implementing a new practice of
doing social work in Fiji in place of giving bonuses to staff members, the company
asks the staff to choose the way they prefer:
However, not all of the hard-working sales force was keen on the idea
of giving up their annual reward in return for hard labour.
Were a democratic company so we put it to the vote and it was a
very close call, admits Kelly (Kelly, 2008, p. 18).
Core Categories
Change
Change
management
Importance of
communication
Practice of
communication
Employee
Engagement
Employee
satisfaction and
loyality
Key categories
Technological innovation
welcoming new ideas
Moving away from traditional practice
Taking input from employee before implementing
change
Recognising the hurdles faced in change management
Considering employees preferences in strategy making
Sustaining successful changes
Focus on culture
Owners determination to change
Dominant and centralised leadership
Taking risk
Communication for engaging employee
Communication for achieving desired goals
Understanding through communicating
Regular communication with staff
Open face to face communication
Communication through Email and blogging
Communication at all levels of organization
Informing staff about companys business performance
Orientation
Communication between the management
Communicating companys goal and objectives
Communicating companys strategies
Providing needed help
Absence of a formal employee engagement programme
Engaging employees through communication
Informal engagement with staff
Involving employees in decision making
Making employee enjoy working in the company
Making employee love the company
Employee motivation
Incentive trips
Dedication/Passion
Recognising employees efforts
Customer
satisfaction
The paragraph shown above was also coded with the fifth key category
because it shows the Owners determination to change. A lot of secondary data
was coded wit this category as there is greater focus on Kellys personality and
efforts to create an innovative and unique company. The sixth key category in this
core category is much linked with the fifth one as it indicates the companys
centralised
and
dominated
leadership
which
plays
significant
role
in
lacks
proper
employee
engagement
programme
yet
it
uses
to build a loving relationship with the company. The company also acknowledges
the importance of employee motivation and gives attractive incentives to the
deserved employees. One important incentive given to the sales staff is incentive
trip. One such trip has been made and the company is planning to arrange another
trip in coming years. The companys is focussed on improving dedication and
passion in the employees and for this it formally recognises the efforts by the staff
while talking about the success of the company.
Regarding customer satisfaction, the company policy is to provide unique
services to their customers as they products remains the same. The uniqueness in
the services is brought about by providing the services to the customers in least
possible time and through as many modes as possible. The company tries to make
long-term relationship with the customer a key strategy to gain competitive
advantage. The company believe that to satisfy customer, a company should satisfy
its employees which in turn will satisfy the customers. Another important strategy
of company with regard to customer satisfaction is to revise and evolve the
technology in accordance to evolving needs of customer.
4.2.2. Key and Core Categories of ANS Group
The key and core categories obtained from the inductive analysis of selected
publications is provided as follows
Core Categories
Change
Change Management
Practice of
communication
Knowledge
management
Employees incentives
Key Categories
Introducing latest product
Acknowledging the change in IT-industry
Addition of new staff
Unified communication and collaboration
Implementing new technology
Centralised and dominated management
Taking input from the employees
Secure communication
Informal communication
Use of technology for communication
Recognising importance of knowledge management
Knowledge management through IT network
Acknowledging employees efforts
Offering rewards
Offering special incentives on important occasions
Despite the dominant leadership, one sentence was found to show that the
company recognising the importance of taking input from the change. This sentence
is published by The Sunday Times on the companys staff belief that the companys
did acknowledge their opinions and views while making decisions:
They [employees] feel that these people [managers] listen rather than just
tell them what to do (The Sunday Times, 2010c)
The third core category practice of communication is related to the fourth
research question on the use of communication in the company for change
management. The company assets that the internal and external communication of
and organization should be secure. However, the company also arrange some semiofficial gatherings for informal communication between staff and management.
Finally, the last key category in this core category includes text on the use of
technological systems for internal communication in the company. Being an
communication service provided, the company prefer technological communication
on the personal face to face communication.
ANS takes advantage of new technologies to communicate with staff, with its
own Twitter account and a regular "latest and greatest" email update from
the marketing team (The Sunday Times, 2010c).
The two core categories of knowledge management and employees
incentive do not provide any particular information regarding subject under study
but provides valuable information on the current practices in SMEs of the UK and
cannot be neglected.
4.2.3. Comparison of Core Categories
The core categories of the two companies have many similarities and
differences. The core categories of change, change management, and practice
of communication are common and are related to the subject understudy. The
secondary data on ANS Group provides no information regarding the importance of
communication on which secondary data on Softcat provides detailed information.
The secondary data on Softcat was focused on employee engagement, employee
satisfaction and loyalty and customer satisfaction. By contrast the secondary data
on the ANS Group was neither focussed on employees nor customers but on
knowledge and incentives offered by the company.
With regard to change, both Softcat and ANS Group recognised the
importance of technological changes with the company and in the market. However,
in case of Softcat, cultural change has been given considerable importance which
was not present in the case of ANS Group. Furthermore, Softcat rejected a number
oftraditional practices still in use in ANS Group plc. For instance, in Softcat the staff
takes part in decision making except the strategic decision making which is the
responsibility
of
management.
Nevertheless,
ANS
Group
plc.has
not
yet
implemented the democratic ethic of Softcat and in this company major decisions
are made by the board with consideration to the input received from the
employees.
The change management process is also explicitly mentioned in the
secondary data of Softcat while there are only few references to change
management in the secondary data on ANS Group. Softcats process of change
management is very similar to the Lorenzis model of change management with
proper time given to assessment and re-assessment of the implemented changes.
The company learns from every new change by recognising the hurdles faced in
implementation of change. The only common key category related to practice of
change management in the two companies is the dominance and centralisation of
management in the companies. However, in case of Softcat, the management has
decided to change its role from management to leadership because of which the
company has dominant and centralised leadership rather management. The
chairman of the company serves as an inspiration for the employees which aid in
the creation of culture of change in the Softcat.
The two companies also differ in their practices of communication. Softcat
seemed more inclined toward face to face open communication with little emphasis
on the role of technology for facilitating communication. On the other hand, ANS
Group plc. is focussed on secure communicating through social networking sites,
emailing and other IT-based communication tools.
These differences in the company may arise out of the differences in the
involvement of employees in the business. In Softcat, many employees are
shareholder or option holder which makes their involvement more significant in the
company. The increased involvement of the employees in the companys business
can be the main reason behind the companys proper focus on change management
and communication.
In both companys data the importance of communication and practice of
communication did not contain any key category related to change management
which shows that both company has not yet explicitly accepted the importance of
communication for change management. However, in case of Softcat, practices of
change management involve regular communication at all level of organizations.
4.3. Discussion
The present study was set out with the aim of finding the theory and practice
of change management in the SMEs of the UK. The researcher first concern was to
know the importance given to change management in SMEs. The literature shows
that in theory, the importance of change management for SMEs is well recognised
(Coetsee & Visagie, 1994; Gray, 2002; Guido, Gail, Nancy & Pierluigi, 2010). The
secondary research showed that though change management is being practiced in
the selected SMEs of the UK, the companies do not give verbal recognition to the
importance of change management.
However, Softcat is found to give importance to the change management
through cultural change together with technological change. The practices of Softcat
are in concordance to what is being recommended by Chan and Swatman (2003)
for successful change management. As discussed in the chapter 2, Chan and
Swatman (2003) held that the successful implementation of change is not possible
without developing change-accepting-culture in SMEs. The high level of employee
satisfaction despite continuous changes in the Softcat is evident of the success of
Softcat in building a culture of change in the organization.
The second research question was based on the practice of change
management in the SMEs of the UK. On this subject, considerable information is
obtained from the present secondary research. The study found that the SMEs with
democratic culture have a proper change management process in which input is
taken from the employees before implementing any decision. The employees take
part in the change process and the company is often successful in implementing
and sustaining changes. On the other hand the SMEs with the traditional centralised
and dominant management often manage changes with little involvement of
employees. In the companies where employee engagement in change management
process is higher has higher employee satisfaction, as evident from the results of
survey conducted by The Sunday Times (2010a).
These findings of the study are in concordance with what has been reported
in the literature on change management. Goleman (1998) has reported that many
SMEs in the UK are still practicing the traditional managerial techniques with lesser
involvement of people in change process. However, he also suggested that
managers of SME ought to act as leader and should pay attention to the
interpersonal dimensions of management. This leadership role and focus on
interpersonal dimension of management has been found to be practiced by Softcat.
The success of the Softcat clearly shows the importance of employee involvement in
change process for the success of an SME.
No particular secondary data was found on the importance of communication
in change management in both SMEs. In theory communication has been
regarded as an essential tool to change management (Armenakis, Harris, & Field,
1999) but in practice there is little emphasis on the use of communication as
change
management
tool.
However, the
data
revealed
the
importance
of
communication for employee engagement, for achieving desired goals and for
improving the understanding among the management and employees.
In the literature on change management, there is considerable focus on
cultural and behavioural change (Kulvisaechana, 2001; Lorenzi, 2005). Scholars
have claimed that for bringing such a behavioural change it is important to bridge
the gaps between employees and staff (Armenakis, Harris, & Field, 1999). Since
communication has been found to improve employee engagement and is found to
increase understanding between employees and management, it can indirectly
Chapter 5: CONCLUSION
5.1. Introduction
The aim of the present study is to find the theory and practice of change
management in the SMEs of the UK as well as to examine the role played by the
communication in the change management process. For this purpose, two SMEs
from the IT-industry of the UK have been selected as case studies and the
researcher analysed the secondary data published on them. The chapter presents
the conclusion derived from the general inductive analysis of secondary data
published on the two selected case study. Besides the description of conclusion, the
chapter also contains recommendation for the future studies on the subject and for
the SMEs of the UK. At the end of the chapter the limitations of the study has been
provided.
5.2. Conclusion
The analysis of the secondary data on Softcat and ANS Group resulted in the
creation of two types of core categories. Some of the core categories were directly
associated with the research questions while some were treated as the by-product
of the present study as they have no direct link with the subject understudy but are
important enough to be part of the study findings. Therefore, the conclusions
derived from the study findings are divided in two groups: major and minor
conclusions. Major conclusions were the conclusions related to the research
questions while the minor conclusion provide the important information with regard
to the SMEs of the UK but has no direct link with the subject understudy.
5.2.1. Major Conclusions
After
thorough
analysis
of
the
literature
published
on
the
change
management in SMEs and the secondary data on the Softcat and ANS Group two
important SMEs of the UK the researcher came to the conclusion that importance
of change management in the SMEs of the UK is not negligible. Both SMEs of the
UK were found to practice change management but they do not give verbal
recognition
to
the
importance
of
change
management.
Another
important
conclusion of the present study is with regard to the importance of changing culture
in the organization. The theory and the practice of Softcatis evident of the benefits
of changing the culture of the organization with the technological changes which are
common in the SMEs of the IT industry of the UK.
With regard to the practice of change management in the UK, the study
concludes that the SMEs of the UK differ significantly in the process of change
management. In some SMEs, the involvement of the employees in the process of
change management is much higher whereas in others the management plays the
main role in managing change. The study concludes that the SMEs having higher
involvement of employees in change management process have higher employee
satisfaction and are relatively more successful.
The importance of communication in the change management process if well
established in the theory but is not clearly manifested in the practice of the SMEs.
However, the findings showed the importance of communication for engaging
employees and for achieving goals and objectives which indirectly facilitate the
process of change management. The study found that there is lack of awareness
among the managers of the SMEs in the IT industry of the UK about the direct
association of communication with change management.
There are also significant differences in the way communication is being done
in the SMEs of the UK. Regarding these practices, the present study concludes that
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