Srđan Čečarić
It is crucial for organizations to adapt to rapid market shifts, globalization, and technological advancements. The success of change depends on effective leadership, clear communication from managers, and active employee involvement in the process...
Srđan Čečarić
Chief Financial Officer
We live in a rapidly changing world due to the fast-paced development of markets, globalization, technological advancements, and the evolution of information systems. Change management is a crucial aspect of leadership, consisting of various processes guiding individuals and teams through organizational transitions. It goes beyond structural changes, focusing primarily on managing human resources and the reactions that accompany change. The foundation of this approach is the belief that employees are the most valuable asset an organization has—specifically, the knowledge they possess. People are the most critical resource; social connections and capital transcend national borders. This characteristic defines the new economy and offers an opportunity for workforce diversification.
Implementing change is a privilege of managers within organizations. The success of any change depends on how well a manager can lead, communicate, and motivate the team. Therefore, today, I will discuss how a manager influences implementing changes within an organization.
A manager's role is to create a culture of interpersonal relationships where employees feel dedicated and motivated to grow in every sense of the word, ensuring that their progress aligns with the organization's growth and development and personal advancement. In simple terms, it's essential to inspire passion for the job, not just to have hands and minds working during scheduled hours.
The success of organizational change largely depends on the leadership style and vision of the manager. A clear vision and effective communication can motivate team members toward shared goals. A well-communicated vision aligns the team's efforts and reduces resistance to change. Conversely, poor communication and lack of clarity can lead to misunderstandings and resistance.
Every successful change begins with communication. The manager must explain why the change is important, who will benefit from it, and what it aims to achieve. Most importantly, the concerns of the team must be heard. Poor communication can lead to distrust and rejection, while clear communication builds Trust and acceptance.
Involving employees in the change process is key to its success. When employees are allowed to make decisions and offer suggestions, they feel motivated and connected to the changes. Empowered in this way, employees will support any manager who utilizes all relevant resources to ease the transition and achieve the best results.
Effective management plays a significant role in ensuring the success of the change process. This includes identifying the need for change, strategizing, and implementing it. Afterward, the manager should introduce the necessary changes with minimal disruption to business operations. Proper management can significantly reduce risks and enhance the effectiveness of change outcomes.
Change management in any organization largely rests on the manager: their leadership style, communication skills, and ability to engage employees, combined with knowledge of how to manage change effectively. In this regard, owners and managers often cause crises due to over-ambition, the desire for rapid growth, diversification of business activities, or acquiring companies with poor characteristics. To avoid organizational decline, change must be approached thoughtfully and promptly.
Changes involving the transition from an entrepreneurial to a managerial organization are particularly sensitive and challenging. These changes often come late, usually when procurement, sales, logistics, finance, and human resources functions overlap, and planning is neglected. At the same time, due to a lack of sufficient financial resources, project profitability is not analyzed, and all jobs are accepted with the primary goal of securing funding, without calculating costs, depreciation, travel expenses, phone bills, and other factors.
To avoid creating a system that is difficult to reorganize, it is crucial to establish processes, procedures, and an adequate corporate culture built on the Trust of all team members. Trust and synergy among all employees are prerequisites for success.
The success of an organization depends primarily on knowledge, shared goals among owners, managers, and employees, and their mutual Trust and synergy. Decisions regarding the organization's nature and type of changes should be made "democratically but executed dictatorially."