The Member States of the European
Union as Divisions of an Organization
Ready for Change Management
Debra Zoller Fisher
University of Illinois at Urbana-Champaign
Abstract
The member states of the European Union can be compared with individual divisions of a large organization in need of change management to conform to the goals of the organization as a whole. How can these member states/divisions best be equipped to deal with changes whether top-down or initiated from within? Through change management, which leads to the development of learning organizations, which then comprise the very landscape most effectively utilized by organization development practitioners. This paper looks at the ways in which various theorists propose models of action that may align with the needs of the organization and its components. Practitioners of organizational development (and change management) will find useful information not only for the member states/divisions of the European Union but for managing the transformation of a division or an organization into a learning organization which can guide the development and implementation of successful change management initiatives.
Key words: European Union, change management.
Introduction
Change management has many definitions, most of which are situational. All encompass the concept that an organization (or specific divisions within an organization) needs to move from one way of being to another. Oftentimes, the movement is directed towards a specific goal and can be called anything from change management to re-engineering to right sizing and so on (Recklies, 2001; Walker, 2000; Wise, 2002; Worren, Ruddle, & Moore, 1999). Recent literature cites the need to understand change management as falling under the auspices of organizational development which sees change management as an open-ended, on-going process with no fixed beginning and end points (Mozenter, 2002).
The European Union is an artificial imposition of social, cultural, and governmental initiatives on a number of existing nation states (van Ham, 2000). These new initiatives have caused confusion and concern amongst the member states which have, among them, old allegiances as well as enemies who now must act alike under the new regime. This paper is a preliminary examination of how human resource development academicians and practitioners alike can assist those in the member states of the European Union through change-management principles of organizational development.
The European Union
The European Union (EU) is a political entity emerging and deciding on its own identity from a tortured and war-torn history to unite former enemies as well as allies under a single governmental body (Dunne, 1997). For our purposes, the EU discussed in this paper will be the one that exists from the signing of the Treaty of Maastricht in 1992 and prior to the official expansion towards Central and Eastern Europe. As of this writing, the member states of the European Union are Austria, Belgium, Denmark, Finland, France, Germany, Great Britain, Greece, Italy, Luxembourg, the Netherlands, Portugal, the Republic of Ireland, Spain, and Sweden. Of these, only three – Great Britain, Denmark, and Sweden – have chosen not to participate in the common currency of the European Union (the Euro - €).
It must be noted that the member states of the European Union often act like separate divisions within an organization, but their overall management theoretically lies within the public sector which means that some of the usual drivers of change (i.e., financial compensation) may not be available. The key stakeholders are the citizens of the member states straddling all societal levels from leadership through visiting workers and anyone else affected by the organization’s actions and activities. We examine the member states of the European Union from a liberal-intergovernmental view during an exciting and historically significant time as the Euro has just been put into place, bringing many of the EU countries into a common arena of interaction not yet united by language or cultural customs.
The Case for Change Management
Tsoukas and Chia (2002) address the need for organizations (and their participating divisions and members) to be prepared for surprises encountered in any change process. Change has been described as having seven parts: Shock and surprise, denial and refusal, rational understanding, emotional acceptance, exercise and learning, realization, and integration (Recklies, 2000). The bringing together of former enemies, the affluent with the economically disadvantaged, and/or immigrants with those born within the borders of a particular member state/division can cause major cultural shifts. Those member states, divisions, and/or citizens anticipating these changes (using change management principles) will not be caught unprepared and will not lose momentum on their journey towards full participation in the European Union.
At a time when many business organizations are moving towards flattening their hierarchies (Davis & Albright, 2000; Vacek, 1998) the relative flatness of this new European Union governmental model makes the comparison of the organizational needs of the European Union similar to those in many business organizations allowing us to use similar models of change management. The member states of the EU can be compared to individual business units (or even consultants belonging to a central organization mostly operating on their own but also working with one another) within an organization, responsible for their own inner workings, budget, polices, etc. while operating within the auspices of the larger organizational body (Ahls, 2001; McCormick, 2002). These individual member states must also rely on one another, as do many organizational divisions for trade (goods or services) and – perhaps – military protection. We also see this in cases of one member state “buying” the rights to produce more pollution from a member state not needing their full pollution allotment. The continuing evolution of the European Union governmental entities can bring new mandates to the member states (divisions) at any point in time. Many cite the myriad EU regulations as restricting, not encouraging trade amongst the member states much less with the rest of the world.
Change Management Through the Development of Learning Organizations
Polito and Watson (2002) convincingly make the case that change management and the development of organisms as learning organizations go hand-in-hand (see also Egan, 2002). Organizations are, as Schneider (2000) describes, living systems. As such, they are fluid and not easily directed. A learning organization can respond more quickly and effectively to inputs such as the imposition of a new governmental layer or development of a new culture as we are seeing amongst the member states/divisions of the European Union.
Learning Organizations as Vehicles for Change Management
Every citizen of the member states/divisions of the European Union – from pensioner to toddler – is touched by the dramatic shifts in political and cultural institutions accompanying the formation and stabilization of the EU. The advent of the admission of the Accession Countries finds EU member states/divisions needing to prepare for an influx of people who, while members of the same governmental citizenry, will function as expatriates for a period of time. Guest workers from Poland will soon find themselves full-fledged citizens of the member state in which they are now considered legal immigrants. For the first time in history, children born in Germany to non-German parents are no longer considered outsiders but are accorded the full rights and responsibilities of German citizenship.
Information about the EU is disseminated via television, radio, newspaper, and the Internet in attempts to reach all stakeholders and members of this new political entity. Whether by design or by default, the member states/divisions of the European Union have been forced to become learning organizations. It remains to be seen how effectively these learning organizations adapt to the changing needs of their constituents.
The Role of the Organizational Development Professional
Worren, Ruddle, & Moore (1999) describe the unique ability of organizational development (OD) professionals to adapt their interventions to meet emerging concerns and ability to respond to unpredictability. Whether hired as outside consultants or delivering services as members of an organization, OD professionals address not only the specific details of a situation but also the larger picture in which their services fit. Many OD professionals have added ‘change management’ to their tool-kit of skills.
In any learning organization, the OD professional can bring an arsenal of ideas and resources to the situation at hand. In the member states/divisions of the European Union, OD specialists can follow the guidelines set forth by Rafferty & Griffin (2001) and Senge (1999) who suggest looking at existing change management initiatives and deciding which ones are appropriate for the each unique situation. Is it enough, in Germany, to have shopkeepers post signs stating prices in both Dmarks and Euros so as to allay suspicion that merchants are profiting from the change-over to the new currency by rounding up the cost in Dmarks to the more generic Euros? How would this work in countries with a history of currency-value fluctuations such as Italy? The imposition of the EU as the larger governmental organization happens at the same time millions of European workers find themselves out of jobs for a variety of reasons (Bomeman & Fowler, 1997). The relaxation of political borders has led to an influx of new citizens in many large and small cities. This EU-wide policy of border relaxation has not made many of the member states happy.
Overt resistance to change can be seen most visibly through the three EU members who have chosen not to participate in the common currency (Great Britain, Denmark, and Sweden). Does refusal to join the common currency mean that they doubt the vision and initiatives of the European Union as a whole but seek to take advantage of the other focal points of the EU? Is there a time coming when these three will have parallel or entwined currency systems to enable ease of trade with other member states?
Conclusions and Implications for Human Resource Development Professionals
There are many opportunities for organizational development and change management professionals (academics as well as practitioners) throughout the European Union. Whether looking at the individual member states as divisions of a large whole or at a specific member state independently, many of the challenges and rewards will remain the same.
As the European Union struggles to grow, operate, and define itself, it is as difficult to conduct scholarly research as it is to pin down a moving target. For those interested in processes such as organizational development, this is the ideal environment for studying organizations in transition. For those interested in change management, however, the dearth of measurable objectives can be quite frustrating.
Stepping into this new world will take change agents from an area of control to an arena in which they are operating under the same conditions as those affected by change. For those comfortable with ambiguity and uncertainty, who operate from an internal locus of control, and have a real interest in the success of the organization as a whole the world is at their feet (quite literally) for the European Union will not stop growing with the admission of the Accession Countries; it has already formed strategic alliances with some of the countries of Africa and Asia (McCormick, 2002).
The success of change management and organizational development in the European Union will alter how global business is conducted, leaving those who are based in the rest of the world to adapt their practices to come into alignment with those of this new, large customer. Either way the European Union is a heavy stone causing the ripples in the pond of international business as we know it.
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