Managing change in Vietnamese businesses 2021-2022

Facing the major impacts of the Covid -19 epidemic on the world economy in general and the Vietnamese economy in particular, has forced businesses to flexibly change methods and fields to survive and develop. It can be seen that the epidemic or the Government's social distancing policy is just one of the impacts, changes or risks that businesses will encounter in the process of maintaining operations.

So what will administrators need to do to overcome obstacles when there is change? Is managing change in business difficult or easy? Let's find out with FHC.

wp:table-of-contents-block/table-of-contents-block {“headers”:[{“level”:2,”content”:”Part 1: Concepts”,”text”:”Part 1: Concepts”,”link”:”part-1-concepts”},{“level”:3,”content”:”\u003cstrong\u003e1. Concept of change and levels of change in business\u003c/strong\u003e”,”text”:”1. Concept of change and levels of change in business”,”link”:”1-concept-of-change-and-levels-of-change-in-business”},{“level”:4,”content”:”\u003cstrong\u003e1.1 Levels common changes.\u003c/strong\u003e”,”text”:”1.1 Common levels of change.”,”link”:”11-common-levels-of-change”},{“level”:4,”content”:”\u003cstrong\u003e1.2 Why is it necessary to change change?\u003c/strong\u003e”,”text”:”1.2 Why is it necessary to change?”,”link”:”12-why-need-to-change”},{“level”:3,”content”:”\u003cstrong\u003e2. Causes and signs of change in business.\u003c/strong\u003e”,”text”:”2. Causes and signs to recognize change in the business.”,”link”:”2-causes-and-signs-to-recognize-change-in-the-business”},{“level”:4,”content”:”\u003cstrong\u003e2.1 What causes change (transformation)?\u003c/strong\u003e”,”text”:”2.1 Causes What causes change (transformation)?”,”link”:”21-causes-leading-to-change”},{“level”:4,”content”:”\u003cstrong\u003e2.2 Where to recognize change in business?\u003c/strong\u003e”,”text”:”2.2 Recognize change in business from where?”,”link”:”22-recognize-change-in-business-from-where”},{“level”:3,”content”:”\u003cstrong\u003e3. The role of managers in the process of managing change in the enterprise.\u003c/strong\u003e”,”text”:”3. The role of managers in the process of managing change in the enterprise enterprise.”,”link”:”3-roles-of-managers-in-the-process-of-change-management-in-enterprise”}],”listType”:”none”,”title”:”Section continent”,”titleBg”:”rgba(0,0,0,1)”,”contentColor”:”rgba(0,0,0,1)”,”contentHoverColor”:”rgba(73,181,249,1)”,”contentGap”:15,”indent”:20,”contentFontWeight”:”bold”,”bor derWidth”:1,”titlePaddingTop”:5,”titlePaddingBottom”:5,”hOffset”:1,”vOffset”:2,”blur”:13,”spread”:5,”shadowColor”:”rgba(214,214,214,0.46)”,”contentPaddingTop”:20}

Part 1: Concepts

1. Concept of change and levels of change in business

 Change is also understood as a process of movement due to the influence and interaction of things, phenomena, internal and external factors. Change is a common attribute of all things and phenomena. Change includes changes in quantity, quality and structure.         

When it comes to change in business, it needs to be understood as a change of all processes, proactive reform with the aim of creating greater competitiveness for businesses and organizations: From applying new technology, strategic moves, reorganizing production lines, linking or merging with other businesses, restructuring business departments, to efforts to optimize the corporate cultural style.

It would be a mistake to maintain conservative ideas that resist change, because that means we are gradually embarking on the path to collapse.

1.1 Common levels of change.

• Improvement: is to increase or decrease certain elements of things to make them more suitable, not a change in nature.
•  Innovation: is replacing the old with the new, giving rise to new things, also known as innovation, a change in the nature of things.
• Reform: is to eliminate the old and unreasonable things to create a new one that can fit the objective situation. It is a change in nature but more comprehensive and radical than innovation.
• Revolution: is a major change, a radical change, a complete change.

1.2 Why is change needed?

Change to keep balance, maintain and develop the organization. For individuals, change will create opportunities to cultivate and explore new fields and environments, diversify personal experiences, and supplement and perfect skills.

2. Causes and signs of changes in businesses.

2.1 What causes change (transformation)?

• About society: many changes, society is constantly developing, learning needs increase, human resources for the cause of industrialization and modernization of the country.
• About economics: Globalization, industrialization, market economy, and diverse development of knowledge economy
• About technology: Internet and IT develop strongly, smart electronic devices, social networks develop and have widespread coverage.
• Regarding internal business: changes to meet improvements, expansion or changes in business structure.

2.2 Where to recognize changes in the business?

• From inside: Recognize changes from the most senior team in the business.
• From competitors: New products, new management methods, product quality, effective marketing campaigns…
• From the surrounding environment: Legal policies, social situation, culture, customer sources, customer needs, quality requirements… are all important factors that require changes for businesses to promptly respond to customers and affirm their position and brand.

3. The role of managers in the process of managing change in the enterprise.

 The focus of each reform is the change in principles, life, and daily work, bringing new developments to an organization. However, for those positive changes to be realized, it is an arduous process that falls on the shoulders of managers. Their mission is to embrace change and adapt it in a way that benefits the organization. Only then can they take their organization to the pinnacle of development. As Peter Drucker said: “Successful people must be those who embrace change.

Change is always associated with a certain organization. In an organization, the administrator is the leader and manages all activities. Therefore, the subjects of change management are administrators. Therefore, the role of the administrator is shown as an advocate, catalyst, and stimulator of change; be the one who connects resources for change; is the person who maintains stability in the organization.           

They are sensitive people, anticipating changes. The role of administrators is to recognize change earlier than their employees. Managers must be aware of the change occurring in their organization when it first begins. They must calculate the cost of making the change; determine the level of feasibility; provide feedback; Find the best way to update complete and timely information for group employees; Organize logistics and ensure other work continues normally.           

Administrators are fully prepared in terms of physical facilities, psychology, goals, and measures to implement change. To successfully implement change, administrators also act as evangelists for members to let them know about the change in the organization and mentally prepare their employees, helping them coordinate well to implement the change.           

The change management subject also has a very important role as a controller, adjusting the change implementation process and learning from experience, giving lessons for the next implementation. To perform well the tasks of change management subjects, it is necessary to classify management subjects according to levels:

• Senior administrators: They are the people who oversee, operate, and lead all activities of all departments and areas of the organization. They are also the people who play the main and most important role in managing change in the business.
• Middle managers: They are intermediaries. Their role is to capture changes in the lower departments, thereby taking measures to promptly adjust to changes within their scope of management and support superiors in managing change for the entire organization.
• Grassroots level managers: Although they are low-level managers, it cannot be denied that they play a very important role. These are the people who directly grasp the changes that appear within the organization, to make adjustments or notify superiors and promptly take appropriate adjustment measures, and at the same time are the direct level organizers to implement all the needs of the organization.

Thus, the subject of change management in business plays a very important role, it can change the appearance of an organization. However, in reality we often encounter ineffective administrators who are not respected and always affect the organization's performance. A company with high salaries, friendly management policies and other favorable factors can retain employees and make them loyal to the organization.

But all those favorable factors become meaningless if the organization has poor managers. Furthermore, in key positions, incompetent leaders will hinder carefully prepared plans to improve work performance.