The paper “ Agilent Technologies - the Nature and Purpose of Change in the Organization” is an affecting example of a case study on management. What was the nature of change in the organization? Agilent Technologies had been successful due to their technological superiority. The company stock prices had been rising as well as hiring. In 2000, the company had employed 47,000 people. The downturn in economy during 2001 had a great effect on the company despite its earlier success. This was accompanied by cancellations of the orders from the telecommunication companies. Due to these difficulties, Agilent had to look for an appropriate organization change.
This made Agilent to respond in downsizing so that they could save the firm in the difficult times. The company had to cut the costs which included the expenses and salaries before coming to the final decision of downsizing (Cummings & Worley, 2009). This change is a techno structural nature of the intervention. This is a type of intervention that has its roots in engineering, sociology, and other social-technical disciplines. The method puts its efforts on structural design, downsizing, and reengineering (Noronha & D’ Cruz, 2005).
At Agilent, the process involved downsizing. This involves reducing the workforce in a firm, redesigning and outsourcing. Downsizing is done with the aim of reducing the organization size and expenditure through layoffs. To undertake to downsize the firm should first try other options available. From the case, Agilent started by reducing the expenditure and salary cut. This was a method that was to work temporarily. The case explains that when the orders continued declining, Agilent had no option but to reduce their employees. The firm started by looking for a way to reduce the employees strategically.
This is a move that would downsize the staff by 9 percent. Techno structural interventions are done with the aim of coming up with the required structure which is cost-effective for the organization. Through a reengineering initiative, the organization is transformed into a fast, effective and responsive firm. The process utilizes a common platform that enables it to bring the required structural changes (Noronha & D’ Cruz, 2005). The process of change at Agilent would reduce employee’ s headcount through a layoff. What is the purpose of the change at the organization? Agilent had been under pressure due to the downturn in the economy that was experienced in 2001.
There was the pressure of continued cancellation of orders by the telecommunication companies. Most of the telecommunication companies had been forced to reduce their orders due to several problems that resulted from the economic downturn. Loss of revenue at Agilent led to the company executives looking for ways to cut costs (Cummings & Worley, 2009). The main aim of the change was to save Agilent from the difficult times it faced.
Downsizings refer to the process of reducing the job positions with the main aim of reducing the company expenditure and improve on its performance. Downsizing is refereed with several names as restructuring or right sizing. If well implemented, downsizing leads to the efficient running of the organization and helps in improving competitiveness. For Agilent, downsizing was inevitable. The company had tried other measures to reduce the expenses but had not achieved good results. The net income per employee was falling and the company had to reduce the workers.
The act of downsizing would save the company a lot of revenue. The management figured that the only way Agilent was to succeed in the difficult times was by reducing the number of employees.