Organisation Development and Change - Case Study Example

Individual case study Student’s Name: Instructor’s Name: Course Code & Name: Date of Submission Executive summary It is an apparent fact that human capital in any given firm plays an integral role in the efforts towards attaining and maintaining competitive advantage in a firm. The cognition of this fact has prompted diverse researches which have been conducted in different organizations and have for long supported the fact that human resource practices have a great effect on the outcomes of the organization based on the fact that they are vital in determining and shaping the attitude and behaviors of the employees (Ostroff & Bowen, 2000). Nonetheless, it is worth noting that market dynamics play a major role in defining the HRM practices in a firm. Technological change, increased competition from other firms in the industry and changes in consumer demands are just some of the issues which are directly linked to the practice of HRM and if not properly addressed can result in detrimental effects in a firm. This is best epitomized at CableCo which is a joint venture between an Australian corporation (AuzCo) and two other Chinese institutions (Municipal post and Post Bureau) located in China. Recent technological dynamics in the telecommunication industry have prompted the executive manager of this corporation to engage consultation aimed at generating the most ideal strategy which is geared towards enhancing the skills and knowledge capital among the human resource in order to match the contemporary technological changes. This can entail rigorous trainings and workshops on the current employees or alternatively hiring new employees who have more experience and technological orientation. From the consultation, it is evident that training the current employees is more viable to the organization based on cost-effectiveness, performance management and molding a robust organizational culture of employee development. In addition, this approach is fundamental in enhancing coordination between various departments which has great impacts on the eventual organizational output. Table of Contents Executive summary 2 Table of Contents 3 Introduction 4 Company profile 5 PEST framework 6 Problem diagnosis 7 Proposed solution to the client 8 Action plan 9 Conclusion 10 References 11 Introduction The concept of HRM can basically be defined as a strategic approach to managing the relations in employment which emphasizes that leveraging people’s capabilities is vital in the efforts to achieve competitive advantage (Bratton & Gold, 2003). This case study is founded on HRM practices at CableCo whereby recent changes in technology have triggered the necessity to empower the employees with the relevant skills and knowledge for them to be able to cope with the aforementioned dynamics. The client in this analysis is the executive manager who has resolved to engage a consultant in order to develop the most prudent approach in solving the above paradox in human resource. In the initial meeting, the present situation of HR at CableCo was analyzed and the current meeting is a follow-up aimed at proposing robust solutions to the technological impediment confronting the corporation. This essay is thus a profound effort to explore this phenomenon. It will firstly analyze the background of the case study organization in terms of size and structure, mission and strategy, nature of market competition among other tenets. Subsequently, a diagnosis to the current problem will be conducted which will be followed by the most ideal solution to the client. Company profile As previously mentioned, CableCo is a joint venture between is a joint venture between an Australian corporation (AuzCo) and two other Chinese institutions (Municipal post and Post Bureau) located in Tianjing. Both of these organizations are located in the city of Tianjing which according to Zhu (2000) is a well-developed industrial city which is currently under the direct control of the central government. Zhu (2000) cited that this corporation is primarily engaged in the production of telecommunication and other diverse communication cables. The consumer base of this corporation has experienced enormous transformations due consumer diversification and polarization. In regard to its size and structure, the board of directors is the highest echelon of management with the general manager deputizing. The executive manager succeeds in rank with the heads of various departments coming under him (Zhu, 2000). When CableCo was instigated, there were five departments namely Production, Finance, Administration, Accounting and Personnel. In regard to departmental sizes, the production department is the broadest constituting approximately 60% of all the employees in the corporation. With the development of the latter department in 1994, the company proceeded and set-up three new departments namely Imports and Exports, Materials and Quality Control (Zhu, 2000). There have been diverse changes in the Chinese telecommunication industry since the economic reforms in 1978 which has resulted in explosive growth of this sector. Against this background, this sector has attracted a massive number of both domestic and international investors. Consequently, competition between firms has elevated with the supply of the products outstripping demand (Zhu, 2000). This radical shift in the business environment can be best explained using the PEST framework as explored in the subsequent analysis. PEST framework Downey (2007) perceived PEST framework in management as a scan of the external macro-environment in which the existence of an institution is founded. In this regard, it is a fundamental tool of gaining comprehensive understanding of the political, economic, socio-cultural and the technological realities which defines an organization’s area of operation. In the political aspect, the operations of CableCo are in a country which has in the recent past undertaken massive market liberalization marking a major shift in promoting free trade in place of protectionism. The main merits of countries participating in unrestricted free trade are that they promote elevated access of their local producers to broader, international markets. Nonetheless, this has elevated the level of foreign direct investment (FDI) and domestic investment targeting the telecommunication industry which has long been perceived as possessing high returns capacity. This has heightened the level of competition in the industry. In regard to the economic prospect, China is experiencing enormous growth which culminates from the great deal of market liberalization and high level of knowledge and skills among its human capital. This is best exemplified by the fact that the International Monetary Fund (IMF) projected that the real GDP in China was to grow by 9.6% in 2011 and heighten at an average rate of 9.5% over the next five years (Morrison, 2011). This economic growth is bound to spill over to the operations of CableCo heightening its total output. On the other hand, the social environment that defines CableCo’s area of operation is characterized by immense cultural heterogeneity with different cultural orientations. This culminates in diversity and dynamism of demands among the corporation’s consumer base which calls for extensive innovation aimed at satisfying these changing demands. Lastly, the technological environment has perhaps experienced the most robust transformation. According to Sigurdson (2004), the process of attaining rapid technological advancements and arriving at the status of a technological superpower has been a synergy of inputs from thousands of engineers, policy makers and scientists. These technological advancements poses both positive and negative impacts to CableCo in the sense that it will necessitate urgent and constant upgrading of the human resource skills and knowledge which poses the incurrence of extra costs in trainings but on the other hand, result in reduced cost of production in the company. Problem diagnosis The technological impediment confronting CableCo is an apparent one. The recent advancements in the technological realms affect the production process as well as other functions of the organization’s operations. Against this background, there is a fundamental need to upgrade the technological capacity of the human resource in the firm. This calls for seeking a professional consultant who is well versed in the technological field in order to come up with the most applicable approach to this challenge. Failure to do this, the company is bound to experience an eventual decline in the market share as a result of changing consumer demands which are directly linked to technological advancements and this will culminate in reduced profitability of the company. Consequently, the firm will not be in a position to support its operations, for instance production and marketing which can have detrimental impacts in influencing migration of the human resource to more suitable firms. This will eventually result in CableCo losing its favorable niche in the telecommunication market. Proposed solution to the client In a generic sense, there are two basic solutions to solving this impediment in the human resource tenet of the company. Firstly, there is rigorous training the current employees on the most recent technological advancements in the telecommunication sector or alternatively, recruit new personnel who have a deeper orientation in the contemporary technology. While the latter approach provides a faster solution to the challenge, it is endowed with massive costs which might be unsustainable in the long-term. This reveals the feasibility of trainings and workshops targeting the current employees in the firm which will be integral in employee development and sustainable in the long-term basis. According to a survey on employee development by Esen and Collison (2005), the HR professionals cited some of the top employee development methods but basically, all these methods are founded on some sought of training. This will not only result in the entrenchment of more advanced technological skills and knowledge in the firm but will also lead to heightened human resource competitive advantage of CableCo in the wider telecommunication industry. However, there are some inherent challenges which have the probability affecting the outcomes of these training programs and workshops. Firstly, some of the employees might opt not to be involved in the training and secondly, there is a probability of non-cooperation from some of the personnel in the management echelon. The key to surmounting these challenges is creating a reward system aimed at motivating the employees who have successfully undergone the trainings and workshops. This approach is supported by The Corporate Leadership Board (2006) who cited that reward and recognition programs can thus be perceived as a valuable and cost-effective tool aimed at elevating the morale of the employees, the productivity of the firm, revenue and profits as well as curtailing lower turnover, stress and absenteeism among the employees. On the other hand, a holistic policy ought to be formulated and implemented outlining the obligation of all the departments to cooperate in this internal training which defines the scope of the project. Action plan The project will start with data collection of the recent technological trends in the market in order to gain an insight into what is required in the training package. This will be succeeded by seeking competent telecommunication technology oriented facilitators who will spearhead the project as well as meeting key persons in the organization like the HR managers, departments heads and the employees representatives in order to come up with a comprehensive training timetable as well as ensuring their commitment and support for the training program. When all these preliminary logistics are streamlined, the trainings will proceed and the projected timeframe is six months during which quarterly monitoring and evaluation (M&E) will be conducted to assess the outcomes of the program on the employees and the overall impacts on the production process. This will be achieved through the development of performance indicators which will be juxtaposed with the set project objectives at the end of the training. These include but not limited to overall output per trained employee before and after the training, the extent of technological orientation of the employee before and after the training, i.e. how they can efficiently utilize the acquired technology. In addition, based on the fact that this training cannot encompass all the employees in the organization which can be attributed to number of employees to be trained as well as trying to achieve the least halting of the organization’s operations in the course of the project, the training will be conducted on selected employees from each department for a period of six months. The successful completion of this phase will instigate the training of a different bunch of employees for a similar period of time. This process will go on until all the employees are covered which will mark the end of this project. This will be followed by a conclusive assessment of the overall impact of the project on the employees’ performance as well as the general output of the corporation. Conclusion CableCo has achieved diverse successes in its ventures since its instigation. This has been an effect of synergy between several factors, both internal and external to the organization. Nonetheless, recent advancements in the telecommunication sector have provided a challenge to the corporation in regard to the urgent necessity to upgrade the level of technological skills and knowledge among the human resource. Failure to do this, the competitive advantage of the corporation in the market will be compromised with many consumers in the market being increasingly inclined towards latest technology in their demands. The project analyzed in the preceding section is thus a profound effort to surmount this challenge both in the short and long-term. However, it is paramount to note that this requires a holistic approach whereby all the departments ought to be involved in the formulation and the eventual implementation of the project. This is key in ensuring the acceptability of the project to all the stakeholders. Lastly, it is fundamental for similar projects to be executed periodically in order to keep the employees updated on the latest technological advancements in the telecommunication center which will ensure that the corporation has technological, human capital and information competitive advantage in the larger industry. References Bratton, J., & Gold, J., (2003). Human Resource Management: Theory and Practice, 3rd edn. Hampshire: Palgrave Macmillan. Corporate Leadership Board (2006). Creating an Effective Reward and Recognition Program, Arlington: Corporate Leadership Council. Downey, J. (2007). Strategic Analysis Tools: Topic Gateway Series No. 34. London: The Chartered Institute of management Accountants. Esen, E. & Collison, J., (2005). Employee Development. New York: Society for Human Resource Management. Morrison, W.M (2011). China’s Economic Conditions. Washington D.C: Congressional Research Service Ostroff, C., & Bowen, D. E., (2000). Moving HR to a higher level: Human resource practices and organizational effectiveness. In K. J. Klein & S. W. J. Kozlowski (eds), Multilevel theory, research, and methods in organizations, (pp. 211–266). San Francisco: Jossey-Bass. Sigurdson, J. (2004). China Becoming a Technological Superpower – A Narrow Window of Opportunity. Retrieved May 14, 2012, from, http://swopec.hhs.se/eijswp/papers/eijswp0194.pdf. Zhu, C.J. (2000). Changing HR practices in China: CableCo. In D. Waddell, T. Cummings, & C. Worley, Organisation Development and Change, (pp. 499-517). Melbourne: Nelson, ITP. Read More